Deferral of property taxes on residential and commercial property

– the municipalities in the Krag region submit a coordinated proposal

The municipalities of Kópavogur, Hafnarfjörður, Garðabær, Mosfellsbær and Seltjarnarnes will put forward a proposal, in the municipal councils or town halls of the municipalities this week, to postpone property taxes and property fees for owners of residential and commercial property. The proposal provides for the number of payment due dates for the year to be increased or postponed during the year (as applicable in each municipality), in order to ease the monthly payment burden on residents and businesses. Outstanding amounts of this year's uncollected property taxes and charges, e.g. water, sewerage and refuse collection fees, for residential and commercial properties, will be spread out or deferred over the period from April/May until December. This is to provide relief for those who have already experienced, or will experience, a fall in income due to the current economic situation.

In Hafnarfjörður, unissued due dates will be automatically distributed over the months from May to December, so there is no need to apply for this separately.

Under the proposal, owners of commercial property who have suffered a significant loss of income can apply for a deferral of up to three instalments of property tax and property charges, which will then be carried over to the first months of 2021. Significant income loss is defined as a drop in income of at least 25% between the same months in 2019 and 2020.

An extension of the payment deadline must be applied for no later than the due date.

Request for deferral of the due date for business property rates and levies