Real estate purchases

The Icelandic parliament Althingi has granted temporary authorisation to utilise private pension savings to purchase a home. In such cases, the withdrawal of private pension savings is exempt from tax.

Mortgage payments using personal pension savings

Persons who pay contributions to a LV private pension can withdraw and utilise payments made during the period 1 July 2014 to 30 June 2023 without tax for payment towards the principal of a mortgage on residential housing for their own use.

Persons who do not live in their own housing can use their private pension savings for the same period as above for the purchase of residential housing. This authorisation is valid until 30 June 2023.

Act on Support for First-time Housing Buyers

This legislation set up a housing savings scheme for first-time housing buyers which came into effect on 1 July 2017. The scheme is open to all those persons who have not used their personal pension savings to make payments on mortgages or for purchase of housing prior to 1 July 2017. Persons who have already begun contributing to personal pension savings, who intend to acquire a home, can use their accumulated personal pension savings since July 2014 to purchase their first home.