Company Legislation and Taxation


Except from some limitations regarding companies involved in the fishing industry, a company in the Faroes, may be owned partly or in full by foreigners. Such companies are liable to the same Taxes, VAT, Duties, terms and conditions, governing all companies in the Faroes.
Therefore foreign owned companies are subject to the very favourable Faroese company tax of only 18%. 
There is no wealth- or property tax in the Faroes, and companies are allowed to depreciate assets up to 30 % per year, buildings however up to 7 %.