Work Visas and Immigration in Iceland

Visas for foreign nationals

In Iceland, hiring foreigners without valid work permits can result in fines, legal action, or visa cancellation. Strict monitoring is undertaken by the Icelandic government to ensure jobs are first available to Icelandic citizens unless specialized skills are required. Therefore, Iceland has limited skilled migration programs for foreigners, but there are provisions for highly skilled professionals in sectors like IT, healthcare, engineering, and tourism. Visas that foreign workers may apply for in Iceland include: 

• Residence Permit for Work: Issued to foreign nationals with a confirmed job offer from an Icelandic employer. The employer must demonstrate that the position cannot be filled by local labor.
• Long term Visa for Remote Work: Available to remote workers from outside the EU/EEA who meet income requirements. 

Foreigners may also apply for a short-term Business Visa, which is issued for short-term business visits, attending meetings, or exploring business opportunities in Iceland. It does not permit full-time employment in an Icelandic company. 

Sponsorship and employer responsibilities

Hiring a foreign national in Iceland requires compliance with immigration, labor, and tax regulations. The sponsoring employer (or EOR) must meet the following requirements:

Eligibility criteria 

• Confirm that the foreign applicant has the required qualifications and that no suitable Icelandic citizen is available.
• Obtain approval from the Icelandic Directorate of Labor, demonstrating the necessity of hiring a non-national.
• Submit a signed employment contract, company registration documents, and the applicant’s credentials to the Icelandic consulate or embassy.

Required documentation 

• Valid passport with at least six months’ validity.
• Employment contract specifying job duties, salary, and duration.
• Company registration and letter of intent.
• Certified copies of educational and professional qualifications.
• Work permit application and residence permit application.
• Completed visa application form and biometric photos.

Post-arrival requirements 

• Tax identification number: After entering Iceland, the foreign worker must apply for a tax number for tax purposes.
• Health insurance: Ensure enrollment in a health insurance plan, or provide private health insurance until eligibility is met.
• Update local authorities in case of change of address, employment status, or permit renewal.