Iceland The housing market in
opportunities for buying a house overseas, although it is not the
traditional `Place in the Sun' that people usually seek.
The European Economic Area
(EEA) is made up of those countries who are full members of the EU, plus
Iceland, Liechtenstein and Norway. As an EEA national, you have the right to
live in any EEA country.
Iceland and the EEA and EU Including Links to Icelandic
government sites and Tourist Information
As result of
the financial situation in
Iceland, many attractive opportunities are
presenting themselves and conditions for investors are very
favourable at this time. Because of the favourable foreign
exchange rate investors with foreign currencies have far more purchasing
power. In the last 12 months property prices in
Iceland have gone down
by 21% because of the crisis. There is an urgent need for foreign
currency and many interesting opportunities have surfaced as a result of
bankruptcies. Land prices have also plummeted and the availability of
prime sites at lower prices has increased. Prices in the construction
industry have fallen increasing competition and bidding wars in the
construction and service sectors.
In spite of all this,
future prospects are good in the medium term. The International Monetary
Fund and other financial institutions are predicting a full recovery
within a number of years. If you have been waiting for a good investment
opportunity to come your way then investment
property in Iceland will give you fantastic returns.
Investing in a
foreign country is always a complex procedure. Buying a
Iceland involves dealing
with many complexities and local idiosyncrasies and you will need a
qualified local agency to handle all this. You will need to contact an
agency which has the experience of handling transactions in an
international context and which can act on behalf of their overseas
clients to make the whole process smooth, understandable and reliable.
It is essential that their core business is advisory in property
purchases, and that they have the relevant experience in setting up
property companies and holding companies, and related activities. They
have to be legally qualified and chartered for handling sales of
commercial and domestic property, ships and automobiles. They should be
able to handle all or part of the purchase or sale of land and property.
If you are
contemplating buying property in
then look for someone that can offer practical assistance in assessing,
preparing and realising investments,
particularly those involving property purchases. A company that offers
comprehensive and flexible range of services will help you to identify
and realise some of the many opportunities
that are undoubtedly there.
Once you have
found a property what next?
that ideal property the first thing a property purchaser does in
Iceland is to ask their chosen agent to obtain a paper
certificate of mortgages, charges, and other possible rights and
obligations in relation to the property that is to be purchased.
This can be done by a visit to the District Magistrate (Land
Registry) and will cost ISK 1000, but as most agents have
on-line access to this information the same information can be
achieved on-line from the Landskra Fasteigna (a data information
service) at a cost of ISK 550. What this does is to show what
charges if any are lodged against the property.
Your agent then prepares the sales contract which you, (the
purchaser) and the seller sign, and you both confirm the agreed
price and the conditions of sale.
It is not mandatory to use an agent, but it is almost an
absolute necessity as he/she will need to have local knowledge
and speak the language and that he/she will be able to look
after your interests. Fee’s for this service should be between
1.5% and 2.5% of the properties value.
The purchaser/seller agreement, if not paid in full at the time
of signing, is registered at the District Magistrate. The new
title deed will not be signed until the purchase price is paid
in full. Registration of this agreement protects the rights of
the property purchaser.
The conditions for registry of the purchase agreement are:
It contains the name of the
property as officially registered by the municipal authorities
The reference number of the
land and the property
The legal description of the
property as laid out by the planning and building authorities
The land and buildings number
which has direct reference to its plots.
This information is obtained from the magistrate's office in the
area where the property is situated, or your estate agent can
obtain this from the Landskra Fasteigna.
The transfer and
new registration of the title deed takes place at the
Magistrates Office when all monies are in place; this costs ISK
1350, plus 0.4% of the official real estate valuation official
real estate valuation.