The visa · Iceland
Iceland
Iceland offers a purpose-built long-term visa for remote workers, valid for up to 180 days and set against an income floor of ISK 1,000,000 a month, alongside working-holiday permits for five nationalities and free-movement registration for EEA and EFTA citizens. The remote-work visa is a visa, not a residence permit: it cannot be renewed in place, it does not lead to settlement, and non-EEA nationals may not work as self-employed in Iceland at all. The one thing to know before applying is that the Directorate of Immigration now quotes first-permit processing of up to eight to ten months, so any route beyond the remote-work visa needs a long lead time.
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The routes
Researched 6 September 2026 · rules as of September 2026 · as published, not legal advice
Nomad visa
Long-term visa for remote workers
Langtímavegabréfsáritun fyrir fjarvinnufólk og fjölskyldur þeirra / Long-term visa for remote workers and their family members
Non-EEA/EFTA nationals employed by a company outside Iceland, or running their own business registered abroad, who want a single stay of up to six months without settling.
- Income floor
- ISK 1,000,000 a month for a single applicant, ISK 1,300,000 a month when applying with a spouse or cohabiting partner, as published by the Directorate of Immigration and repeated by every guide opened; the figure has not changed since the visa was introduced in 2020.
- Duration
- Up to 180 days in a single stay. It cannot be extended or converted in Iceland. Guides consistently report that a new application is only possible after a full twelve months outside the country; the Directorate's own page could not be opened to confirm the wording.
- Cost
- Not shown on the Directorate's fee list opened for this dossier. Third-party guides cite ISK 12,200; treat that figure as unverified.
- Processing
- No statutory time published. Guides report three to six weeks, longer if the Directorate requests further documents.
- Eligibility
- Nationals of countries outside the EEA and EFTA; work must be for an employer or clients outside Iceland; stay must be temporary with no intention to reside long term; health insurance covering the stay; the guides opened say the visa is limited to nationals who do not need a Schengen visa, though one guide states the opposite, so the primary page should be checked before applying.
- Work rights
- Remote work for a foreign employer or the applicant's own foreign business only. No employment by Icelandic employers and no self-employment on the Icelandic market.
- Dependants
- A spouse or cohabiting partner and children under 18 may be included; the higher income floor of ISK 1,300,000 applies when a partner is included.
- Leads to
- No. It is a visa, not a residence permit; time spent on it does not count towards permanent residence or citizenship.
- Apply
- Paper application to the Directorate of Immigration, Dalvegur 18, 201 Kópavogur, by post or drop box; the Directorate states that applicants who do not need a visa may be in Iceland while an application is processed, provided the Schengen 90-in-180 limit is not exceeded. No online application.
Documents Completed paper application form signed by the applicant · Passport valid beyond the intended stay, with copy · Employment contract or proof of ownership of a business registered abroad, with a confirmation that the work is performed remotely · Proof of monthly income meeting the threshold (payslips, bank statements) · Health insurance valid in Iceland for the whole stay · Criminal record certificate, as reported by guides · Passport photograph · Marriage or birth certificates for accompanying family members
Residence
EEA/EFTA free movement (registration with Registers Iceland)
Skráning EES/EFTA-borgara hjá Þjóðskrá / Registration of EEA/EFTA citizens with Registers Iceland
Citizens of EU, EEA and EFTA states, including the self-employed and the self-sufficient, who intend to stay more than three months.
- Income floor
- none published as a figure; self-sufficient registrants must show they can support themselves and hold health insurance.
- Duration
- Open-ended right of residence. Registration is required after three months of stay, or six months for job-seekers.
- Cost
- No registration fee published. Non-EEA family members' residence card (E-100) costs ISK 8,000.
- Processing
- Kennitala (ID number) is typically issued and posted two to four weeks after in-person registration, as reported.
- Eligibility
- EEA/EFTA citizenship; proof of employment, self-employment or sufficient means; proof of accommodation; valid health insurance cover.
- Work rights
- Full: employment, self-employment and remote work for foreign clients.
- Dependants
- Family members, including non-EEA spouses and children, derive residence rights and non-EEA family apply for a residence card through the Directorate of Immigration.
- Leads to
- Permanent residence right after continuous lawful residence; citizenship is by separate application under Icelandic nationality law.
