Housing in Iceland

Húsnæði á Íslandi
Here you can find information about the housing system in Iceland, about buying, renting-to-purchase and renting housing.

Purchase of housing

Nordic nationals can buy housing in Iceland on the basis of the rules on free movement of persons, the right of establishment and the service activities of nationals of the European Economic Area (EEA).

Most commercial banks in Iceland provide loans for the purchase of housing. Interest rates and terms can vary from bank to bank, so it is a good idea to familiarize yourself well with what is available. 

Pension funds also provide loans for the purchase of housing. You must be a member of the specific fund to apply for a loan.  Interest rates and terms can vary depending on the fund, so it is a good idea to familiarize yourself well with what is available. 

Rental housing and right of residence

The students’ associations of most universities have housing that is rented out to students studying at the institution in question. Further information can be found, for example, on the following websites:

The most common way to find housing is through online advertising. As demand is often high, it is a good idea to get in contact as soon as an advertisement appears. On the website of the daily Morgunblaðið, mbl.is, is a separate list of rental housing advertisements and the website visir.is also has rental housing advertisements. District newspapers can be a good place to look for advertising for housing in the countryside. In addition, there are several rental agencies.

Information is available from the Ministry of Social Affairs on housing rental, such as how to conclude a lease, general rules on giving notice and on vacating rental premises.

Another form of housing is the right of residence in a housing co-operative.

The housing co-operative Búseti builds multi-unit housing and sells rights of residence in its properties in Iceland. Only members of Búseti can purchase a right of residence. The monthly payment is usually slightly lower than on the general rental market.

The housing co-operative Búmenn also sells rights of residence in its properties, but they are only intended for those aged fifty years and older.

Búseti North Iceland is a housing co-operative in Akureyri.

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Info Norden is the information service of the Nordic Council of Ministers. Here you can find info and tips if you wish to move, work, study, seek support or start a business in the Nordic region.