Skip to main content
Sunday
Back to BlogCorporate Gifting

20 Best Tax-Free Employee Gifts for Iceland (2026)

20 branded merchandise ideas for Icelandic employers, priced in ISK from 386 to 5,813 per unit, sized to work comfortably within Iceland's 192,000 ISK annual events threshold and the "customary" standard for milestone gifts. Includes materials, branding options, and order quantities for each product.

Niels VandecasteeleNiels Vandecasteele
7 min read
20 Best Tax-Free Employee Gifts for Iceland (2026)

Iceland doesn't set one single number for every kind of gift: the 192,000 ISK annual events threshold is a genuine figure, but milestone and client gifts are judged only against what's "customary" or "reasonable" for the occasion. Rather than chase a specific number for every gift, most employers aim for practical, well-made branded merchandise that reads clearly as an ordinary corporate gift. Below are 20 ideas that fit that brief, priced in ISK with minimum order quantities, so you can plan a batch for the whole team.

What makes a good gift for an Icelandic team

  • Everyday usefulness. Items people would buy for themselves anyway, drinkware, stationery, apparel, tend to get used long after the gifting occasion is forgotten.
  • A clearly modest scale for milestone gifts. Since exceeding what's "customary" risks making the whole gift taxable, reserving the pricier pieces on this list for genuine milestones and keeping everyday items for staff events is the simplest way to stay comfortably inside both standards.
  • Branding that feels considered, not slapped on. Embroidery, laser engraving, and debossing tend to read as more premium than a large printed logo, especially on apparel and drinkware.
  • Sensible minimum order quantities. Smaller teams benefit from items with low MOQs; larger companies can unlock better unit pricing at scale.

1. Hoodie – The Rex: the flagship piece

Branded hoodie, The Rex, a corporate gift idea for employees in Iceland

A heavyweight 280 gsm organic cotton hoodie that employees actually wear, and one of the most popular gifting items in the catalogue.

  • Material: 90% organic cotton, 10% polyester.
  • Branding: embroidery, print, or patches.
  • Order: MOQ 100 · from 5,813 ISK/unit.

View the Hoodie — The Rex →

2. T-shirt – The Axel: the year-round basic

Branded t-shirt, The Axel, an apparel gift idea for employees in Iceland

A well-cut cotton tee that works as a standalone gift or a companion piece to a bigger item, and stays in rotation all year round.

  • Material: 100% combed cotton.
  • Branding: print or embroidery.
  • Order: MOQ 100 · from 2,709 ISK/unit.

View the T-shirt — The Axel →

3. Sports Socks: the safe favourite

Custom branded sports socks, a corporate gift idea for employees in Iceland

Sunday's most-ordered item: a small, unexpected gift that works for a whole team at once and always lands well.

  • Material: 80% cotton, 17% polyamide, 3% elastane.
  • Branding: knitted-in logo zones.
  • Order: MOQ 100 · from 580 ISK/unit.

View Sports Socks →

4. Baseball Cap: the everyday accessory

Branded baseball cap, a casual employee gift idea in Iceland

A reliable pick for outdoor events and company outings; an embroidered logo tends to look more premium than the price tag suggests.

  • Material: 100% cotton.
  • Branding: embroidery.
  • Order: MOQ 100 · from 1,209 ISK/unit.

View Baseball Cap →

5. Knitted Scarf: a seasonal favourite

Knitted branded scarf, a seasonal gift idea for employees in Iceland

Iceland's climate makes a scarf a genuinely useful winter gift, with woven branding that feels a step above a printed logo.

  • Material: 80% viscose, 20% polyester.
  • Branding: woven label.
  • Order: MOQ 100 · from 1,111 ISK/unit.

View Knitted Scarf →

6. Premium Tote Bag: an everyday carry

Premium branded tote bag, an employee gift idea for companies in Iceland

A sturdy tote gets carried outside the office, on the commute, at the market, making it one of the more visible branding opportunities on this list relative to its price.

  • Material: 270gsm cotton.
  • Branding: print or custom straps.
  • Order: MOQ 100 · from 934 ISK/unit.

View Premium Tote Bag →

7. Canvas Travel Pouch: small-batch friendly

Canvas travel pouch, a branded gift idea with a low minimum order for Iceland

With a minimum order of just 25 units, this pouch is a good option for smaller teams or a single department's gift run.

  • Material: durable cotton canvas with a zip closure.
  • Branding: printed logo on the front.
  • Order: MOQ 25 · from 1,204 ISK/unit.

View Canvas Travel Pouch →

8. Leather Luggage Tag: a travel-ready detail

Leather luggage tag, a branded travel accessory gift for employees in Iceland

A small, well-made accessory that frequent travellers will actually clip onto a bag, with a debossed logo that feels understated rather than promotional.

  • Material: genuine or vegan leather with a metal buckle strap.
  • Branding: debossed or foil-stamped logo.
  • Order: MOQ 100 · from 1,108 ISK/unit.

View Leather Luggage Tag →

9. RollTop Backpack: the everyday bag

Water-resistant roll-top backpack, an employee gift idea in Iceland

A water-resistant backpack with a laptop compartment that quickly becomes someone's everyday bag: a natural pick for a bigger single gift, such as a milestone anniversary.

