A local development plan applies to a defined area that forms a coherent and comprehensive unit, such as a neighborhood, a neighborhood section, street block or building cluster. A local plan sets out provisions regarding building permits, design specifications, and environmental layout.

In a local development plan, conditions are set regarding:

• The settlement pattern and the typology of the environment, such as the size, location and use of houses.

• The overall appearance of the settlement, such as the design and layout of buildings, detailing and material use.

• Parks and public spaces such as streets, squares, playgrounds and public parks.

Building permits and construction permits shall be in accordance with the plan. The general rule is that building permits shall be based on a divisional plan, but permits may in certain cases be based on a main plan. For further information on building permits, please visit the website of the Housing and Construction Authority and here on the website.

Information on ongoing planning projects can be found on Skipulagsgátt, planning portal.

A neighborhood plan (e. hverfisskipulag) is a simplified version of a local plan that may be prepared for established residential areas where no major development is planned. Unlike traditional local development plans, neighborhood plans are subject to fewer formal requirements in terms of presentation and regulatory detail. They allow for greater flexibility in setting general rules and guidelines for building permissions, such as modifications or extensions to existing buildings.

Local Planning

• The municipality is responsible for the preparation of a local plan. The municipality's planning committee is responsible for the preparation of the local plan on behalf of and under the authority of the municipality council.

• A landowner or developer may make a request to the municipality to prepare or amend a local plan at their own expense. By approving the proposal, the municipality adopts the plan as its own and becomes responsible for its implementation.

• The local plan enters into force once it has been approved by the municipal council and published in the Official Gazette.

• The municipality covers costs of preparing a local plan, except if a landowner or developer is authorized to prepare it at their own expense.

Digital local plan

In addition to traditional planning documents, such as reports and drawings, a digital local plan must be submitted to the National Planning Agency in accordance with the Planning Act. The digital data should be prepared alongside other planning documents and accompany them when the local plan proposal is sent to the National Planning Agency for review.

Creating a digital local plan involves preparing planning data in a standardized manner within a geographic information system (GIS). The local plan is still presented in a planning report and on planning drawings, as before. More information about geographic data and digital local planning is available here: landupplýsingar og stafrænt deiliskipulag.