Iceland: all programs

Iceland at a glance

Iceland is an island in the North Atlantic with about 400,000 residents, more than half of them in Reykjavik and its surroundings. The country is not in the European Union but belongs to the European Economic Area and the Schengen area. The language is Icelandic, and almost everyone speaks fluent English. The currency is the Icelandic krona, about 122 kronur per dollar on 6 October 2026.

The economy rests on tourism, fishing, aluminium smelting and data centres: cheap geothermal and hydro power attracts energy-intensive industry. Living standards and wages are high, and crime is among the lowest in the world.

Who the move suits

• citizens of European Economic Area countries, who move freely;
• specialists for whom an Icelandic employer found no candidate in Europe;
• families who value safety, nature and a strong social system;
• owners of energy-intensive businesses and data centres.

For remote workers and people with passive income from other countries, Iceland has been almost closed since May 2026.

Entry and visas

Citizens of European Economic Area countries enter and settle freely. Citizens of visa-exempt countries can stay up to 90 days in any 180 without a visa; others need a Schengen visa, and since November 2025 Schengen countries have mostly issued single-entry visas to Russian citizens. Living and working require a residence permit obtained before the move. Keflavík international airport is 50 kilometres from the capital, with flights via European cities.

Residence options

• Skilled employment - a permit is granted if the employer found no candidate in the European Economic Area.
• Family reunification and study - separate grounds.
• The remote worker visa - abolished from 12 May 2026: it was replaced by a short-term permit of up to 180 days once every 12 months for visiting relatives, artists, scientists and athletes, and remote work for a foreign company is no longer on the list.

Citizenship is generally granted after 7 years of living in the country with knowledge of Icelandic. For those who wanted a Nordic country for remote work, we find a European Union nomad programme with an income threshold half the former Icelandic one.

The first 30 days and a 3-month budget

In Iceland almost everything is tied to a personal ID number: rent, a bank account, salary, tax, a phone. So the first step after arrival is to register your legal domicile with the national registry and get the number. Next come electronic ID for public services, a bank account, telling your employer how to apply your personal tax credit, and registration with a health centre. Look for housing before the move: flats are scarce, and without an address your domicile cannot be registered.

The immigration service requires an income of at least about $2,200 a month per adult. In practice a single person in Reykjavik needs more: rent for a one-bedroom flat alone is $1,900-2,500, and the deposit can reach three months' rent. A realistic reserve for the first three months is from $12,000 for one person: rent, deposit and living costs.

Permanent residence and citizenship

A permanent residence permit is granted after 4 years of continuous residence in Iceland on a permit that leads to it, such as a work or family permit. You must complete at least 150 lessons of Icelandic or pass a test, support yourself and have housing. Student and short-term permits do not count towards the period.

Citizenship under the general rule comes after 7 years of residence, sooner for spouses of Icelandic citizens and for Nordic citizens. An Icelandic test is mandatory, and you can keep your previous citizenship.

Taxes

Income tax together with the average municipal tax runs from 31.49% to 46.29%, and about 72% of the median salary is left after tax. Dividends and interest are taxed at 22%, corporate profit at 20%, VAT is 24%, and there is no wealth tax. Foreign specialists pay no tax on 25% of their salary for 3 years. You become a tax resident when you register a domicile or after 183 days in 12 months, and the liability continues for 3 years after leaving. More in taxes in Iceland.

Cost of living

Groceries, restaurants and alcohol are among the most expensive in Europe, but geothermal heating and hot water are cheap. Flats are scarce and leases are often short-term.

Property for foreigners

Citizens of European Economic Area countries and people living in Iceland buy property on general terms. A foreigner who does not live in the country and has no European Economic Area rights needs permission from the Minister of Justice under the real property ownership act. Almost all demand is in Reykjavik and its suburbs. We find the property and prepare the permission application.

Companies and banks

The director and half the board of an Icelandic company must live in Iceland or the European Economic Area, and others, including citizens of countries outside the EEA, need a ministry exemption. Banks open accounts after registration in the national registry. We help with company registration, a business account and a personal account.

Accounts and money

Icelandic banks are supervised by the Central Bank. A resident with an ID number, passport and address gets an account quickly. Those who have not yet moved are given a system ID number at the request of an employer or bank, but the range of services on it is narrower. A non-resident with no link to Iceland rarely gets an account: the bank will ask for a convincing purpose.

Capital controls were lifted in 2017 and money moves abroad freely. Cash is hardly used: cards and phones are accepted almost everywhere.

Climate and daily life

The climate is maritime: winters around zero, windy and dark, with about four hours of daylight in December, and cool summers at 12-14°C, with almost no darkness in June. Geothermal outdoor pools are in every district and serve as places to relax. Cities have only buses, and many people drive. Public healthcare works well once you are registered in the country.