Borgartún is a street in Reykjavík, Iceland that has in the recent years become the city's financial district. Although relatively small, Iceland has become a major European financial centre hosting at least 4 large investment banks and numerous smaller banks.
3 of these four largest Icelandic banks, Glitnir, Kaupthing Bank and Straumur are located in or around Borgartún. Glitnir will soon commence the building of new headquarters which will also be located in the vicinity of Borgartún. The financial service sector plays are large role in Icelandic business life and in the economy of Iceland. It has been the policy and vision of the Icelandic government to make Iceland an international financial centre and have for that reason gradually lowered income taxes on both companies and individuals. Other taxes and fees have also been rapidly decreasing in recent years, resulting in the advancement of Icelandic companies and the rapid growth of the financial sector. Simultaneously, tax revenues have increased greatly due to increased activity and the stimulation of initiative in Iceland. In the end though this did not work out.
Also located in Borgartún is Höfði, a house built in 1909. Initially, it was the house of the French consul in Iceland. It was the place of the Iceland Summit when Ronald Reagan and Mikhail Gorbachev met there in 1986. It is now mainly used for ceremonies for the Reykjavík City municipality.
The western end of Borgartún houses a complex of buildings where the offices of many departments of the Reykjavík city government, including a centralized service center, are housed.