Child benefits for children resident abroad (EEA child benefits)

Child benefits are generally only paid for children resident in Iceland. There are exceptions for children who are not domiciled in Iceland if the child's supporter:

• works in Iceland and is fully taxable in Iceland and a citizen of a country within the European Economic Area (EEA), a member state of the European Free Trade Association (EFTA) or the Faroe Islands.

• is resident abroad and insured in Iceland under the Social Security Act.

• works abroad for an employer that pays insurance tax in Iceland.

The children must be resident in the EEA, a Member State of the EFTA or in the Faroe Islands.

Childs supporter

Only child supporters are entitled to payment of child benefit. Those who pay child support are not considered to be a child's supporter in this context.

Application

Every year, the applicant must apply for EEA child benefit at the end of each income year using the following application form.

Documentation with application

The applicant shall provide sufficient documentation from the competent authority of the State of residence. The following documents must be included in the application.

For married or cohabiting applicants

• Child/children birth certificate (not applicable if child is born in Iceland and/or has Icelandic ID number)

• A certificate of residence of children, spouse and marital status at the end of the income year to which the application relates.

• A certificate of income or a certified copy of a spouse's tax return for the income year.

• Confirmation of payment of child benefit in the state of residence of the child in respect of the income year.

If both parents live in Iceland, a certificate must be submitted stating who the child lives with and receipts for the transfer of funds to the child's caregiver.

For applicants who are single parents:

• Child/children birth certificate (not applicable if child is born in Iceland and/or has Icelandic ID number)

• Certificate of residence and marital status at the end of the year of income for which the application is made. A residence certificate must show where the child lives and with whom.

• A certificate of income or a certified copy of a tax return in the state of residence for the income year.

• Confirmation of payment of child benefit in the state of residence of the child in respect of the income year.

• Signs for transfer of funds to a caregiver.

• A confirmation of custody of a child or a custody agreement.

Pensioners resident abroad

Those who are resident in another EEA Member State and receive payments from the Icelandic social security system may be entitled to EEA child benefit from Iceland. This applies to payments from, for example:

• Insurance Administration

• The Directorate of Labour

• Maternity/paternity leave fund

Special applications must be submitted on the RSK application form 3.20. The same supporting documents as mentioned above shall be submitted. However, there is no need to return a birth certificate for children who were born or have lived in Iceland. If the child is resident with a single parent, receipts for transfers need not be submitted to a carer or a certificate of custody of the child.

Work in another EEA Member State and child/children resident in Iceland

Those who are subject to unlimited tax liability in Iceland but work in another EEA state may be entitled to child benefits in the employment state, even if the children are domiciled in Iceland.

If a spouse lives in Iceland and works in Iceland, the right to child benefits is considered to be first in Iceland, but if child benefit is higher in the other state, then the state is obliged to pay the difference.