Child allowance is an amount that you can deduct from your tax returns as the parent of children under the age of 18, if you meet the conditions for the deduction. The deduction is given per child. The deduction is independent of your income.
Are you entitled to child allowance?
You are entitled to child allowance if:
• You have full custody of the child, or the child is living with you. The deduction is granted to one of the parents. In the case of joint custody, the deduction may be shared between the parents.
• You are fully liable for tax and permanently resident in the Faroe Islands.
• The child is under 18 years of age on 1 January in the taxation year for which the deduction is granted.
• The child is resident in the Faroe Islands, or has retained full taxation liability there if the child is living abroad in connection with education.
• The child is not in receipt of public support, i.e. is not placed in care outside the home.
How large is the deduction?
The child allowance is granted in both municipal tax and national tax, and there are different rates in the different municipalities. You can find out more about the size of the deduction by contacting the Faroese tax authority, Taks.
If you have any questions about child allowance, contact the Faroese tax authority, Taks.
In some situations you may be entitled to a family allowance. Household allowance is a form of financial subsidy for low-income families, the purpose of which is to avert the adverse consequences of living under difficult financial conditions as a family with children.
Household allowance may be paid to single parents, married couples, cohabiting persons or adoptive parents with children under the age of 18 who, according to the national register, reside with the parents. If, in connection with education, a child is temporarily resident outside the home for a period of up to one year, the requirement that the child must have its registered address with the parents will be waived. The size of the subsidy will depend on the parents’ taxable income and property.
In order to receive household allowance, the family must have its registered address in the Faroe Islands.
Are you entitled to household allowance?
You are entitled to family allowance if:
• The total income of you and your possible spouse/co-habitant is defined as low income, in accordance with some specified conditions.
• You have children living at home who are under the age of 18.
Certain conditions apply to the situations. You can learn more about the size of the subsidy and the conditions that apply by contacting the social authorities in the Faroe Islands, Almannaverkið.
Please fill in our contact form if you have any questions or if you have encountered an obstacle in another Nordic country.
NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.