Repayment

Repayment of contributions to citizens in countries of the European Economic Area (EEA) is not permitted. These countries are:

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and United Kingdom.

In cases where a foreign citizen has the right to repayment of contributions, the following rules shall apply:

If the period of contribution payment is less than three years, the foreign citizen shall recover both his own and his employer's contribution plus indexation calculated with reference to the consumer prices index. Repayments do not carry interest.

If the period is more than three but less than five years, thus establishing the right to a current valuation of disability benefits, the proportion of recovery shall be based on the following table of the Association of Icelandic Actuaries, where the age of the foreign citizen at the time of recovery is of main importance.

Age  Repayment ratio 
16-29  100%
30-34  95%
35-39  90%
40-44 85%
45-49 80%
50-59 75%
60-64 80%
65- 85%

 

If the period of contribution payment exceeds five years, and the contribution's amount is substantial, the repayment shall be in accordance with the assessment of the Fund's actuary.

Repayment of contributions will cancel all benefits from the Fund. An income tax is deducted from the repayment.

An application for repayment shall be accompanied by:

  1. Confirmation from the last employer regarding termination of employment.
  2. Copy of the applicant's passport.
  3. Copy of a passenger ticket back to the home country or equivalent confirmation.
  4. Copy of the last pay slip.
  5. The applicant's bank account number in Iceland.

Application form