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October 2026

What will the new levies do to tourism?

−1.2%foreign visitors in the long run

The tax changes in the 2027 budget bill raise the average visitor's costs by 2.1% and could reduce foreign visitors by 1.2% in the long run. Net government revenue would be about ISK 9.2bn a year.

Question. What do the tourism-related tax changes in the 2027 budget bill mean for the number of visitors, their spending and government revenue?

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