How does mileage allowance work?
What are the mileage allowance rates in Iceland in 2024?
0-1,000km
ISK 141 (€0,94)
1,001-2,000km
ISK 136 (€0,91)
2,001-3000km
ISK 131 (€0,88)
3,001-4,000km
ISK 126 (€0,84)
4,001-5,000km
ISK 122 (€0,82)
What is not included in the mileage allowance?
Employee use of a company car
- Full and unlimited use: the employee can use the company car for their own purposes—for example, family trips or shopping. The annual income is calculated as 28% of the initial purchase price of the vehicle as stated in the employer’s depreciation report for vehicles powered by fossil fuel and 25% for vehicles powered by electricity, hydrogen or methane. The purchase price can be reduced by 10% annually down to 50% of the purchase price. This only applies to vehicles purchased in 2014 or later.If the employee pays the operation expenses himself the percentage is reduced by 6% for vehicles powered by fossil fuel and 3% for vehicles powered by electricity, hydrogen, or methane.
- Limited use: an employee using a company-provided vehicle for limited use (i.e. commutes or business-related errands) is deemed to have received income from the employer. In 2024, this income stands at ISK 141 for each kilometre driven.
Per diems in Iceland for 2024
January - May
June - December
Accommodation and transport (24 hours)
ISK 38,500 (€257.78)
ISK 54,400 (€364.39)
Accommodation (24 hours)
ISK 22,600 (€151.38)
ISK 38,100 (€255.21)
Transport - whole day trip (min. 10 hours)
ISK 15,900 (€106.50)
ISK 16,300 (€109.18)
Transport - half-day trip (min, 6 hours)
ISK 7,950 (€53.25)
ISK 8,150 (€54.59)
Accommodation
Other
Category 1 (Moscow, Singapore, New York City, Tokyo, Washington)
SDR 208
SDR 125
Category 2 (Dublin, Istanbul, Japan (except Tokyo), London, Luxembourg, Mexico City, Seoul)
SDR 177
SDR 106
Category 3 (Amsterdam, Athens, USA (except New York City and Washington DC), Helsinki, Barcelona, Geneva, Hong Kong, Canada, Copenhagen, Madrid, Oslo, Paris, Rome, Stockholm, Vienna)
SDR 156
SDR 94
Category 4 (Other destinations including Norway, Finland, Sweden, Switzerland, Belgium, Spain, France, Croatia, Denmark, Ireland, and other European countries)
SDR 139
SDR 83
Road tax fee in Iceland
- 6 ISK per kilometre for electric cars and hydrogen cars
- 2 ISK per kilometre for plug-in hybrids
How to log the odometer reading
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Frequently asked questions about mileage allowance in Iceland
How does the mileage reimbursement rate in Iceland compare across Europe?