EEA Child benefits
Child benefits for children resident abroad
Child benefits are generally only paid for children resident in Iceland. There are exceptions for children who are not domiciled in Iceland if the child's supporter:
- works in Iceland and is fully taxable in Iceland and a citizen of a country within the European Economic Area (EEA), a member state of the European Free Trade Association (EFTA) or the Faroe Islands.
- is resident abroad and insured in Iceland under the Social Security Act.
- works abroad for an employer that pays insurance tax in Iceland.
The children must be resident in the EEA, a Member State of the EFTA or in the Faroe Islands.
Child's supporter
Only child supporters are entitled to payment of child benefit. Those who pay child support are not considered to be a child's supporter in this context.
Application
Every year, the applicant must apply for EEA child benefit at the end of each income year using application form RSK 3.20.
Documentation with application
The applicant shall provide sufficient documentation from the competent authority of the State of residence. The following documents must be included in the application.
For married or cohabiting applicants
For applicants who are single parents:
Pensioners resident abroad
Work in another EEA Member State and child/children resident in Iceland
Those who are subject to unlimited tax liability in Iceland but work in another EEA state may be entitled to child benefits in the employment state, even if the children are domiciled in Iceland.
If a spouse lives in Iceland and works in Iceland, the right to child benefits is considered to be first in Iceland, but if child benefit is higher in the other state, then the state is obliged to pay the difference.
