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Ease of Doing Business in

Iceland

Iceland Download Profile (1712.6KB, pdf)
Region OECD high income
Income Category High income
Population 330,823
GNI Per Capita (US$) 49,730
City covered Reykjavik

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 20 18 down
2
78.91 78.88 down
0.03
Starting a Business 34 35 up
1
92.64 92.44 up
0.20
Dealing with Construction Permits 70 68 down
2
71.66 71.61 up
0.05
Getting Electricity 9 9
-
92.24 92.24
-
Registering Property 15 15
-
86.61 86.61
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 22 18 down
4
70.00 70.00
-
Paying Taxes 29 31 up
2
84.88 84.88
-
Trading across Borders 66 66
-
80.27 80.27
-
Enforcing Contracts 32 31 down
1
69.10 69.10
-
Resolving Insolvency 14 14
-
81.70 81.65 up
0.05

DB 2017 Rank:

70

DB 2016 Rank:

68

Change in Rank:

down2

DB 2017 DTF (% points):

71.66

DB 2016 DTF (% points):

71.61

Change in DTF (% points):

up0.05

STANDARDIZED WAREHOUSE
Estimated value of warehouse ISK 327,937,401
City Reykjavik
Indicator Iceland OECD high income
Procedures (number) info_outline 17 12.1
Time (days) info_outline 84 152.1
Cost (% of warehouse value) info_outline 0.4 1.6
Building quality control index (0-15) info_outline 8 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain design approval

    Agency: Reykjavik Municipal Building Control Office

    The architectural drawings must be drawn to a scale of 1:100. A meeting of architects convenes every Tuesday to discuss the applications submitted subject to architectural drawing approval. The architects at Reykjavik Construction Agency compare their notes, and if the application is complete and follows the guidelines and regulations of the Building Code, the approval will be issued in 1 -- 2 weeks.

    The cost is ISK 98 per cubic meter and an application fee of ISK 9,800 for the approval of architectural drawings and designs. The approval is valid for 2 years within which BuildCo has to begin construction.

    7 days ISK 392,147
    2

    Obtain approval of structural, electrical, and mechanical design drawings

    Agency: Reykjavik Municipal Building Control Office

    BuildCo can present these design drawings all at once or separately. The mechanical design drawings include the potable water system, heating and ventilation, and sewerage system. At this stage when BuildCo receives the approval of the technical aspect of drawings it must pre-pay for the inspections to be conducted during construction. There are 8 inspections during construction. Each inspection costs ISK 9,306 in Reykjavik. There is also an application fee of ISK 55,836.

    Payment is made at this stage to ensure the inspections occur during construction. The approval is valid for 1 year within which BuildCo has to build the construction.

    14 days ISK 130,284
    * 3

    Obtain approval of site manager

    Agency: Reykjavik Municipal Building Control Office

    The site manager must be a professional engineer or a master builder. They are generally licensed by the Iceland Construction Authority. The application for this approval should include an application form, curriculum vitae, education certificate, and the liability insurance payment.

    3 days no charge
    4

    Obtain initial set out of building

    Agency: Reykjavik Public Works, Land Information Office, Reykjavík GIS

    The cost is ISK 36,000.00, including a tax for the final stake out of the building. For simple buildings, half of the fee is often collected for the first stake out prior to excavation.

    5 days ISK 36,000
    5

    Receive foundation work inspection

    Agency: Reykjavik Municipal Building Control Office

    At each stage of construction before the work is covered, an inspection must be conducted by the Municipality. These inspections must be requested within a day’s notice, and construction work does not stop. The request can be made via e-mail. The actual inspection takes 2 hours on average.

    1 day no charge
    6

    Receive concrete work inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    7

    Receive steel work for slabs inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    8

    Receive frame inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    9

    Receive drainage inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    10

    Receive structure inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    11

    Receive timber scaffolding inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    12

    Receive plumbing inspection

    Agency: Reykjavik Municipal Building Control Office

    1 day no charge
    13

    Request occupancy permit and await final inspection

    Agency: Reykjavik Municipal Building Control Office

    The Reykjavik Construction Authority contacts all the other agencies that must inspect the building. The number of inspections depends on the size and purpose of the building. For a small warehouse, only the fire, health, and labor inspections are necessary. The Municipality coordinates these inspections.

    21 days ISK 16,027
    14

    Receive final inspection

    Agency: Reykjavik Municipal Building Control Office

    The final inspection includes inspections of employee facilities by Icelandic OSHA (Occupational Safety and Health Agency), inspection of hygienic conditions by the Reykjavik Environmental and Hygiene Agency, and the fire system inspection.

    7 days ISK 18,612
    15

    Register the building with the Municipality

    Agency: Reykjavik Municipal Building Control Office

    Once the occupancy permit is issued, BuildCo can register it with the Municipality.

    The Building Control Office of Reykyavik updates the status of the building in an internal database on an ongoing basis using number codes to indicate the progress of the construction. After each stage of the construction process is completed and the inspection has verified the progress, the Building Control Office updates the building's status in its database. Once the building is completed, BuildCo registers the status of the completed building in the Reykjavik Municipal Building Control Office and in the meanwhile pays ISK 26,200 to the account of the National Registration Office in order to register the title over the newly constructed building and to obtain the relevant ID number for the building. The payment is done either via online payment method or via sending a check to the National Real Estate office. There is no need to have any interaction with the National Registration Office in order to register the building.

    15 days ISK 26,200
    * 16

    Pay water connection fees to Orkuveita Reykjavíkur

    Agency: Reykjavik Energy (Orkuveita Reykjavíkur)

    Water connections are administered by Reykjavik Power Company based on a principle of a single window. Its operation and quality management are pursuant to ISO 9000.

    1 day ISK 673,958
    17

    Obtain water meter and final water connection

    Agency: Reykjavik Energy (Orkuveita Reykjavíkur)

    7 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 8.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 0.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering. 0.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management. 0.0