Road construction fee
The schedule for the road construction fee changes monthly with the construction index.
Road construction fee in Reykjavík
| Building cost index base from 2021 | |
| Building cost index for September 2025 | 125.8 |
| Pricing basis for road construction fee September 2025 | 312,495 kr. |
| General road construction fee | |
| Multi-family housing | 31,250 kr./m2 |
| All other residential housing | 46,874 kr./m2 |
| Above-ground parking garages and bike shelters | 15,625 kr./m2 |
| Commercial buildings and other structures | 40,624 kr./m2 |
| Example | |
| Single-family home 220 m2 | 10,312,343 kr. per lot |
| Row/semi-detached house: 190 m2 | 8,906,115 kr. per home |
| Multi-family residence: 120 m2 | 3,749,943 kr. per home |
Act on Road Construction Fees (IS)
A road construction fee is collected from all urban plots in Reykjavík City and/or structures on these plots. The fee is used for road construction and maintenance according to Act No 153/2006 on Road Construction Fees.
Regulation No. 191/2025 governs road construction fees in Reykjavík City. The road construction fee amount is updated monthly in accordance with the Act on Road Construction Fees.
The amount of the additional road construction fee is the same as the road construction fee.
Regulation No. 191/2025 took effect Feb. 25, 2025.
Temporary provisions I and II in Regulation No. 191/2025 establish two exceptions regarding the Regulation's applicability. In these cases, the previous Reykjavík City Regulation on Road Construction Fees No. 725/2007 with subsequent amendments applies, but only in a limited capacity and for a limited time.
Temporary provision I states that if a building permit application was submitted before Feb. 25, 2025, the previous road construction fee regulation applies to the square footage covered in that application. Application refers to one that meets the requirements for the second stage of the application process for final building permit approval according to building regulations. If the building permit is or becomes invalidated, the new regulation applies.
Temporary provision II states that if a lot for row houses, semi-detached houses, duplexes, linked houses, multi-family residences and buildings other than bicycle shelters and above-ground parking garages is allocated before Sept. 1, 2025, the road construction fee amount follows the previous regulation. The same applies if a building permit for such housing is issued before Sept. 1, 2025.
Connection and sewerage fees
Sewerage, water, electricity and heating connection fees are collected by Veitur Utilities in accordance with their price list.