Using your personal pension savings
Two options let you use your personal pension savings to fund a home purchase, partly tax-free. Both let you use regular future contributions to fund your mortgage. With the first-home option, you can also use accumulated contributions as a lump sum to buy your first home.
Both options are now permanent and can be used for a total of 10 years per person (120 months). You can use only contributions, not investment returns.
You can find more information about the two tax-free options on the Iceland Revenue and Customs website.
Both options are applied for on skattur.is.
Það getur tekið Skattinn einhverjar vikur að afgreiða hverja umsókn. Staðfesting eða höfnun berst með tölvupósti.
Ef umsókn er hafnað hjá Skattinum má skrá sig inn á skattur.is og uppfæra þar umsókn til að bregðast við athugasemdum.
Eftir að Skatturinn samþykkir umsókn er hún afgreidd hjá Arion banka eins fljótt og mögulegt er.
Eingreiðslur húsnæðissparnaðar fara fram tvisvar í mánuði, annars vegar 15. hvers mánaðar og hins vegar síðasta virka dag hvers mánaðar.
Greiðslur inn á lán eru almennt afgreiddar mánaðarlega en þó aldrei sjaldnar en á þriggja mánaða fresti.
Í Arion appinu er einfalt að fylgjast með stöðunni á sparnaðinum þínum og hvort greiðslur inn á lán séu virkar.
Main changes to the general scheme:
Permanent authorisation, a combined ten-year disposal period, i.e. 120 months
Maximum amount adjusted in line with the consumer price index at the beginning of each year
First in January 2027
Amounts have remained unchanged since the beginning
The maximum amount will be tied solely to individuals; there will no longer be any connection between spouses/jointly taxed parties
It will no longer be possible to apply for housing savings for property purchases under the general scheme
It is made a condition that the residential property against which the loan is secured:
Is the applicant's legal domicile
That the applicant holds at least a 30% ownership share in it
Holders of residence rights will no longer be able to use the general scheme
Application form on skatturinn.is
An application applies to contributions paid after the application is received
Exception: applications received before 1 December 2026 will apply from January 2026 (this is not optional)
Main changes to the first home scheme:
A combined ten-year disposal period, i.e. 120 months, instead of a continuous period as before
Maximum amount adjusted in line with the consumer price index at the beginning of each year
First in January 2027
Amounts have remained unchanged since the beginning
First Home Scheme | General Scheme | |
What laws and regulations apply to the schemes? | Act No. 111/2016 on support for the purchase of a first home, effective from 01.07.2017. Applied retroactively to 01.07.2014. Regulation No. 1586/2022 on support for the purchase of a first home. | Act No. 71/2026 on the allocation of additional pension contributions to private pension savings towards the principal of housing loans, effective from 1 October 2026. An application generally applies to contributions paid after the application is received. There is one exception to this rule: applications received before 1 December 2026 apply retroactively to accumulated contributions from January 2026. Transitional Provision XVI of Act No. 129/1997 was in effect from 01.07.2014 and was extended until 31.12.2025. |
What pension savings may be used tax-free? | Additional pension savings and designated private pension savings. | Additional pension savings only. |
Which scheme applies? | You apply for the First Home Scheme if fewer than 12 months have passed since the purchase agreement for your first home, OR if you have not owned a home in the past 5 years. | You apply for the General Scheme if more than 12 months have passed since the purchase agreement for your first home, or if this is not your first home purchase. |
How can the tax-free allocation be utilised? | You can apply for housing savings in connection with a first purchase, i.e. a lump-sum payment of accumulated contributions from 01.07.2014 or later up to the date of the home purchase. You can apply for regular payments of future contributions towards the principal of a loan following a home purchase. This applies from the date of application until the period ends. Contributions for periods that elapse between the home purchase and the date of application cannot be used as loan payments. You can allocate future contributions to pay instalments on non-indexed mortgage loans. You can combine the options as you wish, one at a time. | You can apply for regular payments of future contributions towards the principal of a loan following a home purchase. This applies from the date of application until the period ends. Contributions for periods that elapse between the home purchase and the date of application cannot be used as loan payments. Housing savings are no longer available under the General Scheme as of 31.12.2025, and it has never been possible to pay loan instalments using a tax-free allocation under this scheme. |
Is it a requirement that the property be for personal use? | No, it is not a requirement under the First Home Scheme that the property be for personal use. You may therefore rent out the property. | Yes, it is a requirement under the General Scheme that the property be for personal use. You may therefore not rent out the property. |
