ANNOUNCEMENT 21 Oct 2016

On 21 October 2016, the Icelandic parliament passed amendments to its Foreign Exchange Act.

NUMBER OF INTERVENTIONS

4

  • 1 harmful
  • 0 neutral
  • 3 liberalising
Inception date: 21 Oct 2016 | Removal date: open ended

FDI: Entry and ownership rule

The amendment removes all foreign ownership caps on foreign direct investments.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 21 Oct 2016 | Removal date: open ended

FDI: Entry and ownership rule

 

At the same time, the amendment introduces the requirement that any foreign direct investment will previously require a confirmation by the Central Bank of Iceland.

 
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Inception date: 21 Oct 2016 | Removal date: open ended

Repatriation & surrender requirements

Furthermore, the amendment scraps the repatriation requirement for foreign currency related to "loans taken abroad by individuals for the purchase of real estate or motor vehicles/transport equipment abroad, or for investment abroad".

 
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Inception date: 01 Jan 2017 | Removal date: open ended

Controls on commercial transactions and investment instruments

Starting in 2017, the trade in securities will be largely liberalised. Foreign securities investments will no longer require domestic custody and the transfer of custody of securities will be eased.

According to a press release by the Central Bank of Iceland, "This will enable residents and non-residents to transfer deposits and securities to and from Iceland and to trade in securities abroad within the limits specified in the Act."

 
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