EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Iceland vs Liechtenstein: taxes, salary and cost of living
For someone shortlisting Iceland and Liechtenstein, headline tax rates tell only part of the story. The monthly household budget produces a more useful comparison.
Iceland vs Liechtenstein at a glance
| Indicator | Iceland | Liechtenstein |
|---|---|---|
| Standard VAT | 24% | 8.1% |
| Income tax | 16.55-46.29% | 2.5-22.4% |
| Social contributions | ~22% | ~17% |
| Tax burden | 29.5% | ~20% |
| Average monthly salary | €6,350 | €7,900 |
| Studio rent | €1,450 | €1,350 |
| Monthly food estimate | €500 | €500 |
| Gasoline | 1.95 €/L | 1.86 €/L |
| Electricity | 0.16 €/kWh | 0.24 €/kWh |
How far does the local salary go?
Liechtenstein records the higher listed monthly salary. The gap is €1,550, approximately 19.6% relative to the lower figure. Within the numeric EuroCosts sample, Iceland ranks 4 of 27 for salary and Liechtenstein ranks 1 of 27. That ranking is useful context, but gross and net labels must be checked in the source record.
What recurring living costs reveal
Liechtenstein has the lower listed studio rent by €100, a 7.4% difference relative to the higher rent. Iceland sits 34 of 37 and Liechtenstein 32 of 37 in the available low-to-high rent ranking. Iceland also has the lower food estimate, so the housing result is partly offset by groceries.
After subtracting only the listed rent and food estimates, the simplified remainder is €4,400 in Iceland and €6,050 in Liechtenstein. This leaves €1,650 more in Liechtenstein, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Tax profile for employees
Tax-burden values include a range or text note for at least one country. The standard VAT comparison—24% in Iceland and 8.1% in Liechtenstein—is more directly comparable, although reduced rates differ by product.
Fuel-price impact
Liechtenstein has the lower listed gasoline price by €0.09 per litre. For a driver buying 50 litres a month, that headline difference is about €4.5 monthly, before insurance, parking and road charges.
The answer depends on your profile
The better choice between Iceland and Liechtenstein changes with the user: salary-led relocation favours the stronger income-to-cost balance, budget-led relocation favours recurring expenses, and business decisions require separate legal and corporate-tax analysis.
Final view: Iceland or Liechtenstein?
Liechtenstein produces the stronger simplified monthly remainder in this dataset, while Liechtenstein leads on listed rent. That split explains why there is no universal winner.
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 Iceland comparisons · Explore Liechtenstein comparisons