- Apply
- In person at Registers Iceland (Þjóðskrá) or the District Commissioner outside the capital area.
Documents Passport or national ID card · Proof of employment or self-employment, or proof of sufficient funds · Proof of accommodation in Iceland · Health insurance confirmation
Working holiday
Working Holiday / Youth Mobility residence permit (D-110)
Dvalarleyfi vegna vinnudvalar ungmenna / Residence permit for Working Holiday or Youth Mobility
Young citizens of Andorra, Canada, Chile, Japan and the United Kingdom under bilateral agreements, who want to live in Iceland for a year and take casual work.
- Income floor
- A support requirement applies under each agreement; the island.is page opened does not state the figure.
- Duration
- Typically one year under the bilateral agreements as reported; the Directorate lists a renewal fee, but the permit page opened does not set out renewal conditions.
- Cost
- ISK 40,000 for applicants from Andorra, Canada, Chile and the United Kingdom; no fee for Japanese citizens.
- Processing
- Not published for this permit. First residence permits generally take up to eight to ten months according to the Directorate's waiting-time page.
- Eligibility
- Nationality limited to the five agreement countries; age limits set by each agreement; applicants may enter visa-free but must not exceed 90 days in 180 in Schengen while waiting.
- Work rights
- Employment in Iceland permitted as an incidental purpose of the stay; local work and remote work both possible in practice.
- Dependants
- Not covered; the permit is individual.
- Leads to
- Not a settlement route; it does not count towards permanent residence.
- Apply
- Paper application to the Directorate of Immigration, Dalvegur 18, 201 Kópavogur, or at District Commissioners' offices outside the capital area.
Documents Paper application form · Passport copy · Supporting documents listed on the Directorate's document page for this permit · Proof of health insurance and funds as required by the agreement
Long stay
Residence permit based on work (D-107)
Dvalarleyfi vegna starfs / Residence permit based on work, with a temporary work permit from the Directorate of Labour
Non-EEA professionals with a job offer from an Icelandic employer; the only mainstream long-term route for non-EEA nationals who want to stay beyond six months.
- Income floor
- Pay must meet the applicable collective agreement; no separate figure published.
- Duration
- Usually one year at first, then renewable for two years if wages and taxes are in order; permanent residence possible after four years' continuous residence.
- Cost
- ISK 80,000 for the first permit and ISK 80,000 for renewal, for applications from 1 January 2026.
- Processing
- Up to eight to ten months for first permits; expedited processing for qualified professionals no longer faster than eight to ten weeks per the Directorate's 2025 notice; renewals averaged two and a half months in 2025.
- Eligibility
- Job offer and employer-sponsored work permit; non-EEA citizens may not work as self-employed; the work permit is tied to the single employer.
- Work rights
- Employment for the sponsoring employer only; no self-employment; remote work for foreign clients is not addressed in the published rules.
- Dependants
- Spouse (D-101, ISK 110,000) and children may apply for family reunification permits.
- Leads to
- Yes: permanent residence after four years, with the right to work for any employer or self-employed; citizenship by later application.
- Apply
- Paper or online application to the Directorate of Immigration; the employer applies to the Directorate of Labour for the work permit.
Documents Application signed by employee and employer · Employment contract with pay and working arrangements stated · Passport copy · Proof of accommodation and health insurance · Criminal record certificate
Temporary stay
Schengen short-stay visa (C)
Vegabréfsáritun / Uniform Schengen visa
Nationals who need a visa to enter Schengen, including India, South Africa and Turkey, for a stay of up to 90 days in 180.
- Income floor
- Proof of means for the stay; no fixed figure published on the page opened.
- Duration
- Up to 90 days in any 180-day period across the Schengen area; a long-term visa can add up to 90 days beyond that in limited cases.
- Cost
- EUR 90 for adults, EUR 45 for children aged six to twelve.
- Processing
- About two weeks, as published.
- Eligibility
- Visa-required nationality; travel insurance; proof of accommodation, funds and return; in principle the stay is for tourism, visits or business, not work.
- Work rights
- None published; remote work for a foreign employer on a tourist visa is not addressed.
- Dependants
- Each family member applies separately.
- Leads to
- no
- Apply
- Icelandic embassies in London, New Delhi, Beijing and Washington, or through representing Schengen missions in about 120 cities; online at visa.government.is.
