| Rule | Details |
|---|---|
| Regulatory Status | Restricted — rules apply |
| Permit / License Required | Heimagisting registration with District Commissioner of Greater Reykjavík |
| Tax Rate | Per national rules (capital income; 11% VAT above threshold) |
| Night / Day Cap | 90 days/year combined; individual stays max 30 days |
| Minimum Stay | Individual stays capped at 30 days |
| Permit Fee | Registration ~9,200 ISK, renewed yearly |
| Penalties | Administrative fines up to 1,000,000 ISK per violation; deregistration; re-registration denial |
| Primary Residence Required | Yes; primary residence plus optionally one rural property |
| Occupancy Limit | Max 5 rooms or 10 guests per property |
Short-term rentals in Reykjavík (Capital Region) are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Heimagisting registration with District Commissioner of Greater Reykjavík. The associated permit fees are Registration ~9,200 ISK, renewed yearly.
Short-term rental operators in Reykjavík (Capital Region) should be aware of these tax obligations: Per national rules (capital income; 11% VAT above threshold). Yes (Ríkisskattstjóri).
Key operational rules for vacation rental hosts in Reykjavík (Capital Region) include: Primary residence requirement: Yes; primary residence plus optionally one rural property. Rental day cap: 90 days/year combined; individual stays max 30 days. Occupancy limit: Max 5 rooms or 10 guests per property. Minimum stay: Individual stays capped at 30 days.
Zoning considerations for short-term rentals in Reykjavík (Capital Region): Strictest enforcement; new business STR in residential housing prohibited; commercial licenses only for commercial-zoned property. Density rules: Business entities barred from operating STR in residential housing in Capital Region.
Hosts who fail to comply with Reykjavík (Capital Region)'s short-term rental regulations may face enforcement action. Administrative fines up to 1,000,000 ISK per violation; deregistration; re-registration denial.
Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Reykjavík (Capital Region): Registration number must appear in marketing/listings.
Apply for your STR permit or registration directly through the official government portal.
Official Source ↗Airbnb and short-term rentals are legal in Reykjavík (Capital Region) but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. District Commissioner of Greater Reykjavík has explicit authority to issue fines
Yes. Reykjavík (Capital Region) requires the following for short-term rental operation: Heimagisting registration with District Commissioner of Greater Reykjavík.
Short-term rental hosts in Reykjavík (Capital Region) are subject to the following tax obligations: Per national rules (capital income; 11% VAT above threshold).
Hosts who operate without proper permits in Reykjavík (Capital Region) may face enforcement. Administrative fines up to 1,000,000 ISK per violation; deregistration; re-registration denial.
Targets downtown buildings converted entirely into tourist accommodation
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