In brief
Domicile, tax residence, source taxation and treaty relief are separate. This review does not establish your tax exit date or calculate any departure charge.
Start with Iceland Revenue and Customs (Skatturinn): General tax liability (opens in a new tab)
Keep citizenship, tax residence and FEMA residence separate
These labels answer different questions. Your nationality or OCI card does not alone determine the year’s Indian tax treatment. Establish the relevant year, travel history, income sources and exceptions.
Your next steps
0 of 5 steps complete · Next: Include Indian income and assets in the residence review
Include Indian income and assets in the residence review
Next stepSkatturinn’s general-liability guidance says domiciled individuals disclose worldwide income and assets. Indian bank balances, interest, investments and property therefore belong in the preparer’s inventory even when no money is remitted to Iceland.
Check the continuing-liability rule
Article 1 covers former domiciled individuals who leave and terminate domicile unless they prove they are taxable abroad as domiciled residents there and have fulfilled those obligations. This tail is limited to three years from the next year-end after departure. Ask Skatturinn what Indian residence and tax-compliance evidence satisfies the rule and how any treaty limits apply.
Apply the particular treaty and claim route
Skatturinn says each agreement differs. For relief from Icelandic taxation, its published guidance describes application on form 5.42 and continued payment until an approved exemption/reduction. Check that route and the exact India income article before altering withholding.
Separate retained Icelandic income
Practical preparation: list salary arrears, pension payments, rent and planned property sales after departure. Ask which source-tax filings remain and how Indian reporting and relief interact. Do not assume non-residence eliminates tax on all local income.
Keep income and tax evidence at source level
Practical preparation: collect Indian statements, acquisition costs, tax certificates and ownership details, plus Icelandic assessments. Separate capital transfers from income and retain the conversions used in each return.
Suggested preparation sequence. Your authority may require a different order. Progress stays on this device.
Iceland & India guidance · All countries
Evidence for these steps
Checked 20 October 2026. Links support the statements within their scope; preparation lists are editorial suggestions. Access limitations are disclosed below.
- Include Indian income and assets in the residence review: Iceland Revenue and Customs (Skatturinn) — General tax liability
- Check the continuing-liability rule: Alþingi (Icelandic Parliament) — Income Tax Act 90/2003, Article 1
- Apply the particular treaty and claim route: Iceland Revenue and Customs (Skatturinn) — Double taxation agreements
- Separate retained Icelandic income: NRIdisha preparation suggestion; confirm your own requirements.
- Keep income and tax evidence at source level: NRIdisha preparation suggestion; confirm your own requirements.
What to have ready
0 of 3 preparedKeep documents in your own secure records. Tick what you have; nothing is uploaded.
Model the decision with your own figures
Prepare the dates, currencies, costs and amounts you know. Keep tax eligibility, provider access and uncertain assumptions on your adviser’s question list. The calculators show those assumptions explicitly.
For a return to India, add education, parents’ support, healthcare, partner income and locked funds to the household timeline. Bring supporting-tool figures into it only after reviewing timing, currency and overlap.
Questions to take to an adviser
- When does my liability actually end, and what proves it?
- Which Indian income and assets must be disclosed?
- Is a treaty relief application approved before withholding changes?
Who can help
A qualified Iceland adviser and an Indian cross-border tax or citizenship specialist, as appropriate. The responsible authority decides applications.
Check an adviser before paying or signingSources & review limits
Published by NRIdisha. Prepared with AI assistance. No individual author or qualified professional reviewer is credited for this guide.
Official sources support the statements they address. They do not certify this guide or your eligibility. Open the source and check current amendments before acting.
Income Tax Department (opens in a new tab) · Reserve Bank of India (opens in a new tab) · National Portal of India (opens in a new tab)
Icelandic-language guidance on worldwide income and asset disclosure by domiciled individuals.
Current Icelandic law, edition 158a, 1 October 2026: continuing liability after domicile ends and foreign taxation evidence.
Agreement-specific relief and application for exemption/reduction.
Keep this page’s title, the exact statement and the official source. Email them to support@nridisha.com. Do not include personal documents.