Property templates and checklistsIceland

Buying

• TemplatePurchase offer template
• TemplatePreliminary sale agreement template
• ChecklistBuyer's due diligence checklist

How buying works

1. 1

   Seller hires a licensed agent

   Only a licensed agent (fasteignasali, licensed by the district commissioner) may broker a sale for others. Private sales need no agent.

2. 2

   Buyer signs for the sales overview

   Before an offer, the agent gives the buyer the sales overview (söluyfirlit). The buyer signs for receipt.

3. 3

   Buyer makes a written offer

   The buyer makes a written purchase offer (kauptilboð), usually conditional on financing or an inspection. Written acceptance makes it binding.

4. 4

   Parties sign the purchase contract

   The parties sign the purchase contract (kaupsamningur) with the payment schedule. The buyer pays the first instalment.

5. 5

   Contract is registered

   The district commissioner registers the contract. The buyer pays stamp duty of 0.8% of the official property value, half for a first home.

6. 6

   Handover and deed

   Handover follows. After full payment, the seller signs the deed of conveyance (afsal), which is also registered. No notary takes part.

7. 7

   Foreign buyers may need permission

   Buyers who are not Icelandic citizens and have no legal domicile in Iceland need the minister's permission, unless EEA or EFTA rules give the right.

Renting

• TemplateResidential lease agreement template
• TemplateMove-in inventory report template
• TemplateLease termination letter template

How renting works

Law and form

Húsaleigulög nr. 36/1994. The lease is in writing and cannot give the tenant fewer rights than the act.

Registration

Since 1 January 2026, the landlord registers every lease in Leiguskrá (HMS) within 30 days of signing.

Changes and end

The landlord also registers rent changes and the end of the lease in Leiguskrá.

Term

Open-ended unless the parties clearly agree a fixed term. A fixed-term lease ends on its date.

Notice period for a flat

6 months for both sides. 12 months for a legal entity letting homes as a business, after 12 months of tenancy.

Landlord ending an open-ended lease

For leases made or renewed since 1 September 2024, only on grounds the act lists.

Rent in a fixed-term lease

No change in the first 12 months, for leases made or renewed since 1 January 2026.

Deposit and inspection

Cash deposit: at most 3 months' rent. Both parties inspect the home at the start and at the end of the lease.