If you need a residence permit to live in Iceland, you must hold a valid permanent residence permit when applying for Icelandic citizenship. This is one of the requirements for being granted citizenship.

If you do not need a residence permit to live in Iceland, for example if you are a citizen of an EEA/EFTA state, this requirement does not apply to you.

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