Real estate purchases

The Icelandic parliament Althingi has approved temporary authorisations to utilise personal pension savings for housing purchases. In such instances, personal pension savings are exempt from tax.

Using personal pension savings to make payments towards your mortgage

Persons who contribute to a personal pension fund can utilise these savings tax-exempt during the period from 1 July 2014 to 30 June 2019 to make payment on the principal of a loan taken to purchase housing for their own use.

Persons who do not live in their own homes can use their personal pension savings tax-exempt during this same period to purchase housing. This authorisation will be valid until 30 June 2019.

Legislation to support first-time home 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.