Articles on buying property in Iceland

Huang Nubo's land purchase proposal

Wednesday, 07 December 2011 13:01

Recently Chinese billionaire investor Huang Nubo submitted a land purchase proposal to buy the Grimsstadir farm in northeastern Iceland for $8.8 million dollars. The farm stretches across 300 square kilometers (120 square miles) of scenic land near Dettifoss, Europe's most powerful waterfall, and Myvatn, a volcanic lake.

Since the purchase is for such a large amount of land, approximately 0.3% of Iceland and the fact that Mr. Nubo is not a resident of the European Economic Area the deal would need to be approved by the Icelandic government.

Iceland’s government denied  permission to purchase the land, saying such a transfer of property would be "incompatible" with the country’s laws. The Minister of the Interior, Ogmundur Jonasson, explained that Icelandic law "imposes strict conditions on corporations wishing to acquire ownership or the right to utilize Icelandic properties and it’s clear that the company in question doesn’t fulfill any of the requirements."

Restrictions on buying property in Iceland

Thursday, 01 December 2011 00:00

For residents of the European Economic Area, there are no restrictions on buying property in Iceland. For other foreign nationals, permission from Iceland’s Justice Department is required. There is no formal application; real estate agents handle the process by writing a letter to the department and providing information, such as a signed contract, regarding the deal.

Real estate agent fees (including obtaining a permit, if applicable, as well as registration fees) are about 30,000 to 40,000 ISK ($235 to $313). Stamp duty is 0.4 percent of the property’s appraisal value. There is an additional 1.5 percent stamp duty on the purchase price, though this tax is waived for first-time buyers.

Iceland economic forecast 2010-2015

Thursday, 30 September 2010 18:48

Statistics Iceland releases now a new issue of Statistical Series. This issue presents the Economic forecast 2010-2015. The forecast assumes that the contraction will come to a close during 2010 and a gradual recovery will start. However, 2010 is still going to show a contraction of 2.9% in GDP. Positive growth is expected from 2011 and througout the rest of the forecast period, given that private consumption has stabilized and large scale industrial investments start in earnest in 2011.

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Advice on buying Iceland Property

Monday, 23 August 2010 17:28

You have found a property in Iceland you wish to purchase what next?

Having found that ideal property the first thing a property purchaser does in Iceland is to ask their agent to obtain a paper certificate of mortgages, charges, and other possible rights and obligations in relation to the property that is to be purchased. This can be done by a visit to the District Magistrate (Land Registry) and will cost ISK 1000, but as most estate agents have on-line access to this information the same information can be achieved on-line from the Landskra Fasteigna (a data information service )at a cost of ISK 550. What this does is to show what charges if any are lodged against the real estate.