EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Iceland vs North Macedonia: taxes, salary and cost of living
A move between Iceland and North Macedonia is not simply a choice between a cheap and an expensive country; income, rent and taxation pull the result in different directions.
Iceland vs North Macedonia at a glance
| Indicator | Iceland | North Macedonia |
|---|---|---|
| Standard VAT | 24% | 18% |
| Income tax | 16.55-46.29% | 10% |
| Social contributions | ~22% | 27% |
| Tax burden | 29.5% | 35.3% |
| Average monthly salary | €6,350 | €1,070 |
| Studio rent | €1,450 | €350 |
| Monthly food estimate | €500 | €220 |
| Gasoline | 1.95 €/L | 1.27 €/L |
| Electricity | 0.16 €/kWh | 0.11 €/kWh |
How far does the local salary go?
Iceland records the higher listed monthly salary. The gap is €5,280, approximately 493.5% relative to the lower figure. Within the numeric EuroCosts sample, Iceland ranks 4 of 27 for salary and North Macedonia ranks 25 of 27. That ranking is useful context, but gross and net labels must be checked in the source record.
What recurring living costs reveal
North Macedonia has the lower listed studio rent by €1,100, a 314.3% difference relative to the higher rent. Iceland sits 34 of 37 and North Macedonia 3 of 37 in the available low-to-high rent ranking. North Macedonia also has the lower food estimate, so the housing result is reinforced by groceries.
After subtracting only the listed rent and food estimates, the simplified remainder is €4,400 in Iceland and €500 in North Macedonia. This leaves €3,900 more in Iceland, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Tax profile for employees
Iceland has the lower listed tax burden by 5.8 percentage points. Standard VAT is 24% in Iceland versus 18% in North Macedonia. Allowances, tax brackets and employment status can reverse a headline comparison.
Fuel-price impact
North Macedonia has the lower listed gasoline price by €0.68 per litre. For a driver buying 50 litres a month, that headline difference is about €34 monthly, before insurance, parking and road charges.
The answer depends on your profile
For a remote worker paid from abroad, housing and daily costs may matter more than the local salary ranking; on that narrow view, North Macedonia deserves closer attention. A locally employed professional should instead begin with salary and payroll definitions.
Final view: Iceland or North Macedonia?
Iceland produces the stronger simplified monthly remainder in this dataset, while North Macedonia 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 North Macedonia comparisons