Iceland has published Law No. 51 of 22 June 2023, which reduces the refund (repayment) rate for residential property new construction, renovation, and maintenance from 60% to 35% with effect from 1 July 2023. As previously reported, the refund rate was temporarily increased to 100% from 1 March 2020 as part of COVID-19 response measures, which was subsequently extended to 31 August 2022 before reverting to 60% from 1 September 2022. As explained by Iceland's tax authority, taxpayers can still apply for a refund in respect of projects that took place in earlier periods. Refunds may be claimed within six years from when the right to refund was established, including the 60% refund for projects that took place between 1 September 2022 and 30 June 2023 and the 100% refund for projects that took place between 1 March 2020 and 31 August 2022.