Iceland · Work
Iceland Service contract permit
Income needed: ISK 260k+ a month ≈ $2,130
Residence and work permit on the basis of a service or collaboration contract
First checked against official sources on Change log
Key facts
Service contract permit is a work route for Iceland. Applicants need income of ISK 260k+ a month ≈ $2,130. You can stay 1 yr, renewable. Local work: limited. Checked 2026-10-11 against the official source.
- Money needed
- ISK 260k+ a month ≈ $2,130
- Government fees
- ISK 80k ≈ $660
- First stay
- 1 yr
Cost, time and long term
To apply: government fee ISK 80k ≈ $660; income to show ISK 260k+/mo ≈ $2,130. No lawyer or agent fee is included.
Government feesISK 80k ≈ $660
- ISK 80,000 (≈ $660)Processing fee for a residence permit based on work.
Shown, not spentISK 260k+/mo ≈ $2,130
- ISK 259,951 a month (≈ $2,130)Minimum secure means of support for an individual, before tax, for as long as the permit is valid (equal to the basic financial assistance of the City of Reykjavík).
RenewalRenewable
Generally no longer than one year on the same contract; renewable for up to six months at a time.
Presence rulesStay rule
The residence permit can be revoked if you stay abroad for more than three consecutive months.
Why this route may not fit
Check this before you apply.
- Needs a job offer from an employer in Iceland
- Work rights are limited
- Not open to EU, EEA or Swiss passports
What you'll need
Who can apply4
- The foreign company providing the service has no branch in Iceland.
- A service contract, or its annex, states that the applicant's specialisation is necessary for the service.
- For cooperation agreements on teaching, academic or scientific work, the applicant has completed the needed university studies.
- General non-professional work does not qualify.
What you must show3
- Secure means of support of ISK 259,951 (≈ $2,130) a month before tax for the whole period of the permit.
- Processing fee: ISK 80,000 (≈ $660).
- Wages in Iceland follow the law and the applicable collective agreements.
Documents3
- The service contract or cooperation agreement between the foreign and Icelandic companies.
- Health insurance valid in Iceland with at least ISK 2,000,000 (≈ $16,400) cover for three months from registering a legal domicile.
- A criminal record certificate from the country of residence, not older than 12 months.
Steps1
- The application is filed on paper with the Directorate of Immigration after paying the fee.
After you arrive1
- The permit is generally granted for no more than one year on the same contract and can be renewed for six months at a time.
When you become tax resident
How Iceland decides tax residence and treats foreign-source income, from its tax records.
- Stay on this route
Up to 1 year at first, renewable
- 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.
- Foreign-source income
Employment income less the mandatory pension fund contribution; residents are taxed on worldwide income, non-residents on income from Icelandic sources.
All tax rules for Iceland Tax records checked
What you need to arrange
- Health insurance
Health insurance valid in Iceland with at least ISK 2,000,000 (≈ $16,400) cover for three months from registering a legal domicile
- Police certificate and civil documents
A criminal record certificate from the country of residence, not older than 12 months
Taken from this route's requirements above. The authority's own list is the one that counts.
Full official text
Residence permit in exceptional circumstances for specialised staff of a foreign company serving an Icelandic company under a service contract, or for staff working under a cooperation agreement on teaching, academic or scientific work. 1 2 3 4
What you must show and pay
- Income of at least ISK 259,951 a month (≈ $2,130) · Minimum secure means of support for an individual, before tax, for as long as the permit is valid (equal to the basic financial assistance of the City of Reykjavík). 1
- A fee of ISK 80,000 (≈ $660) · Processing fee for a residence permit based on work. 2
Requirements
- The foreign company providing the service has no branch in Iceland. 1 4
- A service contract, or its annex, states that the applicant's specialisation is necessary for the service. 4
- For cooperation agreements on teaching, academic or scientific work, the applicant has completed the needed university studies. 4
- General non-professional work does not qualify. 4
- Secure means of support of ISK 259,951 (≈ $2,130) a month before tax for the whole period of the permit. 1
- Processing fee: ISK 80,000 (≈ $660). 2
- Wages in Iceland follow the law and the applicable collective agreements. 4
- The service contract or cooperation agreement between the foreign and Icelandic companies. 4
- Health insurance valid in Iceland with at least ISK 2,000,000 (≈ $16,400) cover for three months from registering a legal domicile. 1
- A criminal record certificate from the country of residence, not older than 12 months. 1
- The application is filed on paper with the Directorate of Immigration after paying the fee. 2
- The permit is generally granted for no more than one year on the same contract and can be renewed for six months at a time. 3
Stay
- Generally no longer than one year on the same contract; renewable for up to six months at a time, never longer than the work permit.
