We are a leading law firm specializing in the fields of Immigration law with emphasize on residence and work permits in Iceland. Our extensive expertise and efficient practices ensure exceptional service in this area.

Our attorneys offer individuals and businesses tailored, comprehensive services and assistance with applications for various residence permits, work permits, notifications to the Directorate of labour and the Immigration Directorate regarding foreign workers, and applications for Icelandic citizenship.

We customize our services to meet the unique needs of each client, striving to ensure a seamless application process for obtaining legal residence in Iceland. For individuals coming to work with Icelandic companies or foreign service providers, our objective is to secure the necessary residence, and work permits so they can begin their employment on time. Our services include guidance on the types of permits available, the eligibility criteria, assistance in preparing and submitting applications, and representation towards the Immigration Directorate, the Directorate of labour, and the National Register throughout the application process until the permit is granted.

Residence and work permit in Iceland and registration of EEA/EFTA citizens

We assist individuals throughout the entire process of applying for residence and work permits, making the process significantly easier for those seeking permits based on employment or other reasons.

Citizens from countries within the EEA and EFTA must register with Registers Iceland if they intend to stay in Iceland for more than six months. The registration process includes establishing legal residency and applying for an Icelandic social security number (Icelandic: kennitala).

The immediate family members of an EEA/EFTA citizen, who do not hold EEA/EFTA citizenship themselves, are permitted to reside in Iceland if their stay is based on the rights of the EEA/EFTA citizen who has residency rights in the country. Close relatives include spouses (legal and common-law partners), children or grandchildren of EEA/EFTA citizens who are under 21 years of age or who are dependents, as well as parents and grandparents of EEA/EFTA citizens.

EEA/EFTA citizen countries include Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Greece, Netherlands, Ireland, Italy, Croatia, Cyprus, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Portugal, Poland, Romania, Spain, Slovakia, Slovenia, Switzerland, Sweden, Czech Republic, Hungary, and Germany.

LOCAL attorneys offer support and guidance for applications related to work permits in Iceland. We assist our clients throughout the process and provide advice on the essential documents required for their applications.
Below is a discussion of the primary types of work permits available in Iceland. Additionally, a residence permit in Iceland can serve as a basis for employment for foreign nationals from countries outside the EEA and EFTA. The Directorate of labour oversees the issuance of work permits and the registration of foreign workers within the Icelandic labour market.

Residence permit for work requiring expert knowledge

A non-EU/EFTA citizen may apply for a residence and work permit based on their expertise. The expertise must be significant for the Icelandic employer and can include university degrees, industrial, artistic, or technical education that is recognized in Iceland. In exceptional cases, extensive work experience may also be considered equivalent to formal expertise.

Manager and or expert moving from one company to another.

An employer based abroad can apply for a work permit for a foreign employee they wish to temporarily tansfer to their establishment in Iceland.

Temporary shortage of workers for work requiring specialized knowledge

It is possible to apply for a temporary work permit for a position that requires specialized knowledge and is currently in short supply in the country, as outlined in a regulation. This regulation will provide a list of jobs that necessitate specialized knowledge with a temporary shortage in the country. Examples of these specialized positions include various management roles in research and development, jobs in information and communications technology, system management roles, specialized positions involving databases and networks, technical jobs in chemistry, physics, and engineering, work with diagnostic and medical devices, technical roles in agriculture, specialist positions in programming, software development and analysis, as well as technical and research roles in biomedical science and pharmaceutical technology, along with technical work in recording and broadcasting.

Residence and work permit due to shortage of labour

A residence and work permit may be issued in relation to a labour shortage in Iceland when personnel cannot be found in the Icelandic labour market or within the European Economic Area, EFTA countries, or the Faroe Islands.
Work permits granted under this condition are considered an exception, as permits are typically provided to address fluctuations in the Icelandic labour market. To obtain a work permit due to shortage of labour, you must first seek assistance from the Directorate of labour to find an employee within Iceland and the European Economic Area, EFTA countries, or the Faroe Islands.

Temporary work permits for specialised employees under service contracts or collaboration agreements on educational, academic, or scientific work

Under special circumstances, a temporary work permit may be granted to specialized employees based on a service contract or collaboration agreement for teaching, academic, or scientific work.

For a work permit based on a service contract, certain conditions must be met: the foreign company providing services in Iceland must not have an establishment in the country, there must be a service contract between the foreign service provider and the domestic user company, and the service contract must indicate that the foreign applicant possesses the necessary specialization to perform the service. This type of permit is not available for general unskilled positions, and the employee from the foreign employer must have completed the university education required for the role.

In the case of a collaboration agreement for teaching, academic, or scientific work, such an agreement must exist between a domestic employer and a foreign employer. The partnership agreement must specify that the foreign employee will be performing work in Iceland as part of a collaborative effort between the Icelandic employer and the foreign employer related to teaching, academic, or scientific activities.

