Permanent residence permit

Applicants must hold a valid residence permit that can be the basis of a permanent residence permit when applying for permanent residence. Furthermore, applicants must continue to meet the conditions for the permit they hold.

The following permits can be the basis of a permanent residence permit

• Residence permit for family reunification

• Residence permit for work requiring expert knowledge

• Residence permit due to shortage of labour

• Residence permit for athletes

• Residence permit on grounds of international protection

• Residence permit on humanitarian grounds

• Residence permit based on special ties to Iceland

• Residence permit for missionaries

• Residence permit for students, with restrictions

Exemptions apply in the following cases

Former Icelandic citizen
A foreign national, who was an Icelandic citizen at birth but has lost his/her citizenship or renounced it, may apply for a permanent residence permit without having previously lived in Iceland, if he/she intends to settle here.

Child of the holder of a permanent residence permit
A child born after the custodial parent arrives in Iceland may be granted a permanent residence permit, provided the parent holds a permanent residence permit in Iceland.

As a general rule, to be entitled to a permanent residence permit, a foreign national must have resided in Iceland on a residence permit that can be the basis of a permanent residence permit for four years continuously.

Exemptions apply in the following cases

Spouse of Icelandic citizen
The spouse or cohabiting partner of an Icelandic citizen may apply for a permanent residence permit after living with his/her Icelandic spouse in Iceland and held a residence permit for a continuous period of at least three years after the marriage was established or the registration of cohabitation. The applicant's residence permit need not have been issued on the basis of marriage or cohabitation.

Child of an Icelandic citizen
A foreign national whose parent is an Icelandic citizen may apply for a permanent residence permit after having held a residence permit in Iceland for a continuous period of two years prior to the submission of an application. The parent must have held Icelandic citizenship for at least five years. It does not matter whether the applicant's residence permit can be the basis for a permanent residence permit or not.

Foreign national with Icelandic doctoral degree
A foreign national who has completed a doctoral programme in Iceland and has held a residence permit on the basis of work requiring expert knowledge for at least three years prior to submitting an application.

Former student in Iceland
A foreign national who has held a residence permit which may be the basis for a permanent residence permit for at least two years and who has previously resided in Iceland on a continuous residence permit for studies, so that the total stay is at least four years.

Continuous stay refers to

• That the applicant has a valid residence permit when applying for a permanent residence permit.

• That the applicant has in recent years taken care to apply for a renewal of a residence permit before the expiry of the previous residence permit.

• That the applicant has not resided abroad for more than 90 days in total each year for which he/she held a residence permit in Iceland.

Exemptions apply in the following cases

Young person, 18 years and older
A young person who has reached the age of 18 and has resided in Iceland on grounds of family reunification for four years or longer and has studied or been employed in Iceland. The stay in Iceland must not have been continuous.

Applicants must have attended a course in Icelandic for foreigners for a minimum of 150 lessons and their minimum course attendance must be 85%.

Applicants may also take an Icelandic language assessment test held by an educational institution acknowledged by the Directorate of Education.

Exemptions apply in the following cases

The condition to attend a course in Icelandic for foreigners may be waived for the following reasons

• The applicant is older than 65 years and has lived in Iceland for at least seven years.

• The applicant cannot, for physical or mental reasons, take part in an Icelandic language course and this is confirmed by a competent specialist.

• The applicant can submit documentation confirming that they have completed their studies at primary, secondary or university level in Icelandic, which gives reason to believe that they have acquired adequate skills in Icelandic.

Applicants must demonstrate that:

• They have had sufficient funds, income or other financial means, to support themselves during their time of residence in Iceland.

• They have been able to financially support themselves legally.

• They will continue to be able to financially support themselves legally in Iceland.

The Directorate of Immigration may obtain tax returns and documents from tax authorities in confirmation of this.

Amount of funds

The minimum amount of funds required per month is:

• 217.799 ISK for individuals.

• 348.476 ISK for married couples.

