EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Austria vs Iceland: taxes, salary and cost of living
A move between Austria and Iceland is not simply a choice between a cheap and an expensive country; income, rent and taxation pull the result in different directions.
Austria vs Iceland at a glance
| Indicator | Austria | Iceland |
|---|---|---|
| Standard VAT | 20% | 24% |
| Income tax | 0-55% | 16.55-46.29% |
| Social contributions | 18.12% | ~22% |
| Tax burden | 47.2% | 29.5% |
| Average monthly salary | 4,950 € gross/month | €6,350 |
| Studio rent | €760 | €1,450 |
| Monthly food estimate | €330 | €500 |
| Gasoline | 1.63 €/L | 1.95 €/L |
| Electricity | 0.28 €/kWh | 0.16 €/kWh |
Salary advantage and purchasing power
The salary records for Austria and Iceland are not directly numeric in both cases. A responsible comparison therefore avoids inventing a salary gap and treats the displayed labels as source notes to verify.
Housing pressure and everyday spending
Austria has the lower listed studio rent by €690, a 47.6% difference relative to the higher rent. Austria sits 20 of 37 and Iceland 34 of 37 in the available low-to-high rent ranking. Austria also has the lower food estimate, so the housing result is reinforced by groceries.
A simplified salary-minus-rent-and-food remainder cannot be calculated reliably for both Austria and Iceland because at least one component is non-numeric. The interactive calculator should be used only after verifying those inputs.
VAT and personal tax context
Iceland has the lower listed tax burden by 17.7 percentage points. Standard VAT is 20% in Austria versus 24% in Iceland. Neither measure is a substitute for an individual payroll simulation.
Driving and mobility costs
Austria has the lower listed gasoline price by €0.32 per litre. For a driver buying 50 litres a month, that headline difference is about €16 monthly, before insurance, parking and road charges.
Choosing by relocation scenario
For a remote worker paid from abroad, housing and daily costs may matter more than the local salary ranking; on that narrow view, Austria deserves closer attention. A locally employed professional should instead begin with salary and payroll definitions.
Where the comparison lands
Austria leads Iceland on more of the comparable numeric indicators used in this Austria–Iceland summary. This is a directional result, not a personal financial recommendation.
Sources and data references
- PwC standard VAT rates
- PwC personal income tax rates
- PwC corporate income tax rates
- EuroCosts data scope and generation process
Explore Austria comparisons · Explore Iceland comparisons