Payment Terms
1. LITIGATION
1.1. ORALLY ARGUED CASES
For orally argued cases, the fee is ISK 251,413 (ISK 311,552 incl. VAT), plus 15% of the claimed amount and interest up to ISK 13,634,246, 7% of the next ISK 27,268,492, and 4% of any amount exceeding that. Additionally, disbursements incurred in the conduct of the case shall be paid.
1.2. CASES ARGUED IN WRITING
In cases that may be conducted pursuant to Chapter 17 of the Civil Procedure Act, where no evidence is gathered after the case is filed or where judgment is rendered without the respondent submitting a statement of defence, the base litigation fee is ISK 53,544 (ISK 66,394 incl. VAT), plus 10% of the claimed amount and interest up to ISK 13,634,246, 5% of the next ISK 27,268,492, and 3% of any amount exceeding that.
1.3. COURT DETERMINATIONS ON LEGAL COSTS
A court's determination of legal costs in a judgment does not affect the determination of fees vis-à-vis the client for litigation services. Court determinations on legal costs may, inter alia, reflect an assessment of whether the outcome of the case was uncertain and therefore do not necessarily reflect an assessment of the reasonable fee for litigating the case.
1.4. MISCELLANEOUS
Court Settlements
If a case not conducted pursuant to Chapter 17 of the Civil Procedure Act is settled after filing but before the main hearing, the fee shall be calculated according to the rules applicable to general default cases set out above.
Cases Where Interests Are Negligible or Difficult to Quantify
In such cases, a base fee of ISK 228,557 (ISK 283,411 incl. VAT) shall be paid, plus a fee according to the applicable hourly rate or a special agreement.
Fees for Arguments on Procedural Matters
The right is reserved to charge separately for arguments on procedural matters, e.g., a demand for security for legal costs, dismissal, etc., that are not conducted concurrently with arguments at the main hearing.
Fees for Court Appearances
Each appearance is charged at the hourly rate of a Supreme Court Attorney as determined from time to time, cf. Section 6 of this fee schedule.
2. DEBT COLLECTION
2.1. CALCULATION OF COLLECTION FEES
Collection fees are calculated on the combined amount of principal and interest. The base collection fee shall be ISK 12,499 (ISK 15,499 incl. VAT), plus:
25% of the first ISK 180,917
10% of the next ISK 1,220,251
5% of the next ISK 12,209,420
3% of the next ISK 27,282,151
2% of any amount exceeding that
If the collection is on behalf of a party domiciled abroad, the creditor shall pay the attorney up to 5% of the collected amount, in addition to the fee under this section.
2.2. APPEARANCES AT HEARINGS FOR COLLECTION CASES
For appearances at executions, forced sale proceedings, attachments, injunction and custody proceedings, as well as eviction and reinstatement proceedings, the hourly rate of a Supreme Court Attorney shall be paid as determined from time to time, cf. Section 6 of this fee schedule.
2.3. DRAFTING FEES FOR APPLICATIONS AND CLAIMS
For applications to district commissioners, such as for execution, forced sale, and dispossession, as well as withdrawals and claims filed in bankruptcy estates and auction proceeds, the hourly rate of the staff member who drafts the documents shall be charged, cf. Section 6 of this fee schedule.
2.4. CREDITOR'S LIABILITY FOR COLLECTION FEES
If a claim is not paid or collection proves unsuccessful, the creditor is liable to the attorney for payment of collection fees as set out above or as otherwise specially agreed.
3. SETTLEMENT OF DAMAGE CLAIMS
3.1. GENERAL PROVISIONS ON SETTLEMENT OF DAMAGE CLAIMS
For settlements and agreements on compensation for personal injury or damage to property, a base fee of ISK 129,632 (ISK 160,743 incl. VAT) shall always be paid, plus whichever is higher: recorded hours or a percentage of compensation paid, calculated as a 10% fee on the first ISK 12,963,107 collected, and a 5% fee on any amount exceeding that.
3.2. FEES FOR DAMAGE CASES LITIGATED IN COURT
For cases brought before the courts, or pursued following appraisals by court-appointed experts, the provisions of Section 1 of this fee schedule shall apply, as applicable.
