Indirect foreign investment in fishing and primary fish processing (i.e. excluding retail packaging and later stages of preparation of fish products for distribution and consumption) is allowed through indirect investment in Icelandic legal entities with a share no more than 25% ownership of foreign residents calculated on the basis of share capital or initial capital, which is increased no more than 33% foreign ownership in the case of Icelandic legal person which own no more than 5% of any fishing operations in the Icelandic fisheries jurisdiction or fish processing in Iceland.
"Article 4:
Investment by non-residents in business operations in Iceland is subject to the following restrictions:
1. Only the following may conduct fishing operations within the Icelandic fisheries jurisdiction according to existing laws on Fishing Rights within the Icelandic Territorial Waters or own or run enterprises engaged in fish processing:
a. Icelandic citizens and other Icelandic persons.
b. Icelandic legal entities wholly owned by Icelandic persons or Icelandic legal entities that meet the following conditions:
i. Are under the control of Icelandic entities;
ii.Are not owned by non-residents to a greater extent than 25% based on share capital or initial capital. If the holding of an Icelandic legal entity in a legal entity engaged in fishing in the economic jurisdiction of Iceland or processing of marine products in this country does not exceed 5%, the holding of foreign parties may, however, be up to 33%.
iii. Are in other respects owned by Icelandic citizens or Icelandic legal entities that are under the control of Icelandic persons.
With the processing of marine products in the first paragraph. this point refers to freezing, salting, hardening and any other action that protects fish and other marine products from damage, including smelting and flour processing. Processing in this connection does not, however, include smoking, pickling, canning, canning and repackaging of products in consumer packaging or further processing of products to make them more suitable for distribution, consumption or cooking. [...]
For the purposes of this Article, an Icelandic person refers to the state treasury and municipalities, as well as institutions, companies and funds in this country wholly owned by them, Icelandic citizens who are domiciled in this country and legal entities that are domiciled in this country and are wholly owned by owned by public entities in this country, Icelandic citizens who are domiciled in this country or other legal entities that are domiciled in this country and are wholly owned by Icelandic citizens who are domiciled in this country. For the purposes of this Article, an Icelandic legal entity refers to a legal entity domiciled in this country, regardless of the form of operation or ownership. A legal entity is considered to have a domicile in this country if it is registered in this country, if it considers its domicile in this country according to its articles of association or if its actual executive board is in this country.[...]" (Act on Investment by Non-residents in Business Enterprises (34/1991), last amended 24 December 2019, Article 4 [google translation])
Act on Investment by Non-residents in Business Enterprises (34/1991), last amended 24 December 2019, Article 4
[<a href="https://www.althingi.is/lagas/nuna/1991034.html">Act</a>]