Foreign nationals

In some cases, foreign nationals who move out of the country can get the premiums they have paid into an Icelandic pension fund refunded. In accordance with law, the following rules apply at LSR:

No refund is granted if the fund member is a citizen and/or has a permanent residence in one of the following countries:

• EFTA countries: Iceland, Liechtenstein and Norway plus Switzerland.
• EU countries: Austria – Belgium – Bulgaria – Denmark – Estonia – Finland – France – Greece – Netherlands – Italy – Ireland – Croatia – Cyprus (Greek part) – Luxembourg – Latvia – Lithuania – Malta – Portugal – Poland – Romania – Slovakia – Slovenia – Spain – Sweden – Czech Republic – Hungary – Germany.
• Canada
• USA
• UK

No refund is granted if a fund member has dual citizenship, where the second citizenship is within the EEA area.

If a foreign citizen is entitled to a refund of premiums, the calculation of the refund depends on how long the person has been paying premiums:

Division A – Premiums paid for less than three years:
The contribution of both the fund member and the employer is refunded in full.

Division A – Premiums paid for three to five years:
The contribution of the last three years is refunded according to the following table, which is based on the age of the foreign citizen. Premiums paid before that, i.e. the premiums that do not give the right to extrapolate a disability pension are refunded without deduction.

Division B – Premiums paid for less than five years:
The contribution of both the fund member and the employer is refunded in full.

Division A and B – Premiums paid for five years or more:
Refunds are determined according to an assessment by the fund's actuary.

Upon refunds, premiums paid are calculated in accordance with the consumer price index, but without interest.

Refund of premiums is taxable according to current law.