Private pension savings for first time home buyers

The application is only available in Icelandic.

If the application does not open automatically after logging into the Tax Authority's service portal, you need to select Samskipti > Fyrsta íbúð > Umsókn.

When the application is opened, the first step is to grant permission to retrieve information and data from the property registry. It is necessary to approve this in order to proceed.

Review personal information and select property

• Select the property from a dropdown menu or click 'Skrá nýja eign' to add your property

• Enter the seven-digit property registration number. The property number is listed on the purchase agreement and can be looked up in the property registry (there is no need to include the letter F with the property number).

• Additionally, enter the purchase date and the applicant's ownership share in the property.

• The notarized purchase agreement must accompany the application unless applying for a new construction.

• If the applicant is constructing the property themselves, they should select 'New Construction.' If the property was purchased fully completed or as a weatherproof shell, there is no need to check the 'New Construction' box.

Select an Option

You can apply for:

• a withdrawal of private pension savings

• a monthly allocation of private pension savings towards a loan

• or both

If applying for a withdrawal of private pension savings, select 'Ég sæki um útborgun séreignarsparnaðar'
If applying for a monthly allocation of private pension savings, select 'Ég sæki um ráðstöfun séreignarsparnaðar upp í lán'

If the plan is to apply for both withdrawal and allocation at the same time, first apply for the withdrawal and then request the allocation later in the application process.

Applying for Withdrawal

If applying to withdraw accumulated private pension savings, the start date of the 10-year period must be chosen. This is typically the date when you began making private pension savings contributions. Only contributions accumulated before the purchase of the property can be withdrawn. Therefore, the selected start date must be prior to the date of the purchase agreement.

Additionally, the following must be specified:

• Whether to withdraw the maximum allowable amount (ótakmörkuð nýting) or to limit the withdrawal to a lower amount (takmörkuð nýting).

• From which private pension fund the accumulated amount should be withdrawn and to which bank account the amount should be deposited.

• Whether you also wish to apply for allocating private pension savings towards a loan.

Applying for Allocation Towards a Loan

If the option to make monthly payments towards a loan is selected, the private pension fund from which the payments will be made must be chosen.

Next, the loan to be paid must be selected. Pre-registered in the dropdown menu of the application are the loans listed in the most recent tax return. If a new loan has been taken or the loan is not listed in the dropdown for any reason, the loan must be registered by clicking 'Skrá nýtt lán'.

Registering a New Loan

The following information must be provided:

• Lender or 'Lánveitandi' (e.g., bank or pension fund)

• Loan number (can be found on the promissory note or in online bank)

• Type of loan, whether it is indexed or non-indexed (can be found on the promissory note or in online bank)

If the loan is non-indexed, you can choose whether the payments will go towards the loan's principal or its installments.

Overview and Confirmation

Finally, the application must be reviewed. If the application is correctly filled out, you need to check the confirmation box and submit the application. A receipt of submission will then appear on the screen.