Iceland Economy Profile - Doing Business 2019
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Doing Business 2019 Iceland
Economy Profile
Iceland
Page 1
Doing Business 2019 Iceland
Economy Profile of Iceland
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Iceland
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Iceland
Ease of Doing Business in DB 2019 Rank
Region OECD high income
190 1
Iceland
Income Category High income 21
DB 2019 Ease of doing business score
Population 341,284
0 100
City Covered Reykjavik 79.35
DB 2019 Ease of Doing Business Score
0 100
84.64: Denmark (Rank: 3)
80.35: Finland (Rank: 17)
79.35: Iceland (Rank: 21)
78.90: Germany (Rank: 24)
77.80: Regional Average (OECD high income)
77.29: France (Rank: 32)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Iceland
1 13 12
15
30 33 31
28
53
55 59
71 73
82
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Iceland
100
90.72 92.24
86.61 84.64 86.71
81.85
80
71.64 70.00 69.10
60.00
Score
60
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Iceland
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Iceland
Starting a Business - Iceland
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement ISK 500,000
City Covered Reykjavik
Indicator Iceland OECD high Best Regulatory
income Performance
Procedure – Men (number) 5 4.9 1 (New Zealand)
Time – Men (days) 11.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 1.7 3.1 0.0 (Slovenia)
Procedure – Women (number) 5 4.9 1 (New Zealand)
Time – Women (days) 11.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 1.7 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 6.7 8.6 0.0 (117 Economies)
Figure – Starting a Business in Iceland and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
93.27: France (Rank: 30)
92.52: Denmark (Rank: 42)
92.43: Finland (Rank: 43)
91.19: Regional Average (OECD high income)
90.72: Iceland (Rank: 59)
83.58: Germany (Rank: 114)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Iceland
Figure – Starting a Business in Iceland – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
2
10
Cost (% of income per capita)
1.5
8
Time (days)
6
1
4
0.5
2
0 0
1 2 3 4 *5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Iceland
Details – Starting a Business in Iceland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Search for company name Less than one day no charge
Agency : Register of Enterprises (Directorate of Internal Revenue) (online procedure)
The company name database can be accessed at the Internal Revenue's website
(www.rsk.is).
2 Deposit initial capital in bank account 1 day no charge
Agency : Commercial Bank
The initial capital can be deposited in any commercial bank.
3 Apply for registration with Register of Enterprises between 7-10 days ISK 130,800
Agency : Register of Enterprises
To apply for registration with the Register of Enterprises, the company must provide five
documents:
1. Notification of incorporation form
2. Agreement of incorporation
3. Record of the meeting of incorporation
4. Articles of Association
5. Affidavit on payment of share capital, issued by a certified public account
The register is also in charge of advertising the incorporation notice in the Official
Gazette, the official journal. The total registration fee is ISK 130,500, which includes the
company identification number (ISK 5,000), and the fee for publishing the notification in
the Official Gazette (ISK 1,000).
Model incorporation documents and forms (in Icelandic) can be found on the Ministry of
Industries and Innovation's website (www.atvinnuvegaraduneyti.is). The notification of
incorporation form can be downloaded at no cost from the Internal Revenue Office
website (www.rsk.is).
4 Obtain a VAT number Less than one day no charge
Agency : Directorate of Internal Revenue (online procedure)
Taxable parties must report their activities to the Director of Internal Revenue no later
than 8 days after the activity begins. Companies that plan to sell goods or services valued
at more than ISK 1,000,000 are required to collect and report VAT.
Applicants can fill out form 5.02 which can be submitted online
(https://www.rsk.is/atvinnurekstur/ad-hefja-rekstur/virdisaukaskattsskra/nr/160). The
signed form and notification can also be sent via email to the Register of Enterprises
and/or by visiting the offices of the Director of Internal Revenue. The Director of Internal
Revenue will subsequently assign the applicant company with a VAT number which the
company shall use in it’s economical activities. The notification can also be filed at
www.skattur.is with a web key.
