ISLAND - DJECJI DOPLATAK
Child benefits in Iceland
Iceland has, like most of the nordic countries, processing system of income taxes of employees under the supervision of state financial authorities, in connection to information from employers. However, there is an option of the payment of state child benefits, under certain conditions. It is valid six years back.
Child benefits in Iceland are a social benefit, which is income-related and the amount granted depends on the income of both parents. The benefits are decided by the assessment of taxes the year after the income year. Child benefits are paid to parents for children under 18 years of age.
Basic conditions to obtain child benefits
If you are a citizen of the State of the European Economic Area, you have a child under 18 years of age and have lived and worked in Iceland for more than three months, then you could be entitled to payment of child benefits.
The basic condition to obtain them is, that you were living legally in Iceland - registered in population Register and you are either subject to the taxation of employment income (continuously have submitted the tax return or tax settlement for you was handled by your employer), or have been insured in social security system of Iceland.
Documents required for application for child benefits in Iceland:
- A copy of the birth certificate of the child/children.
- The certificate stating 1your maritial status at the end of the income year that your application pertains to (eg. current marriage certificate)
- A verified copy of both spouse´s foreign tax returns for the income year that the application pertains to
- A certificate stating that you are providing for child/children - certificate of residence of the whole family containing the children´s age and where they live.
- The original certificate about child benefits amount in the children´s native country, or a confirmation that your family doesn´t receive any child benefits in the country of origin.
How long does it take to receive the tax refund?
On average it takes between 12 and 14 weeks from the time your documents are sent to the Tax Authorities, depending on the time they take to process the Revenue.
How much is the service fee?
The price is 22% from the refunded amount. There is a minimum fee of 99 EUR.
The price does not include VAT or bank charges.