Eignarskattur

Eignarskattur, commonly referred to as property tax, is a local tax on real estate in Iceland that is charged by municipalities. The tax is levied on real property, including residential and commercial buildings and sometimes land, and is intended to fund local public services such as schools, roads, and waste management.

Tax base and assessment: The amount due is based on the property's taxable value, usually determined by municipal valuation processes in accordance with national guidelines. Rates are set by each municipality and can vary between jurisdictions and property types. Many municipalities apply different rates for residential properties, commercial properties, and sometimes vacant land.

Exemptions and relief: Depending on the municipality, exemptions or reductions may apply to certain properties or owners—for example, primary residences, non-profit organizations, or agricultural land. The exact rules are defined at the local level within national law.

Administration and enforcement: Taxes are administered by the local municipality and collected through standard tax collection channels. Taxpayers may have the right to appeal assessed values or rates to a local tax board or court, subject to time limits and procedures.

Policy context: Eignarskattur has been a topic of municipal finance discussions in Iceland, balancing revenue needs with concerns about housing affordability and equity. Reforms or pilots have at times considered adjusting valuation methods or rates to improve fairness and efficiency.

See also: Property tax.