5 Notify tax authorities of employment of workers Less than one day no charge
Agency : Tax authorities (online procedure)
The notification can be filed at www.skattur.is with a web key. The signed form and
notification can also be sent via email to the Register of Enterprises.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Iceland
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Iceland
Dealing with Construction Permits - Iceland
Standardized Warehouse
Estimated value of warehouse ISK 375,120,675.10
City Covered Reykjavik
Indicator Iceland OECD high Best Regulatory
income Performance
Procedures (number) 17 12.7 None in 2017/18
Time (days) 84 153.1 None in 2017/18
Cost (% of warehouse value) 0.4 1.5 None in 2017/18
Building quality control index (0-15) 8.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Iceland and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.94: Denmark (Rank: 4)
79.30: France (Rank: 19)
78.16: Germany (Rank: 24)
75.79: Finland (Rank: 34)
75.41: Regional Average (OECD high income)
71.64: Iceland (Rank: 71)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Iceland – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.25
80
70
Cost (% of warehouse value)
0.2
60
Time (days)
50 0.15
40
0.1
30
20
0.05
10
0 0
1 2 *3 4 5 6 7 8 9 10 11 12 13 14 15 * 16 17
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Iceland
Figure – Dealing with Construction Permits in Iceland and comparator economies – Measure of Quality
15 14.0
11.0 11.5
Index score 10.0 9.5
10
8.0
5
0
Iceland Denmark Finland France Germany OECD high income
Details – Dealing with Construction Permits in Iceland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain design approval 7 days ISK 440,165
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 110 per cubic meter and an application fee of ISK 11,000 for the approval
of architectural drawings and designs. The approval is valid for 2 years within which
BuildCo has to begin construction.
2 Obtain approval of structural, electrical, and mechanical design drawings 14 days ISK 220,000
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 11,000 in Reykjavik.
There is also an application fee of ISK 132,000.
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.
3 Obtain approval of site manager 3 days no charge
Agency : Licensed engineer
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.
4 Obtain initial set out of building 5 days ISK 36,000
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 Receive foundation work inspection 1 day no charge
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.
6 Receive concrete work inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
7 Receive steel work for slabs inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
8 Receive frame inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
9 Receive drainage inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
10 Receive structure inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
11 Receive timber scaffolding inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
Page 11Doing Business 2019 Iceland
12 Receive plumbing inspection 1 day no charge
Agency : Reykjavik Municipal Building Control Office
13 Request occupancy permit and await final inspection 21 days ISK 19,500
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.
14 Receive final inspection 7 days ISK 22,000
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.
15 Register the building with the Municipality 15 days ISK 34,000
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 34,000 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.
Pay water connection fees to Orkuveita Reykjavíkur 1 day ISK 779,046
16 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.
17 Obtain water meter and final water connection 7 days no charge
Agency : Reykjavik Energy (Orkuveita Reykjavíkur)
Takes place simultaneously with previous procedure.
Page 12Doing Business 2019 Iceland
Details – Dealing with Construction Permits in Iceland – 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; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
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 Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
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? Inspections by in- 1.0
(0-2) house engineer;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
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 Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
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 No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the University degree 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction University degree 0.0
on the ground? (0-2) in engineering,
construction or
construction
management.
Page 13Doing Business 2019 Iceland
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 14Doing Business 2019 Iceland
Getting Electricity - Iceland
Standardized Connection
Price of electricity (US cents per kWh) 10.0
Name of utility Orkuveita Reykjavíkur
City Covered Reykjavik
Indicator Iceland OECD high Best Regulatory
income Performance
Procedures (number) 4 4.5 3 (25 Economies)
Time (days) 22 77.2 18 (3 Economies)
Cost (% of income per capita) 9.3 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 7 7.5 8.0 (27 Economies)
Figure – Getting Electricity in Iceland and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
98.79: Germany (Rank: 5)
92.24: Iceland (Rank: 13)
92.01: France (Rank: 14)
90.22: Denmark (Rank: 21)
88.98: Finland (Rank: 25)
85.47: Regional Average (OECD high income)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 15Doing Business 2019 Iceland
Figure – Getting Electricity in Iceland – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
10
20
Cost (% of income per capita)
8
15
Time (days)
6
10
4
5
2
0 0
1 *2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Iceland and comparator economies – Measure of Quality
8 8 8
8 7.5
7 7
7
6
Index score
5
4
3
2
1
0
Iceland Denmark Finland France Germany OECD high income
Page 16Doing Business 2019 Iceland
Details – Getting Electricity in Iceland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Veitur Utilities PLC, await inspection and receive 7 calendar days ISK 0
estimate
Agency : Orkuveita Reykjavíkur
An application can be submitted online. The following documents are needed with the
application: Siteplan of the warehouse in scale 1:500 - to see how it is located to the
existing electricity system, location of electrical fuse/switch board - to see where the
cable is coming into the warehouse and single line diagram of the electrical fuse/switch
board. There is no notarization needed of the documents. There is no internal inspection.
