Relief Grants

Who is this for?

These grants are intended to provide financial relief to companies that have sustained revenue loss due to the coronavirus pandemic. Grants will be paid monthly, one month at a time, from November 2020 to the end of March 2022.

What are the criteria?

Legislation to make these grants available has been approved by the parliament. The proposal is that relief grants will be available to companies that have sustained at least 40% revenue loss in a calendar month, from November 1, 2020 to March 2022, compared to the same calendar month 2019.

The maximum grant amount is 90% of operational costs, limited to the loss of revenue in the relevant period.

In addition, the following three criteria are set out for grant amounts:

• 40–60% revenue loss: ISK 300,000 for each full-time equivalent, up to ISK 1.5 million.

• 60–80% revenue loss: ISK 400,000 for each full-time equivalent, up to ISK 2 million.

• 80–100% revenue loss: ISK 500,000 for each full-time equivalent, up to ISK 2.5 million.

  • The number of full-time equivalents may be set to match their number in the same month of 2019.

Other criteria are:

• Revenue loss can be traced to the pandemic or the government's measures to mitigate the effects of the coronavirus outbreak.

• Revenue in a calendar month is at least 40% less than in the same month 2019. If a company started after the beginning of the calendar month in 2019, the reference is average income in as many days as there are in a calendar month.

• Revenue from January 1, 2020 to the end of October 2020 is at least ISK 500,000.

• You must be current on all taxes and other fees due before the end of 2019

• You must have submitted all tax returns, withholding tax statements, VAT statements, annual accounts, etc.

• The company has not been put into liquidation.

Information regarding government support

Relief grants are government sponsored. Maximum support is ISK 260 million, including business closure grants for companies forced to close after September 17, 2020, revenue loss grants, and travel gift. If the company is in crisis the amount granted to it is limited to ISK 30 million according to regulation regarding minimum support.

Where can I apply?

Iceland Revenue & Customs administers the relief grants.

Note that deadline for applying is June 30th 2022.