Applies to both the First Home Scheme and the General Scheme. | You apply at www.skattur.is. Both schemes are now permanent and apply for a combined total of 10 years per individual, i.e. 120 months. The tax exemption for each individual is limited to ISK 500,000 per year per individual, i.e. ISK 166,667 (2%) + ISK 333,333 (4%). The maximum amount applies to individuals only; there is no link between spouses/jointly taxed individuals. The maximum amount will be adjusted in line with the consumer price index at the beginning of each year, first in January 2027. The maximum amount is reached, for example, with additional savings if monthly wages are ISK 695,000 and additional pension contributions are 4%+2%. You can only allocate contributions, not returns. Loans must be secured by a mortgage on residential property and your ownership share must be 30% or more. Holders of residential rights cannot make use of the schemes. | |
Special rules for the First Home Scheme. | If two or more people purchase a property together, some may be entitled to the scheme while others may not. Each person applies individually and each person's entitlement is assessed independently. The requirement for a maximum of two purchasers is no longer in effect. If the first home is sold within 10 years, regular payments towards a new loan may be applied for if another property is purchased within 12 months of the sale. The application must be renewed if contributions to additional pension savings/designated private pension savings cease for 12 months or more after the 10-year period begins, e.g. due to studies or residence abroad. | Not applicable. |
Special rules for the First Home Scheme. New! From 1 January 2023. | You can use the First Home Scheme if the five-year rule applies to you: - If you/your spouse have not owned a property in the past 5 years prior to the application. - If your income tax base + total capital income is ISK 15,901,523 or less (2025). - If applicable, a new period under the "General Scheme" is deducted. Designated private pension savings may be used: Designated private pension savings are paid tax-free as a lump sum towards a loan each April, once additional pension savings have been allocated, where applicable. This was first done in 2024 in respect of contributions from 2023. | Not applicable. |
You can only allocate premiums, not returns, so it is not your total assets in the fund that are in question. Examples of what could cause a lower allocation than the premiums paid during the period:
The employer has not submitted all premiums.
You have used part of your additional premiums to pay for insurance.
You used the advance payment of additional savings in 2014 or 2021–2022.
You transferred part of a balance from another fund accumulated before 01.07.2014.
Returns have been negative during the period.
The employee contribution must be at least 2%; the employer contribution is not sufficient on its own.
The individual maximum is ISK 500,000 per year, divided into ISK 333,000 (4% employee contribution) and ISK 167,000 (2% employer contribution).
To reach the maximum amount, wages must be ISK 695,000 before tax, with a 4% employee contribution and a 2% employer contribution.
If the application is received by the Tax Authority, for example in October, the tax-free allocation for that year is only ISK 500,000 / 12 months × 3 months).
The Tax Authority confirms the final amount taking into account the validity period of the application and balances in other funds, where applicable. Some people receive less than expected due to the above-mentioned limitations. Housing savings are often a more realistic option as a transfer payment than a first disbursement.
Limitations of additional savings:
Employee contribution is a requirement; employer contribution is not sufficient on its own.
Minimum employee contribution is 2%, or at least equal to the additional employer contribution.
Maximum employee contribution is 4% and maximum employer contribution is 2%.
Limitations of additional savings AND designated private pension savings:
Contributions only, not returns.
Option for limited utilisation; in that case the fund may only disburse the registered amount, or full utilisation; in that case the fund may disburse all of your contributions and the employer's contributions paid into additional savings during the period, subject to the limitations of the law.
The employer must have settled contributions in order for payment to be possible.
If you have transferred additional savings accumulated before 01.07.2014 between funds, it is not possible to use them as housing savings.
Other factors may apply; see the answer to: Might I need to make any changes to my application?
The reason for rejection can be found in the email from the Tax Authority and under the communications tab on skattur.is or on leidretting.is.
Let us set realistic expectations regarding the amount and payment timeline. Some receive less due to limitations, and housing savings are more realistic as a deferred payment than as a first disbursement.
Yes, you can use the first home scheme if you meet the following conditions:
If you/your spouse did not own a property in the last 5 years prior to the application.
If your income tax base + total capital income is 15,901,523 kr. or lower (2025).
If applicable, the already used amount/period of the general scheme is deducted.
Designated private pension savings may be used in the first home scheme:
Designated private pension savings are paid tax-free as a lump sum into a loan every April, once additional savings have been allocated, if applicable. This was first done in 2024 for contributions made in 2023.
