Automobile purchase for children with physical motor impairments

Physical motor impairment

Physical motor impairment means a disease or handicap substantially reducing mobility from one place to another. This primarily involves:

  • Paralysis or reduced mobility in limbs, caused by disease or handicap
  • Shortness of breath because of cardiovascular or pulmonary diseases 
  • Other comparable conditions

People who are blind can be entitled to a supplement for the driving of automobiles and purchase of an automobile.

Supplement for purchase of an automobile

Old-age and invalidity pensioner, recipient of invalidity allowance and home-care allowances may be paid a supplement in connection with the purchase of an automobile that is necessary to him/her in view of his/her reduced motility, if it is evident that he/she is unable to manage without the supplement.

A supplement may also be granted to the provider of a motor-impaired child receiving home-care payments.

Grant for purchase of an automobile

A grant in the amount of ISK 1,200,000 may be paid for purchasing an automobile necessary because of impaired physical functioning or a missing part of the body. A grant may also be made to the provider of a motor-impaired child receiving home-care payments in accordance with further conditions:

  • An applicant must be motor-impaired and, e.g., be confined to a wheelchair and/or use of two crutches most of the time.
  • An applicant must have health insurance coverage in Iceland.

Cancellation of motor vehicle tax

The Social Insurance Administration confirms the right of old-age pensioners to cancellation or correction of the motor vehicle tax. To apply for such cancellation, fill out and sign the form "  Umsókn um niðurfellingu bifreiðagjalda "  (Application for Cancellation of Motor Vehicle Tax). A contact person at the Social Insurance Administration also fills out part of the form. The application must then be received by the Directorate of Internal Revenue, which sees to the cancellation or correction of the motor vehicle tax.

The following automobiles shall be exempt from the motor vehicle tax:

  • Automobiles owned by those receiving invalidity allowances, invalidity pensions, supplements because of the driving of an automobile or home-care payments because of children's disability from the State Social Insurance Administration. The parents of chronically ill children and children with multiple handicaps who are staying outside the home if the right to home-care payments would not be reduced if the child were staying at home.