Municipality rent benefits
Residents of rental apartments, whether they be social or private rentals could be entitled to rent compensation. The right to compensation depends on the individuals income
Application and regulations
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Applications for rent compensation should be sent to the municipality where the applicant has his legal domicile.
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The application has to be renewed at the beginning of each year.
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The application form is available at the local civic centre or on the Ministry of Social Affairs and Social Security website, but some municipalities have a specific form.
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The rental contract (húsaleigusamningur) must be registered for the individual to be able to apply for rent compensation. This is done at the District Administration Office (Sýsluskrifstofum).
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Some municipalities grant special rent compensation to those undergoing unusually difficult social or financial circumstances. Such grants must be applied for from the municipal social services.
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To be entitled to rent compensation, the applicant must have his legal domicile at the place he is renting. Students studying outside of their own community are exempted from this rule.
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Compensation is not paid for the renting of rooms with communal kitchens and bathrooms, nor for apartments in commercial buildings. Exceptions from these stipulations are as follows:
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Students renting on campus or in dormitory
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The handicapped renting in communal homes.
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Rent compensation is calculated on the amount of rent paid, the size of the family involved, financial circumstances and possessions.
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Rent compensation is exempt from income tax but must be declared on the tax return form.
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The applicant for rent compensation can make a formal complaint to the municipal social service ruling committee (úrskurðarnefndar um félagsþjónustu sveitarfélags) should he find his case unfairly treated.
Rental contract (lease — residental premises) in english (húsleigusamningur)

