The advantages of being a Foreign Specialist in Iceland

Many of us have spent years ‘getting "good" at our profession. We have studied, interned, worked our way up, and learned more. Maybe we have even started all over again and changed industries completely. When you finally get to the point where you know what you’re doing and how well you compare to your contemporaries, it’s safe to say you have a certain level of expertise. Most people who reach this level may just be comfortable where they are and happy with their job security and the benefits that come with it. But did you know that you can use that level of expertise to go further and maybe even succeed as a specialist in Iceland for some time?

There is a whole list of benefits of being a foreign specialist in Iceland, so read on to learn all about them.

What is a Foreign Specialist?

A foreign specialist has a certain level of expertise in a specific industry or field and might be able to provide this expertise to another country. 

Due to Iceland's small population, there is a need for skilled workers in many areas of the Icelandic economy. While there are efforts to train more Icelanders in these fields, it also makes sense to encourage specialists to bring their skills to Iceland.

Simply put, a foreign specialist knows how to do something at a level that very few people in Iceland can achieve; or he has more experience of something than an Icelander.

Who Is Considered a Foreign Specialist in Iceland?

To be considered a Foreign Specialist in Iceland, a person needs to have an expert level of knowledge in something essential to a specific business or enterprise. They need to be able to demonstrate this expert knowledge by having a university-level education, artistic, industrial or technical training that is recognised in Iceland.

For example, imagine an Icelandic company was going to commence a large-scale project, building under-sea tunnels to connect many of the fjords around the island. 

A project on this scale might need engineers with a particular level of expertise. Even though there are engineers in Iceland, there might not be many who possess the knowledge and skill required to complete the project on time.

If you, as a foreigner, happen to be precisely the kind of engineer they need, you are considered a foreign specialist in Iceland.

Many people typically think of doctors, engineers, academics and scientists when talking about foreign specialists, but there is no limit to which sector it applies to. If there is a need for someone with your skills, and that person cannot be found in Iceland, you’re a foreign specialist.

What Are the Benefits For Foreign Specialists in Iceland?

What’s in it for you? This is ultimately one of the most important questions to ask yourself if you consider uprooting your life for a job in another country. If you happen to be an expert at something, chances are you already have job opportunities in your home country.

Obviously, there needs to be a good reason to leave your home behind for a time and go work in another country. 

It can be as simple as just wanting a scene change. Perhaps you are seeking better opportunities or even the ability to earn more money than you would in your home country.

There are several benefits to taking on a position as a foreign specialist in Iceland. Many of them are listed below.

Foreign Specialist Income Tax Discount 

There is not  a person in the world for whom the words "income tax rebate" do not sound like music to their ears.

As an incentive, foreign professionals moving to Iceland can apply for a 25% tax rebate. If successful, this means that only 75% of your income will be taxed for the first three years of your stay in Iceland.

Senior Job Opportunities

Many people who want to come to Iceland may decide to swap jobs. However, coming to Iceland as a foreign professional may allow you to reach a higher position in a company than if you stayed in your country of origin.

The fact that you are a sought-after expert literally means that there is less competition for positions for which you are suitable.

You can easily come to Iceland and reach a position in a short time that would take you a decade in a country like the United Kingdom or the United States of America.

Less Business Competition 

Although Iceland is famous for boasting the most things per capita (most gyms, happiest people, most Nobel Prize Winners), the Icelandic market is generally less saturated than many other markets in the world. 

Iceland is a place where, if you have an idea or a skill, you can watch it flourish without being crushed by competition in its infancy. This also means that there are fewer companies competing with each other for business.

You can witness projects taking off at a speed you never imagined because it’s much easier to connect with business partners or find the proper connections at the right time.

Iceland’s Growing Gig Economy

Iceland is currently experiencing a growth spurt in its gig economy. In this free market system, freelance workers are hired for short term contracts. 

If you come to Iceland as a foreign specialist, this means that within your industry, you could make great use of a system like this to get some tremendous short-term wins without having to hire full-time employees. 

This can also mean that it’s entirely possible for you to take on a few side projects, which will completely level up your earning potential. Word travels fast around an island, and if you’re good at what you do, you can be in high demand very quickly.

Remote Working

In the past year, we learned that the traditional work structure of being in an office for 8 plus hours a day doesn’t have to be followed to get the most out of ourselves, our businesses, and our employees. 

Remote workers now make up a larger portion of the economy than ever before. The ability to work remotely is becoming an option within many companies. This means that if you come to Iceland as a foreign specialist, it’s entirely possible that you could return home occasionally and continue working.

