Foreign tour guides increase competition in the Faroe Islands

Foreign tourists arriving in the Faroe Islands have recently observed a growing trend: foreign tour guides from the travel agencies where they booked their trips are now greeting them upon arrival.

This shift has led to increased competition for local Faroese tour guides, a point highlighted by Hilda Thomsen, chairwoman of the Faroese Tour Guide Association, in recent media discussions.

According to tax regulations, however, there is no issue with foreign tour guides operating in the Faroe Islands, even if they do not pay taxes in the country. Poula á Líðarenda, a department head at TAKS (the Faroese tax authority), confirmed this position.

This means that an Italian travel agency can send its own guide to work in the Faroe Islands without being subject to local tax laws, and the same would apply if Faroese guides were sent to work abroad.

There is, however, a condition for foreign tour guides. While Faroese citizens can freely work in any EU country due to their Danish citizenship, the same rule does not apply to EU citizens coming to the Faroe Islands, including tour guides. According to Kristina Ellendersen, a lawyer at the immigration office, foreign citizens must obtain a work permit to operate here.

If these tour guides do receive such permits, they can effectively compete with local Faroese guides for a period of 180 days before any tax obligations to the Faroese community come into effect.