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

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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

Schedule a meeting

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

Elena Kozyreva
Elena Kozyreva

Managing Director for Real Estate projects

Prefer messengers?

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

Taxes and associated costs

Check if real estate in these countries suits your goals

The selections include only verified real estate projects from reliable developers. Purchasing these properties may bring you a residence permit or even citizenship.

Country
Investments
Status
Time required
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Malta11 objects

€690,000+

Citizenship

1 or 3 years

Show 11 objects

€690,000+Citizenship1 or 3 years
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Grenada20 objects

$150,000

Citizenship

6+ months

Show 20 objects

$150,000Citizenship6+ months
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United Arab Emirates78 objects

AED 750,000+

Residence permit

2+ months

Show 78 objects

AED 750,000+Residence permit2+ months
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Spain47 objects

€500,000+

Residence permit

5+ months

Show 47 objects

€500,000+Residence permit5+ months
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Portugal75 objects

€820+

Residence permit

4+ months

Show 75 objects

€820+Residence permit4+ months
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40+ guides on European countries

Learn the prices for purchasing and renting a property in each country, the market dynamics and taxes on buying and selling real estate.

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Real estate investment in Montenegro

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

€1,450

Average price per 1 m²

€450,000

Real estate investment for citizenship

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Real estate investment in Luxembourg

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

€10,050

Average price per 1 m²

2.6%

Average price growth per quarter

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Real estate investment in Latvia

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...

1360 €

Average price per 1 m²

250 000 €

Real estate investment for residency

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Real estate investment in Germany

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

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Real estate investment in Estonia

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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Real estate investment in Cyprus

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

€1,725

Average price per 1 m² of housing in Cyprus

€300,000

Minimum investment amount to get permanent residence

A guide about investing in real estate was prepared by our expert

Igor Buglo

Igor Buglo

Head of the Maltese office, MBA

Updated:
April 13, 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.