Housing in Iceland

Buying a home

Nordic citizens can purchase housing in Iceland on the basis of rules on freedom of movement of persons, freedom of establishment and freedom to offer services which apply to citizens 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 with what is available. 

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

Rental housing and permanent residence rights (Icel. búseturéttur)

The students’ organisations of most universities own residences which are rented to students studying at the school in question. For more information, see the following websites:

The most common way to find housing is through advertisements on the Internet. Since demand is often high it is a good idea to get in touch as soon as an advertisement appears. On the website of the daily Morgunblaðið, Mbl.is, there are rental housing advertisements, and Visir.is also has rental housing ads. Local newspapers can be a good way to find housing advertisements in rural areas. There are a number of commercial rental agencies:

The Ministry of Welfare (Velferðarráðuneyti) has information about rental housing, e.g. including concluding lease contracts, general rules on giving notice and on vacating rental premises.

Another housing option is permanent right of residence in housing co-operatives.

The housing co-operative Búseti builds and sells properties with right of residence in Iceland. Only members of the co-op can purchase a residence right. The monthly payment is generally somewhat lower than in the general rental market.

The housing co-operative Búmenn also sells properties with a right of residence but is intended only for persons fifty years of age and over.

In North Iceland, the housing co-op Búfesti in North Iceland offers similar properties.