Immigration to Iceland - A Comprehensive Guide

I think we have all sat at our desks, staring into the distance and thinking about how to make the most of our lives. Maybe it was on a Thursday afternoon, when the lunch break feels like it was yesterday and the journey home seems like something that will not come for another year. Maybe you have looked blankly into the carriage on a journey on a crowded underground train and thought: "Imagine if I could just leave it all behind me. I don’t mean that in the "Eat, Pray, Love" sense (although if you want to do that, go for it).

So many of us spend our entire working lives wishing it was better, but never realising that it can be better elsewhere. Over the last decade, many people have moved to Iceland in search of all the things Iceland has to offer. They have been looking for the proverbial pot of gold at the end of the rainbow and some of them have found it. But why should you consider moving to Iceland? How can you do it? What makes this country a great immigration destination? Read about immigrating to Iceland.

Why should you consider emigrating to Iceland?

If you want to experience life in a country where you have an incredible work-life balance while being surrounded by some of the most impressive natural attractions in the world, then Iceland is the place for you.

Iceland is also a country that consistently appears in international indexes for happiness, equality, renewable energy and safety. 

To put it simply: Iceland is a place where you can make the most of your personal time, where you can explore places that do not exist anywhere else, where you can enjoy the privilege of having a level of personal security that few industrialized nations have, and where you can do all of this while being ideally located halfway between America and Europe.

If you’re willing and able, you’d be crazy not to spend at least a little time here.

How easy is it to emigrate to Iceland?

The answer to this question largely depends on where you come from. To emigrate to Iceland, you need to look at which country or countries you are a citizen of.

Different immigration laws apply in Iceland depending on whether you are from the EU/EEA or from outside.

Moving to Iceland from the EU or EEA

This is probably one of the easiest moves for anyone coming to Iceland. Members of the EU or EEA have complete freedom of movement between their home country and Iceland.

If you only intend to stay less than three months, you will need to apply for a temporary Icelandic identification number when you arrive. If your stay is going to be longer than three months you will need to apply for a permanent one.

You can apply for the ID by filling out the A-271 form when you arrive and taking it to the offices of Registers Iceland. 

Moving to Iceland from the UK

The process of UK citizens moving to Iceland after Brexit is a bit different than those who are from countries within the EU/EEA. 

As of January 1, 2021, any UK citizen wishing to move to Iceland will need to apply for a visa. The specifics of this are still being decided by the Icelandic Government. You can find more information about this through the Icelandic Directorate of Immigration.

Moving to Iceland from the US

To be able to move to Iceland from the United States of America, you need to fit one of a few categories. 

If you are the legal spouse or domestic partner of an Icelander, you are entitled to apply for a residence permit.

You can also apply for temporary residency for the purposes of study. Iceland has quite a number of Universities that students from all around the world come to study at.

The easiest way for an American to move to Iceland is to apply for special consideration as a foreign specialist. There’s more on what this is and how to apply further down in this article.

What is the procedure for emigrating to Iceland?

The procedure for immigrating to Iceland is pretty much the same as for most other countries in Northern Europe. The steps usually include applying for a visa or residence permit, relocating, finding a job and setting up ID cards and a bank account.

Do you need a visa?

This depends on where you are moving from. If you are from the EU/EEA, you do not need a visa, but you will need to apply for some things such as an Icelandic ID number.

EU/EEA citizens who want to stay longer than three months must have an employment contract in Iceland or prove that they have living expenses for three months.

If you are from outside the EU/EEA, you must apply for a visa. There are a number of categories that your visa may fall under. These include, for example, a partner or spouse visa (as mentioned above), a student visa, a visa because you are providing labor in an area where there is a need, or a visa because you are an expert in a field.

Finding a Job in Iceland

This is a relatively simple step if you already have the legal right of residence. Iceland has a fairly low unemployment rate, and when the country is in full swing, there is plenty of work in a variety of industries.

There are jobs in all sectors and at many different levels, from entry level to management.

