Can I put up a garden shed without a building permit?
It depends on size and location — a storage shed up to 15 m² is exempt from a building permit, but not always. The default rule is in Article 9 of the Structures Act no. 160/2010: erecting or altering a structure needs a permit. Building Regulation no. 112/2012, section 2.3.5 exempts certain small buildings. The conditions (text in force 2026) are three: the building may be at most 15 m² in floor area, the ridge height at most 2.5 m above ground, and if it stands closer to the boundary than 3.0 m you need the written consent of the adjoining lot owner. The myth that trips people up: that any shed under 15 m² is automatically legal. Wrong — the exemption falls away if the local plan (deiliskipulag) forbids the building, if it is within 3 m of the boundary without consent, or if it is used for sleeping or habitation (a small building is storage or a greenhouse only). You remain responsible for fire safety and must follow the rules even where no permit is required.
📋 The rules
- The default in Article 9 of the Structures Act no. 160/2010 is that erecting, altering or demolishing a structure needs a building permit; exemptions are listed in the building regulation.
- A storage shed (e.g. a garden shed or greenhouse) is exempt if the floor area is at most 15 m² and the ridge height at most 2.5 m — section 2.3.5 of Building Regulation no. 112/2012 (2026).
- If the shed stands closer to the boundary than 3.0 m you need the written consent of the adjoining lot owner; without it the exemption does not apply.
- A small building may not be used for sleeping or habitation — it is defined as storage; houses, guest houses and holiday cabins always need a permit or authorisation.
- The exemption yields to the local plan (deiliskipulag): if the plan forbids or restricts the building the plan governs, and the owner is responsible for fire safety regardless of the permit.
🔓 Exceptions
- If the building is larger than 15 m² or higher than 2.5 m it falls out of the exemption and needs a permit or building authorisation from the building official.
- On a lot where the local plan does not allow an outbuilding, or in a protected area, size alone is not enough — you must apply despite the 15 m² limit.
- Decks and similar work at ground level fall under a separate item of section 2.3.5 and follow their own rules, not the small-building provision.
⚠️ Penalties & fines
If you build a shed that is too large, too tall or too close to the boundary without consent, it is an unpermitted structure. The building official can then require you to apply after the fact, alter the building to comply or remove it at your own cost, and impose daily fines until it is put right under the Structures Act no. 160/2010. The hidden cost is twofold. First, fire damage in an unregistered or non-compliant building can affect your insurance payout, because insurers assume a structure meets the rules. Second, an unpermitted building lands in the property register and sale report: at sale it shows up as a defect, the buyer can demand a discount and the lender can object. If the building stands too close to the boundary without consent, the neighbour can demand it be fixed and refer the matter to the building official or the environmental appeals board. The fine itself is rarely the biggest cost — it is the demolition and the time.
📎 Official sources
- Althingi · Structures Act no. 160/2010 (consolidated, Art. 9) →
- HMS · Building Regulation no. 112/2012 (consolidated) →
- Housing and Construction Authority (HMS) · guidance on small buildings →
❓ Frequently asked
How big can a garden shed be without a building permit?
A storage shed can be at most 15 m² in floor area and the ridge height at most 2.5 metres above ground under section 2.3.5 of Building Regulation no. 112/2012, as it stands in 2026. If the building exceeds these limits it is no longer a small building and needs a building permit or authorisation from the municipal building official.
Do I need my neighbour's consent for a garden shed?
Yes, if the shed stands closer to the boundary than 3.0 metres you need the written consent of the adjoining lot owner, otherwise the exemption from a permit does not apply. If the building stands more than 3 metres from every boundary no neighbour consent is needed, but it must still fit within the lot's local plan.
Can I sleep or live in a garden shed?
No, a small building is defined as storage or a greenhouse and may not be used for sleeping or habitation under the regulation. If you want a guest house, holiday cabin or dwelling in the garden it falls outside the small-building exemption and needs a building permit or authorisation, no matter how small it is.
What happens if I build the shed without a permit when one was needed?
The work then counts as an unpermitted structure and the building official can require you to apply after the fact, alter the building or remove it at your own cost. He can also impose daily fines until it is put right, and an unpermitted structure can affect your insurance and show up as a defect when you sell the property.
Does the 15 m² rule apply everywhere in the country?
The size limits themselves are a national rule from the building regulation, but each lot's local plan can forbid outbuildings or set tighter limits. So a shed that meets the 15 m² limit can still be disallowed if the lot's plan does not permit it, and it is wise to confirm the position with the building official before you start.
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