Saturday, February 04, 2006

Learning Icelandic... & weird tax laws

I have started to learn icelandic, I might enroll in an evening class at University of Iceland or Reykjavik University. In the meanwhile, I am taking an online course, hopefully I will learn something... In addition, we have been looking at houses, can you imagine that houses in Reykjavik are being listed for 2 times their appraised value or the replacement value? it is incredible.

We went to the bank to find out what we need to buy a house in Iceland, we found out that the interest paid on mortgage loan is NOT tax deductible... yes, you heard it right NOT tax deductible. I don't understand the policy! Tax incentives are given to build capital and the economy. This is economics 101, people respond to incentives and there is no incentive to own your own house... go figure!

More when I learn more about my new "home"

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