This can also mean that as a business professional, you can outsource parts of a project or business entirely to be more cost-effective.

Iceland also has an exceptional internet network, so the ability to do some domestic traveling and stay connected with the office is an absolute possibility.

Geographic Location 

Iceland is uniquely placed between mainland Europe, the United Kingdom and North America. It’s a popular stopover destination for many business travelers between continents, and it’s easy to see why.

Reykjavík International Airport is just 3 hours from Charles de Gaul in Paris and Heathrow in London. It’s just over 5 hours to JFK in New York and just 8 hours to Vancouver in Canada. 

Iceland is a great place to base yourself for international business; if you have to travel for work, you will also understand that the ‘door to door’ element can be the most exhausting and time-consuming part. 

The security and customs screening in Iceland’s airport is incredibly fast due to the smaller population and effective processes. So when you touchdown, you’ll be unwinding in front of Netflix in no time at all.

Iceland’s Incredible Nature

This is a no-brainer. If you had the choice between working in a crowded city, surrounded by noise and smog, or working in one of the most intrinsically beautiful locations on the planet, which one would you pick?

Even spending some time working in Iceland on a project or short-term contract will provide you with enough opportunities to soak up the incredible nature to last a lifetime. 

Volcanoes, waterfalls, glaciers, ice caves, lava fields, the Northern Lights; all of this is just waiting to be discovered in Iceland. Another incredible benefit of working in Iceland as a foreign specialist is the Icelandic work week. The typical work week in Iceland is currently 37.5 hours. 

The Icelandic attitude is typically geared towards trying to have a decent work/life balance. Typically, weekends and evenings are your time and shouldn’t be taken up by work. 

Moving to Iceland as a foreign specialist might not just be great for your bank account, memories, and life experience; it could also positively affect your quality of life.

How Do I Apply For the Foreign Specialist Income Tax Discount?

To apply for the foreign specialist income tax discount, you will need to gather all the necessary information and evidence to be submitted. 

This will include things like evidence of your expertise, a contract with a business or enterprise in Iceland and proof of residency. The complete list of requirements can be found here.

You need to submit your application no later than three months after your contract has begun in Iceland. A committee will then look over the information and make a decision based on your evidence.

How Can I move to Iceland as a Foreign Specialist?

The simplest and easiest way to do this is to utilize the services of a company like ours. We know how the process works, can connect you with employers and assess everything you will need to enter the Icelandic job market as a foreign specialist. 

The main benefit of using a company like the Swapp Agency is that it takes a lot of the hassle and confusion out of the process to make it more seamless and worry-free. 

The steps you should follow to move to Iceland as a foreign specialist are listed below.

Find a Job

This is the most essential item to the list to kick things off. If you have a job lined up, the entire process can begin. There are many different ways to look for work in Iceland, but it is helpful to have a point of contact within the country who can actively seek out businesses or industries that are in need of your particular expertise. 

Apply for a Work Visa

It is essential to do this as soon as possible. The process can take some time, and it is worth making sure you have all the necessary paperwork ready to go. Depending on where you come from, there may also be specific rules or recent changes, like for instance if you are planning on moving to Iceland from the UK.

You can find more information on how to apply for a work visa here. 

Move to Iceland

This might seem like an obvious step that didn’t need to be added to the list, but there are some elements to it you might not have thought of. 

Things like making sure you can still have access to your foreign bank account when you arrive, making sure your phone will work, checking if you are allowed to drive on your license; all are important and often overlooked throughout the process.

It can also help to start making contacts in Iceland through social networks. This can be a valuable step towards finding a place to actually live when you arrive.

Iceland has a small population, and having a few friends on the ground can go a very long way.

Apply For a Kennitala

A Kennitala is the ID number all people legally residing in Iceland have. Icelanders are given it at birth, and foreigners need to apply for it when they arrive.

To get one, you will need proof of ID, proof of residence and a contract from your employer. The application is through Registers Iceland and it is usually recommended you begin the process in person.

Apply For the Foreign Tax Discount 

If you would like to apply for the 25% foreign specialist tax discount, you must submit your application within three months of your contract’s start date.

This step is once again something we can help with as we know the entire process and what you will need to do to meet the committee’s requirements.

Conclusion

The hard work you have put into your career may have opened some excellent doors for you, but in global terms, there’s so much more it could get you. 

Considering a stint as a foreign specialist in Iceland not only provides you with opportunities for professional, financial and personal growth, it also looks great on your CV in the future. Plus, you never know; you might end up finding a new permanent home you hadn’t ever considered before.