Lodging establishments
Lodging establishments offer accommodations for a maximum of 30 consecutive days for a fee, such as in hotels, guesthouses, lodges, apartments, and summer houses, with or without meals.
Operation of lodging establishments
According to the current land-use and municipal plans of Reykjavík City, operating lodging establishments is only permitted in certain areas within the city limits. Applicants should start by checking if the operation of their lodging establishment falls within the City's permissions by sending an inquiry to the Planning Officer with the specific location and property number provided.
Classification of lodging establishments
Lodging establishments are divided into four categories according to Act No. 85/2007:
| Category | Type of lodging establishment |
|---|---|
| Category I | Homestay |
| Category II | Lodging without meal services |
| Category III | Lodging with meal services but no alcohol services |
| Category IV | Lodging with alcohol services |
Types of lodging establishment
Lodging establishments are divided into eight types according to Regulation No. 1277/2016 on Restaurants, Lodging Establishments, and Entertainment:
| Type | Description |
|---|---|
| Hotel | Lodging where guest reception is accessible around the clock and some type of meal service is provided on-site. Each room must have a fully equipped bathroom. |
| Large guesthouse | Lodging with limited services offering 5 or fewer rooms or accommodates 10 individuals or fewer. Can be lodging in a private home. No requirement for a washbasin in the rooms. Guests must have access to a fully equipped bathroom. |
| Smaller guesthouse | Lodging with limited services offering 5 or fewer rooms or accommodates 10 individuals or fewer. Can be lodging in a private home. No requirement for a washbasin in the rooms. Guests must have access to a fully equipped bathroom. |
| Lodge | Accommodation in rooms or dormitories. This includes hostels. |
| Mountain lodges | Accommodation in rooms or dormitories located off the beaten path and accessible to the public, such as lodges for tourists, fishing lodges, and chalets. |
| Homestay | Accommodation at an individual's legal residence or any other personally used owned property. |
| Dwellings | Apartment housing specifically intended for short-term rental to guests (lodging establishment) and not subject to residential lease laws. This includes staff accommodations and barracks when such buildings are not rented out in connection with an employment contract. Apartments owned by associations are excluded. |
| Holiday homes | Houses outside urban areas used for temporary stays. Holiday houses owned by associations, such as unions and professional associations, are excluded. |
Lodging establishments in categories II-IV
Lodging establishments in Reykjavík in categories II-IV require an operating permit from the Public Health Authority and an operational license from the District Commissioner of Greater Reykjavík.
They must meet the requirements of Regulation No. 941/2002 on Hygiene, with later amendments, Regulation No. 724/2008 on Noise, with later amendments, and Regulation No. 737/2003 on Waste Management, with later amendments.
If a lodging establishment provides food, including alcohol, it must comply with European Union Regulation No. 852/2004 on Food Hygiene, with later amendments (implemented here with Regulation No. 103/2010), along with other applicable regulations.
Homestay
Lodging for a fee at an individual's legal residence or any other property owned for personal use is included. The total number of rented days for both properties should not exceed 90 days per calendar year, or the combined rental income from the properties should not exceed 2 million krona.
An individual wanting to operate a homestay needs to register the business with the District Commissioner of Greater Reykjavík. If the operation exceeds the thresholds for homestays in the Act on Restaurants, Lodging Establishments, and Entertainment, it is necessary to deregister the establishment as a homestay on the district commissioners' website and apply for an operational license from the Public Health Authority and an operating permit from the District Commissioner (categories II-IV).
On May 31, 2017, Alþingi made amendments to the Act on Hygiene and Pollution Prevention, No. 7/1998. The amendments came into effect from July 1, 2017. A health committee operating permit is no longer required for category I homestays.
The Reykjavík Public Health Authority encourages landlords to adhere to general rules regarding cleanliness, maintenance, ventilation, safety, nuisance, and noise in the rented property. Landlords are also urged to be vigilant about bedbugs.
Operating permit conditions
In progress.