Who files taxes in Iceland and when refunds happen

If you worked in Iceland or earned income there, you file taxes with the Directorate of Internal Revenue (Ríkisskattstjóri, or RSK). Most employees have taxes withheld automatically from their paychecks, and if too much was taken out, you receive a refund. Self-employed people and business owners also file and may receive refunds if they overpaid.

The tax year in Iceland runs from January 1 to December 31. You file your return between February 1 and April 19 each year for the previous year's income. Refunds are processed after your return is filed and approved, typically between May and August, though timing depends on how quickly RSK reviews your submission and whether you file electronically or on paper.

If you are a foreign resident who worked in Iceland temporarily, you may still be may have access to to a refund if taxes were withheld. The process is the same, but you will need an Icelandic tax identification number (kennitala) to file.

Key Takeaways

  • File your tax return with RSK between February 1 and April 19 each year; electronic filing is faster and more common than paper.
  • Refunds are typically issued between May and August after your return is approved, and you can track the status through your RSK online account.
  • You must have an Icelandic tax identification number (kennitala) to file; if you do not have one, request it from RSK before filing.
  • Refunds are deposited directly to an Icelandic bank account; if you no longer live in Iceland, you may need to arrange a transfer through your bank or provide an international account number.

How to file your tax return with RSK

Most Icelanders file electronically through the RSK website using their digital ID (Ísland.is login). You log in, review the pre-filled information RSK already has on file (income from employers, interest, dividends), make any corrections or add missing income, and submit. Electronic filing takes about 15 minutes and is processed faster than paper returns.

If you do not have internet access or prefer paper, you can request a printed tax form from RSK or download one from their website. Fill it out by hand, sign it, and mail it to the Directorate of Internal Revenue, Laugavegur 166, 105 Reykjavik, Iceland. Paper returns take longer to process because they must be manually entered into the system.

You will need your kennitala (tax ID number), records of all income earned that year, and documentation of any deductions you are claiming. If you are self-employed, bring your business income and expense records. If you received rental income, investment income, or other sources beyond your main job, include those as well.

What happens after you file and how long refunds take

After you submit your return, RSK reviews it for accuracy and completeness. If everything is correct and you are owed a refund, the agency processes it and deposits the money into your bank account. Electronic returns are typically reviewed within four to eight weeks; paper returns can take two to three months or longer depending on RSK's workload.

You can check the status of your return and refund through your RSK online account. Log in to Ísland.is, navigate to the RSK section, and look for your filed return. The status will show whether it has been received, is under review, has been approved, or has been paid. If the status shows "paid," the refund has been sent to your bank and should arrive within a few business days.

If you filed electronically and your return is straightforward with no complications, you may receive your refund by late May or June. If you filed on paper or if RSK needs to contact you for clarification, expect the refund between July and August. Delays can occur if RSK identifies errors or if you claimed deductions that require supporting documents.

Where the refund is sent and how to receive it

RSK deposits refunds directly to the bank account you provide on your tax return. This must be an Icelandic bank account in your name. If you still live in Iceland, use your regular checking or savings account. The deposit usually arrives within three to five business days after RSK marks the refund as paid in your online account.

If you have moved out of Iceland and no longer have an Icelandic bank account, you have two options. First, you can ask a family member or friend still in Iceland to let you use their account temporarily, though this requires their permission and involves them receiving the money on your behalf. Second, you can contact your Icelandic bank before you leave and ask whether they can transfer the refund to an international account or issue it as a check mailed to your new address. Some banks offer this service; others do not.

If you are a foreign worker who has left Iceland, contact RSK directly to discuss your options. They may be able to arrange a wire transfer to a foreign bank account, though this is not automatic and may involve fees. Email RSK at skattstofa@rsk.is or call +354 545 1000 to ask about international refund options before your return is processed.

