Administrative Fines for Home Accommodation

The District Commissioner of Greater Reykjavik can fine individuals who operate a business that requires registration or a license without obtaining the necessary registration or license.

The district commissioner can also fine individuals who have registered home accommodation but:

• Rent out the property for more than 90 days within any 12-month period

• Rent out the property for more than ISK 2 million within any 12-month period

• Do not include the registration or license number in marketing materials

• Fail to submit a utilization report to the district commissioner

If a fine is not paid by the due date, penalty interest will accrue until the payment is made.

The enforcement of fines is handled by the District Commissioner of North-west Iceland.

Enforcement Process

When a fine is issued, it will appear in the debtor’s online bank. A collection letter is sent to the individual’s digital mailbox on island.is.

If the fine is not paid within 30 days of the collection letter being sent, and no payment agreement is made, a payment demand will be served by a process server.

The following measures can be taken to enforce payment:

• Setoff against government credits

• Registration to the default register

• Seizure of assets

• Forced sale of assets

Payment Plans

A request for a payment plan must be submitted in writing to the email address innheimta@syslumenn.is or by letter to the district commissioner’s office in Northwest Iceland. The minimum amount for monthly payments in a payment plan is ISK 10,000.

Please note that payments can also be made to the bank account 0159-26-267, ID number 660914-0990. The debtor’s ID number and name must be included in the payment details.
Payments can also be made by credit card.

Appeal Process

It is possible to request a review or appeal the decision to the Ministry of Culture and Business Affairs within three months of the district commissioner’s decision being notified to the individual.

An administrative appeal does not suspend the legal effect of the decision and does not prevent the accrual of penalty interest but does delay enforcement. If an appeal is filed, confirmation of this should be sent to the district commissioner’s office in Northwest Iceland at innheimta@syslumenn.is.