This page is only designed to give you an overview of the local requirements, but it is your duty to know and comply with the local laws. misterb&b is not a legal adviser : you should read carefully the relevant laws and contact a local adviser or the local authorities for further understanding.
In May 2016, the Icelandic Parliament voted the law 67/2016 (“Lög um breytingu á lögum um veitingastaði, gististaði og skemmtanahald”) to amend the law 85/2007 for restaurants, lodgings and Entertainment (“Lög um veitingastaði, gististaði og skemmtanahald”). This law takes effect on January 1, 2017 and introduce some change.
Short-term rental definition
According to Law 67/2016, short-term lodgings may not exceed 30 consecutives days at a time. Accommodation for more than 30 days falls under law on rented accommodations 36/1994 (“húsaleigulög”).
Registration and licence
On January 1, 2017, it is possible to operate “heimagisting” rental (category I of article 3 of law 85/2007) without applying for a licence, as long as it does not exceed 90 days per calendar year and that the gross income made out of the rental does not exceed ISK 2,000,000. Article 10 of the law 67/2016 only makes mandatory to register “heimagisting” rentals before the Commissioner (sýslumanni) of the relevant district.
Rentals over 90 days per calendar year or generating over ISK 2,000,000 would fall into category II (“gististaður án veitinga”), which requires to apply for a licence. Articles 8, 9 and 10 of law 85/2007 details the requirements and the licensing procedure.
It’s important to note that the registration or the licence number issued at the end of the relevant procedures must be displayed on your misterb&b listing. To do so, when connected on your misterb&b account, you should go to “edit my listing” > “address”.
Article 6 of the Decree 585/2007 (Reglugerð um veitingastaði, gististaði og skemmtanahald) lists and defines the types of lodging : “hótel”, “gistiheimili”, “gistiskáli”, “heimagisting”, “ibúðir”, “sumarhús”. For each types, the following articles set legal requirements and standards to be met : we highly encourage our Hosts to refer to this decree.
Article 3 of the decree also set lodging equipments standards.
Note that records of the overnight Guests (with name, date of birth, address and nationality) should also be retained by the Hosts for at least one year, and made available to the local authorities on their request.
Safety and health standards
Rentals on Iceland have to meet some health and pollution standards set in law 7/1998 (“lög um hollustuhætti og mengunarvarnir”). Hosts must also ensure rentals abide by the laws and regulations concerning environment, fire safety and others laws relevant to the rental activities.