Persons who are nationals of countries outside the EEA and EFTA need a permit to work in Iceland. The EEA is the European Economic Area and EFTA is the European Free Trade Association.
General information on work permits
Work permits are always temporary and last for 2 years. After that, you can apply for an extension.
Employer applies for the work permit.
An employee may not start working until a work permit is granted.
A work permit is issued to both the individual and the employer.
The individual can only work for the employer to whom the work permit is granted. The work permit is also limited to the individual for whom an application is made.
It does not matter whether the employment is for a short or long term, but there are exceptions.
Required data
To apply for all types of temporary work permits, you must submit:
Original application form. Application forms for each type of temporary work permit can be found in each category, in the list below.
Employment contract. You can use the Directorate of Labour.
In many cases, the application must also include the opinion of the relevant trade union. Trade unions review the employment contract, among other things.
The employer and the person to be employed sign these documents.
Employers submit an application for a work permit, together with an application for a residence permit, to the Directorate of Immigration.
From there, an application for a work permit is sent to the Directorate of Labor and is processed there.
The work permit is issued to the employer and to an individual.
An employee may begin work.
More on work permits
You must submit an application for an extension of the temporary work permit four weeks before it expires.
An application for an extension must meet all the requirements of the temporary work permit and the employer must have paid the tax and insurance contribution for the work of the individual.
Applications are made by the Directorate of Immigration.
If a person with a temporary work permit wishes to change his/her place of employment, the person concerned must submit an application for a work permit to the Directorate of Immigration from the new employer. That permit must be granted before the person concerned can start working.
It can have serious consequences to start work before a work permit is granted. The requested work permit can be refused and such an act can result in fines or imprisonment for up to two years for both the employer and the person involved.
This applies regardless of whether the person concerned is expected to work in Iceland for a short or long period of time.
From the above, there are narrow exemptions that apply to jobs that require expertise.
Employers are responsible for employees having the necessary permits.
Other situations where a work permit is required
If the spouse or cohabiting partner of a citizen of the EEA country leaves, they may need to apply for a work permit.
Individuals who have grown up in Iceland may still need to apply for a work permit when they turn 18. This applies if the parents are nationals of other countries...
Guides and other employees in the tourism industry who are nationals of non-EEA countries must apply for a temporary work permit in Iceland because of their work in Iceland.
This also applies to other employees in the tourism industry who are not exempt from the requirement for a work permit and do work that is generally considered to be within the Icelandic collective agreements and the Icelandic labour market.
Who doesn't need a work permit?
Reasons why a person does not need a temporary work permit in Iceland may be the country of origin, the circumstances or the type of work to be performed.
Danish, Finnish, Norwegian and Swedish citizens.
Citizens of countries that are part of EFTA, EEA and the agreement between Iceland, Denmark and the Faroe Islands.
Citizens of these states are exempt from a work permit:
Austria
Belgium
Bulgaria
Denmark
Estonia
Finland
France
The Faroe Islands
Greece
Netherlands
Ireland
Italy
Croatia
Cyprus
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Switzerland
Sweden
Czech Republic
Hungary
Germany
However, family members must obtain a residence permit issued by the Directorate of Immigration to stay legally in Iceland.
With a permanent residence permit
Foreign spouses and cohabiting partners of Icelandic citizens and their children up to the age of eighteen
Have been granted a residence permit on grounds of international protection
Are in the private services of foreign ambassadors
Have been granted a residence permit on the basis of youth work
Individuals who were Icelandic citizens from birth but have lost their Icelandic citizenship
Residence permits based on humanitarian concerns
Residence permit based on special ties to the country
Foreign spouses and cohabiting partners of foreign nationals who have been granted temporary work permits for work requiring professional expertise and their children up to the age of eighteen.
In certain cases, the work may fall under an exemption in law, if the period of employment does not exceed 90 days per year. However, if the period of employment exceeds 90 days, a work permit must be applied for and issued.
Further information on this exemption can be found in Article 23 of the Act on Employment Rights of Foreigners.
If a notification has not been sent to the Directorate of Labour, the individual is not considered exempt from a work permit as the provisions of Article 23 of the Act are not considered to be met. This may result in the employee in question being stopped and deported at the border.
In general, all jobs and industries in Iceland are covered by collective agreements. See more on the ASÍ website.
Volunteer work in economic activities, production and sale of goods or services on the market for profit, often in competition with companies in the same economic activity, does not comply with either collective agreements or the law.
Employers are therefore not permitted to have volunteers perform work that is generally paid for in the Icelandic labour market. In Iceland, volunteer work is only permitted if it is a non-governmental organisation that operates in charitable, cultural or humanitarian activities that are not run for profit and are exempt from tax liability according to Article 4 of the Income Tax Act.
Employment contracts that stipulate less favorable terms than those according to collective agreements are considered invalid. For further information and assistance, contact the relevant trade union.
In addition to the above, volunteers with citizenship outside the European Economic Area, EFTA countries and the Faroe Islands must apply for a residence permit from the Directorate of Immigration, regardless of the length of stay in Iceland. This is in accordance with Article 67 of the Aliens Act.
Further information on residence permits for volunteers can be found on the Directorate of Immigration website here.
Self-employed individuals
Individuals who are citizens of non-EEA countries may not work in Iceland as self-employed individuals.
Laws and regulations
On the right of foreigners to work in Iceland: and.
On the rights of foreigners to reside in Iceland: on foreigners.
Further information on residence rights for foreigners can be found on the website.
