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 until the 31st of December, 2024. 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.