Tax return and tax assessment for individuals

Individuals aged 16 to 69 pay the Elderly Care Construction Fund fee, provided that their income is above the income threshold. Old-age and disability pensioners who reside in nursing homes or residential care facilities are exempt.

The charge is assessed annually at the time of the general tax assessment. It is levied for the first time in the year following the year in which the individual turns 16, and for the last time in the year in which the individual turns 70.

The income base for the levy consists of:

• taxable income (income after allowable deductions), and

• capital income added to that amount.

For married couples and jointly taxed cohabiting partners, joint capital income is divided equally between them.

The income threshold is the same as the annual tax-free threshold.

About the Elderly Care Construction Fund

The Elderly Care Construction Fund is administered by the Ministry of Health. Its board submits proposals for allocations each year. See further information about the Elderly Care Construction Fund on the Government of Iceland’s website (Icelandic only).

Amounts

Further information

• Legal provision on the Elderly Care Development Fund (No. 125/1999)