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Iceland: Government

Key Figures

Chief of State:
President Gudni Thorlacius Jóhannesson
Head of Government:
Prime Minister Hella Tomasdottir

Overview

Government Name:
Republic of Iceland
Constitution:
Adopted: 1944; Established the world's oldest parliament (Althing) and declared the country's independence from Norway and Denmark
Government Type:
Unitary Parliamentary Republic
Republic of Iceland Flag
Coat of Arms of Republic of Iceland

Index of Economic Freedom

Grades each country on a scale of 0 to 100, based on ten freedoms, with 100 representing the greatest amount of economic autonomy from government intervention. Source: Heritage Foundation (2023)

Country Risk Rating

A3
Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behavior. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average. Source: Coface (2023)

Government Branches

Main Powers Election Process Election Cycle 1
Executive

The president is a ceremonial office position and serves as a diplomat and figurehead. The prime minister acts as an executive authority upon the cabinet of ministers.

The president is elected by plurality vote. The prime minister is appointed by the president with the approval of parliament.

4 years
Judicial

Final court of appeal in Iceland.

Judges are proposed by the ministry of interior selection committee and are appointed by the president.

Life appointment
Legislative

Parliament is the main legislative body in charge of creating legislature.

54 members are elected through an open-list proportional representation system and another 9 members are elected by open-list proportional representation in multi-member constituencies.

4 years

Regional Trade Blocs
EFTA

International Organization Participation [2]

Environmental Agreements [3]

Tax Information [2]

Tax Authority:
Ministry of Finance
Tax Name:
VAT

Sources:

  1. ElectionGuide http://www.electionguide.org/
  2. EY, http://www.ey.com
  3. CIA World Factbook, https://www.cia.gov/the-world-factbook/
  4. U.S. Bilateral Relations Fact Sheets http://www.state.gov/r/pa/ei/bgn/