A development plan is a formal and binding plan that sets out a local authority's policies and proposals concerning land use, the arrangement of settlements and the shaping of the environment. Planning aims to ensure efficient and sustainable land use.

Planning decisions include how land should be allocated, for example, for residential development, recreational areas, commercial use, nature conservation, or agriculture. Decisions are also made regarding the layout of streets and plots, and rules set for building design, such as the number of floors, building materials, roof type, and the number of dwellings.

Municipal plans

Municipalities develop three types of planning:

• Regional Plan: A coordinated policy for two or more municipalities on matters of shared interests, such as regional and urban development, transportation or water protection.

• Municipal Plan: Municipal policy on land use, nature conservation and development across the entire municipality.

• Local Plan: A plan for a defined area, such as a neighborhood or a street block, which includes planning conditions for urban patterns, plots of land, buildings, and more.

Plans must be consistent with each other. A regional plan takes precedence over a general plan, and a general plan takes precedence over a local plan. The National Planning Policy must be considered and taken into account when preparing plans.

Building permits and development permits must be based on and conformt to plans.

All regional, master, and local plans must be prepared in digital format using a harmonized approach within a geographic information system (GIS).

Roles and Responsibilities in the Planning Process

Various actors are involved in the preparation of planning documents, each with different roles:

• Municipalities prepare and approve regional, municipal and local plans. They also issue building and development permits and oversee implementation.

• Landowners and developers may prepare planning proposals subject to municipal authorization.

• Public institutions provide comments on specific aspects during the planning process.

• The general public can participate throughout the planning process, through public meetings or other consultations organized by the municipality, and may also submit comments and suggestions during the formal consultation period via the planning portal, Skipulagsgátt.

• The National Planning Acency oversees the implementation of the Planning Act and associated regulations. The acency's responsibilites include:

  • Providing guidance on planning matters.

  • Reviewing planning proposals (regional, master, and local plans).

  • Confirming master and local plans.

  • Preserving and disseminating information about planning documents.

  • The agency also maintains Skipulagsgátt, a consultation portal for planning matters, environmental impact assessments, and development permits.