Gildi merki
  • Private Pension
  • Private savings for property purchases
  • Support to purchase first residence

Support to purchase first residence

Effective for 10 consecutive years and the applicant selects the start date. The measures are threefold.
  1. Private pension savings that have accrued over a particular period may be used for the purchase of a first residence.
  2. Private pension savings may be used for a property loan that is secured with a lien in the first property and which was taken for that purchase.
  3. Private pension savings may be used for the payment of instalments on a unindexed loan and toward reducing the principal of a loan that is secured with a lien in the property.

 

  • These measures are tax free.
  • The maximum amount per year is ISK 500,000 per person, with a maximum 4% from the employee and 2% from the employer.
  • The contribution of the individual must be at least as high as that of the employer.
  • The right holder must own at least 30% of the residential property, and there may not be more than two buyers.
  • The Act entered into force as of 1 July 2014. Private pension savings that have accrued since 1 July 2014, however, may be used for the first-time purchase of a property.
  • Individuals who bought their first property during the period between 1 July 2014 and 30 June 2017 and who pay private pension savings toward the principal of a loan according to the earlier authorisation can apply for this measure for a first property, but they must send in the application before the end of 2017. The period that has already been utilised is deducted from the consecutive 10-year period.
  • Applications are to be sent electronically to Directorate of Internal Revenue.
Gildi merki

Guðrúnartún 1, 105 Reykjavík
Hafnarstræti 9, 400 Ísafjörður

Opening hours

Mondays – Thursdays 09:00 – 16:00

Fridays 09:00 – 15:00

Phone hours for department of
pensions, loans and premiums

Mondays – Fridays 09:00 – 15:00

Phone
515 4700

Email
gildi@gildi.is

Social Security Number
561195 2779

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