Property assessment

All properties in Iceland are registered and evaluated for property assessment and fire compensation assessment by Registers Iceland.

Property assessment

  • The property assessment is an assessment of the value of a building and the site on which it stands, and is based on the market price of similar properties on the market.
  • Property assessments are updated annually, in accordance with developments in property prices. Property owners are always sent notification of any changes.
  • The calculation of the following public levies is based on the property assessment:
  • property taxes
  • inheritance tax and
  • stamp tax for the registration of purchase agreements.

Fire compensation assessment

  • Applications for a fire-compensation assessment must be submitted within four weeks of new accommodation being taken into use. The first assessment is free of charge.

  • Fire-compensation assessment is the insurance amount of a property or the estimated cost of rebuilding a property that is destroyed by fire.

  • Fire insurance premiums are based on the fire-compensation assessment.

  • The fire-compensation assessment is the fee base of the following fees:

  • avalanche protection fund fee

  • catastrophe insurance fee and

  • fire-compensation assessment fee

Reassessment etc.

  • If a property owner believes that the value of a property has increased due to improvements, he or she is under obligation to request a reassessment.
  • If a property owner objects to the currently valid property assessment, he or she may demand a ruling by Registers Iceland.
  • A rise in the fire-compensation assessment can lead to a higher property assessment, which again means higher public levies and premiums.
  • Lending institutions generally use fire-compensation or property assessment to determine the mortgage percentage of a property, i.e. how large a loan they will grant on the property.

Links of interest

Laws and regulations