Are you entitled to housing benefits?

The applicant and other household members must meet several criteria to be eligible for housing benefit payments.

You can check your rights to housing benefits by using the calculator.


Conditions for housing benefits

1. The applicant and other household members must be registered residents of the rented house.

Exemptions from the requirement of registered residence:

An individual may be entitled to housing benefit even if he is not registered in the house, if he is temporarily based elsewhere in Iceland:

  • and is studying away from home
  • and needs to reside away from home because of an illness
  • at a halfway home
  • and is temporarily working away from home


2. An applicant for housing benefits must be 18 years of age. Other household members do not have to be 18 years old.


3. Residential property must, at a minimum, have one bedroom, cooking facilities, bathroom and bathing facilities.

Exemptions:

Despite the conditions of residential property it is authorized to pay housing benefits in these cases:

  • Dormitories or boarding schools
  • Residence for disabled people in housing solutions
  • Residence in halfway homes


4. The rental agreement must be officially registered.

Exemptions:
  • Property owned by the state or municipality
  • Dormitories or boarding schools
  • Temporary use of residence for up to twelve months due to a forced auction of the house by a district magistrate
  • Halfway homes
Written rental agreement must always be available, if it is not officially registered.


5. The applicant and other members of the household 18 years of age or older, must give their consent.

The Directorate of Labour gathers information regarding income and assets of household members from the tax authorities. Information regarding leases are gathered from the National Registry and local municipalities.


Housing benefits are not paid:

a. If the applicant or other household members are register in another application for housing allowances. Child under 18 years may be registered in a household with both parents or guardians.

b. If the housing is listed for commercial use.

c. If part of housing or individual rooms are rented.
Exemptions:
  • Dormitories or boarding schools
  • Residence for disabled people in housing solutions
  • Residence in halfway homes
d. If someone in the household is entitled to tax rebates.

e. If any household member is the owner of the housing  or a controlling partner in a company that owns the housing.

f. If housing benefits are already being paid for the same housing.