If a double taxation agreement is in force between Iceland and the country where an individual lives, it may be possible to apply for a reduction or exemption from tax in Iceland.

Using this form, an individual living abroad can apply for a reduction or full exemption from Icelandic tax on capital income and other payments under a double taxation agreement.

Please note that a different application applies to employment income and pension income (5.49).

Read more about taxation of income between countries.

Whether you can apply for a full exemption or a tax reduction depends on the applicable double taxation agreement. View double taxation agreements by country.

What Income May Qualify for an Exemption?

• Payments for services or activities carried out in Iceland, for example payments to contractors.

• Income from the rental, use or right to use movable property, patents, other rights or specialist knowledge, as well as capital gains from the sale of such assets.

• Income from Icelandic shares, including dividends and capital gains.

• Interest income.

Application Process and Supporting Documents

The following must be submitted with the application:

• Confirmation that you are subject to tax in your country of residence.

• Either a stamp from the tax authorities in field 21 of the application form or a certificate of tax residence issued by the tax authorities in your country of residence. Please note that the US tax authorities use their own certificate, Form 6166, instead of a stamp.

If Tax Has Already Been Withheld

If tax has already been withheld from your income, you may be entitled to a refund. You can apply for a refund of overpaid tax under a double taxation agreement (5.43) at the same time as submitting this application.

Ef skattur hefur þegar verið dreginn af

Ef skatti hefur þegar verið haldið eftir af tekjum þínum getur þú átt rétt á endurgreiðslu. Þú getur sótt um endurgreiðslu á ofgreiddum skatti vegna tvísköttunarsamnings (5.43) samhliða þessari umsókn.