Real estate investment in Iceland

Foreigners can buy, lease and sell properties without restrictions in Iceland. The sale of land to foreigners is prohibited. The land on which the house stands can be taken on a long-term lease.

Statistics confirm the liquidity of investments: every quarter, residential real estate prices grow by an average of 2.5%. Five years ago, an apartment of 100 m² cost an average of €267,000, and today it is sold for €440,000.

€4,405

Average price per 1 m²

2,5%

Average price growth per quarter

0,9—3,4%

Associated costs, of the property value

How the residential property price index is growing in Iceland

Cost of a 3-bedroom apartment in Iceland

€1 million

Penthouse in Reykjavik

€500,000

Attic apartment with an ocean view in Reykjavik

€300,000

Apartment in Reykjavik

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Iceland residence permit or citizenship by real estate investment

Obtaining an Iceland residence permit or citizenship is not connected with purchasing real estate.

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Taxes and associated costs

Countries to buy a property and get residency or citizenship

We offer proven properties that comply with the conditions of government programs for investors. You can buy real estate and obtain a residence permit or citizenship.

Country

Property investments

Status

Obtaining time

Malta11 properties

€375,000+

Permanent residency

6+ months

Show 11 properties

€375,000+Permanent residency6+ months

Grenada21 property

$270,000+

Citizenship

8+ months

Show 21 property

$270,000+Citizenship8+ months

UAE127 properties

AED 750,000+

Residence permit

2+ months

Show 127 properties

AED 750,000+Residence permit2+ months

Spain36 properties

€500,000+

Residence permit

5+ months

Show 36 properties

€500,000+Residence permit5+ months

Portugal72 properties

Not limited

Residency after D Visas

6+ months

Show 72 properties

Not limitedResidency after D Visas6+ months

Show all countries

40+ guides with European countries

Find out how much it costs to buy and rent real estate in each country, what the market dynamics are and what taxes you need to pay when buying and selling.

Material prepared by Igor Buglo, Head of the Maltese office, MBA

Updated:

24 December, 2024

Frequently asked questions

Can foreigners buy real estate in Iceland?
Foreign nationals who are domiciled in Iceland, as well as European Economic Area nationals, can buy, sell, or rent out real estate without restrictions. But the sale of land to foreigners is prohibited — the land on which the house stands can be long-term rented.
Other types of foreign nationals need to obtain a permit from the minister of justice for buying real estate in Iceland.
How much does an average house cost in Iceland?
The average cost of housing in the country is €4,405 per 1 m². The most expensive housing is in Reykjavik, the capital of Iceland, where the average cost is €6,200 per 1 m².
What tax do you pay when buying Iceland property?
Buyers of real estate in Iceland pay a stamp duty of 0,8%.
Property owners in Iceland also pay an annual municipal tax of up to 1,65% of the cadastral value of the property. The tax rate depends on the municipality.
How long does it take to buy a house in Iceland?
While each instant is unique, real estate buyers in Iceland should estimate a 3—4 week process, from searches for the best property to ownership registration. Note that foreign nationals that are not domiciled in Iceland, or are outside the European Economic Area, need to obtain a permit from Iceland’s minister of justice for buying real estate.