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Faroe Islands
Europe
Lucky Nomads World Index
66.61 / 100
0.10
Global rank
#95
Corporate tax
18%
Personal tax
54%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index9.3 / 10
- Affordability Index3.8 / 10
- Entry Ease Index6.0 / 10
- Tax Freedom Index3.5 / 10
- WiFi Index7.5 / 10
- Admin Ease Index8.4 / 10
- Healthcare Index8.5 / 10
- City Comfort Index8.7 / 10
- WeatherComfort Index4.0 / 10
- Banking Index8.8 / 10
- GeoStability Index9.3 / 10
- Justice & Order Index9.0 / 10
- Quality of Life Index8.6 / 10
- Open Society Index8.5 / 10
- Flight Index3.5 / 10
- Environmental Quality Index9.3 / 10
- English Index7.8 / 10
- Wealth Protection Index9.0 / 10
- AI Access Index6.3 / 10
- Economic Openness Index8.3 / 10
- Market Depth Index4.1 / 10
- ClimateShield Index7.8 / 10
Country snapshot
- Capital
- Tórshavn
- Population (approx.)
- 56,000
- Area (km²)
- 1,393 km²
- Currency code (ISO 4217)
- DKK
- Currency name
- Danish krone
- Main airport IATA code
- FAE
- Airport name
- Vágar Airport
General facts
- Minimum monthly cost
- From $3,050/month
- Main languages
- Faroese
- Jurisdiction type
- Territory
- Region
- Europe
- Web TLD
- .fo
- Phone calling code
- +298
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 18%ModerateWorldwide
- Marginal PIT (personal income tax)
- 54%Very highWorldwide
Corporate taxation basis: Worldwide. The country generally taxes worldwide income of resident companies.
Worldwide-residence basis for resident companies. There is no structural participation exemption regime and a flat 0 percent outbound dividend withholding tax across most situations. The TTS regime substitutes the deemed-income base for shipping companies but retains the 18 percent rate.
Flat 18 percent corporate tax on worldwide income of Faroese-resident companies. Outbound dividend withholding tax at 0 percent. Shipping companies can elect into the Tonnage Tax System (TTS) under the Tonnage Tax Act 2008, which substitutes a tonnage-based deemed income for accounting profit, applied at the same 18 percent rate, and exempts vessel sale gains.
Personal income tax basis. Worldwide. Resident individuals are generally taxable on their worldwide income, subject to relief under applicable tax treaties.
Worldwide taxation of resident individuals (full tax liability triggered by residence or stays exceeding 180 days in any 12-month period). Foreign-source income is fully taxable for residents with relief through the Nordic Tax Treaty and bilateral DTTs (UK, CH, IN, BM, KY, GL). Capital gains 35 percent. No wealth tax, no property tax, no NHR and no non-dom regime.
Combined progressive structure: national tax 13-30 percent above , flat municipal tax 16-23 percent depending on municipality, plus optional church tax 0.6-0.9 percent. Top combined rate reaches approximately 54 percent. Limited tax liability (stays of 180 days or less, no registered address) applies a flat 42 percent with no deductions plus 3 percent labour market contribution.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
Faroese Tonnage Tax System (TTS)
AvailableThe Faroese Tonnage Tax System taxes qualifying shipping companies on a deemed income calculated from net tonnage rather than on accounting profit,…
For individuals
FAS Seafarer Flat Tax (35 percent on Crew Wages)
AvailableCrew members employed on Faroe Islands International Ship Register (FAS) registered vessels or on Faroese-bareboat-chartered ships pay a flat 35…
You either qualify for the Faroe Islands' special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for Faroe Islands. Saved on your device.
Overview
- Citizenship by investment
Not currently available
- Residence by investment
Not currently available
- Remote work visa (digital nomad visa)
Not currently available
Programmes
Faroe Islands lists several residency and mobility routes across work (employer sponsored), family and dependant routes, student and graduate routes, and treaty-based residence. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
5 programmes listed · 5 are marked available in our editorial review
Work (employer sponsored)
2 programmesEmployer-linked permits and skilled employment passes for hired professionals.
- Available
EU Scheme Residence and Work Permit (Faroe Islands)
- Available
Standard Residence and Work Permit (FO1)
Family and dependant routes
1 programmeSpouse, dependant, and family reunion style permits.
- Available
Family Reunification Permit (FA1)
Student and graduate routes
1 programmeStudy-linked permits and post-study transition routes.
- Available
Student Residence Permit (Faroe Islands)
Treaty-based residence
1 programmeResidence rights that flow from an international treaty rather than domestic immigration law.
- Available
Nordic Common Labour Market Residence (Faroe Islands)
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in the Faroe Islands.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- SafetyShield Index9.3 / 10Exceptional safety and stability
- GeoStability Index9.3 / 10Exceptional geostability index
- Environmental Quality Index9.3 / 10Exceptional environmental quality index
Weakest dimensions
- Flight Index3.5 / 10
- Tax Freedom Index3.5 / 10
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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