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State reimbursement to municipalities (Article 15)

The Icelandic government reimburses local authorities cost of financial assistance they give to foreign citizens, who have had a legal residence in Iceland for two years or less or are without a legal residence and in special circumstances in Iceland.


The reimbursement takes place on the basis of Article 15. act on social services of municipalities no. 40/1991, cf. also rules no. 520/2021.

Reimbursement to municipalities

Foreign citizens, without legal residence, who fall under the rules and do not believe they have the possibility to leave the country or support themselves in this country, without the help of the Icelandic government, can turn to the social services in the residence municipality and request financial assistance.

The social service assesses the need for assistance and also explores the possibility of assistance from the country of detention or network cf. Article 5 of the rules. After that, it is possible to apply for conditions for reimbursement from the state treasury to the Multicultural Information Centre. The agency assesses the application and provides the municipality with advice and instructions on processing the case, depending on the circumstances. An application for reimbursement is accepted if the conditions in the rules are met.

Application for reimbursement

Access to the form is obtained by logging into the service portal with electronic IDs.

Instructions and fill in forms

Informative videos regarding 15th article (In Icelandic)

If you have any questions, please contact us via the email address 15gr.umsokn@mcc.is