Iceland

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fDi Editor | 05/01/2004 12:00 am

Iceland is uniquely located between North America and Europe and, with a corporate tax rate of just 18%, it is a perfect location for business.

The IT and biotechnology sectors have been growing in recent years in Iceland, with R&D spending as a percentage of GDP among the highest in Europe. The country offers the lowest cost energy in Europe for larger industrial processes. Alcoa is investing $1.1bn in an aluminium smelter there and other aluminium producers are preparing to expand their operations.

Also, steam and hot water are in abundance at a low cost. This provides opportunities for various industries, such as paper production, horticulture and others that require drying and heating processes.

With a 12% refund package for film and TV production, open to all productions, the country has been a location for various films, including Laura Croft: Tomb Raider and the recent James Bond movie, Die Another Day.

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