Property

Regulation on the rights of aliens to acquire the right to own or use real property.

Translated from the Icelandic

Regulation on the rights of aliens who come under the Agreement on the European Economic Area or the Convention establishing the European Free Trade Association to acquire the right to own or use real property.

(No. 702 of October 8th 2002)


Article 1


Parties enjoying in Iceland rights in accordance with the Agreement on the European Economic Area (EEA) or the Convention establishing the European Free Trade Association (EFTA) applying to the free movement of persons, the right of establishment, services or movement of capital may acquire real property rights without the permission of the Minister of Justice, even though they do not meet the requirements of paragraph 1 of Article 1 of the Act on the Right of Ownership and use of Real Property, as further formulated in the present regulation.

Article 2

The following parties, individuals, companies or other legal persons may aquire real property rights in Iceland on the basis of the rules on free movement of persons, the right of establishment and services:
a. Employees who are citizens of a member state of the European Economic Area (EEA- citizens) or of the European Free Trade Association (EFTA-citizens) and who work as such in Iceland, or have EEA-residence permit.
b. EEA- and EFTA-citizens who have established themselves, or intend to establish themselves, in Iceland in order to engage in independent business operations.
c. EEA- and EFTA-citizens who are domiciled in another member state and have established, or intend to establish, a branch or an agent's office in Iceland, or who intend to render services in Iceland.
d. Companies and other legal persons which are founded in accordance with the legislation of a member state, and have established, or intend to establish, a branch or an agency}s office, or intend to render services, in Iceland.

The companies and other legal persons covered by item d of paragraph 1 shall either have their headquarters or principal activity in an EEA- or EFTA-state or be domiciled there according to their statutes. In the case of a domicile according to statutes the legal person's activity shall have a real and permanent connection with the economy of the member state.

Article 3

Rights under Article 2 shall include the right of ownership or the right of use of:
a. property which is to be used as a dwelling place, holiday dwelling place included, for the person who wishes to acquire the right, or
b. property which is a precondition for enabling the party who wishes to acquire the right to engage in independent business activity or to render services.

Article 4

Individuals, residing in a state which is a member of the EEA or EFTA, and companies or other legal persons, which are founded in accordance with the legislation of an EEA- or EFTA- state may aquire real property rights in Iceland on the basis of the rules of free movement of capital.

Companies and other legal persons to which paragraph 1 applies shall either have their headquarters or main operations within an EEA- or EFTA-state or be domiciled there according to their statues. In the case of a domicile according to statutes, the legal persons activities shall have a real and permanent connection with the economy of the member state.

Article 5

The registration of a deed for a real property in the register of deeds without special permission, as defined in Article 2, shall be dependent on the holder of the right presenting a declaration stating that he or the company comes under one of the groups defined in paragraph 1 of Article 2 and that the property is being acquired for the purposes defined in Article 3.

In the case of an employee, the declaration shall also include information about the name and address of the employer, unless the employee's EEA-residence permit is enclosed.

The registration of a deed for a real property in the register of deeds without special permission, as defined in Article 4, shall, in the case of an individual, be dependent on the holder of the right presenting a declaration stating that he is domiciled in an EEA- or EFTA-state, or, in the case of a company or another legal person, that the company fulfills the conditions of paragraph 2 of article 4.


Article 6

The declaration in accordance with Article 5 shall be part of the deed, and shall be signed by the holder of the right. Specimens of the form of the declaration are printed as an appendix to this regulation.

Article 7

This regulation, which is issued under item 2 of paragraph 4 of Article 1 of the Act on the Right of Ownership and use of Real Property, No. 19 of 6 April 1966, cf. Article 22 of the Act No. 133 of 31 December 1993, Act No. 14 of 20 March 1997 and Article 2 of Act No. 76 8 May 2002, and with view of Part III of the EEA Agreement, cf. item 2 and 4 of Annex V (regulations (EEC) 1612/68 and 1251/70), items 3, 4 and 6-8 of Annex VIII (directives 73/148/EEC, 75/34/EEC, 90/394EEC and 93/96/EEC) and item 1 of Annex XII (directive 88/361EEC) to the Agreement, shall take effect forthwith.

The EC-acts referred to are published in the special publication EEA-acts S 32, pp. 5-15 and 21-23, S 35, pp. 14-20, 22-25, and S 39, cf. Declaration no. 31/1993 in Part C of the Official Journal (Stjórnartíðindi), and in EEA supplement to the Official Journal of the EU, Special edition, Book 4, pp. 135-136, cf. EEA supplement no. 17/1994.

The Regulation on the rights of specific EEA citizens and EEA companies to aquire the right to own and use real property, No. 697 20 December 1995, cf. Regulation No. 60 18 January 1996, is simultaneously repealed.


Ministry of Justice and Ecclesiastical Affairs, 8th October 2002.



Appendix

:

SPECIMEN FORMS OF DECLARATIONS



A. Declaration
applying to the purchase or use of residential accommodation
for personal use.

I, the undersigned purchaser/holder of the right to use the real property, hereby declare, accepting criminal liability for fraudulent statements under Article 146 of the Criminal Code,

that I am a citizen of a state which is a member of the Agreement on the European Economic Area (EEA) / or: of a state which is a member of the Convention establishing the European Free Trade Association (EFTA),

that under the rules of the EEA Agreement / or: the rules of the EFTA Convention, I have the right to engage in independent business activity in Iceland / or: I am engaged to work as an employee of ......... / or: I have an EEA-residence permit, in Iceland (enclosed),

that I shall be using the property as a dwelling place, eventually as a holiday dwelling place, for my personal use.


B. Declaration
applying to the purchase or use of real property in connection with
establishment / or: for use for the purpose of rendering services.

I, the undersigned purchaser/holder of the right to use the real property, hereby declare, accepting criminal liability for fraudulent statements under Article 146 of the Criminal Code,

that I am a citizen of a state which is a member of the Agreement on the European Economic Area (EEA) / or: of a state which is a member of the Convention establishing the European Free Trade Association (EFTA) / or: that the company/legal person has been founded in accordance with the laws of an EEA-state / or: the laws of an EFTA-state, cf. item d of paragraph 1, cf. paragraph 2, of article 2 of Regulation No. 702 of 8th October 2002,,

that I/the company/the legal person, under the rules of the EEA Agreement / or: the rules of the EFTA Convention, on the right of establishment / or: on service activities, have/has the right to engage in independent business activity as ......... / or: to establish a branch or agent's office /or: to render services in Iceland,

that the property is the precondition for my/the company's/the legal person's being able to operate in Iceland.




C. Declaration
applying to the purchase or use of real property in connection
with free movement of capital.

I, the undersigned purchaser/holder of the right to use the real property, hereby declare, accepting criminal liability for fraudulent statements under Article 146 of the Criminal Code,

that I am residing in a state which is a member of the Agreement on the European Economic Area (EEA) / or: in a state which is a member of the Convention establishing the European Free Trade Association (EFTA) / or: that the company/legal person has been founded in accordance with the legislation of an EEA state / or: the legislation of an EFTA state, cf. paragraph 2 of article 4 of Regulation No. 702 of 8th October 2002,

that I/the company/the legal person, under the rules of the EEA Agreement / or: the rules of the EFTA Convention, on free movement of capital, have/has the right to invest in a real property in Iceland.