Residence and work permit for athletes

A residence permit may be granted for athletes who are employed by an Icelandic sports club under the umbrella of the National Olympic and Sports Association of Iceland.

An athlete shall have entered into an employment agreement with an Icelandic sports club in order to engage in a specific sport or to be a trainer for a specific sport at the relevant club.

Residence and work permit for students

Residence permits for students are available for individuals pursuing full-time studies at a university in Iceland, doctoral programs at a foreign university that collaborates with an Icelandic university, exchange studies organized by recognized student exchange organizations, internships where work in Iceland is part of the applicant’s academic program, and apprenticeships resulting from approved internships at the secondary school level.

It is crucial to submit a residence permit application on time. Applications, along with supporting documents, must be received by June 1 for the fall semester and November 1 for the spring semester to ensure the permit is processed before the academic term begins.

Foreign citizens studying in Iceland may also be eligible for a work permit, provided they have an employment contract with an employer in Iceland. One of the conditions for student work permits is that the employment rate must not exceed 60%, unless it is related to a study permit or apprenticeship. Additionally, the foreign citizen must show proof of having received a residence permit based on their student status in Iceland.

Work permit based on family reunification

A foreign citizen may apply for a work permit in Iceland if they have a relative who is an Icelandic citizen or holds a work permit in Iceland.

Residence permit for youth work stays

Young individuals can apply for a residence permit for a work stay in Iceland based on specific agreements for citizens of Andorra, Great Britain, Chile, Canada, and Japan. Applicants must fulfill the general requirements for obtaining a residence permit, which include providing proof of identity with a valid passport, supplying accurate information regarding the purpose of their stay in Iceland, demonstrating financial stability, obtaining valid health insurance in Iceland, and presenting a clean criminal record from their home country.

Exemptions from work permits for short-term work

Under the law regarding the foreigners ‘right to work act, certain categories of foreign nationals are exempt from requiring a work permit in Iceland if they are employed for up to 90 days. However, it is essential to notify the Icelandc labour directorate prior to starting the job. By submitting this notification, the directorate of labour can determine whether the employment in question qualifies for the exemption.
The following occupations for foreign nationals are exempt from the work permit requirement in Iceland for a duration of up to 90 days:

• Scientists, lecturers, and academics
• Artists, excluding musicians employed in restaurants
• Sports coaches
• Passenger vehicle drivers
• Journalists and reporters from foreign media
• Employees, consultants, and instructors involved in the specialized assembly, installation, inspection, or repair of equipment
• Business representatives

This exemption specifically applies to foreign nationals visiting the country to promote products and services, as well as to those attending business meetings.

We provide our assessment on whether a foreign national qualifies for an exemption from the requirement to obtain a work permit to work in Iceland for up to 90 days, in accordance with Article 23 of Act no. 97/2002 concerning the Foreign Nationals ‘Right to Work Act. Additionally, we assist in preparing notifications to the Directorate of Labour regarding the employment of foreign workers who are exempt under the aforementioned law.

If a notification has not been submitted to the Directorate of Labour, an individual is not deemed exempt from the requirement of a work permit, as compliance with the stipulations of Article 23 of the Foreigners´ Right to work Act is not considered fulfilled. This oversight can result in the individual being stopped and potentially deported at the border.

Residence permit for spouse or cohabiting partner

A residence permit may be granted to an individual intending to move to Iceland to live with his/her spouse or cohabiting partner in Iceland. The requirement is that the spouse or cohabiting partner is an Icelandic or a Scandinavian citizen, a foreign citizen holding a permanent residence permit or a temporary residence permit on grounds of work requiring qualified expertise, for athletes, for parents, on grounds of international protection, humanitarian grounds, special connection to Iceland or advanced studies.

Residence permit for a child under the age of 18

A residence permit for a child under 18 may be granted if the child’s parent resides in Iceland and holds one of the following statuses: an Icelandic citizen, a Nordic citizen, a foreign national with an indefinite residence permit, or a foreign national with a temporary residence permit as an expert, athlete, or spouse.

The requirement is that the parent has custody and care of the child, and that the child will reside with the parent in Iceland.

Residence permit for parents – 67 years and older

A residence permit for individuals aged 67 and older may be granted if they have an adult child living in Iceland and intend to relocate to the country.

Residence permits for students are issued for the purpose of undertaking full-time studies at a university in Iceland, conducting doctoral research at a foreign university that partners with an Icelandic university, participating in exchange programs organized by accredited exchange student organizations, completing internships where work in Iceland is part of the applicant’s studies, and engaging in apprenticeships resulting from approved secondary school internships.

