Working in Iceland

Residence permits

Residence permits are granted on different grounds and for various purposes of stay. For instance, you may apply for a residence permit because you intend to work in Iceland or because you want to join a close family member. Special forms for residence permit applications are available at the Directorate of Immigration (Borgartún 30). It is important that all necessary documents are turned in at the same time as your application.

Requirements for Residence Permits

To be granted a residence permit you need to have a steady source of income or show financial independence in some other way and show proof of sufficient housing. A residence permit does not guarantee the holder a work permit although it is one of the conditions for receiving a work permit. If you do not have a work permit you will need to show proof of financial independence, which is estimated at kr. 67.000 for individuals and kr. 120.000 for couples for each month the residence permit is granted. In addition you must have health insurance. If you are employed your employer is responsible for providing insurance for you. If you do not work than you are personally responsible for purchasing a health insurance policy before applying for a residence permit. This applies to the first 6 months of residence. After 6 months of residence, you will be insured by the Social Security Institute.

The following documents must be submitted with your application for a residence permit:

- A copy of your current passport
- 2 photos
- Criminal record (original)
- Verification of financial support
- Verification of sufficient housing
- Certificate of health insurance
- Marital status certificate if applying on the grounds of marital status
- Certificate of custody when applying for a child younger than 18
- Confirmation of school admission when applying for a residence permit for the purpose of studying

Residence Permits for Children under 18

Only legal parents or guardians may apply for children under 18 years of age. When applying for a residence permit for a child under 18, the applying parent or guardian must show proof of housing that meets requirements concerning the number of individuals in residence. The parent needs to show sufficient income to provide for himself and the child. A parent who applies for a residence permit for a child needs to earn at least kr. 82.015 per month. Couples need to earn kr. 150.152 per month.

Duration of Residence Permits

All residence permits are issued on a temporary basis and in most cases are valid for one year and must be renewed every year. The exception is “búsetuleyfi” or a permanent residence permit.

Children born in Iceland

The children of foreign citizens do not automatically receive a residence permit; this needs to be applied for after the birth of the child. It is very important to do this, especially in cases where the child is taken out of the country, e.g. on summer vacation to the country of origin. Children who have not attained citizenship must have a residence permit in order to re-enter the Schengen area.

Unsuccessful applications

It is the responsibility of the Directorate of Immigration to guide applicants whose applications have been denied. An appeal can be made to the Minister of Justice within 15 days of receiving the verdict from the Directorate of Immigration. Applicants who have been denied a residence permit and have been served a notice of deportation will not be deported if they have made an appeal to the Minister of Justice, providing the appeal was made within the 15 day time-frame.

The residence permit alone does not provide the right to work

The Directorate of Immigration issues various residence permits. Some, but not all of these permits grant the holder the right to work in Iceland. The residence permit alone does not grant you the right to work in Iceland. However the residence permit is one of the conditions for obtaining a work permit. If you are not a EU or EA citizen, then your first application for a work permit must be made outside the country. You cannot apply for a first time work permit while in Iceland.