A helpful tip for finding a job in Iceland is to take the time to learn about the country’s business culture. Networks are incredibly important to Icelanders, and this is often how they find out about job opportunities. 

Another option for you would be to contact agencies like us who specialize in finding skilled workers and pairing them with incredible job opportunities.

Iceland is also experiencing a boom in its gig economy, so contract work might be a possibility. You could also look at doing some remote work for a foreign company and basing yourself in Iceland. 

If you’re not entirely sure it’s going to be a long term option, you could also look at testing the waters with a job swap before you make the decision to completely up-root your life.

Moving to Iceland

For anyone moving to another country, this is probably the easiest step of the whole process. That wonderful moment when you get on a plane, perhaps frantically searching for your keys, before realizing that you don’t actually have any keys anymore because you’re starting a new life somewhere else.

I will give you a hot tip: before you move, take the time to get to know the Icelandic expat communities on the internet. Chances are there is a group of people from your home country living in the land of fire and ice who have already done what you are about to do and are full of wisdom.

These fellow expats can give you insider secrets - from the best food in town to finding a place to live to planning hangouts for when you are homesick.

There is currently a  Facebook group for all expats living in Iceland, but there are also country-specific groups.

Getting a Kennitala & Bank Account

I know what you’re thinking, ‘what’s a kennitala?’

Iceland’s identification system is often perplexing to foreigners.

All people living in Iceland have one number to identify them for everything, and I mean everything. 

If you talk to the tax office you will use this number, but you will also give this number to the clerk at the electronics store to validate your extended warranty. 

This number is called a Kennitala and it can take some getting used to the fact that it’s shared frequently and liberally. I assure you this is normal. Iceland is, after all, an island. If anyone is going to try to steal your identity, they’re not going to get very far. 

To obtain a Kennitala, you must apply for it in person at  Registers Iceland. After that, the first thing you should do is go to a bank of your choice and open a bank account.

I promise you, opening a bank account in Iceland will change your life. It just makes everything easy.

When you live there and I have never experienced faster money transfers in my life.

How Many Immigrants Are There in Iceland?

This may be a surprise to you, but Iceland has a large, and growing immigrant population. As of 2020, immigrants made up a whopping 15.2% of Iceland’s total population.

This means that of the 350,000 people living in Iceland, 55,000 are either first or second generation immigrants. The population is becoming more diverse this year. This is largely due to the large supply of labour and the openness of Icelanders.

Is there a shortage of foreign labour in Iceland?

There is currently a huge demand for labour in Iceland in a number of industries. The country is experiencing a boom in many sectors and often the local population cannot keep up with the demand.

For this reason, the Icelandic Immigration Service offers special arrangements for those moving to Iceland in sectors where there is currently a shortage of skilled workers. One of the most well-known sectors is construction, but there are also many other industries where workers are needed.

Are there Opportunities for Foreign Experts in Iceland?

There are some fantastic opportunities for foreign experts who move to Iceland but there are also some amazing benefits. 

Although the Icelandic population is highly educated, there just aren’t enough people becoming specialists to fulfill the needs of every industry in the country. Because of this the Icelandic Government allows foreign specialists to become residents in Iceland under a special visa.

Experts or ‘Foreign Specialists’ who move to Iceland are also able to apply for a tax discount. Currently the discount is 25%, so if you are a foreign specialist, you will only be taxed on 75% of your income for the first three years you live in Iceland. 

If you’re a foreign expert, Iceland also provides you with the opportunity to enter the market in a much more senior position due to the lack of competition. Many Icelandic companies will throw in other perks to secure you.  

Conclusion

Iceland's nature, culture, work-life balance, pay and quality of life are exceptional. It’s easy to see why the number of immigrants is steadily increasing, and now is the perfect time to consider bringing your skills to the land of fire and ice.

If it is possible for you to move here, Iceland can offer you a new perspective on life and help you achieve your career goals in ways you never thought possible.

Maybe it’s time to declutter some of your belongings, pack a bag and hop on a plane. Now, ideally, you should fill out the appropriate paperwork and apply for a visa, but the first way is much more romantic.