The Pirate Party has come third in Iceland’s general election, but no single party or coalition has won the overall majority necessary to form a government.

Tense negotiations are now expected after the political group, which was founded four years ago by internet activists, and its allies won 44.3 per cent of the vote, equating to 28 seats in parliament, four short of the 32 needed to command an overall majority.

The incumbent Independence Party polled better than expected with 29.8 per cent of the vote, and its coalition partner the Progressive Party collected 10.2 per cent, according to prelimary results released by national broadcaster RUV. The Pirate Party won 13.5 per cent of the vote, coming in just behind their allies the Left Green Movement, which got 15.8 per cent. The Pirate's other left-of-centre partners, the Social Democratic Alliance and Bright Future, collected 15 per cent of the vote between them.

Some polls predicted the anti-establishment party and its allies would win the election, after discontent with the existing government saw their popularity soar.

Documents leaked from the law firm Mossack Fonseca in April, known as the Panama Papers, showed Progressive Party leader and then-Prime Minister Sigmundur David Gunnlaugsson had previously held an undeclared stake in an offshore company, which caused widespread anger in the Nordic country.

Mr Gunnlaugsson denied any wrongdoing but resigned and was succeeded by ally Sigurdur Ingi Johannsson.

Shortly after the scandal, the Pirate Party, which advocates for more direct democracy and greater internet freedom, had shot up to more than 40 per cent in opinion polls.

But on Saturday, a left-wing alliance failed to gain a majority, leaving the pro-European Reform Party, which had 10.1 per cent of the vote, in the position of possible kingmaker.

The liberal party did not take sides ahead of the election, but some analysts said it was unlikely to form an alliance with a Pirate-led coalition and would probably favour the current government as its economic policy leans rightwards.

RUV said the preliminary results were based on 50,669 votes cast. Iceland had 246,515 registered voters for Saturday’s ballot.

As half of a governing coalition with the centrist Progressive Party, the ruling Independence Party said during its campaign that recent progress on the economy had earned it a renewed mandate, the Wall Street Journal reported.

Iceland's economy was destroyed by the 2008 financial crisis, but growth in the fishing and tourism sectors means the economy is expected to grow by about five per cent this year, much faster than the European average, according to the central bank. There is currently just over three per cent unemployment.

Yet, in the run-up to the vote, Icelanders showed growing discontent with the political establishment.

The Pirate Party won just five per cent of votes and three of 63 seats in Iceland’s 2013 general election, but after revelations about Mr Gunnlaugsson's involvement in off-shore companies, the party, which takes a strong anti-corruption stance, made unprecedented gains in opinion polls.

The group's election campaign is partly crowd-funded, they have promised to grant asylum to US whistleblower Edward Snowden and accept the bitcoin currency.

Looser copyright rules and the decriminalisation of drugs are among other policy pledges.

The breathtaking photos of Icelandic ice caves Show all 14 1 /14 The breathtaking photos of Icelandic ice caves The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Guide Einar Runar Sigurdsson is seen ice climbing inside the 'Waterfall Cave' PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Looking up from inside the 'ABC cave' - which stands for Amazing Blue Cave. Guide Einar Runar Sigurdsson can be seen ice climbing on the glacier outside. PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Guide Einar Runar Sigurdsson is seen ice climbing inside the 'Waterfall Cave' PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Guide Einar Runar Sigurdsson is seen ice climbing inside the 'Waterfall Cave' PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave. PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave. This view shows a snow storm outside the entrance to the cave. PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave. Guide Einar Runar Sigurdsson is seen taking a photo at the entrance to the cave PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: On top of the Vatnajökull glacier PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Looking up from inside the 'ABC cave' - which stands for Amazing Blue Cave. Guide Einar Runar Sigurdsson can be seen ice climbing on the glacier outside. PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave. Guide Einar Runar Sigurdsson is seen taking a photo at the entrance to the cave PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: Inside the 'ABC cave' - which stands for Amazing Blue Cave PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony The breathtaking photos of Icelandic ice caves Icelandic ice caves in Vatnajökull Wednesday 25th November 2015, Vatnajökull national park, Iceland: Photographer Mikael Buck with assistance from renowned local Icelandic guide Einar Runar Sigurdsson, explored the frozen world of Vatnajökull glacier in Iceland using Sony’s world first back-illuminated full-frame sensor – which features in the α7R II camera. His images were taken without use of a tripod or any image stitching techniques in photoshop. This was made possible through Sony’s new sensor technology, allowing incredibly detailed low-light hand held photography. Previously images this detailed would have required carrying bulky equipment to the caves, some of which can require hiking and climbing over a glacier for up to two hours to to access. This picture: The view on top of the Vatnajökull glacier whilst hiking to access the caves PR Handout - editorial usage only. Photographer's details not to be removed from metadata or byline. For further information please contact Rochelle Collison at Hope & Glory PR on 020 7014 5306 or rochelle.collison@hopeandglorypr.com Copyright: © Mikael Buck / Sony 07828 201 042 / mikaelbuck@gmail.com © Mikael Buck/Sony

The Pirate Party also tried to secure the youth vote by asking the developers of Pokemon Go to turn polling stations into Pokestops – locations where players can collect the items needed to catch Pokemon.

Even the party's founder, a 49-year-old poet, web programmer and former WikiLeaks activist, said she was shocked by the rise of the group.