Iceland already has some of Europe's tightest home-sharing rules, and they just got tighter. On March 19, 2026, the Althing passed a new law aimed at short-term rentals, with one goal: putting apartments back into the housing market.

In this video, we break down Iceland's short-term rental rules and taxes for 2026, from homestay limits and registration to the new law's impact on owners, companies and Reykjavik.

What you'll learn:
✅ What the March 2026 Althing law means for short-term rentals
✅ How homestays work under Act No. 85 of 2007
✅ The 90-day and ISK 2 million annual limits, and what happens if you exceed them
✅ How to register your homestay with the district commissioner through Ísland.is
✅ The ISK 9,200 annual registration fee and listing number requirement
✅ How homestay income is taxed at 22% as capital income
✅ When 11% VAT and the national lodging tax apply
✅ Why Airbnb doesn't collect or file any of it for you
✅ The new rules for rural properties and company-run rentals
✅ How Reykjavik's homestay watch unit checks listings in downtown 101


0:00 Iceland's new 2026 short-term rental law
0:16 What counts as a homestay: the 90-day & ISK 2 million limits
0:45 Homestay registration, fees & listing numbers
1:03 Capital income tax, VAT, lodging tax & what Airbnb doesn't collect
1:30 What the 2026 law changes for owners & companies
1:52 Reykjavik 101 & the homestay watch unit
2:11 Get your property report

???? GET YOUR PROPERTY REPORT
Compliance happens at the address level. Your municipality can have its own requirements, and you can't fix what you don't know exists. Your property report shows exactly what applies to your property, with a step-by-step guide to getting compliant.
???? https://lodgecompliance.com

⚠️ DISCLAIMER
This video is for general information only and is not legal or tax advice. Short-term rental rules change often and vary by address. Verify requirements with the district commissioner, Iceland Revenue and Customs (Skatturinn) and your municipality before operating.

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