- First stay: up to 12 months, decided case by case.
- Renewable, subject to the conditions in force at renewal.
Nationality
Nationals of countries outside the EEA and EFTA. Not open to: Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Spain, Finland, France, Greece, Croatia, Hungary, Ireland, Iceland, Italy, Liechtenstein, Lithuania, Luxembourg, Latvia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Sweden, Slovenia, Slovakia.
Work
Work only for the employer named in the work permit.
Family
Marital spouse, cohabiting spouse after one year of cohabitation, children under 18 in the holder's custody and parents aged 67 or older can apply for family reunification. The permit is not a basis for permanent residence.
Official sources
- Residence permit based on work · Directorate of Immigration of Iceland (Ísland.is) · checked 2026-10-11
- Residence permit based on work: application and fee · Directorate of Immigration (Útlendingastofnun) · checked 2026-10-11
- Residence permit based on work: rights and obligations · Directorate of Immigration (Útlendingastofnun) · checked 2026-10-11
- Apply for a work permit: specialist teaching, academic or scientific workers under a contract · Directorate of Labour (Vinnumálastofnun) · checked 2026-10-11
Service contract permit and its alternatives
| Route | Money needed | Stay | Work |
|---|---|---|---|
| Service contract permit | Needs income of ISK 260k+ a month ≈ $2,130 | 1 yr, renewable | Limited |
| Labour shortage work permit | Needs income of ISK 260k+ a month ≈ $2,130 | 1 yr, renewable | Limited |
| Athlete permit | Needs income of ISK 260k+ a month ≈ $2,130 | 2 yr, renewable | Limited |
| Expert work permit | Needs income of ISK 260k+ a month ≈ $2,130 | 4 yr, renewable | Limited |
| Blue Card Portugal | Needs income from €1,726 a month ≈ $1,930 | 2 yr, renewable | Limited |
Questions people ask
How much money do I need for the Service contract permit?
Income of at least ISK 259,951 a month (≈ $2,130). Minimum secure means of support for an individual, before tax, for as long as the permit is valid (equal to the basic financial assistance of the City of Reykjavík). A fee of ISK 80,000 (≈ $660). Processing fee for a residence permit based on work.
How long can I stay on the Service contract permit?
Generally no longer than one year on the same contract; renewable for up to six months at a time, never longer than the work permit.
Can I work on the Service contract permit?
Limited. Work only for the employer named in the work permit.
Can I bring my family on the Service contract permit?
Marital spouse, cohabiting spouse after one year of cohabitation, children under 18 in the holder's custody and parents aged 67 or older can apply for family reunification.
Who can apply for the Service contract permit?
Nationals of countries outside the EEA and EFTA. Not open to: Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Spain, Finland, France, Greece, Croatia, Hungary, Ireland, Iceland, Italy, Liechtenstein, Lithuania, Luxembourg, Latvia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Sweden, Slovenia, Slovakia.
How are Service contract permit holders taxed in Iceland?
No special regime in our records is tied to the Service contract permit. The standard rules apply: 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.
More in Iceland
Work visas elsewhere
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
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An AI assistant answers from the published records on this page and cites them. It can't assess your personal eligibility. Don't include personal details.
How this was checked
Checked on 2026-10-11 against 4 official sources. Status: verified against the official sources.
Every figure on this page comes from the official source it links to. The record was researched against these sources, then reviewed separately, with special attention to effective dates and amendments. Where a source does not state something, the page leaves it out.
- Residence permit based on work · Directorate of Immigration of Iceland (Ísland.is) · checked 2026-10-11
- Residence permit based on work: application and fee · Directorate of Immigration (Útlendingastofnun) · checked 2026-10-11
- Residence permit based on work: rights and obligations · Directorate of Immigration (Útlendingastofnun) · checked 2026-10-11
- Apply for a work permit: specialist teaching, academic or scientific workers under a contract · Directorate of Labour (Vinnumálastofnun) · checked 2026-10-11
Tracked since 2026-10-11. Rule changes and corrections are listed on the changes page, and the methodology page explains how facts are checked. Found something out of date? Email contact@stayglobe.app with a link to the official source.