Selling a company in Iceland is not complicated, but it is slower and more paperwork-heavy than most owners expect. A typical sale of a small or mid-sized business takes three to six months from the first conversation to handover. This is the full process, in the order it actually happens.

1. Decide what you are selling

There are two ways to sell an Icelandic company and the choice affects everything that follows.

A share sale means the buyer takes over the ehf. itself, with everything in it: contracts, employees, debts, history. Simpler for the seller, more due diligence for the buyer.

An asset sale means the buyer takes specific things out of the company (equipment, inventory, brand, customer list, a lease) and the ehf. stays with you. Common for restaurants, shops and small service businesses, and often the cleaner option when the company has old liabilities nobody wants to inherit.

If you are unsure, the buyer's accountant will usually have a strong opinion. Ask early.

2. Get the numbers in order

Before anyone looks at the business, pull together the last three years of annual accounts, current-year management accounts, a list of contracts and leases, employee overview and any debts. Add a short write-up of how the business works and where it could grow. This takes a weekend and saves weeks later. Buyers walk away from messy numbers far more often than from high prices.

3. Put a price on it

Valuation is where most sales stall. The good news is that for companies under roughly 50 million ISK, the market runs on rules of thumb more than spreadsheets: a multiple of EBITDA, a multiple of revenue, or assets minus debts, depending on the industry. We have written up the common multiples by sector in our guide to rule-of-thumb valuation.

Two things worth knowing. First, an outside valuation carries more weight with buyers than your own. Second, asking price and final price are different animals; most deals close somewhere below the listing, and that is normal, not a failure.

4. Find the buyer

Most Icelandic companies are sold to someone who was already looking: a competitor, an employee, a buyer browsing listings. Kennitalan is the marketplace for buying and selling companies in Iceland, where you can list the business anonymously, screen interested buyers and have them sign an NDA before they see the details. Advisors and brokers are the other route, and make sense for larger or more complex sales.

Expect the negotiation to take at least three months. If a buyer cannot raise the full price, seller financing (you receive part of the price in instalments) is common in Iceland and often the thing that gets a deal over the line.

5. Offer, due diligence, contract

Once you agree on the main terms, the buyer's accountant goes through the books, tax filings and contracts. Two to four weeks is typical. Then a lawyer drafts the purchase agreement. Use one, on both sides. The fine print on warranties, earn-outs and what happens if something turns up later is where sellers get hurt.

6. Tax

For an individual selling shares, the gain is taxed as capital income at 22%. If the shares are held by a holding company (an ehf. owning the ehf.), the gain is largely sheltered at the company level and tax is deferred until you take the money out. Many owners set up a holding structure well before a sale for exactly this reason. Talk to an accountant before you sign anything, not after. For official guidance, Skatturinn is the source.

For an asset sale, the proceeds land in the company and are taxed as ordinary corporate income, with VAT applying to some assets.

7. Foreign buyers

Iceland has no general screening of foreign investment. Buyers from the EEA can acquire most Icelandic companies freely. Restrictions apply in fisheries, energy and aviation, and non-EEA buyers need approval in some cases. For an ordinary shop, agency or software company, a foreign buyer is as straightforward as a local one.

8. Handover

Register the change of ownership and board with Skatturinn's company registry, update the share register and inform the bank, landlord and key customers. Most sellers stay available for a few weeks to a few months afterwards to answer questions. Agree on that period in the contract so it does not drag.

That is the whole process. Most of it you can do yourself. The two places where outside help pays for itself are the valuation and the purchase agreement.

If you are thinking about selling, start by listing the company on Kennitalan. It is free to look, and you will know within weeks whether there is real interest.

This guide is general information, not legal, tax or financial advice. Rules change; the figures are correct as of November 2026. Talk to an accountant or lawyer before you sign anything.