Various Rights

Social Security Administration (Tryggingastofnun)

Death benefits are paid to the surviving spouse under 67 years of age for 6 months and an additional 12 to 36 months if children under the age of 18 are dependent and income is below a certain limit.

Child pension is paid if the deceased has children under the age of 18 and up to the age of 20, in the case of a young person who is studying. In that case the amount goes directly to the young person. Child pension/education grant is not income-related.

Household supplement is paid to a surviving spouse who is solely in charge of household operations and receives a disability or rehabilitation pension and income insurance. If the surviving spouse is a pensioner, they may be entitled to a household supplement.

Maternity and paternity pay is paid to single parents who have two or more dependent children under the age of 18. The pay is repealed upon changes in the family circumstances.

If the disability pensioner’s payments are repealed due to them being admitted to a medical institution, their spouse with two or more children under the age of 18 may receive maternity or paternity pay. Maternity/paternity pay is taxable but not income-related.

These rights can be applied for at  Social Insurance Administration’s website

Trade Unions

Funeral grants are paid by most trade unions. Most unions operate health funds that pay, i.a. benefits or subsidies to spouses or children aged 18 and younger on the death of a member. Rules and amounts may vary between unions. It is best to contact the relevant trade union for the correct information.

Wages of a deceased spouse

The surviving spouse is often entitled to the deceased’s wages for up to three months from the date of death. Employers should be able to provide information about this, but it is also possible to contact the relevant trade union and get information on the agreement on this.

Iceland Revenue & Customs

The surviving spouse can use the deceased’s personal tax credit for nine months after their death. 

It is possible to apply for a reduction in income and property tax due to a death if a disruption to finances due to the death can be demonstrated.

Concessions are provided for funeral expenses. Concession is a reduction in income tax by a fixed amount. It is granted once and there is no need to state the connection with the deceased. The concession is applied for on the tax return

District Commissioner

Special contribution

A special contribution is made to support children who have lost a parent.  Contributions can be requested for baptisms, confirmations, eyeglass purchases, orthodontics, illness, etc. See more here.

City and Town Offices

Discounts on property tax and municipal tax may be obtained if income is below a certain threshold.

Municipal Social Services

You can apply for financial assistance for funeral expenses if income is low and social conditions are difficult.