First-time home buyers can use their supplementary pension savings to make tax-free payments towards their mortgage for a 10-year period. Just over 10 years have now passed since the solution was first enacted and, as a result, the authorisation will soon expire for many - if it hasn’t already.
For those who did not select to apply the solution to a specific period, the default period was 1 July 2014 to 1 July 2024.
First - contact Iceland Revenue and Customs
Those who wish to continue allocating supplementary pension savings to their mortgage once the initial 10-year period comes to an end need to apply.
In order to apply, it’s necessary to first contact Iceland Revenue and Customs (“Skatturinn”) and request cancellation of the first-time buyers solution. This can be done over the phone to +354 442-1000 or by email to adstod@leidretting.is.
Second - apply on leidretting.is
Once Skatturinn has cancelled the first-time buyers solution, you can go to www.leidretting.is and apply to have supplementary pension savings paid towards your mortgage. This is similar to the first-time buyers solutions except that the maximum amount per annum is ISK 750,000 for spouses and jointly taxed parties while the first-time solution sets the maximum at ISK 500,000 per individual and ISK 1 million for spouses and jointly taxed parties.
The solution for first-time buyers allows for rather higher payments than the general solution.