3.3. COLLECTION OF ACCIDENT INSURANCE BENEFITS
For the collection of accident insurance benefits, i.e., employees' accident insurance, seamen's insurance under maritime law, and other accident insurance, the hourly rate or 10% of the collected amount shall be paid, whichever is higher.
If a settlement of damage compensation under Sections 3.1 or 3.2 above takes place concurrently with an accident insurance settlement, and fees are paid under those sections, the collection cost for the accident insurance shall be reduced to 5% of the collected amount.
3.4. CLIENT'S LIABILITY FOR FEES AND/OR DISBURSEMENTS
If a client's claim proves unfounded, frivolous, and/or liability is denied due to the actions of the client or persons connected to the client, the law firm may decide to cease representation of the client and demand a fee equal to the base fee, cf. Section 3.1.
The client is liable to the law firm for disbursements incurred for medical certificates, disability assessments, damage calculations, or other costs necessarily incurred in the handling of the case, provided such costs are not recovered from the liable party or otherwise agreed.
4. SALES COMMISSIONS, ETC.
Purchase and sale of real estate and registered vessels: 1% of sale value (private sale).
Purchase and sale of movable property: 3–5% of sale value.
These provisions also apply to the purchase and sale of businesses.
Sale of shares: 2% of sale value, unless the shares effectively represent real estate and/or a business, in which case the above provisions apply.
For reviewing and examining contracts and documents related to the sale and purchase of real estate, vessels, movable property, or other assets, prepared by another attorney or a party licensed to conduct real estate transactions, the hourly rate of the staff member reviewing said documents shall be charged, cf. Section 6 of this fee schedule.
5. DOCUMENT PREPARATION, ETC.
5.1. PURCHASE AGREEMENTS AND DEEDS
Document preparation: ISK 93,114 (ISK 115,461 incl. VAT), plus a fee for time spent, at the applicable hourly rate.
5.2. PROMISSORY NOTES AND SECURITY INSTRUMENTS
Document preparation: ISK 56,430 (ISK 69,973 incl. VAT), plus a fee for time spent, at the applicable hourly rate.
5.3. LEASE AGREEMENTS
Document preparation: ISK 94,048 (ISK 116,620 incl. VAT), plus 2.5% of the rental amount, up to one year's rent. If the attorney has also arranged the lease, an additional 3% of the same rental amount shall apply.
5.4. INCORPORATION OF COMPANIES
For the incorporation of a company, document preparation, finalization, and related services: ISK 94,048 (ISK 116,620 incl. VAT), plus a fee for time spent, at the applicable hourly rate.
5.5. PRENUPTIAL AGREEMENTS
For drafting a prenuptial agreement, advising on its contents, and registration with the relevant authority: ISK 76,087 (ISK 94,348 incl. VAT), plus a fee for time spent, at the applicable hourly rate.
5.6. WILLS
For drafting a will, advising on the contents of such instruments, and storage of a copy: ISK 76,087 (ISK 94,348 incl. VAT), plus a fee for time spent, at the applicable hourly rate.
5.7. MATERIAL COSTS FOR DOCUMENT PRODUCTION, SUMMARIES, APPEAL DOCUMENTS, REFERENCE MATERIALS, AND OTHER DOCUMENT PROCESSING IN COURT CASES
For material costs relating to photocopying and processing of documents submitted in court cases, prepared in accordance with court rules, or delivered to courts bound or spiral-bound: ISK 22 (ISK 27 incl. VAT) per page, plus a fee for time spent, at the applicable hourly rate.
