Last Updated: Friday, 22 August 2014, 15:07 GMT

Iceland: Regulations of 1996 on the Rights of Specific EEA Citizens and EEA Companies to Acquire the Right to Own or Use Real Property

Publisher National Legislative Bodies / National Authorities
Publication Date 1 February 1996
Cite as National Legislative Bodies / National Authorities, Iceland: Regulations of 1996 on the Rights of Specific EEA Citizens and EEA Companies to Acquire the Right to Own or Use Real Property, 1 February 1996, available at: http://www.refworld.org/docid/3ae6b51f14.html [accessed 23 August 2014]
Comments This is the official translation. The Regulation No. 697 of 20 December 1995 was amended by Regulation No. 60/1996.
DisclaimerThis is not a UNHCR publication. UNHCR is not responsible for, nor does it necessarily endorse, its content. Any views expressed are solely those of the author or publisher and do not necessarily reflect those of UNHCR, the United Nations or its Member States.

Article 1

The following parties, individuals, companies or other legal persons may acquire real property rights without the permission of the Minister of Justice, even though they do not meet the requirements of item 1 of Article 1 of the Real Property Rights Act:

a.Wage-earners who are citizens of a member state of the European Economic Area (EEA citizens) and who work as such in Iceland, or have EEA residence permits.

b.EEA citizens who have established themselves, or intend to establish themselves, in Iceland in order to engage in independent business operations.

c.EEA citizens who are domiciled in another EEA member state and have established, or intend to establish, a branch or agent's office in Iceland, or who intend to render services in Iceland.

d.Companies and other legal persons which are founded according to the legislation of an EEA member state, and have established, or intend to establish, a branch or an agency office, or intend to render services, in Iceland.

The companies and other legal persons covered by item d. of paragraph 1 shall either have their headquarters or principal activity within the EEA or be domiciled there according to their articles of association. In the case of domicile according to articles of association, the legal person's activity shall have a real and permanent connection with the economy of the member state.

Article 2

Rights under Article 1 shall only include the right of ownership or the right of use of

1.property which is to be used as a necessary all-year-round dwelling place for the person who wishes to acquire the right, or

2.property which is a precondition for enabling the person who wishes to acquire the right to engage in independent business activity or to render services.

Article 3

The official registration of a property licence without special permission, as defined in Article 1, shall be dependent on the holder of the right presenting a declaration stating that he or the company comes under one of the groups defined in Article 1 and that the property is being acquired for the purposes defined in Article 2.

If the property is being acquired for the purpose of using it as the all-year-round dwelling place of the holder of the right, the declaration shall also state that the property is not intended or used as a summer dwelling or another type of accommodation to be used for part of the year, or as an outdoor area.

In the case of an employee, the declaration shall also include information about the name and address of the employer unless the employee's EEA residence permit is enclosed.

Article 4

The declaration in accordance with Article 3 shall be part of the licence, and shall be signed by the holder of the right. Specimens of the form of the declaration are printed as an appendix to these Regulations.

Article 5

These Regulations, which issued under item 2 of Article 1 of the Real Property Rights Act, No. 19 of 6th April 1966 (cf. the Act No. 133 of 31st December 1993), enter into force on 1st February 1996.

Appendix:
Specimen forms of the declarations:

A.Declaration applying to the purchase or use of residential accommodation for personal use.

I, the under purchaser/holder of the right to use the real property, hereby declare (accepting criminal liability for fraudulent statements under Article 146 of the Criminal Code)

that I am a citizen of a member state of the European Economic Area,

that under the rules of EEA Agreement, I have the right to engage in independent business activity in Iceland/or: I am engaged to work as an employee of …./or: I have an EEA residence permit in Iceland (enclosed),

that I shall be using the property as an all-year-round dwelling place for myself,

that the property is neither a summer dwelling nor an outdoor area and will no be used as such.

B.Declaration applying to the purchase or use of real property in connection with establishment/or: for use for the purpose of rendering services.

I, the undersigned purchaser/holder of the right to use the real property, hereby declare (accepting criminal liability for fraudulent statements under Article 146 of the Criminal Code)

that I am a citizen of a member state of the European Economic Area/or: the company/legal person has been founded in accordance with the laws of an EEA member state,

that I/the company/the legal person under the EEA rules on the right of establishment /or: on service activities have/has the right to engage in independent business business activity as …../or: to establish a branch or agent's office/or: to render services in Iceland,

that the property is the precondition for my/the company's/the legal person's being able to operate in Iceland,

that the property is neither a summer dwelling nor an outdoor area, and will not be used as such.

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