No. 19 of 6th April 1966, with subsequent
amendments up to 1st August 2002.
1. In the case of an individual, he shall be an Icelandic citizen or have domicile in Iceland.
2. If several individuals are involved in a company, and each bears unlimited liability for the debts of the company, they shall all be Icelandic citizens or shall have been domiciled in Iceland for at least five continuous years.
3. In the case of a company in which some members bear unlimited liability, and others only limited liability, for the company}s debts, all those who bear unlimited liability shall be Icelandic citizens or shall have been domciled in Iceland for at least five continuous years.
4. In the case of a company in which none of the members bears unlimited liability for the company}s debts, or an institution, the company or institution shall have its domicile and venue in Iceland and all its directors shall be Icelandic citizens or shall have been domiciled in Iceland for at least five continuous years. In the case of joint-stock companies, 4/5 of the share capital shall be owned by Icelandic citizens, and Icelandic citizens shall exercise the majority of the votes at shareholders} meetings.
1. In accordance with an application from a party who has the right to conduct business in Iceland and wishes to acquire the right to own or use real property in direct connection with his business activities, or in order to establish a home on the property.
2. If other reasons are considered to apply.
1. In the case of the hire of real property or the rights concerning real property, providing that the hire period or the period applying to other rights is three years or shorter, or where the right is reserved to terminate the agreement with one year}s notice or less.
2. When the party involved enjoys rights in Iceland under the rules of the Agreement on the European Economic Area applying to the free movement of persons, the right of establishment, services or movement of capital or corresponding clauses in the Convention establishing the European Free Trade Association. The Minister shall set further rules specifying the types of real property covered by these rights and other matters concerning the execution of these rights.
The Minister shall have his decision in connection with this matter recorded in the register of deeds at the venue of the real estate as soon as possible.
Purchase agreements or deeds of transfer for the properties referred to in paragraph 1 shall be submitted to the Ministry of Justice, and such transactions shall not become valid until the Ministry has assented to them with its signature.