It depends on what kind of employment based residence permit you apply for and whether you need a visa to travel to Iceland.

If you are visa-obliged and are applying for a residence permit due to shortage of labour, you are not allowed to be in Iceland when you apply.

If you want to apply for a residence permit based on work requiring expert knowledge, a collaboration or service contract or for athletes, you may be in Iceland when you apply and stay for as long as your visa is valid.

For furher information on the right to be in Iceland during the application procedure please visit Residence permits based on work.