Moving to Iceland
8 ways to move to Iceland in our guide: 1 working holiday visa, 4 work visas, 1 student visa, 2 spouse visas.
No digital nomad visa. Checked against official sources on .
Iceland is a small, orderly country where the practical side of settling in is taken seriously. The residence routes are specific, and most come with a clear income bar that you need to meet before you arrive.
Working holiday · 1
Working Holiday
Age limit and funds needed: Ages 18–30 · ISK 260k/mo ≈ $2,130
Work · 4
Student · 1
Student permit
Income needed: ISK 260k+ a month ≈ $2,130
Spouse visas · 2
For people married to, or in a partnership with, a citizen or permanent resident.
Spouse of a resident
Income needed: from ISK 260k a month ≈ $2,130
Spouse of a citizen
Income needed: from ISK 260k a month ≈ $2,130
Free movement and visa-free stays · 2
EU free movement · Lets you live here
Open to 31 passports: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland.
Nordic free movement · Lets you live here
Open to 5 passports: Denmark, Finland, Iceland, Norway, Sweden.
Tax
Non-residents are taxed on Icelandic-source income only.
Standard rules
Personal income tax 2026: three withholding brackets of 31.49%, 37.99% and 46.29%
Worldwide income
Details
- On: Employment income less the mandatory pension fund contribution
- Limit: ISK 498k/mo ≈ $4,080
Employment income is taxed in three monthly brackets: 31.49% up to ISK 498,122, (≈ $4,080) 37.99% up to ISK 1,398,450 (≈ $11,500) and 46.29% above, including municipal tax.
Taxed on
Employment income less the mandatory pension fund contribution; residents are taxed on worldwide income, non-residents on income from Icelandic sources.
Who it applies to
- Residents (stay of six months or more in a twelve-month period) have unlimited tax liability from the day of arrival.
- Capital income, including sales profits, dividends and interest, is taxed at 22%; ISK 300,000 (≈ $2,460) per person a year is tax-free on interest and on dividends and gains from shares in listed companies.
Exclusions
- Stays of less than six months in twelve give limited tax liability on Icelandic-source income only.
- Residents are taxed on foreign-source income like other income; former residents stay liable for 3 years unless they show they are taxed elsewhere.
Limits
- ISK 498,122 a month (≈ $4,080) · Upper limit of the 31.49% bracket (2026 withholding)
- ISK 1,398,450 a month (≈ $11,500) · Upper limit of the 37.99% bracket; income above is taxed at 46.29%
- ISK 72,492 a month (≈ $590) · Personal tax credit deducted from calculated tax (ISK 869,898 (≈ $7,130) a year)
Tax residence
A person staying in Iceland for six months or more in a twelve-month period is a resident with unlimited tax liability from the day of arrival; municipal tax is 14.94% on average and included in the brackets.
Visas
Immigration status does not set tax residence; the stay in Iceland does.
Other taxes
VAT is 24% (reduced rate 11%); employers pay 6.35% payroll tax; workers pay a mandatory 4% pension fund contribution.
Checked against official sources on Change log
Special regime
Foreign experts: 25% of employment income deducted from taxable income for three years
Tax relief
Details
- On: 75% of employment income after a 25% deduction
Approved foreign experts are taxed on 75% of their employment income for the first three years of work in Iceland.
Taxed on
75% of employment income after a 25% deduction; social security tax, pension contributions and child benefits are based on total income.
Who it applies to
- The employee did not live or hold a legal domicile in Iceland for the 60 continuous months before starting work, not counting the first three months of stay.
- The expertise is limited or non-existent in Iceland.
- The employer is an Icelandic legal entity or a foreign company with a permanent establishment in Iceland.
- The job involves research, development and innovation, teaching or specialised tasks, or management or core project work for the employer.
Exclusions
- The application must reach the committee within three months of starting work in Iceland.
Tax residence
Applies from the start of employment for three years; the 60-month non-residence test applies before the start.
Visas
Suits holders of an expert-work residence permit, but approval comes from a Ministry of Finance committee, not the Directorate of Immigration.
Other taxes
Applications go to the Icelandic Centre for Research (Rannís); tax withheld before approval can be corrected with form RSK 5.17.
Checked against official sources on Change log
Checked against official sources on Change log
Iceland in pictures
Path to permanent residence · 1
- PR after 4 years · Permanent residence permit
Arriving in Iceland: first steps
- Make sure you have secure means of support at the income bar for the whole period of your permit, and keep the bank statements or contract ready.
- Arrange health cover and any insurance you need for your first stay, as the records do not say health cover is automatic.
- Register your permanent address, since several routes require a shared permanent address or a home in Iceland.
- Open a bank account for day-to-day life and for showing savings if you apply from inside Iceland.
- If you are a spouse of an Icelandic citizen and want to work, file and pay the application first, then you may start work.
Questions people ask
Does Iceland have a working holiday visa?
Yes. Iceland has 1 working holiday visa. Working Holiday is for ages 18 to 30, asks for an income of at least ISK 259,951 a month (≈ $2,130) and gives a first stay of 1 year that can be renewed.
What work visas does Iceland offer foreigners?
Iceland has 4 work visas. Labour shortage work permit asks for a salary of at least ISK 259,951 a month (≈ $2,130) and gives a first stay of 1 year that can be renewed. Athlete permit asks for a salary of at least ISK 259,951 a month (≈ $2,130) and gives a first stay of 2 years that can be renewed. Expert work permit asks for a salary of at least ISK 259,951 a month (≈ $2,130) and gives a first stay of 4 years that can be renewed.
How do I get a student visa for Iceland?
Iceland has 1 student visa. Student permit asks for an income of at least ISK 259,951 a month (≈ $2,130) and gives a first stay of 1 year that can be renewed.
Can I join my spouse or partner in Iceland?
Yes. Iceland has 2 spouse visas. Spouse of a resident asks for an income from ISK 259,951 a month (≈ $2,130) and gives a first stay of 2 years that can be renewed. Spouse of a citizen asks for an income from ISK 259,951 a month (≈ $2,130) and gives a first stay of 2 years that can be renewed.
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≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
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