Tracking your refund status online

Log into your RSK account through Ísland.is using your digital ID and Icelandic tax number. Once logged in, you will see a section for your filed returns and their current status. The status will display one of several stages: "Received" (RSK has your return), "Under Review" (being processed), "Approved" (accepted and refund calculated), or "Paid" (refund sent to your bank).

If your return shows "Approved" but not yet "Paid," the refund is in the queue and will be deposited within the next few business days. If the status has not changed in more than eight weeks after you filed electronically, or more than three months after you filed on paper, contact RSK to check whether there is a delay or a problem with your return.

You can also call RSK at +354 545 1000 during business hours (Monday to Friday, 9 a.m. to 4 p.m. Iceland time) to ask about your refund status. Have your kennitala and the year you filed for ready. Email inquiries to skattstofa@rsk.is, though responses typically take longer than a phone call.

What to do if your refund is delayed or missing

If your refund status shows "Paid" but the money has not arrived in your bank account after five business days, contact your bank first. Ask them to confirm whether the transfer was received and is pending posting to your account. Sometimes deposits take longer than expected due to banking delays, especially if you are receiving money from outside your bank's normal processing channels.

If your bank confirms they have not received the transfer, contact RSK. Provide your kennitala, the tax year, and the date the refund was marked as paid. RSK can verify whether the deposit was actually sent and to which account. If there was an error in the account number you provided on your return, RSK may need to reissue the refund to the correct account, which can add another two to four weeks.

If your return status has been stuck on "Under Review" for longer than expected, RSK may be waiting for additional information from you. Check your email and any mail sent to your registered address for a letter from RSK asking for documents or clarification. If you do not see a request, call or email RSK directly to ask whether they need anything from you to complete the review.

Special situations: foreign workers and non-residents

If you worked in Iceland for part of the year and then left, you still file a tax return for the full year and receive a refund if you overpaid. You will need your kennitala to file. If you do not have one, request it from RSK before the filing deadline. Foreign workers can file electronically if they have an Ísland.is digital ID; if not, file on paper and mail it to RSK.

If you worked in Iceland and also worked in another country that year, you may be subject to tax treaties between Iceland and that country. These treaties prevent double taxation. You may need to file returns in both countries and claim foreign tax credits. This is more complex, and you should consult a tax professional or contact RSK for guidance on how to report foreign income correctly.

If you are a non-resident who earned income in Iceland (such as rental income from an Icelandic property), you may still owe Icelandic taxes and could receive a refund if you overpaid. The filing process is the same, but you will need to provide proof of your non-resident status and may face different tax rates on certain types of income. Contact RSK to confirm your filing requirements before the April 19 deadline.

Frequently Asked Questions

Can I file my Icelandic tax return if I no longer live in Iceland?

Yes. You file the same way as residents: electronically through Ísland.is if you have a digital ID, or by mailing a paper return to RSK. The challenge is receiving your refund if you do not have an Icelandic bank account anymore. Contact RSK in advance to ask about international transfer options for your refund.

What if I do not have an Icelandic tax ID number?

Request a kennitala from RSK before you file. You can apply in person at an RSK office, by mail, or through Ísland.is if you have a digital ID. Processing usually takes one to two weeks. If the filing deadline is approaching, call RSK to ask whether you can file with an application number while your kennitala is being issued.

How do I know if I am owed a refund?

File your return and let RSK calculate it. If your employer withheld more tax than you owe based on your actual income, you receive a refund. You will see the refund amount in your RSK online account once your return is approved. You do not need to request it; RSK processes it automatically.

What if RSK says I owe money instead of getting a refund?

If your return shows you underpaid taxes, RSK will send you a bill with payment instructions. You can pay online through your bank, by bank transfer, or by check. The payment deadline is usually 30 days from the date of the notice. If you cannot pay in full, contact RSK to discuss a payment plan.

Can I amend my return after I have filed it?

Yes, but only within a certain time frame. You can file an amended return if you made a mistake or forgot to include income. Contact RSK or file an amended return through Ísland.is. The sooner you correct it, the faster your refund will be recalculated if the amendment increases the amount owed to you.