However, the electrician who is in charge for the internal wiring must be qualified
(having the right examination) and be approved by the Icelandic Construction Authority
(a governmental agency responsible for the safety of electrical housing installation) and
registered on a list. The Icelandic Construction Authority is now responsible for
administration of law and regulations regarding Electrical Safety and took over these
responsibilities from the Consumer Agency. The utility has this list and the list is
renewed monthly. If the electrician applying for the 200A connection is not on the list,
the utility refuses the application for connection. When a new customer applies for a new
connection to OR's distribution system, he/she can apply for a supply contract with the
sales department (OR) or the customer can inform the sales department that he/she wants
to make a supply contract with another electricity company/supplier.
2 Receive site inspection by Orkuveita Reykjavik 5 calendar days ISK 0
Agency : Orkuveita Reykjavíkur
An external inspection is conducted to confirm that the given information in the
submitted documents and drawings is accurate. The external inspection is not necessary
to prepare an estimate. There is no extra fee for the inspection, the cost is included in the
application fee. It is the main rule that someone from the customer's party is present
during the inspection, in case that OR is having remarks on the site and the customer
needs to fix them before the external connection works start.
3 Pay connection fee and await completion of external works 14 calendar days ISK 698,041
Agency : Orkuveita Reykjavíkur
When the customer has given all necessary documents/drawings to the utility and the site
inspection confirms that it fulfills the requirement of the utility, then the utility sends the
invoice to the customer. The customer can pay the connection fee only via a bank. The
customer gets an invoice/giro from the bank. This is always before the external work is
done. If the site inspection is according to given documents, then there should be no
waiting time until external works can start. The external connection works involve the
following:
the utility makes a ditch/trench from the nearest cable distribution cabinet to the
warehouse's fuse board, a cable is laid in the trench and cable terminations are made to
the cable end which is connected to the distribution cabinet (without fuse). The utility
obtains the excavation permit during this step.
All material for the external connection is provided by the utility.
4 Receive meter installation by Frumherji and submit electrician's notification 1 calendar day ISK 0
to Construction Authority
Agency : Frumherji hf.
The meter is installed when the customer requires it. It is installed by another company
which is responsible for this service since this service was outsourced a few years ago.
OR has outsourced the meter-department to Frumherji. Frumherji owns the meters and
rents them to OR. There is no charge for the installation of the meter, this is included in
the connection fee. The customer has no direct interaction with Frumherji. When all
connections are finished (electrical fuse board + distribution cabinet) and the meter is
installed, then the current can start flowing. When the utility has done the connection of
the warehouse to the distribution system, the electrician of the contractor who built the
warehouse must fill out a form and send it to the Iceland Construction Authority which is
now responsible for the safety of electrical housing installation. The utility also informs
this agency that this house is now connected to the distribution system. The electricity
can start flowing before the electrician sends the form to the Iceland Construction
Authority.
Takes place simultaneously with previous procedure.
Page 17Doing Business 2019 Iceland
Details – Getting Electricity in Iceland – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.5
System average interruption frequency index (SAIFI) 0.4
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.or.is/vorur
-thjonusta/verdskra-
og-skilmalar
http://www.on.is/fyrirt
aeki
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 18Doing Business 2019 Iceland
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 19Doing Business 2019 Iceland
Registering Property - Iceland
Indicator Iceland OECD high Best Regulatory
income Performance
Procedures (number) 3 4.7 1 (4 Economies)
Time (days) 3.5 20.1 1 (New Zealand)
Cost (% of property value) 3.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 26.5 23.0 None in 2017/18
Figure – Registering Property in Iceland and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
89.88: Denmark (Rank: 11)
86.61: Iceland (Rank: 15)
80.73: Finland (Rank: 28)
77.17: Regional Average (OECD high income)
65.70: Germany (Rank: 78)
63.33: France (Rank: 96)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Iceland – Procedure, Time and Cost
Time (days) Cost (% of property value)
3.5 2.5
3
Cost (% of property value)
2
2.5
Time (days)
1.5
2
1.5
1
1
0.5
0.5
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 20Doing Business 2019 Iceland
Figure – Registering Property in Iceland and comparator economies – Measure of Quality
30
26.5 26.5
24.5 24.0
25 23.0
22.0
Index score
20
15
10
5
0
Iceland Denmark Finland France Germany OECD high income
Details – Registering Property in Iceland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 The buyer obtains a non-encumbrance certificate from the Land Registry Less than one day, ISK 8,480; (ISK 1,500
Agency : Magistrate's Office online each mortgage
The buyer requests to receive a certificate of mortgages and other possible rights and certificates if
