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Iceland digital nomad visa - programme closed

Since May 2026 Iceland no longer issues a visa for remote work. Croatia, Spain and Portugal offer similar visas with income thresholds about half as high.

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closedsince May 2026
up to 180 dayswhat the visa gave
31.49-46.29%income tax
Iceland on the world map

Until May 2026 Iceland let remote employees of foreign companies live on the island for up to 180 days. A new foreigners law removed that ground. Below is what changed and where you can now work from a laptop with mountains and ocean in view.

What happened to Iceland's nomad visa

Amendments to the Foreigners Act took effect on 12 May 2026. The long-term visa was replaced by a short-term residence permit: up to 180 days and no more than once every 12 months.

Ministry of Justice Regulation No. 725/2026 lists the grounds for it. These are relatives on a visit, artists, scientists and athletes. Remote work for a foreign company is no longer on the list.

The application page on the government portal island.is has been taken down as well. You cannot apply for an Iceland nomad visa now.

What the visa gave and to whom

  • Stay: up to 180 days with no extension, up to 90 days if you applied from inside the country.
  • Income: from $8,200 a month, from $11,000 with family.
  • Work: only for a foreign company or your own business abroad.
  • Who: only citizens of countries that do not need a Schengen visa.

Russian citizens could not use it even before: they need a Schengen visa to enter Iceland.

We will find a working alternative and calculate online its cost for your family.

Calculate online

Where to go instead of Iceland

Nordic romance in Europe is still there, the visa for it is not. EU programmes, however, ask for about half of Iceland's income threshold.

CountryMonthly incomeStayPath to permanent residence
Croatiafrom $4,100up to 18 monthsno
Spainfrom $3,2001-year visa, then a 3-year permitafter 5 years
Portugalfrom $4,2004-month visa, then a 2-year permitafter 5 years

All 30 programmes, filtered by income, family and citizenship, are in the digital nomad visa finder. Murblz specialists check your income and documents before you apply and handle the application until the decision.

Taxes in Iceland in 2026

Income tax including the average municipal tax ranges from 31.49% to 46.29%. Rates, allowances and residency rules are on the Iceland taxes page.

Northern alternatives

CountryWhat is available for remote workMain condition
Estoniaremote worker visa for up to 1 yearincome from €4,500 a month, ~$5,042
Norwayliving on Svalbard without a visa, or a self-employment permit on the mainlandfor the mainland - income from NOK 341,372 a year
Croatiaremote worker visa for up to 18 monthsincome from €3,622.50 a month

If you want a northern country, Estonia and Svalbard are closest to Iceland; if cost of living matters, Croatia.

Who the new short-term permit is for

Under Ministry of Justice regulation No. 725/2026, the short-term residence permit of up to 180 days once in 12 months is granted to relatives visiting family, artists, scientists and athletes. Remote work for a foreign company is not on the list. Russian citizens still need a Schengen visa for any trip to Iceland.

How to live in Iceland longer

Without the remote worker visa, the usual grounds for residence remain: employment with an Icelandic employer, study, family reunification. Each requires its own preparation, and remote work for a foreign company does not count as a ground. In a consultation we will check whether you have a suitable ground and, if not, find a country where remote work leads to residence.

How Murblz helps you move

We compare remote work programmes by your income, family and citizenship, check documents before filing and handle the application until a decision. The first consultation is free, with an instant answer in the chat.

What matters now

No applications

Remote work for a foreign company is no longer a ground for a long stay in Iceland.

Short-term permit is for others

Up to 180 days once a year, granted to visiting relatives, artists, scientists and athletes.

Alternatives in the EU

Croatia, Spain and Portugal issue nomad visas on income from $3,200 to $4,200 a month.

Two lead to permanent residence

In Spain and Portugal years on a nomad visa count towards permanent residence after 5 years.

FAQ

Does Iceland issue a digital nomad visa in 2026?
No. Since May 2026 remote work for a foreign company is not a ground for a long stay.
What replaced the remote work visa?
A short-term residence permit for up to 180 days once every 12 months. It is granted to visiting relatives, artists, scientists and athletes.
Which European countries offer a nomad visa instead of Iceland?
Croatia for up to 18 months, Spain and Portugal with a path to permanent residence after 5 years. The finder in the nomad visa section matches them to your income and citizenship.
What taxes apply in Iceland in 2026?
Income tax including the average municipal tax ranges from 31.49% to 46.29%.
Where to move instead of Iceland for remote work in northern Europe?
Closest are Estonia, with a remote worker visa for up to 1 year on income from €4,500 a month, and Svalbard, where you can live without a visa. If cost of living matters, Croatia.
Do Russian citizens need a visa for Iceland?
Yes, Russian citizens need a Schengen visa for any trip to Iceland. The remote worker visa was not available to them before either.

Services

Murblz services in Iceland

A passport or residence permit opens the door, but life behind it is awkward without a bank account and a roof over your head. Murblz specialists help with the account, property and company in the same country. The quote is fixed in writing before work starts.

Iceland closed its remote work visa - where instead?

We pick a country with an active digital nomad visa for your income and citizenship and gather the documents. The catalogue lists nomad visas in every country.

All nomad visas with search

The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.

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