Documents Application form · Passport valid three months beyond departure · Travel medical insurance · Proof of accommodation and funds · Proof of employment and a certificate that the applicant can return to work
Without a visa, by passport
The stay you get on arrival, and whether working remotely on it is tolerated
- EU / EEA / SwitzerlandFree movement; up to three months without registration, six months for job-seekers, then register with Registers IcelandRemote work and self-employment fully permitted; the only obligations are registration, insurance and tax residency after six months.
- United Kingdom90 days in any 180 across Schengen, visa-free; EES biometrics on entry; ETIAS expected late 2026Remote work on the visa-free stay is not addressed on the published pages; the long-term visa exists for stays beyond 90 days. Working-holiday permit available to eligible young Britons.
- United States90 days in any 180, visa-free; EES biometrics on entry; ETIAS expected late 2026Not addressed as published; reported as tolerated in practice for short stays and grey beyond that.
- Canada90 days in any 180, visa-free; EES; ETIAS expected late 2026Not addressed as published; working-holiday residence permit available under the Canada agreement.
- Australia90 days in any 180, visa-free; EES; ETIAS expected late 2026Not addressed as published; the remote-work visa is the only stay-extension route.
- Japan90 days in any 180, visa-free; EES; ETIAS expected late 2026Not addressed as published; fee-free working-holiday permit under the 2018 Japan agreement.
- Brazil90 days in any 180, visa-free; EES; ETIAS expected late 2026Not addressed as published; no bilateral youth-mobility agreement.
- IndiaSchengen visa required, EUR 90, about two weeks via the embassy in New DelhiWork of any kind on a short-stay visa is not permitted as published; the remote-work visa is reported to exclude visa-required nationals.
- South AfricaSchengen visa required, EUR 90As for India: no work on a short-stay visa as published.
- TurkeySchengen visa required, EUR 90As for India: no work on a short-stay visa as published.
Tax
When the country starts counting you as its taxpayer
- Residency trigger
- A stay of six months or longer within any twelve-month period makes an individual tax resident with unlimited liability on worldwide income, counted from the day of arrival. Shorter stays give limited liability on Icelandic-source income, which Skatturinn defines to include all personal services carried out in Iceland by foreign parties. Former residents remain fully liable for three years after leaving unless they prove tax residence elsewhere.
- Special regime
- No nomad or newcomer regime. The only special rule is the foreign-experts deduction under Article 30 of the Income Tax Act No. 90/2003 and Regulation 1202/2016: 25 percent of salary is exempt for three years, but it applies solely to employees of an Icelandic employer or Icelandic permanent establishment, must be claimed through Rannís within three months of starting work, and requires no residence in Iceland during the previous 60 months. Self-employed people and remote employees of foreign companies are expressly outside it. Personal tax credit is ISK 72,492 a month in 2026.
- Social security
- Icelandic employers pay a social security contribution (tryggingagjald) of 6.35 percent of wages; where the worker holds a foreign A1 certificate the rate falls to 0.425 percent and Icelandic pension contributions are not due. A1 coverage exists only within the EEA, EFTA, the Faroe Islands and Greenland. For non-EEA remote workers the published rules address only Icelandic employers posting staff abroad; a foreign employer with staff physically working in Iceland is expected to insure them as Iceland requires unless a bilateral agreement applies.
- Treaties
- Iceland has a network of double-taxation treaties including the United Kingdom, United States, Canada and India. For a remote employee who stays under six months, treaty employment-income articles generally leave taxing rights with the home state where the employer has no Icelandic presence; once resident, the treaty decides tie-breaks and credit for foreign tax. Coverage for Australia, Brazil and South Africa was not verified.
Practicalities
- Bank account
- Icelandic banks require a kennitala (national ID number). Registers Iceland issues it on domicile registration, typically posted two to four weeks after an in-person visit; holders of the remote-work visa do not register domicile, so a local account is generally out of reach for them.
- Health insurance
- Public cover through Icelandic Health Insurance starts only after six months of registered legal residence. EEA, UK and Swiss citizens with prior social insurance can be exempted from the wait; for non-EEA nationals it is fixed. Domestic medical-cost policies from Sjóvá or VÍS are the usual six-month bridge, and the remote-work visa requires private insurance throughout.
