Application for a license to operate a guest accommodation facility and/or a catering establishment

General information

No one may run a business operation in connection with the sale of guest accommodation, the sale of food and the renting of reception rooms on a commercial basis without holding a licence to do so.

In order to get a licence to run a restaurant in Iceland the applicants needs to comply with the following conditions:

1. Be resident in the EEA-area

2. Be legally competent and at least 20 years old

3. Have the administration of his estate

4. Have announced his commercial activity to the tax authorities

5. Have not, in the past five years, been found guilty of violating the following acts: 1) General penal code, 2) on narcotics, 3) respecting Public Limited Companies 4) respecting Private Limited Companies, 5) bookkeeping, 6) annual accounts, 7) income tax, 8) VAT, 9) on the withholding of public levies at source, 10) insurance fee or relevant secondary legislation.

6. Has not had a license for running an accommodation facility, restaurant or a liquor licence revoked in the past five years.

7. Not owe taxes, public fees or pension fund fees exceeding 500.000 isk.

A licence from the local Public Health Authority is also necessary. Before granting a licence the housing must be approved by the Building Committee. The facilities shall be suitable for the activity and kept clean and safe. (For more information contact the local Public Health Authority of the municipality in question)

Laws and regulations

  • Act no. 85/2007 on Restaurants, Accommodations and Entertainment Staging.