Pension fund contribution

Individuals’ pension fund contributions are tax-deductible if they are paid as contributions to:

• A pension fund (mandatory insurance), up to a maximum of 4% of the contribution base.

• Private pension savings, up to a maximum of 4% of the contribution base.

In both cases, contributions must be paid regularly and to recognized pension funds.

Pension fund contributions are generally deducted through payroll.

The same rules and conditions apply to employees and to individuals engaged in their own business or self-employed activities.

Further information

• Pension funds authorized to receive tax-deductible contributions (in Icelandic)

• Legal provision on the deduction of pension fund contributions from income (No. 90/2003)