When moving abroad Icelandic citizens and citizens of the EEA countries or the USA, Canada, Switzerland and the UK will not be refunded their pension fund premiums when they leave the country. They maintain their accrued entitlements in their pension fund and can apply for a pension in the same way as other fund members.
A fund member with citizenship within the EEA or the USA, Canada, Switzerland and the UK at the time when pension fund payments took place has no right to a repayment of contributions. A member with double citizenship, one within the EEA, has no right to repayment of contributions.
Regulations regarding reimbursement of pension fund premiums to persons from abroad
Reimbursements are conducted in accordance with the provisions of Article 19 of Act No. 129/1997 on the Mandatory Guarantee of Pension Rights and the Operations of Pension Funds.
Documentation which must be submitted :
The following countries are EEA members:
The insurance cover part of paid contributions is non-refundable. All claims made upon the pension fund with regard to reimbursed contributions are void at reimbursement, including those made in relation to the insurance cover which also will be voided.
The administrative fee is currently 20%, to the maximum amount of ISK 20,000, however.
The reimbursement is taxed at source in accordance to local legislation and paid to RSK accordingly, (Directorate of Internal Revenue).
* Agreement on Social Security between Iceland and the United States of America came into force on 1 March 2019.
* Agreement on Social Security between Iceland and the UK came into force on 1 January 2021.