When you have children in the Faroe Islands, you may qualify for various grants or subsidies for your children. These grants and subsidies are called family benefits. Family benefits are administered by the Faroese Tax Agency (TAKS) and the national Department of Social Services (Almannaverkið) and include
- Child and youth benefit (or family allowance)
- Child allowance
- Child support
- Child maintenance payment
- Parental benefits
This section includes short descriptions of the subsidies and grants. If you have further questions, you are welcome to contact either the Faroese Tax Agency (TAKS) or the national Department of Social Services (Almannaverkið) through the links below.
Low-income families may be entitled to a financial subsidy called a family allowance (Faroese: »Familjuískoyti«). The purpose of the family allowance is to lessen the adverse consequences of a family with children that is having a difficult financial conditions.
Family allowance may be paid to single parents, married couples, cohabiting persons or adoptive parents with children under the age of 18, who reside with the parents according to the National Civil Register. Children, who temporarily move away for a period up to one year in relation to educational purposes, will be considered as living with their parents in this circumstance.
The size of the subsidy will depend on the parents’ taxable income and property.
The family must be registered at a Faroese address to receive the family allowance.
AM I ENTITLED TO THE FAMILY ALLOWANCE?
You are entitled to the family allowance if:
- you have children living at home who are under the age of 18, and
- the total joint income of your household is defined as low income, subject to certain conditions
Each individual case may depend on certain conditions. You can read more information about the size of the subsidy and the conditions that apply by contacting the national Department of Social Services (Almannaverkið) through the link below.
Child allowance – or child tax credit – is a lump sum that one of the legal guardians of a child under 18 years old can deduct from their tax returns. Certain conditions apply. The deduction is given per child, and the amount is fixed and independent from income.
Are you entitled to child allowance?
You are entitled to child allowance if:
- You have full custody of the child, or the child is living with you. The deduction is granted to one of the parents. In the case of joint custody, the deduction may be shared between the parents
- You are a permanent resident and are fully liable to pay taxes in the Faroe Islands
- The child is under 18 years old on January 1st in the taxation year for which the deduction is claimed
- The child is a resident in the Faroe Islands, or has retained full taxation liability in the Faroe Islands if the child is living abroad for educational purposes
- The child does not receive public support, i.e. is not placed in public care outside the home
How large is the deduction?
The child allowance is granted through both municipal tax and national tax, and it varies for different municipalities.
You can find more information about the size of the deduction or other questions by contacting the Faroese Tax Agency (TAKS) through the link below.
Single parents in single households can receive supplementary child support (Faroese: “Serligt barnaískoyti”). A single household means that you are not married, you do not live in a partnership that is similar to a marriage, and you do not have joint finances with another adult.
You can receive more information about the supplementary child support by contacting the national Department of Social Services (Almannaverkið) through the link below.
If the parents of the child are not living together, the parent that is not living with the child must pay a child maintenance (Faroese: “Barnagjald”) to the other parent.
The system is managed by the national Department of Social Services, and the Faroese Tax Agency collects the payment if the parent in question fails to pay the child maintenance.
You can receive more information about the child maintenance payment by contacting the national Department of Social Services (Almannaverkið) through the link below.
The parental leave benefit fund (barsilsskipanin) is a joint system that employees and employers in the Faroe Islands pay into.
Barsilsskipanin enables parents to take parental leave during the first year of a child’s life.
If you receive a salary in the Faroe Islands, you will automatically contribute to the fund, and when your child is born in the Faroe Islands, you may take parental leave and receive a monthly grant from the fund. The size of the grant depends on your average income over the 12 months prior to the birth of your child.
If you have not had a salary in the 12 months prior to the birth of your child, you may be eligible for a fixed grant from the national Department of Social Services.
You can find more information about parental benefits from the Faroese Tax Agency (TAKS) through the link below.