It is too late to use the first home scheme if more than 12 months have passed since the purchase agreement was made. However, you may potentially use the general scheme whether you are the owner of your first home or other properties.
You cannot apply for housing savings under the general scheme, only under the first home scheme.
The tax exemption applies to accumulated additional contributions (maximum 4%+2%, excluding returns) for the pay periods during which you were not a property owner, from 01.07.2014 or later up to the date of the property purchase.
You can apply for regular payments towards a loan. The application does not apply retroactively; the tax exemption only applies to future contributions (maximum 4%+2%, excluding returns) for pay periods from the date you apply on skattur.is.
No, it is not too late. Under the general scheme, you can apply for regular payments toward a loan following a home purchase: future contributions for pay periods during which you are a homeowner are paid regularly toward the loan from the time of application until the period ends. Contributions for periods that pass between the home purchase and the time of application are not utilised.
An application generally applies to contributions paid after the application is received. There is one exception to this rule: applications received before 1 December 2026 apply retroactively to accumulated contributions from January 2026.
Krónutölulega séð nýtist skattfrelsið best ef umsækjandi nær að fullnýta hámarksheimild hvers árs fyrir sig. Sumir ná betri heildarnýtingu krónutölulega séð ef „húsnæðissparnaður" væri ekki nýttur eða nýttur í styttri tíma en „reglulegar greiðslur inn á lán" nýttar til lengri tíma. Því fyrr sem byrjað er að leggja fyrir í viðbótarsparnað því meiri húsnæðissparnað hefur umsækjandi möguleika á að nýta þegar þar að kemur og því fyrr sem sótt er um ráðstöfun inn á lán, því fleiri launatímabil nýtast.
Einstaklingur með 695.000 kr. í mánaðarlaun nær að fullnýta skattfrelsið ár hvert með 4%+2% iðgjaldi en heimild til ráðstöfunar inn á lán færist ekki á milli ára.
Raunin er hins vegar sú þar sem útborgun/afsalsgreiðsla er oft flöskuháls við íbúðakaup þá sækja margir um „húsnæðissparnað" jafnvel þó hámarksheimild hvers árs nýtist þeim ekki að fullu ( t.d. vegna lágra launa, lágs starfshlutfalls eða af því að framlag launþega er 2% en ekki 4%).
Allt er þetta hins vegar háð aðstæðum og val hvers umsækjanda fyrir sig og hvaða leið sem farin er, þá er ágætt að átta sig á kostunum í stöðunni og taka meðvitaða ákvörðun, svo að ekkert komi á óvart síðar.
Heildarferlið krefst samvinnu umsækjanda, Skattsins, vörsluaðila og launagreiðenda. Einnig lánveitanda vegna reglulegra greiðslna inn á lán.
Fyrir útgreiðslu húsnæðissparnaðar/greiðslu inn á lán þarf þetta að eiga sér stað:
Staðfesting frá Skattinum þarf að hafa borist í kerfi vörsluaðila/lánveitanda en staðfesting berst umsækjendum oft allt að viku fyrr.
Launagreiðandi þarf að vera búinn að greiða iðgjöld.
Greiðslugluggi lána þarf að vera opinn - ef greiða á inn á lán.
Frá móttöku á umsókn þar til Skatturinn staðfestir/hafnar umsókn geta liðið allt að 2-5 vikur. Húsnæðissparnaður er því yfirleitt raunhæfari sem afsalsgreiðsla en fyrsta útborgun.
Undir samskiptaflipa á umsóknarformi má fylgjast með stöðu umsóknar og nýtingu. Þar má einnig finna kvittun/staðfestingu á að umsókn hafi verið send, ásamt skilaboðum/athugasemdum.
Í netbanka sést greiðslusaga lána.
Í Arion appi sést hvort greiðslur eru virkar og hve mikið hefur verið greitt.
Á lífeyrisyfirlitum á arionbanki.is/minarsidur sjást allar útgreiðslur og hreyfingar.
Á vefsíðu skattsins er að finna hinar ýmsu upplýsingar um úrræðin s.s. Séreignarsparnaður - ráðstöfun inn á húsnæðislán | Ísland.is.
Já, það er á þína ábyrgð að tryggja Skattinum réttar upplýsingar á hverjum tíma og bregðast við athugasemdum Skattsins, ef við á. Ef þú ert í vafa, skaltu yfirfara upplýsingar þínar á skattur.is v. úrræðis fyrstu íbúðar/á leidretting.is v. almenna úrræðisins - áður en upplýsinga er leitað hjá Skattinum.
