Tax pressure in Faroe Islands decreases to 40.6% of GDP in 2022

In 2022, the tax pressure in the Faroe Islands was 40.6% of the Gross Domestic Product (GDP), according to figures released by the Statistics Faroe Islands. This reflects a decrease from 43.8% in 2020 and a slight dip from 41.8% in 2021.

Historically, the highest tax pressure recorded over the past 25 years occurred in 2008, when it reached 45.4% of GDP. Meanwhile, in 2016, the tax pressure dropped to 39.5%, marking a notable low point.

The trends indicate a gradual shift in the tax landscape of the islands, with a downward trajectory observed since the peak in 2008.