Tax Payment Plans in Iceland
Reviewed by the Commoner Law Editorial Team. Sourced from Icelandic Acts of the Althingi, statutory instruments, and official guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
If you owe taxes and cannot pay in full, you may be able to arrange an instalment payment plan:
- Eligibility: All tax returns and required documents must have been filed. Debt must be below ISK 2,000,000 for individuals (ISK 10,000,000 for businesses).
- Application: Apply online via island.is.
- Interest: Interest on arrears continues to compound during the payment plan.
- Limitation period: Signing a plan interrupts the limitation period — a new 4-year period starts.
- No collection action (seizure or attachment) must have already commenced.
When does it apply?
- You have outstanding tax debt and cannot pay the full amount immediately.
- Your tax debt is under ISK 2,000,000 (individual threshold).
What to Do If You Cannot Afford to Pay Your Tax Debt in Full in Iceland
- File all outstanding tax returns first — you cannot get a payment plan with unfiled returns.
- Apply online through the island.is portal or contact RSK directly.
- Make all scheduled payments on time — a single missed payment can terminate the plan.
What should you NOT do?
- Don't ignore tax debt — RSK can pursue attachments, seizures of property, and forced sales.
- Don't miss payments under the plan — automatic termination triggers RSK to resume collection.
- Don't accumulate new tax debt during the plan — new unpaid assessments also trigger termination.
Common Questions
Can I get a payment plan for Icelandic tax debt?
Yes, if eligible. You must have filed all tax returns and required documents, and your debt must be below ISK 2,000,000 for individuals (ISK 10,000,000 for businesses). Apply online via island.is. Interest on arrears continues to compound during the plan, and no collection action such as seizure or attachment must already have commenced.
How do I apply for a tax instalment plan in Iceland?
File all outstanding tax returns first — you cannot get a payment plan with unfiled returns. Apply online through the island.is portal or contact RSK directly. Signing a plan interrupts the limitation period, and a new 4-year period starts from the date of signature.
What happens if I miss a tax payment plan instalment in Iceland?
A single missed payment can terminate the plan. Termination triggers RSK to resume collection, which can include attachments, seizures of property, and forced sales. Accumulating new tax debt during the plan — failing to pay future assessments — also triggers termination, so stay current on all new taxes.
When does it apply — tax payment plans?
You have outstanding tax debt and cannot pay the full amount immediately.Your tax debt is under ISK 2,000,000 (individual threshold).
What should I do if I owe tax debt to Skatturinn but cannot pay the full amount in Iceland?
File all outstanding tax returns first — you cannot get a payment plan with unfiled returns.Apply online through the island.is portal or contact RSK directly.Make all scheduled payments on time — a single missed payment can terminate the plan.
What should you NOT do — tax payment plans?
Don't ignore tax debt — RSK can pursue attachments, seizures of property, and forced sales.Don't miss payments under the plan — automatic termination triggers RSK to resume collection.Don't accumulate new tax debt during the plan — new unpaid assessments also trigger termination.