The amount corresponds to the basic amount of financial assistance from the City of Reykjavík, see rules on financial assistance (in Icelandic).

Exemptions from the condition of secure funds

• If support has not been secure over a short period of time and there are compelling reasons of fairness to do so, for example due to maternity leave or an accident, the condition of secure support may be waived.

• The condition of secure means of support does not apply to applicants holding a residence permit on grounds of international protection or on humanitarian grounds. They do not have to demonstrate secure financial support and social assistance has no effect on their application.

Exemptions from the condition of independent funds

• For a child under the age of 18, provided for by a parent or legal guardian residing in Iceland, there is no need to demonstrate independent financial support.

• For persons 18 years or older,

  • who have held a continuous residence permit in Iceland since they were children,

  • are studying or working in Iceland,

  • live with a parent and

  • are neither married nor cohabiting,

  the minimum amount of funds required is 50% of the regular amount for an individual (108.898 ISK per month), in addition to the amount of funds that a parent or legal guardian has to demonstrate for themselves and other family members.

  • Applicants must demonstrate independent funds if they are working and not studying. An applicant studying may be a dependant of a parent.

• The spouse of an Icelander or a foreign national does not need to demonstrate independent funds. Due to the maintenance obligation between marital spouses under the Marriage Act, it is enough that one party in a marriage demonstrates sufficient funds for both.

  • Note that cohabitation is not equivalent to marriage in this respect. There is no maintenance obligation between cohabiting spouses. A cohabiting spouse must therefore demonstrate independent funds.

• For parents aged 67 or older, dependent on their child/children in Iceland, the minimum amount of funds required is 50% of the regular amount for an individual (108.898 ISK per month), in addition to the amount of funds needed to support other adults in the household.

How to demonstrate sufficient funds

Applicants can use any of the means listed below to demonstrate sufficient funds and different means can also be combined, for example income and/or bank balance.

Employment contract or self-employment income

Applicants can submit original employment contracts or demonstrate earned income by submitting a pay-as-you-earn tax statement (withholding tax) or issued invoices, stamped by the tax authorities.

If an applicant is financially dependent on another individual, the equivalent documents of that individual can be submitted.

Payslips
Applicants can submit last three months' payslips. Printouts from an online bank are satisfactory, otherwise employer confirmation is required. The pay-as-you-earn tax must have been paid on the wages and the Directorate of Immigration examines the tax register in confirmation.

If an applicant is financially dependent on another individual, the payslips of that individual can be submitted.

Guaranteed regular payments
Applicants can submit confirmation of regular payments for instance payments from the Social Insurance Administration in respect of invalidity, unemployment benefits, rental income and grants received by the applicant, e.g. for research.

Disposable funds
Applicants can submit bank statements showing their account balance, in Iceland or abroad. The amount must be in an internationally acknowledged currency that can be changed into a currency registerd witht the Central Bank of Iceland and be withdrawn to use for support.

The statement must be confirmed by the bank itself and in its original. A printout from an online bank is not sufficient confirmation.

If an applicant is financially dependent on another individual a bank statement of that individual cam be submitted.

Student grant or loan
Applicants can submit a confirmation of a grant for studies or a student loan from the relevant credit institution or grant provider.

Student loans or scholarships must be in an internationally acknowledged currency that can be changed into a currency registerd witht the Central Bank of Iceland and be withdrawn to use for support.

What means cannot be used to demonstrate sufficient funds

• Payments in the form of social assistance by the state or a municipality.

• Maintenance by a third party, other than in the exemptions mentioned above.

• Assets other than bank balances, for example real estate.

• Dividends on enterprises, interest or other payments for which a release is not guaranteed.

Permanent residence permits are not granted if cases are pending that may result in the applicant being deported or if the applicant has an unresolved case in the criminal justice system where he is suspected or accused of criminal conduct.

The Directorate of Immigration gathers information from the prosecution authority and police in Iceland to confirm that this condition is met.