Coastal fishing permit

If you intend to buy a coastal fishing boat, the purchase must be completed with a finalized deed of sale before the application deadline for a coastal fishing permit. If the purchase has not been finalized by then, the new owner cannot conduct coastal fishing with the vessel until the following year.

There are several things to consider before purchasing a boat, as various factors may prevent the boat from being eligible for a coastal fishing permit. The information below is based on the general rules that apply to coastal fishing but note that the regulations may change between coastal fishing seasons.

In essence, the following statements must all be answered with yes if you intend to apply for a costal fishing permit:

The boat is not a Development Fund boat

Boats categorized as Development Fund boats cannot obtain commercial fishing permits, regardless of the type of permit. You can check whether a vessel is a Development Fund boat by searching for it on the Directorate of Fisheries website and reviewing its vessel history. If the vessel has ever been classified as “Þróunarsjóður”, it has been removed from the fisheries management system and cannot participate in coastal fishing.

The boat has a seaworthiness certificate for fishing

A boat must hold a seaworthiness certificate for fishing to qualify for a coastal fishing permit.

The Icelandic Transport Authority (Samgöngustofa) issues these certificates and can confirm whether a vessel has a seaworthiness certificate, whether it is certified for fishing, and what requirements must be met to obtain such certification.

The boat does not have a negative transfer balance

If the seller needs to clear out quota from the boat prior to the sale, this may result in the vessel becoming ineligible for coastal fishing.

Boats that have transferred more quota from themselves than to themselves cannot be issued a coastal fishing permit.

You can check the status of a vessel by reviewing its quota transfer balance—its “Milli skipa” line must not show a negative cod-equivalent (þorskígildi) position. This can be corrected by transferring catch quota to the vessel; however, it is important to note that a boat that has been issued a coastal fishing permit cannot go into a negative position for the remainder of the fishing year. This applies even if the vessel withdraws from the coastal fishing system.

The new owners are not involved in another coastal fishing permit

An owner or operator of a coastal fishing vessel may not be involved in more than one coastal fishing permit. If a company owns or operates the vessel, neither the company nor its owners may hold another coastal fishing permit.

When purchasing a vessel for coastal fishing, it is important to ensure that the new owners of the vessel or the operating company will not be connected to another coastal fishing permit.

You can view a vessel’s operating category on the Directorate of Fisheries website if its operating category (Útgerðarflokkur) is not the “Núllflokkur” (a vessel in “Núllflokkur” has no operator). Samgöngustofa keeps records of the current owners of each vessel, and if the vessel or operator is owned by a legal entity, information is based on registration in the Business Register managed by the Icelandic Tax Authority (Skatturinn) or the company’s own shareholder registry.

A single owner holds more than 50% of the boat

To be eligible for a coastal fishing permit, one owner must hold more than 50% ownership of the boat. This ownership may be direct or through a company. The individual must own more than 50% of the company that owns the boat. This owner must be on board the coastal fishing vessel during every fishing trip. The Directorate of Fisheries bases owner estimation on registration in the Business Register managed by the Icelandic Tax Authority (Skatturinn) if the vessel is owned by a legal entity.

If any changes are made to the ownership of the vessel or its operating entity after the coastal fishing permit has been issued, the permit becomes invalid, and the vessel cannot participate in coastal fishing for the remainder of the season.