Property value

Calculation of property value

Property valuation combines valuation for both land and house. Things that effect the valuation among others:

• Size of the property.

• Age and condition of the property.

• Location.

• Statistical data on property purchase agreements in Iceland.

Property value is revalued each year and owners receive a notification in June of the new property value for next year. They then have roughly 6 months to react to the new valuation.

Example:

The 2024 property value is based on the market value in February 2023 and takes effect on December 31, 2023.

You can see information about your properties on island.is My pages, including property value and fire insurance value. You can also see information about all properties in the property register.

The purpose of property value

Property value is for example used for calculations of property taxes determined by municipalities and inheritance tax and stamp duty on the registration of property purchase agreements determined by the District Commissioner (Sýslumaður). Also, some lending institutions use a percentage of the property value to determine mortage amounts.

If owners believe that the property value does not reflect the market value of their property, for example if the property has been improved beyond typical maintenance or is in poor condition, it is possible to apply for a revaluation.

Revaluation of property value

The application must include:

• property id and land id

• justification of the revaluation

• photos of the property to provide an overall picture of the condition of the property

• a written power of attorney if the applicant is someone other than the owner.

When you have submitted your application, you will receive confirmation of receipt by email. If information is missing or if we consider it necessary to book an inspection, we will contact you by e-mail or telephone. If you have any questions you can email them to fasteignamat@hms.is.

Application approved

You will be notified of the new property value by letter to island.is My pages. The processing time is normally 5 business days but maximum of 15 business days

Application denied

If a property value revaluation is considered unwarranted, you will receive an email with a ruling on the unchanged property value. You may request further justification within 14 days of this decision.

If you disagree with the ruling, you can appeal it in writing to the Property Valuation Committee with reasoning and necessary data. The deadline for appeals is 3 months.