obligations in relation to the property. Anyone can request a certificate in writing. It costs completed at the
ISK 1.500 and it takes one visit to the Icelandic Property Registry. Real-estate agencies
Registry's office (2
have on-line access to this information at a cost of ISK 850 per certificate. Other due
required)
diligence checks are performed using online databases of the Property Registry and Land
ISK 700 for certificate
Registry under the Icelandic Property Registry. Some of the checks include: (i) A list of
options, purchase rights, and warrants issued by the Company specifying the name of the from the Property
holder, rights or warrants issued, the date granted, the purchase price, and the position of Registry
the holder with the Company; (ii) An address list of the locations of all land, buildings, ISK 630 for online
and other improvements either leased or owned by the Company; (iii) Status of properties certificate of status
owned (eignastöðuvottorð) and the history of properties owned (eignasöguvottorð). (eignastöðuvottorð)
ISK 2,600 (for
physical certificate)
ISK 2,900 ownership
history
ISK 1250 Certificate
from the National
Register
Total ISK 8,480)
2 Authorized real estate agent prepares and executes the sale-purchase 1 day ISK 7,502,413.5;
agreement (1.5-2.5% of property
Agency : Real Estate Agent value (real estate
It is not mandatory to use an authorized real estate agent, but almost everyone does. The agent fees))
agent's fees will be around 1.5% and 2.5% of the property value. The sale-purchase
agreement is usually registered at the Property Registry if the property is not paid in full
at the time of the agreement. The deed is first signed when the property is paid in full.
Registration of the sale-purchase agreement protects the rights of the purchaser. The total
extra cost of registering the sale-purchase agreement is ISK 2.000.
The process takes about 2 days. In this case there is no need to register the sale-purchase
agreement and it is not a formal requirement. The conditions for registry of the sale
purchase agreement are that it contains the following information: (i) the name of the
property as officially registered by the municipal authorities, (ii) unique property
reference number of the land and the property, (iii) the legal description set forth by the
planning and building authorities and (iv) the land and the building’s number which has
direct reference to its coordinates. This information can be obtained from the Land
Registry office in the property’s district or from Icelandic Property Register (Cadaster
authority). If an authorized real estate agent handles the sale this information is available
to him via an electronic data and information system. It is common that the buyer notifies
the insurance company. Insurance companies have electronic access to the database at
Icelandic Property Register and there is a daily processing of the title of transfers. The
title of the fire-insurance changes the same day as the transfer of title is registered.
3 Transfer of title is prepared and registered at the Magistrates office 2 days ISK 6,003,930.8; (ISK
Agency : Magistrate's Office and Associates of attorney's 2000 + 0,8%
When the buyer has fulfilled his obligations in relation to the sale purchase agreement (individuals) or 1,6%
and the conditions for registrations, the transfer of title is prepared and registered at the (companies) of the
Magistrates office. The deed shall be delivered in two signed copies (including one copy
official property value
on a special accredited paper). The documentation should include the deed signed by the
(usually lower than
seller and the purchaser and certified by a notary public, or an attorney, a certified real-
purchase price) for
estate agent or two witnesses. In practice a notary public is hardly ever used.
Stamp Duty)
Takes place simultaneously with previous procedure.
Page 21Doing Business 2019 Iceland
Details – Registering Property in Iceland – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 7.0
What is the institution in charge of immovable property registration? District
Commisioner of
Reykjavik
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Reykjavik City
Council
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 4.0
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: www.keldan.is,
www.skra.is
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.syslu
menn.is/gjaldtaka
/
Does the agency in charge of immovable property registration commit to delivering a legally Other 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access: By law, 10
business days
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
Number of property transfers in the largest business city in 2017: A total of 7,411
for 2017 in the
Reykjavík
municipality.
Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5
by anyone
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
Page 22Doing Business 2019 Iceland
Link for online access: http://reykjavik.is/
gjaldskrar/lukr-
gjaldskra
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 8.0
Are all privately held land plots in the economy formally registered at the immovable property Yes 2.0
registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? Yes 2.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (0–8) 7.5
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who Yes 0.5
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar;
Lawyer;
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property District court of
worth 50 times gross national income (GNI) per capita and located in the largest business Reykjavik
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Less than a year 3.0
case (without appeal)?
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
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