English translation
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Grants for property rates
The second paragraph of Article 5 of Act No 4/1995 states that municipalities may give grants for the payment of property taxes on real estate carrying out non-profit activities, such as cultural, sporting, youth, and recreational activities as well as humanitarian activities. Municipalities must establish rules for the award of grants on the basis of that provision.
On September 9, 2004, the City Council agreed that no grants should be given for the waiver or reduction of property taxes. At its meeting on June 3, 2010, the City Council reaffirmed the previous resolution on the matter and approved amendments to Article 3 of Reykjavík City’s Rules on Grants. Article 3 now states that grants are neither given for the purchase of housing nor specifically for the payment of property taxes.
With reference to the decision of the City Council and Article 3 of the City's Rules on Grants, you cannot apply for a grant to pay property rates.