Can foreigners buy a house in Faroe Islands? Is there any chance at all to buy real estate in Faroe Islands? Continue reading and find out all there is to know about your chance purchasing a property in Faroe Islands.
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A small house in a secluded seaside village far away from the crowds. Sounds tempting? With a surge in tourism in recent years, a growing number of travellers to the Faroe Islands have looked into the opportunity to buy property in the Nordic archipelago. This is no longer an option.
MPs in the Faroese Parliament, Føroya Løgting, voted in favour of a law on 7 December 2021 restricting foreigners from buying real estate in the country. Before the new law came into effect, there were no rules preventing foreign nationals from owning or buying a home or land in the Faroe Islands.
Small Island Group with Tourism Boom
Located halfway between Scotland and Iceland, merely 54,500 people live in the mountainous Faroe Islands. The small volcanic archipelago consists of 18 islands and is a self-governed part within the Kingdom of Denmark.
The islanders have not been used to any huge interest in their archipelago until recently and as such restricting foreign nationals from owning real estate has not been relevant. This has changed after clever and award-winning campaigns by the official tourist board in the Faroe Islands.Adventurous travellers now come to the island group to do some of the Best Hikes in the Faroe Islands and to experience the most popular attractions.
Exclusively for People within the Danish Realm
The Faroese Prime Minister at that time, Bárður á Steig Nielsen, brought the matter for parliament in 2021. This was as a respond to an appeal from local authorities who in recent years have been calling for legislation to prevent foreign investors from purchasing properties in the Faroe Islands.
In an official press release (in Faroese only), the Prime Minister’s Office states that the number of people allowed to buy property in the Faroe Islands as been narrowed from 8 billion to 6 million people. Now only people within the Danish Realm can buy property in the Faroe Islands.
Back in 2018 before the first pandemic outbreak, the Outlying Islands Association in the Faroe Islands expressed concerns that foreign investors could push house prices up, making it harder for the local people to become homeowners.
Everyday life during coronavirus with people staying at home for months and not being able to roam wherever they want, has just nourished the idea of owning a secluded place in the world.The real estate agents all located in the capital, Tórshavn, have kept a close eye on the trend.
Real Estate Agencies in the Faroe Islands
The real estate agents in the Faroe Islands have warned against foreign property investment in the small archipelago.
Kára á Dunga is the CEO in the real estate agency Betri Heim. She says that there has been a huge growth in demand in recent years also during the pandemic.
– Foreign investors appear keen to find themselves a house in a quaint Faroese village, Kára á Dunga says.
Petur Mohr Niclasen, CEO of real estate agency Skyn, has seen the same trend in the past few years.
– We have been contacted again and again by foreigners interested in buying property especially in the quaint villages around the country, says Petur Mohr Niclasen.
There has not been that many foreigners actually buying land or a house in the Faroe Islands. Now they are unable to do so.
The new law says that foreign nationals with no affiliation to the Danish Kingdom can not buy property in the Faroe Islands without specific government permission. In order to buy a property, foreigners must have resided within the Kingdom of Denmark for a least five years.
You are unable to buy property in the island group. On the other side, you are welcome to rent a cabin and explore the islands. Want to visit Faroe Islands?
Faroe Islands Houses For Sale
Guide to Faroe Islands is themain gate to the Faroe Islands for all visitors. Whether you are visiting short term or staying longer and need help with renting or buying a property longer term, we got you covered.
Want to get more information about renting or buying property in the Faroe Islands? Feel free to write to us oninfo@guidetofaroeislands.foand ourexpert team can guide you.
If you are a traveler to the Faroe Islands, browse the largest selection of tours and activities in the Faroe Islands and take the next step. Explore allof theopportunities this unspoiled archipelago has to offer.
As a seasoned expert in real estate matters, particularly in unique and challenging regions, I bring forth my extensive knowledge to shed light on the recent developments regarding foreigners buying property in the Faroe Islands. My expertise is rooted in a deep understanding of global real estate trends and legislative changes impacting property ownership.
The article discusses the recent decision by the Faroese Parliament to restrict foreigners from buying real estate in the Faroe Islands, a Nordic archipelago situated between Scotland and Iceland. This legislative move, enacted on December 7, 2021, marked a significant shift from the previous absence of rules preventing foreign nationals from owning property in the region.
The Faroe Islands, with a population of 54,500 and located within the Kingdom of Denmark, experienced a surge in tourism in recent years. This newfound interest prompted the authorities to address concerns about potential foreign investors influencing house prices and hindering locals from becoming homeowners.
The Prime Minister at the time, Bárður á Steig Nielsen, responded to local appeals by introducing legislation to limit property ownership. The official press release from the Prime Minister's Office highlighted that the number of people allowed to buy property decreased from 8 billion to 6 million, restricting ownership to those within the Danish Realm.
Real estate agents in the capital, Tórshavn, such as Kára á Dunga from Betri Heim and Petur Mohr Niclasen from Skyn, observed a growing demand from foreign investors interested in purchasing property, particularly in quaint Faroese villages. However, the new law stipulates that foreign nationals without affiliation to the Danish Kingdom cannot buy property without specific government permission. Additionally, prospective buyers must have resided within the Kingdom of Denmark for at least five years.
This legal restriction has altered the landscape, making it impossible for foreigners to buy land or houses in the Faroe Islands. The article suggests that while property ownership is now off-limits, visitors are still encouraged to explore the islands by renting cabins.
For those seeking more information about renting or buying property in the Faroe Islands, the article directs them to Guide to Faroe Islands, the main gateway for visitors. The platform offers assistance for both short-term visitors and those looking for long-term solutions. Interested individuals can contact the expert team at info@guidetofaroeislands.fo for guidance.
In conclusion, the Faroe Islands' decision to limit property ownership reflects a strategic response to the growing interest from foreign investors, aiming to preserve the local housing market and address concerns raised by the community.
