For children who do not have residence in Iceland and are supported by a citizen of the EEA, member states of the instrument of constitution of EFTA or the Faeroe Islands

In Iceland, child benefit is paid to parents for children who they support under 18 years of age. Full benefit is paid for the year of birth of the child, but none is paid for the year in which the child reaches 18 years of age.

Child benefit is income-related and the amount granted depends on the income of both parents. A special supplement, which is not income related, is paid in cases of children under 7 years of age. The benefit is decided by the levy of taxes the year after the income year and the payment is then split into two payments, the first on 1 August and the second on 1 November. It is possible to the tax office for an advance payment.

Citizens of the EEA, member states of the instrument of constitution of EFTA or the Faeroe Islands, who have come to Iceland to work and have children to support who do not have permanent residence in Iceland, may have a right to child benefit in Iceland. This is, though, only the case if they are required to pay tax according to Article 1 of Act No. 90/2003 or are insured on the basis of Articles 12, 13 or 14 of Act No. 100/2007 on the social security system.

Applications for child benefit must be made to the tax office. To be able to receive child benefit, the following information must be disclosed:

• Information on the applicant, name, ID-No., address in Iceland and in the home country
• Information on spouse, name, date of birth, address
• Names and birth dates of children under the age of 18
• Amount of child benefit received in the home country during the tax year
• Income of the applicant and spouse in the home country

You can apply by filling out the forms RSK 3.20 and RSK 3.21 available at the tax office. Instead of form 3.20 it is possible to give details on one’s family and any child benefit received in one’s home country on form E-411. Instead of form 3.21 it is possible to provide details of income on a confirmed copy of a tax return, on condition that the data is confirmed by competent authorities in the applicant’s home country.

Child benefit is calculated on the basis of information on the applicant’s family and income, both in Iceland and in the home country. Child benefit in the home country is deducted from the calculated child benefit in Iceland. The difference is paid to whichever parent of the children is resident in Iceland.