  • Material: GRS-certified recycled PU, water-resistant.
  • Branding: print or embroidery.
  • Order: MOQ 25 · from 3,563 ISK/unit.

View RollTop Backpack →

10. A5 Notebook: for the note-takers

A5 branded notebook, a corporate gift idea for employees in Iceland

A well-made notebook still gets used in most offices, whether for meeting notes or as a desk accessory.

  • Material: FSC-certified paper, PU cover.
  • Branding: debossed or printed logo on the cover.
  • Order: MOQ 100 · from 664 ISK/unit.

View A5 Notebook →

11. A5 Premium Notebook: a step up in finish

A5 premium notebook, an upgraded stationery gift for employees in Iceland

For a slightly more premium desk gift, this notebook upgrades the cover finish while keeping the same practical A5 format.

  • Material: premium PU cover with quality paper stock.
  • Branding: debossed logo on the cover.
  • Order: MOQ 50 · from 1,011 ISK/unit.

View A5 Premium Notebook →

12. Bamboo Pen: a natural everyday option

Bamboo pen, a natural-material branded gift for employees in Iceland

A warmer-looking alternative to a plastic pen, with a laser-engraved logo that ages well rather than wearing off. A simple, low-cost add-on to a bigger gift.

  • Material: natural bamboo barrel with metal trim.
  • Branding: laser-engraved logo.
  • Order: MOQ 100 · from 386 ISK/unit.

View Bamboo Pen →

13. Espresso Mug: for the coffee break

Branded espresso mug, an office gift idea for employees in Iceland

A good espresso mug earns daily use at the office coffee machine, putting a logo somewhere people look at multiple times a day.

  • Material: glazed ceramic, dishwasher and microwave safe.
  • Branding: printed or laser-etched logo.
  • Order: MOQ 108 · from 1,224 ISK/unit.

View Espresso Mug →

14. Americano Mug: budget-friendly and classic

Americano mug, a classic budget-friendly branded gift for employees in Iceland

One of the most affordable options on this list: a classic Americano mug is a safe, familiar gift that still gets a logo in front of someone every morning.

  • Material: glazed ceramic in a classic Americano shape.
  • Branding: printed or laser-etched logo.
  • Order: MOQ 108 · from 586 ISK/unit.

View Americano Mug →

15. Recycled Steel Bottle: a sustainable staple

Recycled steel water bottle, a sustainable branded gift for employees in Iceland

A double-walled bottle made from recycled steel is genuinely useful and lets the company make a sustainability point at the same time.

  • Material: recycled stainless steel.
  • Branding: laser engraving or print.
  • Order: MOQ 50 · from 1,595 ISK/unit.

View Recycled Steel Bottle →

16. Stainless Steel Bottle: hydration, branded

Stainless steel bottle, a branded hydration gift for employees in Iceland

A classic stainless bottle is a safe pick for something that will actually get reused at the gym or on the commute.

  • Material: stainless steel with a leak-proof lid.
  • Branding: laser engraving or printed logo.
  • Order: MOQ 50 · from 1,388 ISK/unit.

View Stainless Steel Bottle →

17. Bamboo Tea Bottle: the natural choice

Bamboo tea bottle, a gift idea for employees in Iceland

A bamboo exterior over a durable stainless steel interior gives a warmer look than an all-metal bottle, and works well as a mid-range gift.

  • Material: stainless steel, bamboo.
  • Branding: laser engraving or print.
  • Order: MOQ 50 · from 2,712 ISK/unit.

View Bamboo Tea Bottle →

18. Wireless Mini Speaker: a step up in tech

Wireless mini speaker, a tech-forward branded employee gift in Iceland

For teams that want a bit more "wow" factor, a compact wireless speaker is one of the more premium items here.

  • Material: compact housing with Bluetooth connectivity.
  • Branding: printed or debossed logo on the housing.
  • Order: MOQ 50 · from 1,499 ISK/unit.

View Wireless Mini Speaker →

19. Wireless Powerbank: useful everyday tech

Magnetic wireless powerbank, a gift idea for employees in Iceland

A magnetic wireless powerbank in recycled ABS plastic is genuinely useful for any commute or business trip.

  • Material: recycled ABS plastic.
  • Branding: pad print or digital print.
  • Order: MOQ 50 · from 2,667 ISK/unit.

View Wireless Powerbank →

20. Noise-Cancelling Headphones: the premium pick

Foldable noise-cancelling headphones, a premium branded gift for employees in Iceland

A genuine step up in perceived value and one of the priciest items on this list, so it's best reserved for a milestone gift rather than combined with others.

  • Material: recycled ABS, ANC + ENC, foldable.
  • Branding: digital print or doming.
  • Order: MOQ 50 · from 3,547 ISK/unit.

View Noise-Cancelling Headphones →

Understanding the rules behind these picks

This list is a practical shortlist, not tax guidance. Iceland mixes a genuine fixed figure for staff events with a qualitative "customary" standard for milestone gifts, and a separate reasonableness test for client gifts. For the full breakdown, including how cash and gift cards are treated, see our companion guide: Tax-Free Employee Gifts in Iceland: The 192,000 ISK Rule.

Ready to put together a gifting programme for your Icelandic team? Talk to Sunday about sourcing, branding, and shipping any of the items above, from a single small batch to a company-wide rollout.

More Stories

Try Sunday