Faroe Islands
Northern Europe · FO · 9 treaties
Tax profile
| Corporate income tax | 18% |
| Withholding — dividends | 18% |
| Withholding — interest | 0% |
| Withholding — royalties | 18% |
| VAT / GST (standard) | 25% |
| Personal income (top rate) | 0% |
| Capital gains | 35% |
| Tax system | Worldwide |
| Residency threshold | 180 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- resident in the Faroe Islands (accommodation is acquired and residence is taken up)
- stay at least 180 days in any 12‑month period
Tax residency generally ends once the individual leaves the Faroe Islands with their family and no longer has accommodation available for permanent use, so physically moving away and giving up a Faroese home is usually sufficient.
Source: TAKS (Faroe Islands Tax and Customs Administration)
Tax treaty network (12)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Aland | — | — | — |
| Denmark | — | — | — |
| Finland | — | — | — |
| Iceland | — | — | — |
| Norway | — | — | — |
| Sweden | — | — | — |
| Greenland | — | — | — |
| United Kingdom | — | — | — |
| Switzerland | — | — | — |
| India | — | — | — |
| Bermuda | — | — | — |
| Cayman Islands | — | — | — |