Moving to Iceland - A comprehensive guide

In the age of globalisation, moving to another country has never been as possible as it is today. Unless it's the unfortunate circumstances of climate change or armed conflict, people are choosing to move with their families to a new city or country more often than ever before in history.

People naturally want to get to know a different culture, see new cities and try new foods. These are usually some of the experiences we look for when choosing our next holiday destination, a choice that is sometimes quite difficult to make as there are so many beautiful countries around the world. It's also good to be informed and knowledgeable about the place you want to travel to next.

Iceland will certainly not disappoint you with what it has to offer. Even if you are looking for more than just a short holiday, perhaps to pursue a career in Iceland, below you will find some useful information and guides that you can go through to familiarise yourself with the country and settle down there.

Get the basics

If you do enough research on Iceland, it basically means you see what you’re getting into If you are coming from a warmer country, the temperature might be a problem for you (at least until you get used to it, if you do). Average summer temperatures – at least in the southern part of the island, where Reykjavik, the capital of Iceland, is located – are around 10–13 °C (50–55 °F). The last time the temperature exceeded 30°C (86°F) was in the East Fjords in 1939.

Of course, not only do you need to inform yourself about the weather and carefully choose what to pack in your luggage (warmer clothes and mackintosh), you should also familiarise yourself with all other aspects. What procedures should foreigners follow if they want to stay in Iceland for a longer period of time? When applying for a residence permit, what difference does it make whether you are a citizen of the European Union/European Economic Area (EU/EEA) or not?

Getting Permits in Iceland

To get a work and residence permit in Iceland, you have to go through a certain procedure, which can be smoother for people from countries that are part of the EU/EEA. If you are European, you will have an easier time sorting out your immigration status and moving to Iceland. EU/EEA citizens can stay in Iceland without having to apply for a three-month residence permit, a rule that normally applies in other European Union countries. However, if you wish to stay longer in Iceland, you must register your status. To obtain a residence permit, you must prove that you can earn a sufficient monthly income when you apply.

The amount that an individual must earn is approximately 164,000 ISK (the currency is the Icelandic krona), which would correspond to approximately 1300 EUR/ 1600 USD per month.

For citizens outside the EU/EEA, the procedure for obtaining a residence permit in Iceland can be a little more complicated. Regardless of whether you get the Schengen visa, you can only visit the country. However, the visa is not the only requirement if you also want to work in Iceland.

Two ways you can pave the way to residency is to fall in love and eventually marry someone who has Icelandic citizenship. Besides marriage, another alternative is to study in Iceland. The third and admittedly most difficult option is to obtain a work permit, which can prove very difficult as Icelanders and EU citizens have an advantage here. Nevertheless, it is possible to obtain a work permit and get a residence permit for specific positions or with companies that are willing to submit the required documents.

Obtaining your Kennitala

Even though it sounds like a book from mythology and folklore, such as the Finnish Kalevala, Kennitala is de facto another important thing you need to arrange as soon as you move to Iceland — it is the identification number for residents. Once you have passed the immigration office, you are ready to apply for your number. If you don’t have a Kennitala, you are practically handicapped. This is the number you need for almost everything – from visiting the doctor to opening a bank account in Iceland to buying a house or flat.

Please also note that residents from non-EU/EEA countries cannot apply for this identity number themselves. If you plan to work in Iceland, the Kennitala will be applied for by your employer or the bank you are visiting.

Where to Live?

The best place for newcomers to Iceland is undoubtedly Reykjavik, the capital of Iceland. It's the city where everything happens, where there are a number of jobs and an abundance of housing options, but this city also has some competition. As Iceland has made a name for itself as an international hub in recent years, its capital is the most desirable place to live. Given the small population, the employment rate in Iceland is 99%, so there's a good chance you will be signing a contract sooner rather than later.

Outside of Reykjavik, Iceland is perhaps a different story, and not the least interesting to see, visit, experience and even live. Iceland is a country with what most countries currently lack – fresh and captivating nature. If you like cosy little cabins like you see in the movies, Iceland is the place for you. The nature around Iceland is excellently preserved, and that is nothing but a testament to how much the people there care about the environment. This is one of the many reasons why you should visit Iceland at least once in your life.