On 13 October 2026, the Faroese Tax Authority (TAKS) announced updated property tax rates (prístøl) for buildings and building plots, effective from 1 October 2026. This periodic adjustment reflects revised property valuations and applies to all real estate owners in the Faroe Islands. The rates determine the annual municipal property tax liability, which is a
On 9 October 2026, the Faroese Ministry of Finance (Fíggjarmálaráðið) officially announced that the social wage index (felags lønarkarmur) for the 2026 tax year has been fixed at 3.86%. This index, negotiated within the general labor market framework, serves as the primary statutory benchmark for adjusting personal income tax brackets, social security contribution ceilings, and
Faroe Islands: Faroe Islands Sets Social Wage Index at 3.86% for Tax Year 2026 Read More »
On 1 October 2026, the Faroese Ministry of Finance (Fíggjarmálaráðið) announced a significant restructuring of public payroll administration. Finance Minister Aksel V. Johannesen has decided to merge the payroll division within the Ministry of Finance (lønardeildin í Fíggjarmálaráðnum) with the payroll division at the Customs and Tax Authority (Gjaldstovan) into a single unified division effective
Faroe Islands: Faroe Islands Merges Payroll Administration into Tax Authority Read More »
On 30 September 2026, the Faroese Government unveiled its fiscal law proposal for 2027 (fíggjarlógaruppskotið fyri 2027), outlining a comprehensive policy package aimed at improving welfare conditions across generational and social dimensions. Finance Minister Aksel V. Johannesen presented the proposal, which prioritizes three strategic pillars: strengthening educational environments for young people, expanding labor market participation
Faroe Islands: Faroe Islands 2027 Budget Targets Youth, Seniors, Drug Prevention Read More »
On 28 September 2026, the Faroese Ministry of Finance announced a press conference scheduled for 30 September 2026 at 10:00, where Finance Minister Aksel V. Johannesen will formally present the government’s fiscal law proposal for 2027 (fíggjarlógaruppskotið fyri 2027) to the media and public. This annual fiscal legislation sets the legal framework for state revenues,
Faroe Islands: Faroe Islands Presents 2027 Fiscal Law Proposal at Press Conference Read More »
The Faroe Islands Tax Administration (TAKS) has enacted a comprehensive overhaul of the archipelago’s property tax regime, effective 1 July 2026, marking the most significant revision to the levy framework since the original Property Tax Act was promulgated in the early 2000s. This reform emerges from a multi-year review process launched by the Faroe Islands
Faroe Islands: Faroe Islands Property Tax Levy Effective July 1 2026 for Building Plots Read More »
