Private pension savings can be used towards your current mortgage or buying a new home. The government's actions regarding the tax-free payment of private pension savings into housing loans are now divided into three. We offer different investment options to suit different situations.
The government's actions regarding the tax-free use of private pension savings:
The options outlined above are only available to those who have a private pension. More information is provided below.
A tax free option for those planning to buy their first home.
Valid for a continuous period of 10 years.
The Icelandic Act on first home buyer assistance was passed on the 1st of July, 2017. The Act authorises the tax free payment of a private pension towards buying a home or paying towards a mortgage. Anyone can utilise this option for a period of ten years. The Act is intended to help first home buyers. Those who have not been owners of residential property in the last 5 years can be considered first time buyers.
A tax free option for those who already have a mortgage.
Effective from July, 2014 and extended to the 31st of December, 2025.
Authorisation for the tax free payment of a private pension towards a mortgage has been extended until the 31st of December, 2025.
We draw attention to that individuals with an active allocation of private pension savings to mortgages do not need to apply for an extension of this arrangement. Individuals who intend to stop using the resource, must notify RSK at leidretting.is.
Information about the resource can be found on the RSK website (in Icelandic). There you can also submit an application.
A tax free option for those planning to buy a home.
Effective from July, 2014 until the 31st of December, 2025.
Authorisation for the tax free payment of a private pension towards saving for a new home for own use. The premium paid between the 1st of July, 2014 until the 31st of December, 2025 can be used for this purpose. The owner of the pension savings cannot own a property during the aforementioned period.
Here are some things that could answer your questions. You can also talk to a consultant in the online chat or call a counseling center. We do our best to answer right away.
