Americans Lead Non-EEA Property Purchases in Iceland

2026-02-11 - 09:37

More than 130 people from countries outside the European Economic Area and EFTA have been granted permission to buy property in Iceland since 2020, with the vast majority holding US citizenship, according to figures from the Ministry of Justice. As reported by RÚV, citizens from outside the EEA and EFTA must receive special approval to acquire real estate. Since 2020, permits have been issued to buyers from eight countries: the United States, the United Kingdom, Canada, Australia, Kuwait, Nigeria, China and Armenia. Of the 130 permits granted during this period, 110 went to American citizens. What's the Story? 130 non-EEA and non-EFTA citizens granted permission to buy property in Iceland since 2020 110 of the permits issued to US citizens, the largest share by nationality Estate agents say foreign purchases make up a small fraction of Iceland’s housing market Yellow house. Photo: Art Bicnick Limited market impact Despite occasional high-profile purchases attracting public attention, real estate professionals stress that foreign ownership represents only a small share of Iceland’s property market. High-value transactions, such as luxury summer homes or large rural estates, tend to stand out due to their scale, rather than their frequency. Estate agent Páll Pálsson said the prominence of US buyers is notable, particularly as international investors elsewhere in Europe often focus on major cities. “To accumulate assets in big cities like Paris, London and Berlin, but Reykjavík is not on their radar; to be a direct investment in the real estate market,” he said. Instead, Americans buying in Iceland are typically seeking privacy and distance from urban life. “It’s not quite the same pace here as in big cities and so it feels like it falls on a different frequency and therefore goes outside the town,” Páll said, adding that many purchases resemble summer homes rather than long-term investments. Estate agents emphasise that such transactions remain rare and have little effect on overall housing availability.