Viltu business? Stories from local entrepreneurs
Ewa Marcinek is self-employed and works as a writer, teacher, theatre producer, and coordinator of cultural projects. Photograph: Patrik OntkovicLISTAMANNALAUN is a monthly salary offered to visual artists, writers, performers, musicians, and composers for a fixed period of time by the Minister of Culture and Business Affairs. According to the rules, the recipient of the artist’s salary is treated as a contractor or self-employed person and is responsible for paying any employment fees like income tax, health insurance, and pension contributions.
SHOULD YOU PAY VAT? Some enterprises and products in Iceland are exempt from VAT. Among the activities that shouldn't be taxed are services in the fields of education, culture and art.
Self-employed artist
Sometimes a small win can boost your career tremendously. For Ewa Marcinek, author and project manager, self-employment seemed a bit risky until she received financial support for one of her writing projects. With the help of Excel and following her accountant’s advice, she learned to stand on her own two feet as a self-employed artist.
“I decided to register as self-employed after receiving listamannalaun,” says Ewa Marcinek to whom support was granted from the Artists‘ Salary Fund in March 2022. “Back then, I didn’t have stable employment. I worked from project to project, mostly for the theatre company Reykjavík Ensemble and the publishing collective, Ós Pressan, both of which I co-founded.” In her free time, Ewa also teaches creative writing and takes literary translations.
“I’m quite skilled at Excel and I understand the tax system, so I hoped that I would be able to do the bookkeeping myself, but I quickly realized it would be a bit too much for me.” Ewa decided to ask around, and soon she found an accountant, who helped her register as self-employed at RSK. “Katarzyna Omelianiuk, my accountant, speaks Polish. It’s a bit funny, we, Poles living in Iceland, often favour services in our mother tongue and choose Polish hairdressers or car mechanics, but to be honest, it makes me feel confident that I understand everything when speaking with her. Taxes are complicated enough!”
With the help of the accountant, Ewa estimated her monthly income. “I pay my employment fees of the estimated salary, always at the same amount no matter if I earn more or less in a given month. At the moment, the fees are a bit above one-third of my income. Basically, as a self-employed business owner, I cover the costs of both the employee and the employer.”
Ewa published her debut book "Ísland polerað" in 2022. Photograph: Patrik OntkovicTwo monthly payments, one combining withholding tax and health insurance to RSK, and one to a pension fund, appear automatically in Ewa’s bank account. “All I have to do is to accept the transfers. I send invoices for my work and I gather the receipts for my operating expenses. I keep the track of all my income and spending in a simple Excel file.” Because Ewa works in art and culture, she didn’t need to register for VAT.
Ewa Marcinek was representing Icelandic contemporary literature at a Festival of Small Literatures at Booksa literature centre in Zagreb. In the picture, Ewa together with poet and writer Kristín Ómarsdóttir. Photograph: Booksa“I wasn’t sure if I will be able to live off self-employment, but luckily one of the projects I work for received funding this year, so I’m contracted for the next eight to ten months. If needed, I can always update the estimated salary at RSK or unregister if I would lose my income.” The next step for Ewa is to increase her income through different projects. She already has a few ideas.
“I like the freedom that self-employment offers. Working in culture and arts is also a lifestyle choice, and I need a flexible schedule for my artistic practice and to manage all the projects that I’m involved in. It’s my first year of self-employment, and it’s been a great year so far.”
You can find more about Ewa’s work on her website and Instagram