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Property rates
Property rates are levied annually on all real estate property, unless exempt by law, and the current owner is always responsible for their payment. Real estate property is considered to be a restricted part of land, together with its organic and inorganic parts, the rights attached thereto, and the structures permanently attached to the land.
About property rates
Property rates comprise property tax, land rent, waste collection fees, and recycling center fees. The City of Reykjavík's Department of Finance and Risk Management handles the assessment, invoicing, and collection of the fees.
Until 2010, water and sewerage fees were collected as part of property rates, but Veitur is now entirely responsible for their assessment and collection.
Calculation of property rates
| Residential housing | Commercial properties | |
|---|---|---|
| Property tax | 0.18% of the property valuation of the house and land | 1.60% of the property valuation of the house and land |
| Land rent | 0.20% of the land valuation | 1.00% of the land valuation |
Information
The City of Reykjavík's Department of Finance and Risk Management provides information on the assessment of property rates and changes to them by calling 411 1111. Simple inquiries can be sent to fasteignagjold@reykjavik.is. You can also submit a case concerning property rates.
Please note that owners can access assessment notices on Reykjavík City's My Pages or Ísland.is. Assessment and amendment notices are not mailed out due to an amendment made to Act No. 4/1995 that went into effect on January 1, 2019, allowing municipalities to deliver assessments for property tax electronically.
Property tax assessment
The property tax assessment is carried out according to Chapter II of Act No 4/1995 on Municipal Revenue. Municipalities are required to levy property tax on all properties valued as a part of the property valuation on December 31 of the preceding year according to the Register of Properties. Property tax is levied on new plots of land and structures in proportion to the annual assessment from the end of the month after they are registered and assessed in the Register of Properties, unless they are specifically exempted from property tax by law. Property tax is waived at the end of the month after the structure is deregistered from the Register of Properties.
The basis for the assessment of real estate tax is the property valuation. Property tax is calculated as a percentage of the property valuation based on the registered use of the property.
The assessment of property tax can be appealed to the Appeals Committee for Property Assessment and must be submitted within three months of the tax assessment date.
Property valuation
The property valuation includes both the house and the land, and is divided into house valuations and land valuations. The Housing and Construction Authority (HMS) reassesses the registered valuation of all properties on May 31, each year. This price is considered the property appraisal value from and including December 31 of that year until the same time the following year, unless a special appraisal is made.
HMS is required to inform each municipality and owner of the results of the reassessment no later than June each year. The owner has one month from the announcement of the decision to provide comments. Both current and planned property valuations can be viewed on the website of HMS.
Property registration
Properties, their parts, and individual structures must be recorded in the Register of Properties according to law. Changes in the registered use of the property require a building permit from the Office of the Building Commissioner. You can request a building permit on the website of the Building Commissioner.
A-tax category 0.18% of property valuation
Dwellings and residential buildings with land rights, rural copyholds and land holdings, outbuildings and structures on agricultural holdings, stables, all benefits, and summer cottages as well as land rights.
B-tax category 1.32% of property valuation
Medical institutions under the Health Service Act, schools, dormitories, preschools, gymnasiums, and libraries.
C-tax category 1.60% of property valuation
All other real estate property, such as industrial, office, and commercial buildings, aquaculture installations, hunting lodges, and structures used for tourism.
Land rent
Land rent is charged on all leased lots as a percentage of the lot share assessment. The rental fee for residential land is 0.2% of their land valuation and 1.0% for commercial land.
The Office of Property Management and Industrial Development, Reykjavík City Hall, Tjarnargata 11, provides all information on the renewal and changes to land leases by phone at 411 1111. You can also get information by sending an email to info@reykjavik.is.
Waste management fee and recycling facility fee
A waste management fee and recycling facility fee is imposed in accordance with Article 11 of Act No 55/2003 on Waste Management and Article 25 of Act No 7/1998 on Hygiene and Pollution Prevention. The fee is based on the number and size of containers per building, how often they are emptied, and the type of waste. In multi-owner buildings, the fees are divided according to the ownership percentage of the joint holdership in question cf. Articles 43 and 45 of Act No 26/1994 on Multi-Owner Buildings.
Further information on waste collection is available by phone at 411 1111 or email at sorphirda@reykjavik.is.
What do you want to explore next?
- Collection of property rates The Department of Finance and Risk Management is responsible for the imposition, billing, and initial collection of property rates.
- Grants for property rates The city council has agreed that no grants should be given for the waiver or reduction of property taxes.
- Property rates discount for pensioners Property taxes may be reduced or waived for low-income old-age and disability pensioners.
- Payment plans for statutory debt collection of property rates for commercial property Payment plans may be made for up to 24 months.
Inquiries
Simple inquiries can be sent to fasteignagjold@reykjavik.is.