Accounting in Iceland is shaped by a short list of firms that audit most of the country’s listed companies, banks and municipalities, plus a long tail of smaller bookkeeping offices that handle VAT, payroll and annual accounts for small and mid sized businesses. Compliance is frequent: according to Iceland Revenue and Customs (Skatturinn), the standard VAT rate is 24%, the reduced rate is 11%, and most businesses file every two months, with payment due one month and five days after each period ends.
For foreign owned companies the practical questions are who can register a branch or subsidiary, run Icelandic payroll with pension fund and union filings, and produce accounts that satisfy both Skatturinn and a parent company abroad. The firms below include the Big Four Icelandic member firms, mid tier audit practices with international network membership, and specialist bookkeeping and payroll providers.
For this list we checked each company on its own website for an Iceland office address, accounting, audit or bookkeeping as a core service and named client work. No company paid to be included, and the order reflects our judgement of strength and fit. For more Iceland lists and guides, visit our Iceland hub.
Iceland Accounting Firms At A Glance
Company
Iceland Base
Best For
Core Services
KPMG Iceland
Borgartún, Reykjavík plus 9 regional offices
Companies needing nationwide coverage
Audit, financial reporting, tax, advisory, KPMG Law
Deloitte Iceland
Dalvegur, Kópavogur
Listed companies and IFRS reporting
Audit, IFRS accounting, tax and legal, M&A, risk, cybersecurity
PwC Iceland
Skógarhlíð, Reykjavík plus regional offices
Outsourced bookkeeping and payroll at scale
Audit, tax and legal, bookkeeping and payroll, corporate finance
Enor
Höfðabakki, Reykjavík; Akureyri; Húsavík
Foreign companies entering Iceland
Audit, bookkeeping, payroll, tax, foreign entity registration and VAT
1. KPMG Iceland — Audit, Tax And Advisory Across Ten Icelandic Offices
KPMG ehf. operates in Iceland under licence from KPMG Global and is wholly owned by 37 shareholders who all work at the firm. Its head office is at Borgartún 27, 105 Reykjavík, and it has nine more offices in Akranes, Akureyri, Blönduós, Borgarnes, Egilsstaðir, Reyðarfjörður, Reykjanesbær, Sauðárkrókur and Selfoss.
Services include audit and financial reporting, advisory work on AI, ESG, risk, strategy, budgeting, valuation, due diligence and financial systems, and tax. KPMG Law adds legal services, including tax law. The firm lists sector teams for tourism, healthcare, energy and infrastructure, fisheries, real estate, financial institutions and municipalities.
KPMG suits groups with operations outside the capital, and foreign companies that want an international audit brand with the widest regional network in Iceland.
2. Deloitte Iceland — Large Audit Practice With IFRS And Tech Services
Deloitte’s Icelandic firm is based at Dalvegur 30, 201 Kópavogur, on the edge of Reykjavík. It says it has about 130 specialists in external audit, organised in three groups, and it is listed among the Framúrskarandi (outstanding) Icelandic companies for 2026.
Beyond audit and assurance, Deloitte offers review engagements, outsourced financial statement preparation, IFRS implementation and health checks, purchase price allocation, tax and Deloitte Legal, M&A, ERP systems, software and data work, cybersecurity and sustainability consulting. It says its audit clients range from small innovation companies to large listed groups with international operations.
Deloitte suits listed companies, groups reporting under IFRS and foreign subsidiaries whose parent already uses Deloitte elsewhere.
PwC traces its Icelandic history to an audit firm founded in Reykjavík in 1924 by Niels Manscher and Björn E. Árnason. The current firm took shape in 1998 when Coopers & Lybrand and Hagvangur merged in Iceland. Its Reykjavík office is at Skógarhlíð 12, 105 Reykjavík, with offices in Akureyri, Húsavík, Selfoss and Hvolsvöllur.
Services cover audit, corporate finance, tax and legal advice, internal audit and risk, IT, governance, financial statements, sustainability and market pay analytics. Its bookkeeping and payroll division handles bookkeeping on an online system with invoice approval workflows, payroll with monthly filings to the tax authority, pension funds and unions, and temporary cover for clients’ finance teams.
PwC suits companies that want to outsource the whole finance back office, including payroll, to a Big Four firm.
4. Enor — Audit Firm With Dedicated Foreign Company Services
Enor ehf. was founded in June 2012 and has offices at Höfðabakki 9, 110 Reykjavík, Hafnarstræti 53 in Akureyri and Garðarsbraut 26 in Húsavík. The site lists 47 staff, including six chartered accountants. Davíð Búi Halldórsson is managing director. Enor is the Icelandic correspondent of Praxity, a global alliance of independent audit and advisory firms.
Services include external and internal audit, financial statements and budgets, due diligence and valuations, tax and company law, and bookkeeping, payroll and invoicing. Enor also lists specific international services: help registering foreign parties in Iceland, payroll and registration for foreign employees, VAT returns for foreign entities and cross border advice.
Enor is one of the clearest fits for foreign owned companies that need setup, payroll and compliance handled by one Icelandic firm.
Grant Thornton Iceland was established in 1989 by Ólafur G. Sigurðsson, Sigurður Ámundason and Theodór S. Sigurbergsson, according to the Grant Thornton network’s fact sheet for the Icelandic member firm, which gives its address as Suðurlandsbraut 20, 108 Reykjavík and names Theodór S. Sigurbergsson as managing and international practice partner.
The firm’s own site lists four service areas: financial advisory, tax advisory, accounting and financial statements, and audit. As part of the Grant Thornton International network it can coordinate with member firms abroad on group audits and cross border tax.
Grant Thornton suits mid sized Icelandic companies and foreign groups that want a partner led firm with an international network but a smaller team than the Big Four.
