Housing benefits

Who's entitled to housing benefits?

Occupants of rental accommodation may be entitled to housing benefits, 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 benefits. Applications are made electronically on the website of The Housing and Construction Authority. You must use Icekey (Íslykill) or electronic certificates.


Calculator for housing benefits can be found here.


Read the Housing Guide

Before applying

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.


Benefits are 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.


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

Property rental agreement

A rental agreement is an agreement which a tenant enters into with a landlord on the amount of rent and other issues.


It is important to enter into a written rental agreement with the landlord when renting a flat. You must make sure that you have a good understanding of the terms of the agreement, such as rules on insurance, notice of termination and other issues.


The purpose of publicly registering agreements is to guarantee and protect the rights of the parties to the agreements.


Rental agreements:





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