Frequently Asked Questions

Can foreigners legally buy property in Iceland?

Yes, foreigners can legally buy property in Iceland. However, there are certain restrictions in place. Non-EEA citizens must get approval from the Minister of Justice to buy property.

Do I need a special structure like a trust or corporation to buy property in Iceland?

No, you do not need a trust or corporation to buy property in Iceland. You can buy property as an individual.

Do I own the property outright as a foreigner in Iceland?

Yes, once you have purchased a property in Iceland, you own it outright. There are no partial property ownership laws in Iceland.

What are the closing costs and taxes when buying property in Iceland?

The buyer pays for the property registration tax, which is 0.8% of the purchase price. The buyer also pays a stamp duty, which is 0.4% of the assessed value.

Do I need to hire a lawyer when buying property in Iceland?

While it's not mandatory to hire a lawyer when buying property in Iceland, it is highly recommended due to the complexity of the process and potential language barriers.

Can I get a mortgage in Iceland as a foreigner?

Yes, it is possible for foreigners to get a mortgage in Iceland. However, it can be a complicated process and it's best to consult with a financial advisor or lawyer.

Are there annual property taxes in Iceland?

Yes, there are annual property taxes in Iceland. The property tax rates vary based on the municipality and the assessed value of the property.

Can I rent out my property in Iceland for income?

Yes, you can rent out your property in Iceland. However, you should be aware of the rental laws and taxes in Iceland before doing so.

Is the buying process safe and transparent in Iceland?

Yes, the property buying process in Iceland is generally considered safe and transparent. However, it's always advisable to work with a reputable real estate agent and/or lawyer.

Do I get residency or visa benefits by buying property in Iceland?

Buying property in Iceland does not directly give you residency or visa benefits. However, it can be a factor in your application for a residence permit.