6. HOURLY RATES
As a general rule, hourly rates shall be paid for work on tasks other than those specified in Sections 1–5. Hourly rates within each category are based on the experience and specialization of the attorney concerned. The minimum billable unit is 15 minutes, and each interaction, e.g., email, SMS, telephone call, etc., is recorded. The minimum call-out charge is 4 hours. The attorney records work on the case, including travel time and other necessary preparation, cf. also Section 9 of this fee schedule. The hourly rate per hour is as follows, unless otherwise agreed:
Category 1: ISK 49,900 (ISK 61,876 incl. VAT)
Category 2: ISK 46,900 (ISK 58,156 incl. VAT)
Category 3: ISK 43,900 (ISK 54,436 incl. VAT)
Non-legally qualified staff: ISK 21,900 (ISK 27,156 incl. VAT)
A surcharge may be applied to the above hourly rates, for example if the attorney's special experience or expertise is utilized, if work is performed within an unreasonably short timeframe, at short notice, or outside the office's normal business hours, or if work is carried out in a foreign language. The maximum surcharge on the hourly rate is 50% of the base hourly rate.
In addition to the hourly rate under paragraphs 1 and 2, a special surcharge may be added to the firm's fee where the case involves substantial financial interests. Such a surcharge may also be added with regard to the results achieved by the attorney's work. The special surcharge under this provision shall be calculated based on the interest-based fee schedule for orally argued cases, cf. Section 1.1, and added to the hourly rate under paragraphs 1 and 2.
The attorney is entitled to apply the provisions of paragraphs 2 and 3 of this section, unless specifically agreed otherwise before the conduct of the case commences.
7. MISCELLANEOUS PROVISIONS
7.1. PAYMENT BY THIRD PARTIES
In cases where a third party, such as the state or a municipality, pays a portion of the client's invoice, the amount paid by the third party shall be deducted from the firm's invoice to the client. The remaining amount shall be paid by the client, unless specifically agreed otherwise in writing.
7.2. TRAVEL
Charges are based on the time the journey takes, plus all travel and accommodation costs.
7.3. VALUE ADDED TAX
Attorneys are required by law to charge value added tax on legal services. Accordingly, VAT is added to the individual fee items in this schedule, and fees inclusive of VAT have been calculated where fee amounts are stated in Icelandic króna. In cases where the fee is calculated as a percentage (%) of a given total, whether of the principal of a monetary claim, funds collected, assets sold or leased, a surcharge on costs, or on the basis of other metrics, VAT shall be added to the amount so calculated. Clients operating VAT-liable businesses are entitled to a refund of VAT on all invoices issued by the attorney, whether costs are paid by the debtor, the opposing party in litigation, or the tortfeasor.
7.4. PAYMENT ARRANGEMENTS
Clients other than regular clients shall pay a portion of the fee upon the decision by ESJA Legal ehf. to take on the client's case, pursuant to a more detailed agreement. The general expectation is that half the attorney's fee be paid before the work/case is concluded. Attorneys reserve the right to demand payment on a regular monthly basis as the work progresses.
8. AMENDMENTS TO THE FEE SCHEDULE
The fee schedule is generally amended on January 1 and July 1 of each year, in line with changes in the wage index. The attorney's fee shall be based on the fee schedule in effect at the time the invoice for the work is issued.
9. LIABLE AIRLINES
Airlines liable for compensation that fail to respond to legitimate demand letters sent on behalf of the firm's clients are responsible for payment of costs in the amount of ISK 1,095,900 (ISK 1,358,916 incl. VAT) for the collection, for work in connection with the underlying case, as stated in the demand letters from the law firm on behalf of users. Foreign airlines do not pay value added tax, cf. Article 3, paragraph 2 of Regulation No. 194/1990 on value added tax on services for foreign parties and on purchased services from abroad.
10. TO THE CLIENT
The client is obligated to familiarize themselves with the provisions of this fee schedule. The client is responsible for payment of fees and disbursements, whether or not they are recovered from the opposing party, unless a special agreement is made to the contrary. The attorney shall inform the client of the estimated cost of the work when work on the case commences, if the client so requests.
If work is performed on an hourly rate basis, the client is entitled to receive a summary from the attorney's time records underlying the invoice, if requested. An itemized calculation of fees based on the interests of the case shall also be provided upon request.
This fee schedule shall be deemed part of the agreement on the conduct of a case entered into between the attorney and the client upon the client's signing of a power of attorney to the attorneys of ESJA Legal ehf., and shall apply unless specifically agreed otherwise.
This fee schedule is effective from February 11, 2026.