- Address registration
- EEA/EFTA citizens register domicile with Registers Iceland after three months, or six months if job-seeking; permit holders register once the permit is granted. The six-month health-insurance clock starts only from registration.
- Tax number
- The kennitala doubles as the tax number. EEA/EFTA workers who do not yet have domicile can obtain a system ID number for payroll purposes.
- Government fees from 1 January 2026
- Residence permit based on work ISK 80,000; spouse permit ISK 110,000; student ISK 70,000; other residence permits ISK 40,000; permanent residence ISK 60,000; working holiday ISK 40,000; fees are not refunded once an application is lodged and the expedited-service fee has been abolished.
- Overstay
- Iceland applies Schengen rules. Since the Entry/Exit System became fully operational on 10 April 2026 overstays are recorded automatically; consequences include a return decision and Schengen-wide entry bans of up to five years. Iceland publishes no fixed fine schedule.
- Border formalities
- Non-EEA travellers give a facial image and fingerprints at Keflavík under the Entry/Exit System, which replaced passport stamps from 12 October 2025. ETIAS pre-authorisation for visa-exempt nationals is expected in late 2026.
Iceland: a six-month remote-work visa, Schengen limits and a high income bar
Where remote workers base and why
Reykjavík and the surrounding capital area hold almost all of the coworking space, the international schools and the flights, so the six-month remote-work visa is overwhelmingly spent there. Akureyri in the north is the only other town with year-round infrastructure that suits a long stay; the rest of the country is a road trip rather than a base.
The income floor of ISK 1,000,000 a month puts the visa out of reach of most freelancers, and the ban on renewal within twelve months means Iceland works as a single long season rather than a rolling base. Living costs are among the highest in Europe and short-term lets in the capital are scarce in summer, so most applicants arrange housing before lodging the application.
What applicants report about the process
The remote-work visa is a paper procedure: the form, passport copy, contract or company registration, income proof, insurance and criminal record certificate go by post or drop box to the Directorate at Dalvegur 18 in Kópavogur. Guides report decisions in three to six weeks, with delays where the application form and supporting documents disagree, and refusals where the employer's remote-work confirmation is missing.
There is a wording dispute between guides about nationality: most say only nationals who do not need a Schengen visa can apply, one says the opposite. The Directorate's own page for the visa redirected to a general portal when opened for this dossier, so applicants should confirm the condition directly before paying. The fee line for the visa did not appear on the fee schedule opened; the ISK 12,200 figure circulating online is unverified.
Anyone wanting more than six months has a harder road. Non-EEA nationals cannot be self-employed in Iceland, so the only settlement route is an employer-sponsored work permit, for which the Directorate now quotes first-permit processing of up to eight to ten months and a minimum of eight to ten weeks even on the expedited track for qualified professionals.
Banking and daily money
Everything in Iceland runs on the kennitala, from bank accounts to phone contracts and health cover. Visa holders never receive one, so they live on foreign cards and payment apps; card acceptance is near-universal and cash is rarely needed. EEA citizens and permit holders get the number a few weeks after registering domicile and can then open accounts at Landsbankinn, Arion or Íslandsbanki.
Public health insurance begins only after six months of registered residence, and the six months do not start until the address is registered. Private domestic medical-cost insurance from an Icelandic insurer bridges the gap, and the remote-work visa demands private cover for its whole length. Employees of Icelandic entities who qualify as foreign experts can have 25 percent of salary exempted for three years, but remote employees of foreign companies and the self-employed cannot use that rule.
What is changing
Border control is the live change. The Entry/Exit System reached full operation in April 2026, so the 90-in-180 count is now automatic and overstays leave a record across all Schengen states. ETIAS pre-travel authorisation for visa-exempt nationals is expected in late 2026 and will add a step before every visit.
Fees rose across the board on 1 January 2026 and the paid fast-track was scrapped, while the Directorate's published processing times have lengthened. The 2024 amendments to the Foreign Nationals Act tightened protection-based permits and family reunification but left the remote-work visa and the working-holiday agreements untouched; the income thresholds for the remote-work visa have not moved since 2020.
Researched from utl.is · island.is · island.is · island.is · island.is · island.is · island.is · island.is · skatturinn.is · skatturinn.is · the authority