The Government of the Faroe Islands plans to make it a requirement for foreigners looking to purchase property in the Faroe Islands that they obtain a purchase permit.
During his Ólavsøka address to the Faroese parliament, the Løgting, Prime Minister Bárður á Steig Nielsen said that the government intends to present a legislative proposal aimed at to some extent curbing the ability of non-resident foreigners to buy up property in the Faroe Islands.
“Also the growing interest among foreigners to buy [residential] houses in this country is concerning,” the Prime Minister said. “However, these matters are now being organized in such way that non-resident foreigners will need to apply for a purchase permit.”
Judging from the limited information that has hitherto been made public on the legislative proposal underway, the anticipated restrictions on property purchases by foreigners are expected to be generally mild rather than tough.
“I think the purpose of introducing [new] regulations in this area should be about securing that those who own property in the Faroe Islands are [genuinely] connected to the Faroe Islands,” Mr. Nielsen stated earlier in reply to a parliamentary question.
“Also it will be necessary to prevent that foreigners own too many properties in certain [geographical] areas of the country,” he added. “On the other hand, we should not put undue restrictions on foreign business activities in the Faroe Islands.”