Iceland (IS)
Iceland is a North Atlantic volcanic island nation of extraordinary natural beauty — home to geysers, glaciers, lava fields, midnight sun, the Northern Lights, and some of the world's most active volcanoes.
Leaving Iceland
How to properly exit — protecting your finances, rights and records.
📅 General Timeline
Recommended timeline for leaving Iceland: 3+ months before departure: give notice on rental contract; begin deregistration planning; notify employer of leaving date. 2 months before: notify pension funds of departure; inform Skatturinn; start cancelling subscriptions and services. 1 month before: notify bank and utility providers; ensure final tax obligations are understood. Final week: complete move-out inspection; read final utility meters; ensure Þjóðskrá deregistration is filed; collect deposit receipt. After departure: file final Icelandic tax return (usually available the following spring); ensure pension fund has new contact details; maintain a reliable Icelandic contact for any ongoing correspondence if needed.
Deregistration
When leaving Iceland permanently, you must deregister your address at Þjóðskrá Íslands (National Registry). This is done online at island.is using Rafræn skilríki or in person at a Þjóðskrá office. Provide your departure date and destination country. For EU/EEA citizens: also inform Útlendingastofnun if you had a formal residence registration. This deregistration ends your Icelandic fiscal residency for tax purposes from the stated departure date. Keeping a registered address in Iceland when you no longer live there has tax and administrative consequences — deregister promptly.
Tax clearance
Notify Skatturinn (the Directorate of Internal Revenue) of your departure. File a final tax return (skattframtal) covering income earned in Iceland in the year of departure — even if you leave mid-year, you must file for the period you were resident. Ensure all tax (tekjuskattur), social insurance (tryggingagjald), and any outstanding tax bills are settled. If you are owed a tax refund, it will be paid to your account after the final return is processed. Skatturinn may require you to maintain a tax contact in Iceland for correspondence purposes. Non-residents who retain Icelandic income sources (rental property, Icelandic investments) remain liable for Icelandic tax on those sources after departure.
Pension portability
Your mandatory occupational pension (lífeyrissjóður — second pillar) remains in the fund after you leave Iceland. Your accumulated rights are fully preserved and will be paid to you from the fund's normal retirement age (typically 65–67) wherever you live in the world. Update your pension fund(s) with your new overseas contact details and bank account information. Under EEA Social Security Regulation (EC 883/2004), EEA residents receive pension payments without deduction. For non-EEA destinations, bilateral social security treaties determine payment arrangements — check tr.is for your destination country. IMPORTANT: Keep track of all your Icelandic pension fund memberships. Over a career with multiple jobs, you may have accumulated rights in several different funds.
Health insurance
Your entitlement to Sjúkratryggingar Íslands (SÍ — Icelandic Health Insurance) ends when you deregister from Þjóðskrá. If you are leaving for an EEA country, request a Portable Document S1 from SÍ to transfer your health insurance rights (if applicable) to the destination country's health system. Request an EHIC card for temporary coverage while in transit. Arrange health insurance in your destination country before your Icelandic coverage ends. There may be a gap in healthcare coverage during the transition period — private travel health insurance covers this gap.
Bank account
Icelandic bank accounts can remain open after leaving Iceland for receiving pension payments and other Icelandic income. Notify your bank of your change of address. International banks (Landsbankinn, Íslandsbanki) can manage accounts for non-residents. However, if you have no ongoing Icelandic financial activity, closing the account is simpler and avoids inactivity fees. Use Wise for ongoing international transfers to/from Iceland rather than maintaining a full Icelandic bank account unnecessarily.
Utilities
Cancel or transfer all utilities before departure: electricity (OR/Orkuveita Reykjavíkur), heating, internet (Síminn, Vodafone, Nova), and mobile phone contract. Give the required notice period (typically 1 month for contracts, shorter for month-to-month plans). Read final meter readings on move-out day. Ensure final bills are paid before leaving Iceland — unpaid bills can go to Creditinfo (Iceland's credit bureau) and affect your record even after departure.
Rental contract
Give the legally required notice period under your rental contract (typically 3 months for standard leases under the Residential Tenancies Act — húsaleigulög). Submit notice in writing (email is generally accepted; registered letter is safest). Complete a formal move-out inspection (úttektarskjal) and get a signed record. Ensure the deposit is returned within 30 days (landlord's legal obligation). If the landlord disputes any deductions, use Leigutakanefnd (the Tenancy Disputes Committee — leigutakanefnd.is) — you can pursue this from abroad if necessary.
Leaving the Country
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