The Court of Appeal (Landsréttur) has ruled that the Icelandic state owns the mines and resource rights at the Engjanes farm in Árneshreppur in the Westfjords. Engjanes was purchased in 2006 by Italian baron Felix von Longo-Liebenstein, but the appellate ruling confirms the baron does not own the water and geothermal rights of the property. The ruling was first reported by mbl.is.
The appellate court stated that these resource rights could be lawfully excluded when the estate was sold in 1958, and that this exclusion continues to apply. The decision upholds the April 2025 judgment of the District Court of the Westfjords (Héraðsdómur Vestfjarða), confirming state ownership over the Engjanes mines and excess water and geothermal rights.
Although it was not recorded in the official land registration that the mining, water, and geothermal rights were excluded from the 1958 sale, the Court of Appeal said this omission did not transfer state resource rights to later buyers, including the Italian baron. The court’s ruling clarifies that resource rights considered in the exclusion remain with the Icelandic state, even if not explicitly stated in the registration.
Background
Árneshreppur is a municipality located in the Westfjords peninsula of northwestern Iceland. With a 2024 population estimated at just 53, it is Iceland’s least-populated municipality. The region includes villages such as Djúpavík, Gjögur, and Norðurfjörður, and is served by Gjögur Airport. The Court of Appeal is an appellate court established by the Courts Act of 2016 and began operations in 2018. It hears appeals from all district courts in Iceland.
Sources
- mbl.is (first reported) in Icelandic
- Vísir in Icelandic
- RÚV in Icelandic


