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Iceland – Property Taxes

When buying or selling a house in Iceland, there are several taxes and fees that must be taken into account. These include:

  • Transfer Tax: A tax on the transfer of property, typically paid by the buyer. The rate is 1.5% of the property’s value.
  • Notary fees: Fees for the notary public to witness and certify the sale. These fees are typically paid by the buyer and can range from 0.5% to 1% of the sale price.
  • Real estate agent fees: If a real estate agent is used, they will typically charge a commission of 2-3% of the sale price, which is usually paid by the seller.
  • Other miscellaneous fees: These may include fees for title searches, appraisal, and other services related to the purchase or sale of the property.

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Property Tax in Iceland>

In Iceland, property tax is a tax on the value of real estate. The tax is based on the cadastral value of the property, which is determined by the local government. The rate varies depending on the municipality and the type of property, but typically ranges from 0.1% to 0.5% of the cadastral value.

Capital Gains Tax (CGT) in Iceland>

In Iceland, Capital Gains Tax is imposed on the sale of real estate property. The rate is 22% on the profit made from the sale.


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Inheritance Tax

and Gift Tax in Iceland

In Iceland, inheritance tax and gift tax are imposed on the transfer of property through inheritance or gift. The rate varies depending on the relationship between the giver and the receiver, but typically ranges from 2.5% to 20%.

Tax on Property Income in Iceland>

In Iceland, if a property is rented out, the landlord is required to pay tax on the rental income. The rate is 22% on the net income.

Tax Advantages in Buying a House in Iceland?

In Iceland, there are no specific tax advantages for buying a house. However, there are tax deductions available for home loans, mortgage interest and property tax.


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