Housing benefits in Iceland

Húsnæðisbætur á Íslandi
Here you will find information about the possibilities available for housing benefits in Iceland.

Housing benefits

Housing benefits are monthly payments intended to assist people paying rent for their residence, regardless of whether the rental property is social housing, a students’ residence or privately owned.

Housing benefits are both income- and means-linked, which means that all the income and assets of the applicant and other household members aged 18 years or over are added together to form the aggregate household income and assets, which will reduce housing benefits if they exceed the specified maximum. The maximum limits increase with the number of persons in the household.

Are you entitled to housing benefits?

To be entitled to housing benefits both the applicant and other household members must satisfy several criteria:

These are:

  • The applicant and other household members must live in the residential property and be domiciled there.
  • An applicant for housing benefits must have reached 18 years of age. Other household members do not have to be 18 years old.
  • The residential property must, at a minimum, have one bedroom, private cooking facilities, a private toilet and bathing facilities.
  • The applicant must have signed an officially registered rental agreement for a period of at least three months.
  • The applicant and other household members 18 years of age or older, must give their consent for information gathering.


However, exemptions are granted from these requirements, for example, for students and people living in a community residence or residing temporarily in halfway houses. Special exemptions are also granted for persons who reside far from their legal domicile due to illness or temporarily due to employment.

To apply for housing benefits

Special housing assistance

Municipalities are required to provide special housing assistance for persons in difficult financial and/or social circumstances.

Application must be made for assistance to the welfare/social services of the local municipality.

Who should I contact if I have questions?

For more information see the website of the Housing Financing Fund (Íbúðalánasjóður). You can also get information from a service advisor by telephone at +354 569 -6900.

Contact the authorities
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