It is crucial to apply for the residence permit on time. The application, along with all supporting documents, must be submitted by June 1 for the fall semester and by November 1 for the spring semester to ensure processing before the start of classes.

A foreign citizen aged 18 to 25 interested in working as an au pair in Iceland can apply for a residence permit based on temporary employment. This temporary employment is considered part of a cultural exchange. The arrangement involves the temporary placement with a family, where young foreign individuals provide certain services, enhancing their language skills, professional education, and cultural understanding through their experience in Iceland.

A foreign national from a country not part of the ESS or EFTA who wishes to remain in Iceland for more than three months must obtain a valid residence permit.

Volunteer residence permits are available for individuals over the age of 18 who plan to work with non-governmental organizations focused on charitable or humanitarian causes. These non-profit organizations must operate without the intent of making a profit and should be exempt from tax obligations. Generally, these organizations should have an international focus.

Foreign citizens who are older than 18 can apply for residence permits for missionaries if they come to Iceland with a religious purpose for a religious society or the Evangelical Lutheran Church of Iceland. One of the conditions is that a person applying for residence permit on this ground will work without pay for a registered religious society or the Evangelical Lutheran Church of Iceland.

Foreign citizen who lives in Iceland and has established ties in this country may be entitled to a residence permit on the basis of special ties. A residence permit based on a special relationship with Iceland is granted in exceptional cases based on an assessment. During the evaluation, the Immigration Service considers family ties, care considerations and the applicant’s residence in Iceland, but in exceptional cases, a residence permit may be granted even if the applicant has never lived in Iceland.

Individuals aged 18 and older who do not qualify for other types of residence permits may apply for a residence permit for a legitimate and special purpose.

This permit is granted only in exceptional cases and when unique circumstances are present.

A residence permit for a legitimate and special purpose allows for the possibility of approval but does not guarantee it. The Immigration Office will either grant or deny this type of residence permit based on a comprehensive evaluation of the applicant’s situation and the submitted documentation.

A person who has held a residence permit in Iceland for four years may be eligible for an indefinite residence permit, granting the right to reside permanently in Iceland.

Individuals with a residence permit based on family reunification, a job requiring specialist knowledge, a shortage of staff, athletics, international protection, humanitarian considerations, special ties to Iceland, missionary work, or students (with limitations) may apply for an indefinite residence permit if they meet other necessary conditions.

Key requirements for obtaining an indefinite residence permit include living in Iceland for four continuous years, completing an Icelandic language course, demonstrating secure financial means, and having no pending legal issues within the criminal justice system.

Icelandic citizenship

Foreign citizens aged 18 and older can apply for Icelandic citizenship through the Immigration Directorate.
To qualify for Icelandic citizenship, applicants must meet several criteria, including having a permanent residence permit in Iceland or being exempt from the requirement of a residence permit according to the Foreign Nationals Act. Applicants must also provide adequate identification by presenting a passport or other specified identity documents. Additionally, they must pass an Icelandic language test according to the required standards.

Applicants should not have any outstanding debts that have resulted in foreclosure within the last three years, and they must not have filed for bankruptcy or be in arrears on tax payments. They must demonstrate self-sufficiency and should not have received financial assistance from Icelandic municipalities in the last three years. Furthermore, applicants should not have been subjected to fines, imprisonment, or have any pending cases in the criminal justice system.

Alþingi has the legal authority to grant Icelandic citizenship, and we assist applicants in preparing their citizenship applications for Parliament.

Visas

Citizens of specific countries outside the EEA/EFTA are required to obtain a visa prior to traveling to Iceland. Visa applications must be submitted through the appropriate embassy or consulate before entering Iceland.

Visas may be granted for purposes such as business trips, personal visits (to family or friends), short courses, and participation in political, scientific, cultural, sporting, or religious events. Additionally, it is possible to apply for a long-term visa to Iceland, including a long-term visa for remote work, provided certain conditions are met.

Iceland is part of the Schengen cooperation, which involves 29 countries and aims to facilitate the free movement of people within the Schengen area.
Citizens from certain countries outside the EEA/EFTA that are not part of the Schengen area are required to obtain a visa for Iceland through an embassy or consulate prior to travel. Non-EEA/EFTA citizens who are exempt from the visa requirement may stay in the Schengen area for up to 90 days without a visa, with their total duration of stay in the Schengen area not exceeding 90 days within any 180-day period.

Visas are granted for purposes such as business trips, personal visits (to family or friends), short courses, and participation in political, scientific, cultural, sporting, or religious events.

A long-term visa may be applied for by individuals who are legally residing in Iceland, do not intend to settle in the country, and whose purpose of stay does not qualify under a specific type of residence permit.

