Hi! The English site is only a beta for now and still has many errors (especially in names and locations).
We are working hard to fix them and making more content available than ever before so expect constant updates.
Reykjavik City may reduce or cancel property rates for low-income old age and disability pensioners. Reykjavik City also grants a discount on the sewerage fee paid to Reykjavik Energy.
Property rates are levied annually on all real estate property, unless exempt by law, and the owner is responsible for their payment. Property rates comprise property tax, land rent, waste collection fees, and recycling center fees.
It is up to municipalities to set their own rules for waiving property rates. The Department of Finance and Risk Management is responsible for processing property tax and sewerage fee discounts after reviewing the tax returns of old age and disability pensioners.
To be eligible for the discount you must meet the following conditions:
The income thresholds for the reduction of property tax and the sewerage fees in 2023 are:
Individual with income up to 4,950,000 kr.
Jointly taxed individuals with income up to 6,910,000 kr.
Individual with income between 4,950,001 and 5,670,000 kr.
Jointly taxed individuals with income between 6,910,001 and 7,660,000 kr.
Individual with income between 5,670,001 and 6,590,000 kr.
Jointly taxed individuals with income between 7,660,001 and 9,150,000 kr.
The discount rate for old age and disability pensioners when applying property rates in January 2023 is, as a temporary measure, the same as it was at the end of 2022. The levying for income in 2022 will be available in June 2023 and shortly thereafter work begins on calculating the discount. Any changes will be communicated in a letter by the end of October 2023.
There is no need to apply specifically for discounts on these fees. The Department of Finance and Risk Management then makes changes to the property tax and sewerage fee after reviewing the tax returns of old age and disability pensioners.
Cases concerning property rates can be submitted through My Pages.
Municipalities may reduce or waive the property tax that low-income old age and disability pensioners are required to pay pursuant to the fourth paragraph of Article 5 of Act No 4/1995 on Municipal Revenue. Municipalities shall set rules for the application of the authorization. Reykjavik City also grants a discount on the sewerage fee paid to Reykjavik Energy on the basis of the fourth paragraph of Article 4 of Act No 9/2009 on the Construction and Operation of Sewerage Services. The reduction of the property tax and the sewerage fee is based on rules established by City Council, cf. the fourth paragraph of Article 5 of Act No 4/1995 on Municipal Revenue. The rules on interest relief for properties are based on point (B) of Article 68 of Act No 90/2003 on Income and Property Tax. Decisions based on these rules can be appealed to the Ministry of the Interior within three months of the decision, cf. Article 111 of Act No 138/2011 on Local Authorities.