No, squatting is illegal in Iceland under the Penal Code (Act No. 19/1940, amended 2023) and Civil Code provisions. Unauthorized occupation of property constitutes trespassing, punishable by fines or imprisonment up to 2 years. The 2026 Housing Agency enforcement guidelines mandate swift evictions for squatters, even in abandoned buildings, with landlords required to report violations within 48 hours.
Key Regulations for Squatting in Iceland
- Criminal Liability: Article 240 of the Penal Code criminalizes unlawful occupation, with aggravated penalties if damage or violence occurs during eviction.
- Civil Eviction Process: Landowners must file for eviction through the District Court (Héraðsdómur), which typically grants orders within 14 days under expedited procedures.
- Local Enforcement: The Reykjavík Police (Lögreglan) and Housing Agency (Húsnæðisstofa) collaborate to monitor vacant properties, deploying patrols to deter squatting in high-risk areas like downtown Reykjavík and Akureyri.
Recent amendments (effective January 2026) empower municipalities to seize squatted properties for redevelopment if owners fail to secure vacant buildings within 6 months of notification. Tenants subletting without landlord consent also face eviction under the 2024 Rental Housing Act. Legal compliance requires immediate reporting of unauthorized occupation to authorities, as passive landlords risk administrative fines.