Tax-free use of private pension savings towards loans extended through 2025

Alþingi has approved extending the authorisation for the tax-free use of private pension savings towards the principal of a mortgage until 31 December 2025. The authorisation for the tax-free use of accumulated private pension savings when acquiring residential housing for own use was also extended through next year.

The reference amounts for the authorisations will remain the same. This means that individuals can allocate up to ISK 500,000 per year, while married couples and jointly taxed individuals can together use up to ISK 750,000 per year.

Please note that individuals with an active allocation of private pension savings towards a mortgage do not need to apply separately for continued use of the arrangement on the website of the Icelandic Revenue and Customs (Skatturinn).

Those who have not previously used the arrangement can apply to take part on the website leidretting.is. Those who wish to stop using the arrangement need to notify this on the website leidretting.is.

The tax-free use of private pension savings for the purchase of a first home remains unchanged.

Further information about these arrangements is available on the website of Skatturinn.