The ultimate guide to work visas for Iceland

Visiting Iceland is a long-cherished dream for many people. They long for the experience of standing on a black sand beach and gazing into the Atlantic. They wonder what it would be like to stand on top of a  glacier or see an active volcano in real life. Many succeed in realising this dream, but some go even further and manage to secure a job in the land of fire and ice.

Iceland is not an alien world that is closed off to foreigners. On the contrary, it has its own business culture, a thriving gig economy and a population of people who are both welcoming and excited about the prospect of foreign workers and experts moving there to enhance and strengthen the local economy.

You may have dreamed of working in Iceland, and technically all you need to make that dream a reality is an Icelandic work visa. But what is an Icelandic work visa? How can you get one? Are there different types? Read on to find out all this and more.

What is an Iceland Work Visa?

An Icelandic work visa is a permit issued by the Icelandic government. It entitles the holder to work in Iceland.

People with a work visa in Iceland have the same rights and protection as all other legal employees.

How Can I Get an Iceland Work Visa?

There is only one way to get an Icelandic work visa: apply through the Icelandic Directorate of Immigration.

All residence and work permits are issued from the Directorate, and they have the final say on approvals.

If you are going to apply for a work visa in Iceland, it’s a good idea to familiarize yourself with the requirements, costs and waiting times you may be looking at.

Iceland Work Visa Requirements

Anyone applying for a work visa in Iceland must be over 18 years of age. You must have reached the age of 18. As a rule, you must also have already found employment and have a signed contract. Applicants must also prove that they can support themselves throughout their stay in Iceland in terms of income, savings and wages.

They must also have valid health insurance. Temporary residents and newcomers to Iceland are not covered by the state healthcare system; they must be privately insured for the first six months of their stay.

You must have a valid passport that expires no earlier than 90 days after your residence permit expires and you must not have served a sentence in another country in the last five years.

Application

Once you have all the necessary information, you can submit the application to the Immigration Directorate. Remember that, depending on your country of origin, the Directorate may require an official translation of some of your documents into English or Icelandic.

To prove that you have the necessary means to support yourself, a simple bank statement is often sufficient, although it must be up to date.

Processing Time

The typical processing time for work visa applications in Iceland is about 90 days. This usually means the application is processed within three months of all the supporting documentation being received.

If, for any reason, the immigration authorities believe that a document is not sufficient, processing will take longer. It is therefore advisable to submit your application as early as possible, provided you have found a job in Iceland.

Processing Fee

Like most governmental processes, there is a fee to apply for an Icelandic work visa. The amount payable is dependent on which particular visa you are applying for. In most cases, the fee isn’t more than 15,000ISK (€102). However, if you need your application to be expedited because of a work situation, there is an extra fee you can pay to make this happen. At the time of writing this blog, the fee is 45,000ISK (€307).

To expedite a visa application, you must fit into specific categories stipulated by the Directorate of immigration.

How Much Does an Iceland Work Visa Cost?

The total cost of applying for a work visa in Iceland depends on where you are coming from, what you plan to do and how quickly you need it.

As already mentioned, there are processing fees for each application. However, you should also expect to need private health insurance for 6 months. You may also have to pay for the preparation or copying of documents in your country of origin.

Some applicants will need to undergo a medical check-up within two weeks of their arrival in Iceland. There may also be some costs associated with this.

When it comes to the total cost of a work visa, it is best to plan ahead and check exactly which category you fall into and calculate the costs involved.

For most applicants, the process is not very expensive

What Are the Main Work Permit Categories in Iceland?

There are a number of different work permits you can apply for if you are looking to move to Iceland.

The most important work permits that foreigners can apply for are listed below.

If you are still unsure which category you fall into, please do not hesitate to contact us. Foreign workers are a specialty of the Swapp agency; we know exactly how the system works and can also bring skilled workers and companies together.

Temporary Work Permit For a Job that Requires Expert Knowledge

The temporary work permit for a job that requires expert knowledge was created to address gaps in the job market.

Iceland is a highly educated nation, but it can be challenging to find experts in specific fields because of its small population.

If you have a specific level of expert knowledge, and it can be proven that no Icelander is able to provide that level of service, you might qualify for this visa. The length of this visa is normally determined by the lifespan of a project or on the terms of an employment contract.

Temporary Work Permits Due to Labour Shortages

When a micro nation like Iceland experience a boom in a particular sector, they can sometimes struggle to keep up with the demand for services. This has happened a few times in Iceland in the last 20 years, especially in the tourism and construction industries.

Recipients of this visa are granted the right to reside in Iceland unless their contract is terminated. In addition, their work must be in an industry with a recognised labour shortage.

Temporary Work Permits For Athletes

Iceland takes its sport very seriously. For this reason, there is a special temporary work visa for athletes of a certain level. The purpose of this category is to encourage top athletes to come to Iceland and strengthen Iceland's position on the world stage.

