Akureyri, Northeastern Region, Iceland

🇮🇸 Akureyri is a town in northern Iceland. It is Iceland's fourth-largest municipality, after Reykjavík, Hafnarfjörður, and Kópavogur, and the largest town outside Iceland's more populated south-west corner.

Nicknamed the "Capital of North Iceland", Akureyri is an important port and fishing centre. The area where Akureyri is located was settled in the 9th century, but did not receive a municipal charter until 1786. Allied units were based in the town during World War II. Further growth occurred after the war as the Icelandic population increasingly moved to urban areas.

The area has a relatively mild climate because of geographical factors, and the town's ice-free harbour has played a significant role in its history.

Economy The fishing industry has historically been a large and important part of the local economy. In recent years, other industries and business services have also begun. Higher education is also a growing sector in the local economy. About 20% of the work force is in the service industry.

Two of the five largest fishing companies in Iceland are headquartered in Akureyri, partly because of the ice-free port. Other large companies in Akureyri include Samherji, Norðurmjólk, Brim hf, and Vífilfell, the largest brewery in Iceland. Sjúkrahús Akureyrar (FSA/Akureyri Hospital) is a major employer in the area and is one of two major hospitals in Iceland.

Corporations pay a tax rate of 18% to the national government, which is one of the lowest in the world. No additional local corporate taxes are levied. Property tax, at 1.99%, accounts for most of the tax base. A local government deficit of ISK 1 billion (US$9 million) was anticipated in 2009, prompting a cut in salaries of the mayor, town councilors, and committee members by 10% and increases in local taxes and property taxes.