In recent years, Iceland, also known as the land of fire and ice, has become one of the world's favourite destinations for remote working. This is due to the extraordinary combination of beautiful scenery, progressive laws and a technologically savvy workforce. Iceland has positioned itself as an ideal destination for remote workers through the provision of high-speed internet, a robust culture that emphasises work-life balance, and government initiatives specifically tailored to remote working.

In this article, we look at the key factors behind Iceland's increasing attractiveness as a location for remote work. We also highlight the crucial role that EOR services play in helping organisations hire top talent quickly and compliantly.

The Rise of Iceland as a favorite Remote Work Country

Iceland has become a remote-friendly destination due to several factors, some of which are discussed below.

High Quality & Reliable Digital infrastructure

With extensive fibre optic connections and high-speed broadband even in remote areas, Iceland has one of the best internet infrastructures in the world. This makes Iceland a sought-after location for professionals who rely on cloud-based technologies and flawless communication.

Government Support for Remote Working

In response to the growing trend towards remote working, Iceland offers a long-term visa for a stay of up to 90 to 180 days for the purpose of remote working. To attract talent from around the world, the government has also invested in co-working environments.

Modern and Effective Public Services

Public services in Iceland are easily accessible and well run. Most administrative procedures, including tax documents and visa applications, can be completed online. With clear criteria and short processing times, the application process for a remote work visa is very simple compared to other countries.

Work-Life Balance and Quality of Life

Iceland often scores well when it comes to work-life balance and global happiness. Short working weeks (typically 35–40 hours), generous parental leave policies and a strong focus on wellbeing help remote workers to lead better, more balanced lives.

English Proficiency

Iceland is amongst the world's leading non-native English-speaking nations. English is widely spoken and understood, especially in metropolitan areas and among the younger generations. For digital nomads, remote workers and foreign visitors, this high level of competence facilitates communication and navigation in everyday life.

How can an EOR help with the Icelandic hiring process ?

For international businesses that are not familiar with Iceland's labour laws, tax regulations or employment practices,the expansion and hiring process can be very challenging. This is where an Employer of Record (EOR) can help companies to hire and manage employees as they assume the full legal responsibility of the process by acting as a legal employer. Below is how an EOR can help.

• No Need of a local Entity: With an EOR service in place, you are not required to register a local entity in Iceland.This can lead to both quick hiring and cost savings on office set-up, legal and accounting costs.
• Simplified Compliance: The EORs are responsible for compliance with Icelandic labour laws, e.g. with regard to contracts, severance pay and social security payments.
• Faster Hiring Process: By working with an EOR, you can complete the onboarding process for Icelandic staff quickly and efficiently and without complications.
• Proper Classification of Employees: Misclassification of employees as independent contractors can lead to fines in Iceland. An EOR guarantees correct classification and thus protects companies from penalties and reputational damage.

Final Thoughts

Although it may seem unlikely, Iceland is leading the remote working revolution by capitalising on its strengths: fast internet, clean government, pristine beauty and a people-centric philosophy. Iceland is just getting started. It has become one of the most remote work-friendly countries in the world by granting flexible visas, maintaining an effective digital infrastructure and offering a lifestyle that combines productivity with serenity.

Working with an EOR like Swapp Agency also helps companies to focus on expansion while ensuring full compliance with Icelandic employment regulations. Startups, SMEs and multinationals that are testing the Icelandic market before deciding to set up permanently will particularly benefit from this strategy.