Athletes in team sports usually fall into this category. There are temporary work visas for foreigners in Iceland for sports such as football, basketball and handball. The applicant must have a contract with a sports club that is a member of the Icelandic National Olympic Sports Association.

Temporary permit based on family reunion

Although this is not specifically a work visa, it is another option for some who are wanting to spend some time in Iceland. This permit is designed to keep families together.

The main applicants for this are foreigners who have an Icelandic spouse or partner.

When applying for this visa, it is essential to know that you are not allowed to work unless you have specifically been given permission to do so by the Directorate of Immigration.

Temporary work permits for students

Iceland has some top-rated universities and courses, and students come from all over the world to study here. The Icelandic government also understands that many students cannot afford to not work while studying, so this visa addresses that.

To obtain and retain this permit, the applicant must be enrolled at an Icelandic university.

In addition, attendance must be exemplary and he or she may not continue working if he or she drops out or terminates his or her studies.

Temporary Work Permit for Specialized Employees Based on a Service Contract

Foreign employees may be granted a temporary work permit if they are employed by a company that does not have its registered office in Iceland. This is the case if the relationship between the two parties is based on a service contract.

This is also possible if there is international cooperation for scientific, academic or educational work.

Temporary Work Permits Granted for Special Reasons

A temporary work permit may be granted by the Directorate of Immigration and the Directorate of Labour in exceptional circumstances.

The conditions for this are difficult to define as this type of work permit is usually considered on a case-by-case basis and there are usually extenuating circumstances.

Do Employers Cover the Cost of Iceland Work Visas?

Employers are allowed to cover the cost of work visas. Still, it’s not something you should expect unless it has been explicitly discussed.

In the eyes of the Icelandic government, just as it is with taxes, the submission and payment for a work visa is entirely the responsibility of the individual.

In some cases, especially if the foreign worker is a specialist or expert, some companies offer to cover the cost of a work visa and even help with the formalities. Some companies even hire agencies like Swapp to help them process the paperwork and get everything on track.

Iceland Work Visas For US Citizens

To get a work visa in Iceland as a US citizen, you need to have secured a work contract.

In addition, because the US is outside of the EU/EEA, you will need to fill a gap in the Icelandic job market (shortage of labour) or be a specialist (expert) or athlete.

In these cases, most often, the institution that will employ you will need to make some declarations stating why they need to hire you, the terms of your contract, and the length of time you will be required to be in Iceland.

Iceland Work Visas for UK Citizens

UK citizens used to enjoy the same freedom of movement that EU citizens did when it came to working.

However, after December 31st 2020, the UK is no longer part of the EU/EEA. This means that UK citizens wishing to apply for a work visa in Iceland need to go via a similar route to US citizens.

There are several new rules regarding UK citizens living in Iceland after Brexit. But, for now, those who were already in the country before December 2020 have been ‘grandfathered in’ – meaning that they will enjoy the same rights they had before, as long as their legal domicile remains as Iceland.

Iceland Work Visas for EU/EEA Citizens

This is the most simple of all the moves in this list.

People who are citizens of another EU/EEA country have complete freedom of movement in Iceland. You are allowed to come to Iceland and reside, but if you intend to work, you must apply for an Icelandic ID or Kennitala.

To apply for a kennitala, you need to fill out a form and take it in person to Registers Iceland’s offices. You will need to show that you have 3 months worth of living expenses available to you to accompany your application.

It can take a couple of months to process this, so it’s advisable to do it as soon as you arrive if you intend to stay for longer than 3 months.

Can I Get a Work Visa After Studying in Iceland?

If you are from a non-EU/EEA country and complete your university studies in Iceland, it might be possible for you to renew your visa.

The renewal of this can be extended for up to 6 months from the day of your graduation. This period of time is designed to help you look for a job in your field of expertise in Iceland.

If you manage to find a job in this timeframe, you will then need to apply for a new work visa, choosing one that matches the situation of your new employment.

What Are Iceland Working Holiday Visas?

Working holiday based residents permits are a kind of visa that allows the holder temporary residence and working rights in Iceland. This is set up under special relations between Iceland and other countries.

Currently, the only country Iceland has this relationship with is Japan.

So, for now, the only people who can benefit from this program are Japanese citizens between 18 and 26 years old at the time of their application.

Conclusion

Iceland can be a great destination to work for a while and it’s not just a pipe dream, it can become a reality.

Every day, people just like you travel to this tiny island in the Atlantic Ocean to enjoy the culture, experience natural wonders and have life experiences that can’t be found anywhere else in the world.

Getting a work permit for Iceland can be a straightforward process if you plan well and do your research. So if you have decided to go to Iceland, good luck and remember that you can always contact the Swapp Agency for advice.