Applicants must demonstrate that they have secure means of support for the period they wish to reside in Iceland. Secure means of support means that they have the ability to financially support themselves independently. Evidence of means of support must be in a currency registered by the Central Bank of Iceland.
The Directorate of Immigration may obtain tax returns and documents from tax authorities in confirmation of this.
Amount
The minimum amount required as secure means of support is:
247.572 ISK for individuals per month.
396.115 ISK for married couples per month.
123.786 ISK additionally for family members 18 years of age or older per month.
The amount corresponds to the basic amount of financial assistance from the City of Reykjavík, see rules on financial assistance (in Icelandic). The amounts are based on income before taxation.
Duration
A foreigner’s means of support must be secure for as long as the residence permit is valid. This means that if a residence permit is issued for one year, secure means of support for one year must be demonstrated.
Exemptions from the condition of secure means of support
The requirement of secure means of support may be waived, if financial support has not been secure over a short period of time due to unemployment, accident or ill health, or comparable reasons, such as receiving social assistance for a few months or maternity benefits, and also if compelling reasons of fairness so recommend. The Directorate of Immigration determines whether an exemption regarding secure means of support will be granted.
An applicant requesting an exemption from the requirement must submit a statement with the application, as well as documents supporting the request, for example, a medical certificate.
Note that this exemption is only granted upon renewal of a residence permit – not when applying for a first residence permit.
The condition of secure means of support does not apply to holders of residence permits on grounds of international protection or for humanitarian reasons. They do not have to demonstrate secure means of financial support and social assistance has no effect on their application.
Exemptions from the condition of independent means of support
All applicants for a residence permit must prove secure independent means of support, except in the following instances:
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 (123.786 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 (123.786 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 secure means of support 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 registered 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 can 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.
Service provider
Directorate of Immigration