Planning is a formal and binding plan of the municipality for the arrangement of the settlement and the development of the environment. Planning should ensure efficient and sustainable use of land.

Planning decisions include how land should be allocated, for example for residential development, recreational areas, commerce, nature conservation or agriculture. It also decides on the arrangement of streets and land and rules on the design of buildings, such as height, building materials, roof shapes and number of apartments.

Municipal planning plans

Municipalities work on three types of planning:

• Regional planning: A coordinated policy of two or more municipalities on matters of common interest, such as regional development, transport or water conservation.

• Main Plan: Municipal policy on land use, nature protection and development of the inhabited area in the whole municipality.

• Decentralization: Planning for a defined area, such as a neighbourhood or street, which includes planning terms on urban patterns, land, buildings and more.

Plans need to be consistent. Regional planning is more appropriate than central planning and central planning is more appropriate than subdivision planning. Plans must take into account national planning policy.

Building permits and permits to construct must be based on and conform to the plan.

The main and regional planning shall be carried out in digital form in a coordinated manner in a spatial information system. The requirements for digital subdivisions will apply from 1 January 2025.

Role of the parties in the organisational structure

• Municipalities work and approve the main planning, divisional and regional planning. They also grant construction and construction permits and supervise construction.

• Land owners and developers can submit proposals for a subdivision plan with the permission of the local authority.

• Public institutions give comments on certain aspects of planning.

• The public can participate in the preparation of the plan through residents meetings or other consultations organized by the municipality, and submit suggestions and comments during the formal presentation of planning proposals through Skipulagsgátt.

• The organisation supervises the implementation of the planning laws and the planning regulations which includes:

  • Provide direction on planning issues

  • Reviewing municipal planning proposals, central, subdivision and regional planning

  • Established main and divisional structures

  • Preservation and dissemination of information on planning plans