6. Virtus — Payroll Outsourcing And Accounting For Domestic And Foreign Clients
Virtus was founded in 2001 and is based at Skipholt 50d, 105 Reykjavík, with customer service open 8am to 6pm on weekdays. Managing director Þorkell Guðjónsson leads a team that includes heads of payroll and HR, accounting and quality, plus legal counsel. Virtus now operates within the ECIT group.
Services include payroll outsourcing and salary payment, contractor accounting, general accounting, financial statements and tax returns, payment services, invoicing through its Nóta product, and advice on acquisitions, sales and capital restructuring. Virtus says its client base of around 300 includes domestic and foreign partners, and it has handled contractor accounting for foreign film producers including Paramount, Universal and 20th Century Fox.
Virtus suits foreign productions and companies that need Icelandic payroll run correctly from day one.
7. Fastland — Bookkeeping And Payroll Office With 800 Plus Clients
Fastland ehf. was founded in March 2009 and has grown from one employee to more than 20. It works from Bogahúsið, Höfðabakki 9, 6th floor, 110 Reykjavík, and Silja Dögg Osvaldsdóttir is managing director.
Fastland handles bookkeeping and advice, VAT, invoicing, annual accounts, payroll and payroll filings, company formation, tax returns, payment services and HR administration. It reports more than 800 clients and over 10,000 completed projects. Its team includes account managers, a payroll department and accredited bookkeepers.
Fastland suits Icelandic small businesses and foreign founders with a local company who want a dedicated account manager rather than an audit firm. Its site is in Icelandic only, so check English support before signing.
8. DFK Endurskoðun — Small Audit Office In The DFK International Network
DFK Endurskoðun was founded in 1986 and is based at Skipholt 50d, 105 Reykjavík. It is a six person firm owned by licensed auditor Jón G. Hjálmarsson.
Services include bookkeeping, payroll and year end closing with tax returns, tax advice on business structures, company formation and dissolution and disputes with the tax authorities, financial statements under Icelandic and international standards, and audit, due diligence and internal control reviews. Through DFK International, a network of more than 430 independent offices in over 85 countries, the firm serves foreign companies and individuals in Iceland and Icelandic clients abroad.
DFK suits owner managed businesses and foreign investors who want a small, senior led audit firm with international referral links.
Íslenskir endurskoðendur (Icelandic Auditors) is based at Bæjarhraun 8, 220 Hafnarfjörður, and has auditors working in different parts of Iceland. It positions itself as an alternative option for auditing Icelandic companies of different sizes.
News on its site records an audit contract with the Association of Municipalities in Suðurnes, won through a tender, and membership of a Ríkiskaup framework agreement for audit services alongside 11 other Icelandic firms. The site has an English section.
Íslenskir endurskoðendur suits municipalities, regional companies and mid sized firms that want a domestic audit partner outside the large international networks.
10. Bóklega — Bookkeeping And Annual Accounts For Reykjavík SMEs
Bóklega is a bookkeeping and tax advisory office at Sundaborg 5, 104 Reykjavík, serving small and medium sized businesses in the capital area.
Its bookkeeping service covers bank entries and reconciliations, VAT returns, payroll and financial reports. Annual accounts work includes preparation and filing with Skatturinn and compliance checks. Advisory services cover operations, tax planning, company formation and choosing an accounting system. Bóklega names contractors, startups, shops, restaurants and consultants as typical clients, and says a bookkeeper reviews entries and is responsible for decisions.
Bóklega suits new companies and small foreign owned startups in Reykjavík that need affordable, hands on bookkeeping. The site offers an English language link.
How To Choose An Accounting Firm In Iceland
Do You Need An Auditor Or A Bookkeeper?
Larger companies above the statutory thresholds and listed companies need an external auditor, which is where KPMG, Deloitte, PwC, Grant Thornton, Enor, DFK and Íslenskir endurskoðendur come in. Many small private companies only need bookkeeping, VAT, payroll and annual accounts, which offices such as Fastland, Virtus and Bóklega handle. Some firms do both.
Can The Firm Work In English?
Icelandic is the language of filings and most firm websites, but international firms and those with foreign clients usually work in English. Enor, Virtus and DFK all describe services for foreign parties. Ask for the name of the English speaking account manager and whether monthly reports can be delivered in English.
What Do Foreign Companies Need To Set Up?
A foreign company can register a branch or form an Icelandic subsidiary. Skatturinn”s branch registration guidance asks for an Icelandic address, a branch manager, a recent certificate of registration and the parent’s latest annual accounts, with processing generally taking two to three weeks. An accountant can prepare the forms and register the business for VAT and payroll.
How Often Will You File VAT And Payroll?
Standard VAT periods are two months long, with payment due one month and five days after each period. Businesses with taxable sales of ISK 2 million or less in a twelve month period are exempt from VAT registration. Payroll is filed monthly, including withholding tax and contributions to pension funds and unions, so pick a firm with a reliable payroll team.
How Are Fees Charged?
Fees are quoted in ISK, usually as a monthly bookkeeping fee plus hourly rates for annual accounts, tax and audit. Ask for a fixed monthly price covering VAT returns and payroll for a set number of employees, and a separate quote for year end work so there are no surprises.
Conclusion
Iceland’s accounting market splits into international audit firms, mid tier practices and focused bookkeeping offices. KPMG, Deloitte and PwC offer the deepest audit and advisory benches, Enor, Grant Thornton and DFK combine audit with international networks, and Virtus, Fastland and Bóklega cover day to day bookkeeping and payroll.
Foreign owned companies should prioritise firms that already handle foreign entity registration and Icelandic payroll in English, then confirm who will sign the accounts, how VAT periods are managed and what the monthly ISK fee includes.
