Housing benefits

People currently renting their homes, both on the open market and social housing may have the right of government housing benefits, depending on income.

Applications and rules:

  • You may apply for housing benefits if you have registered your legal domicile in Iceland.
  • You must use either your Icekey (Íslykill) or electronic ID.
  • Your application will be evaluated depending on your income, the amount you pay for your apartment / house and your family size.
  • The rental contract (húsaleigusamningur) must be registered for the individual to be able to apply for housing benefits. This is done at the District Administration Office (Sýsluskrifstofum).
  • To be entitled to housing benefits, 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.
  • Benefit 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:
    1. Students renting on campus or in dormitory
    2. The handicapped renting in communal homes.

    Here are detailed information about housing benefits


Special housing benefits

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.




Rental contract (lease — residental premises) in english (húsleigusamningur)