Ný umsókn. Það er á þína ábyrgð að sækja um nýja úrræðið á skattur.is. Það fer ekki sjálfkrafa í gang aftur, þó þú hafir nýtt þér skattfrjálsu úrræðin áður. Skatturinn mun auglýsa sérstaklega þegar opnað hefur verið fyrir umsóknir nýja úrræðisins á skattur.is.
Nýr launagreiðandi. Ef þú skiptir um vinnu, þarftu að tilkynna vörsluaðila/sjóði um nýjan launagreiðanda. Gert í Arion appinu. Þá mun sjóðurinn senda lífeyrissamning þinn á nýja launagreiðandann svo hann geti hafið greiðslur. Ekki þarf að uppfæra umsókn á skattur.is eða á leidretting.is.
Nafn sjóðs/vörsluaðila. Skrá nafn nýja sjóðsins ef þú greiðir nú viðbótarsparnað í annan sjóð en áður. Nafnið ætti að sjást á launaseðli/samningi/lífeyrisyfirliti/Arion appi.
Nafn sjóðs/vörsluaðila. Sjóðurinn sem þú sóttir um í er ekki með viðbótarsparnað eða tilgreinda séreign heldur bundna eða frjálsa séreign skyldusparnaðar. Skrá þarf nafn rétta sjóðsins í umsóknina, eigir þú í öðrum sjóði.
Lánanúmer/lánasamningur. Við kaup og endurfjármögnun. Bæta nr. við lánalista, ef við á. Senda afrit af lánasamningi með umsókn. Sést í netbanka, Arion appi og á lánaskjölum. Umsækjandi bætir lánanúmeri við lánalista umsóknar hafi lán ekki þegar verið skráð á skattframtali.
Heimild ársins fullnýtt. Algeng skýring, einkum ef greiðslur falla niður að hausti eða í upphafi árs, er sú að heimild ársins hafi verið fullnýtt. Hægt er að ganga úr skugga um það á yfirlitssíðu umsóknar á skatturinn.is eða leidretting.is. Að öðru óbreyttu hefjast reglulegar greiðslur aftur á nýju almanaksári, oftast í mars, þegar iðgjöldum janúar - sem eru á eindaga í febrúarlok - verður ráðstafað inn á lán. Einstaklingar með 695.000 kr. í mánaðarlaun (m.v. 500.000 kr. hámarksnýtingu) ná að fullnýta skattfrelsið ár hvert með 4%+2% iðgjaldi alla 12 mánuði ársins.
Reikningsnúmer þitt. Vegna húsnæðissparnaðar.
Skráningarnúmer íbúðar/fastanúmer nýbyggingar. Sést í íbúðaskrá þjóðskrár á skra.is og á kaupsamningi.
Því fyrr sem þú byrjar að greiða í viðbótarsparnað (frá 01.07.2014) því meiri húsnæðissparnað áttu kost á til að kaupa fyrstu íbúð. Vegna skattfrelsis og mótframlags launagreiðanda er þetta ein hagkvæmasta leiðin til íbúðakaupa og/eða til að greiða lán hraðar niður.
Í Arion appinu getur þú gert samning og tilkynnt um nýjan launagreiðanda ef þú skiptir um vinnu. Þá mun sjóðurinn senda lífeyrissamning þinn á nýja launagreiðandann svo hann geti hafið greiðslur. Annars hættir sparnaður að safnast upp.
Frá janúar 2023 er heimilt að nýta tilgreinda séreign skattfrjálst í úrræði fyrstu íbúðar, sjá nánar hér: NÝTT 2023! Ég hef ekki átt íbúð í 5 ár, get ég nýtt mér úrræði fyrstu íbúðar?
Séreignarsparnaður er samheiti yfir viðbótar(lífeyris)sparnað, tilgreinda séreign, bundna séreign og frjálsa séreign vegna skyldusparnaðar. Einnig erfðaséreign.
Almenna úrræðið: Viðbótarsparnaður.
Úrræði fyrstu íbúðar: Viðbótarsparnaður og/eða tilgreind séreign.
Nei, ef þú ert með virka umsókn vegna Frjálsa um úrræði fyrstu íbúðar á skattur.is, þá kannar Frjálsi sjálfkrafa hvort rými sé til staðar fyrir greiðslu tilgreindrar séreignar inn á lán.