New tax laws set for Airbnb landlords in Iceland

With tourist numbers currently at an all-time high, Iceland is set to implement a new law on landlords who are using the popular renting website, Airbnb. The new law which is said to be in its final stages and put into place this week, will limit the amount of days a landlord can let out their properties on Airbnb to 90 days per year. However, if landlords want to continue past the 90-day limit, then they will have to start paying business tax. It was ruled in April 2016 that any landlord renting an apartment through Airbnb would need permission to do so by the other residents within the apartment block.

With the country set to receive 1.6 million visitors this year, the reasoning for this tax is to protect the country's natural landscape and classic way of living. The majority of visitors tend to visit Iceland for its natural landscape and classic way of living, being attracted to its glaciers, hot springs and lava fields. However, it is also attracting tourists, as Iceland is the set of the hit drama, Game of Thrones, which has recently taken the world by storm.

The results of the Airbnb surge have caused a dramatic inflation in the housing prices in Reykjavík, and has restricted the amount of housing available to Icelandic Nationals, as many landlords are now cashing in on the increased tourism levels.