For instance, a long-term visa can be issued to close relatives seeking to extend their stay in Iceland, to witnesses or parties involved in court cases requiring a prolonged presence in the country, and to foreigners coming to Iceland for other legitimate reasons, such as artists, scientists, or athletes, provided their stay does not require a residence and/or work permit.

A long-term visa for remote work permits individuals to stay in Iceland for 90 to 180 days to engage in remote work.

Remote work involves organizing and performing job tasks using information technology, allowing work that could be done at a business location abroad to be completed outside that location while in Iceland. However, remote workers are not permitted to perform work for Icelandic companies or engage in any form of employment within the Icelandic labour market. For such employment opportunities, the individual must apply for a residence and work permit.

Spouses and children may also be granted a long-term visa as dependents of a remote worker.

Foreign service companies and temporary staffing agencies

Foreign service companies and temporary work agencies are required to register their operations with the Administration of Occupational Safety and Health. Additionally, they must provide information about employees working in Iceland and submit copies of their employment contracts.

These companies are also responsible for adhering to Icelandic tax laws and occupational health and safety regulations.

We offer advice to companies to ensure compliance with Icelandic laws applicable to foreign service companies and temporary staffing agencies. We assist companies in meeting their legal reporting obligations to the Administration of Occupational Safety and Health and in providing the necessary documentation.

Applications for Income Deductions for Foreign Experts

A specific taxation provision applies to foreign experts working in Iceland, allowing them to deduct 25% of their income from taxable earnings. This means that only 75% of the expert’s income is subject to income tax – both for withholding and final assessment – during the first three years of employment.

To benefit from this tax reduction, an application along with the required documentation must be submitted to a designated committee within three months from the date the employee begins working in Iceland.

We offer guidance and support in preparing applications for income deductions for foreign professionals.

Relocation Services

We assist companies and their relocating employees to have a successful relocation journey to or from Iceland.
To ensure success, we offer relocation services to fit the unique needs of our clients.

We provide companies and employees with integral assistance linked to the employee’s relocation to Iceland.

The experts at LOCAL attorneys will help you/your employee with the home search in Iceland. We will prepare a list of available new homes, taking the stress out of the search.

We will assist you/your employee in finding the right property based on personal preferences.

Our services include the following:

• We will conduct a thorough needs analysis assessment.
• We will take you to a tour of residential areas, customized to your lifestyle and budget
• Assistance with lease negotiation and preparation of lease agreements
• Assistance with property hand-over, providing an inspection report with digital photographs
• Assistance with lease renewal
• We provide departure services such as lease termination and property condition report

Gaining a clear understanding of your or your employee’s new neighborhood is essential. We will assist you or your employee in exploring the local area’s highlights, attractions, and key features, ensuring a better familiarity with the surroundings.

LOCAL Relocation provides a range of services to assist your relocating employees in settling into their new homes. The area orientation tour is a crucial component and serves as a valuable resource within a relocation program. It can be seamlessly integrated with home finding, ensuring that your relocating employee remains focused on their new role while their family members feel comfortable in their new environment. This approach undoubtedly minimizes anxiety and shortens the time required for an employee to acclimate.

The LOCAL attorney’s orientation tour may include the following services:

• Banking assistance
• Neighborhood orientation tour
• Guided area overview
• Local area information
• Guidance on utility and broadband connections
• Property listings and overviews
• Assistance with the purchase or leasing of a vehicle
• Schooling information
• Overview of the healthcare system
• Help with automotive and property insurance
• Driver’s license and car registration support
• Everyday living tips
• Furniture rental services
• Assistance in finding doctors, shopping, and specialty foods
• Translation services

The Icelandic education system consists of four levels: playschool, compulsory education, upper secondary, and higher education (university). Attendance is mandatory for children aged 6 to 16.

When someone relocates to Iceland with school-aged children, selecting the right school becomes a crucial factor in the decision-making process. The chosen school can significantly impact the family’s overall perception of their new environment. Therefore, securing suitable school placements is essential to facilitate the relocation process, ultimately benefiting the relocating individual’s performance in their workplace.

LOCAL Attorneys can assist with:

• Detailed school search needs analysis
• Appointments with schools
• Assistance with registration
• School search comparisons

A successful relocation involves a smooth transition. We are committed to ensuring your employee has the most stress-free and seamless move possible. We offer comprehensive departure support by managing all the practical aspects of an international move.

Our services may include:

• Guidance and assistance with lease termination
• Deregistration with Icelandic authorities
• Disconnection of utilities
• Coordination with additional services
• Lease termination, cleaning, and check-out
• Termination of furniture rental agreements
• Negotiation of damage claims
• Security deposit recovery
• Assistance with school deregistration
• Mail redirection services

We can help you or your employee with the relocation of pets, ensuring the process is as stress-free as possible. We will assist in determining the best travel schedule and provide guidance on any quarantine requirements before the pet arrives at your new home.