- Iceland has passed Law No. 51 of 22 June 2023, which reduces the refund rate for new construction, renovation, and maintenance of residential properties from 60% to 35%, effective from 1 July 2023.
- This follows the temporary increase of the refund rate to 100% from 1 March 2020 as part of COVID-19 response measures, which was extended until 31 August 2022 before reverting to 60% from 1 September 2022.
- Taxpayers can still apply for refunds for projects completed in earlier periods within six years of the establishment of the right to a refund, including the 60% refund for projects completed between 1 September 2022 and 30 June 2023 and the 100% refund for projects completed between 1 March 2020 and 31 August 2022.
Source Orbitax
