North: Area Guide, Getting There & Homes

You'll Fall in Love:

Embrace the magic of the North, where nature's grandeur meets serene living.

Imagine waking to the ethereal glow of the midnight sun or the breathtaking dance of the Northern Lights. North Iceland offers an escape into a world of raw, untamed beauty, where you can explore dramatic waterfalls, relax in geothermal waters, and witness abundant wildlife. Owning a home here means embracing a slower pace of life, connecting with nature, and creating unforgettable memories in a truly unique corner of the world.

Geography Profile:

A land of dramatic contrasts, from volcanic fields to serene fjords.

North Iceland presents a diverse and awe-inspiring terrain, characterized by its proximity to the Arctic Circle. Expect vast lava fields, powerful waterfalls like Dettifoss, steaming geothermal areas such as Hverir, and deep, picturesque fjords. The region is divided into Northwest Iceland, Northeast Iceland, and the Northern Highlands, each offering unique vistas and experiences, from the dramatic mountains of Tröllaskagi to the remote peninsulas of the northeast.

Climate Snapshot:

Experience distinct seasons, from the midnight sun to the dancing Northern Lights.

North Iceland experiences a subarctic maritime climate, milder than its latitude suggests due to the Gulf Stream, though still subject to rapid weather changes. Summers (late May to early September) offer long daylight hours and cool temperatures, ideal for exploration.

Legal Ownership (Iceland):

EEA buyers are free; non-EEA nationals require ministerial permission

EEA citizens and those from countries with reciprocal agreements can purchase Icelandic property freely. If you hold a non-EEA passport, you need permission from the Minister of Justice under Act No. 19 of 1966 on the Right of Aliens and Limited Liability Companies to Own Real Estate in Iceland. In practice, leasehold arrangements are often used by non-EEA buyers as a workaround. Agricultural and rural land faces stricter controls. Approval processes can be slow, so factor that into your timeline.

Laws change. Always consult a licensed real estate attorney before purchasing.

Capital Gains Tax:

Iceland taxes gains from property sales as capital income at a flat rate of 22 percent. There is no distinction based on how long you held the property, so short-term and long-term gains are treated identically. Losses can generally be offset against other capital income. The Directorate of Internal Revenue administers the tax, and you self-report gains on your annual tax return.

We are confirming the capital gains rates for this location against the official schedule, so they are not shown here yet. Check with the local registry office, or a local lawyer, for the figure that applies to a specific property.

Stamp Duty & Registration:

Iceland charges a stamp duty of approximately 0.8 percent on property transfers, applied to the registered value. You also pay a land registry fee when registering the title change. Total transaction costs are relatively low for a Nordic country. The buyer typically bears these costs at settlement. Legal and agent fees are additional. The process is transparent and managed through the Registers Iceland (Thjodskra) system.

We are confirming the stamp duty and registration rates for this location against the official schedule, so they are not shown here yet. Check with the local registry office, or a local lawyer, for the figure that applies to a specific property.

Frequently Asked Questions