A five-year transition period is proposed for current foreign owners, the majority of whom are Norwegian, to reduce their stakes in compliance with the new limits.
A group of Icelandic lawmakers has introduced a parliamentary resolution to cap foreign ownership in companies holding licenses for sea-based salmon farming at 25%.
The proposal, backed by five members of parliament – Sigurður Ingi Jóhannsson, Ingibjörg Isaksen, Þórarinn Ingi Pétursson, Halla Hrund Logadóttir, and Stefán Vagn Stefánsson – seeks to ensure that the economic benefits from the use of Iceland’s marine resources remain primarily under domestic control.
“Salmon farming has become one of Iceland’s most important export industries. It is essential that the profits and ownership rights linked to this valuable resource benefit the Icelandic people, rather than being funneled abroad,” the MPs said in a joint statement.
The MPs argue that the proposal aligns with long-standing restrictions on foreign ownership in the fisheries sector and should be extended to aquaculture, citing the example of the Faroe Islands where similar rules apply.
The proposal tasks the Minister of Food, Agriculture and Fisheries with preparing a bill by January 1, 2026. The legislation must comply with Iceland’s international obligations, including under the EEA Agreement. It would amend Act No. 34/1991 on Foreign Investment in Business Operations to include sea-based salmon farming.