Grindavík council urges parliament to extend property purchase deadline until July 1, 2025

The municipal council of Grindavík has called upon parliament members to extend the deadline for property purchases until July 1, 2025. The council expressed concerns regarding uncertainty in parliamentary activities due to upcoming elections, emphasizing the importance of legislative changes that pertain to the livelihoods and housing issues of residents.

In light of the challenging circumstances that residents of Grindavík face due to natural disasters, the council believes that predictability is essential. They propose that temporary operational support for businesses affected by these disasters be extended until April 1, 2025. Currently, the legislative provision allowing for the purchase of residential properties in Grindavík is set to expire at the end of the year.

The council has identified the urgent need to extend this deadline to July 1, 2025, advocating for a modification in the provision to replace the term “property taxes” with “property tax and land rent.” This change would mean that the company Þórkatla will pay sewer and water fees just like other property owners, while continuing to be exempt from property taxes and land rent.

Additionally, the council underscores the necessity of extending legislation concerning the protection of crucial infrastructures in the Reykjanes Peninsula, which is currently valid until December 31, 2026, yet specific provisions will lapse on January 1, 2025. It was also noted that the Municipal Equalization Fund has secured contributions for Grindavík concerning property tax and primary school costs. Given the fluctuations in population numbers, the municipality is likely to miss out on equalization funding in 2025 unless these legislative changes are enacted.