Accommodation licence

The Icelandic authorities must apply for permission to operate accommodation, but they are categorized according to whether they offer catering or alcohol.

Licensing conditions

In order to obtain a license to operate and be able to complete the application, the applicant must comply with the following conditions and be empowered to submit appropriate documentation for validation. This applies whether the applicant is a person or a company's representative:

• Have a permanent residence in Iceland. Citizens of countries within the European Economic Area and member states of the founding agreement of the European Free Trade Association and the Faroe Islands are exempt from the residence requirement.

• Be of legal age and legally competent on the date of application or 20 years of age, if the business license includes authorization to serve alcohol.

• Have estate guardianship.

• Have reported the business for registration with the Iceland Tax office.

• Have not been deprived of a license to operate an accommodation, restaurant or alcohol service in the last five years since the application.

• Do not owe taxes, public fees or contributions to a pension fund that total more than ISK 1,000,000.

• Have not in the last five years been guilty of conduct related to the general criminal law, the law on narcotic drugs, the law on limited companies, the law on private limited companies, the law on accounting, the law on annual accounts, the law on income tax, the law on value added tax, the law on withholding of public fees, the law on social security, nor this law, as well as rules established according to the specified laws.

Supporting documents

The following data must be included in the application for an individual licence:

• Healthcare Committee authorisation.

• Confirmation by the previous licensee that he has ceased operation, if applicable.

• Detailed drawing of the premises.

Validity period and scope of operating licence

The operating licence is indefinite.

The licensee must immediately notify the District Commissioner if he intends to stop the licensed activity.

An operating license is limited to the licensee and is not transferable in any way. The operating license is also limited to the specified activity and location.