You can use your private pension plan tax free

Authorisation for the tax free payment of a private pension towards a mortgage has been extended by two additional years or until the 30th of June, 2023. The initial authorisation was effective from the 1st of July, 2014 until the 30th of June, 2017. A limited amount of a private pension can be used towards the principle amount of a mortgage, used to purchase or construct a property for own use.

Do you want to apply?

You can find the information you need and apply on the RSK website

Authorised total amount

  • The maximum authorised amount per year is 500,000 ISK per person

  • The maximum authorised amount per year for married couples and individuals who fulfil the criteria for joint taxation is 750,000 ISK per year.

  • The maximum authorised mount is 2% from an employer and 4% of your own premium

  • The loan in question must be a mortgage loan and must provide the right to interest allowance

Stable yields and small fluctuations

Most people who put their premiums on loans prefer small fluctuations. Therefore, a non-indexed pension account is a good option. It is important to review the investment path as soon as the remedy is completed.