Industrial lots in the municipality of Skagafjörður are owned by the municipality but leased for 99 years. The municipality is responsible for areal zoning of the lot, as well as laying streets, pedestrian tracks and utility to the marked lot. The lessee pays a fee to the municipality covering the costs the municipality has of laying the street. This fee is 5,5% of the estimated building cost of the largest house allowed on the lot.

Real property taxes are paid to the municipality along with, sewerage fee, lot lease and cold-water fee.

Table 1 show how fees could be for 10000, 20000 and 30000 square meter facilities with equal sized lots, by current tariff.

  Cover fee for street and utility laying, one time fee Square meter of buildings and lots**  
    Building cost index m2* price m2 10000 20000 30000  
    156319 5,50% 8598 85.975.450 171.950.900 257.926.350  
  Real property fees, once a year    
    Real property tax   1,65% 14.066.250 28.132.500 42.198.750  
    Sewerage fee   0,275% 2.344.375 4.688.750 7.033.125  
    Lease   2,5% 250.000 500.000 750.000  

Cold-water fee***

0,5% 4.262.500 8.525.000 12.787.500  
    Total real property fees 20.923.125 41.846.250 62.769.375  

Currency = ISK *January 2010 **two story building on half the lot ***drinking water, at highest possible tariff

There have not been made any formal decisions within the municipality of Skagafjörður according to incentives to investors. The municipality is though willing to negotiate community taxes and fees.

1 This estimation of building cost is calculated by the index of buildingcost per square meter, provided by Statistics Iceland

2 Drinking water, industrial waters are treated differently

3 Source






The municipality of Skagafjörður
Skagafirðingabraut 21   |   550 Sauðárkrókur   |   Tel: +354 455 6000   |   Fax: +354 455 6001   |