Property Investment in Iceland as a Foreigner

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

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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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Individual selection of investment properties

  • Discuss your tasks and goals

  • Choose between properties from reliable developers

  • Get fully prepared and verified documents for a purchase

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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.

Discover real estate market trends in 41 European countries

Practical Guide

Discover real estate market trends in 41 European countries

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  • Get expert tips and documents

  • Estimate costs accurately

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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
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Malta11 properties

€375,000+

Permanent residency

6+ months

Show 11 properties

€375,000+Permanent residency6+ months
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Grenada22 properties

$270,000+

Citizenship

8+ months

Show 22 properties

$270,000+Citizenship8+ months
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ae-flagae-flag
UAE140 properties

AED 750,000+

Residence permit

2+ months

Show 140 properties

AED 750,000+Residence permit2+ months
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Spain36 properties

Not limited

Residence permit

4+ months

Show 36 properties

Not limitedResidence permit4+ months
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Portugal73 properties

Not limited

Residency after D Visas

6+ months

Show 73 properties

Not limitedResidency after D Visas6+ months
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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.

me-flagProperty Investment in Montenegro as a Foreigner

Foreigners can buy and sell real estate or rent it out with few restrictions. Foreigners are prohibited from buying agricultural land...

€2,100

Average price per 1 m²

24%

Inflation-adjusted price growth in 2024, year-on-year

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lu-flagProperty Investment in Luxembourg as a Foreigner

Foreigners can freely buy, sell and rent out real estate in Luxembourg.

€10,500

Average price per 1 m²

2.6%

Average price growth per quarter

Learn more
lv-flagProperty Investment in Latvia as a Foreigner

Foreigners can freely buy, sell and rent out real estate in Latvia. The sale of land to foreigners is limited: to buy a plot with a...

€2,500

Average price per 1 m²

250 000 €

Real estate investment for residency

Learn more
de-flagProperty Investment in Germany as a Foreigner

Germany does not limit the sale of properties to foreigners: one can buy and sell housing and commercial real estate or rent it out.

€5,770

Average price per 1 m²

1,9%

Average price growth per quarter

Learn more
ee-flagProperty Investment in Estonia as a Foreigner

Foreigners can freely buy and sell apartments in Estonia. Buying land with a house is not allowed in all areas. A legal entity can buy a...

€2,734

Average price per 1 m²

2,4%

Average price growth per quarter

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cy-flagProperty Investment in Cyprus as a Foreigner

The Republic of Cyprus restricts selling properties to foreigners: a non-EU citizen can buy no more than two properties and need a...

€2,700

Average price per 1 m²

€300,000+

Real estate investment for residency

Learn more
Igor Buglo

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

Updated:

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.