Icelandic legislative and regulatory developments

Iceland is undergoing various legislative processes involving international agreements and domestic property laws.

In October 2026, the Althingi addressed disputes regarding EEA and Schengen regulations. A bill concerning Protocol 35 proposed that implemented EEA rules take precedence over subsequent Icelandic laws, a move critics argued could challenge the principle that newer laws supersede older ones. Additionally, the government moved forward with legislation regarding EU asylum protection agreements, with legal experts noting that refusal to adopt certain Schengen regulations could potentially lead to Iceland exiting those frameworks.

By November 2026, the focus shifted to land ownership. Minister of Industries, Innovation and Trade, Hanna Katrín Friðriksson, appointed an expert group to investigate foreign ownership of land in Iceland. The group is tasked with assessing whether current legislation provides sufficient oversight and if stricter regulations are required to manage foreign land acquisitions. The findings are expected by March 1, 2027, to inform potential legislative amendments.