Restrictions on buying property in Iceland

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.