Housing benefit

Occupants of rental accommodation may be entitled to housing benefit, irrespective of whether they are renting social housing or on the private market. Housing benefit entitlement is income linked.

  • If you have legal domicile in Iceland, you can apply for housing benefit.
  • Applications are made electronically on the website of The Housing and Construction Authority
  • You must use Íslykill or electronic identification.
  • The rent amount, income and family size of the housing benefit applicant will determine whether or not housing benefit is granted and, if so, how much.
  • Before you can apply for housing benefit, you must register a lease agreement, valid for a minimum duration of three months, with the district commissioner.
  • Benefit is not paid in respect of rentals of rooms with common access to kitchen and bathroom or rentals of flats in commercial premises. Exempt from these conditions are:
  • Students renting student accommodation or boarding accommodation.
  • Disabled people renting accommodation in a shared living facility.
  • To be entitled to housing benefit, the applicant must be legally domiciled in the accommodation in question. Students studying in a different municipality are exempt from this condition.

Special housing support

Applicants may apply for special housing support from the municipality in which they are legally domiciled.  

You can find information on housing benefit, calculation programmes, etc. here.

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