Saving for a home
A tax free option for those saving towards a new home. Effective from July, 2014 til the 31st of December, 2024.
You can apply for Private Pension online (in Icelandic)
Withdrawing your private pension can be tax efficient
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 til the 30th of June, 2021 can be used for this purpose but you can use the funds to purchase a property until the 31st of December, 2024. The owner of the pension plan cannot own a property during the period outlined above.
Do you want to apply?
Browse the RSK website for more information. You can apply online.
Information regarding the maximum withdrawal limit
The maximum withdrawal for an individual is ISK 3,500,000
The maximum withdrawal for couples eligible for joint taxation is ISK 5,250,000
The maximum contribution from an employer is 2% and 4% of your own premium
The owner of the pension plan cannot own a property during the period outlined above
Are you planning to buy a property after a period of one year or longer?
Most people who take advantage of the tax free payment of a private pension towards buying a new home want to avoid fluctuations. Property Plan is a great solution for those buying after a year or more.
Are you planning to buy in the immediate future?
A non-indexed private pension can be the best solution if you are planning to buy within a year.
Want to know more?
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 you right away..