Do Australians need a work permit for Iceland?

Yes, if you're a Australian citizen planning to work in Iceland, a work permit is required. Non-EEA/EFTA nationals must obtain this permit before beginning their job. The application is usually submitted by your employer, and you'll also need a residence permit to live in Iceland during your employment.

Iceland work permit process for citizens from Australia : what you need to know

Step 1: Job offer and employer’s role

• Your employer must provide an official job offer with details about the position, salary, and terms.
• They must prove that the role could not be filled by an EEA/EFTA national.

Step 2: Application submission

The employer submits all necessary documents to the Directorate of Immigration for approval of the residence permit.

Step 3: Work permit approval

Once the residence permit is approved, the Directorate of Labor processes the final work permit application.

Step 4: Moving to Iceland and registration

Upon approval, the applicant can enter Iceland and must complete registration with Registers Iceland to obtain an Icelandic ID (Kennitala).

Iceland work permit approval time and potential delays

The average processing time for an Iceland work permit is up to 90 days, depending on the complexity of the case and whether all required documents are submitted in full. If extra information is needed, the processing period might extend beyond the standard timeframe.

Types of Iceland work permits for Australian citizens

Iceland offers different types of work permits depending on the nature of employment and the applicant's qualifications. The most common categories include:

1. Qualified professionals work permit

• For individuals with specialized skills or higher education in sectors facing labor shortages, such as healthcare, IT, and engineering.
• Requires relevant educational qualifications and work experience.

2. General work permit

• For workers in industries such as construction, fishing, agriculture, and hospitality, where labor shortages exist.
• Issued only if no qualified EU/EEA national is available for the position.

3. Temporary/seasonal work permit

• Granted for jobs with seasonal demand, such as in tourism and agriculture sectors.
• Typically issued for a maximum of 6 months, with a possibility for renewal.

Applying for an Iceland work permit: required documents list

To apply for a work permit in Iceland, the employer must gather and submit the following documents:

• A completed work permit application form, available through Iceland's Directorate of Immigration.
• A valid passport, which should be valid for at least 3 months after the intended departure date.
• Two passport-sized photographs, meeting Iceland’s official requirements.
• An official job contract, outlining job responsibilities, salary, and employment terms.
• Evidence of educational and professional qualifications, such as degrees or certificates.
• A recent criminal background check, issued within the past 6 months.
• A valid medical insurance policy, covering the duration of the stay.
• Proof of accommodation, whether through rental agreements or employer housing confirmation.
• Documentation proving financial capability, showing sufficient funds for living expenses.
• A payment receipt for the visa application fee, which costs between ISK 15,000 and 30,000.

Essential considerations for Iceland work permit holders

1. If you hold an Icelandic work permit, here are some important considerations to be aware of:

2. Residency is separate: a work permit does not provide automatic residency; a separate residence permit application is required.

3. Employer-specific work permits: your permit is linked to your employer and position; switching jobs means reapplying.

4. Labor law adherence: Iceland’s labor laws protect foreign workers, ensuring fair pay and safe working conditions.

Where to apply for an Iceland work permit?

The Iceland work permit application is processed through the following authorities:

1. Directorate of Immigration

Address: Dalvegi 18, 201 Kópvogur

Phone: (+354) 444-0900

Website: www.utl.is

2. Directorate of Labor

Address: Kringlunni 1, 150 Reykjavík

Phone: (+354) 515-4800

Website: www.vinnumalastofnun.is

3. Registers Iceland (for residence registration)

Address: Borgartúni 21, 105 Reykjavík

Phone: (+354) 515 5300

Website: www.skra.is

Renewing your Iceland work permit: what you need to know

• Work permits in Iceland are typically valid for up to 12 months, with the opportunity for renewal based on employment continuity. To ensure a smooth transition, the renewal application must be submitted at least 4 weeks before the permit's expiration.
• With ongoing employment, workers may eventually qualify for a long-term residence permit, allowing them to stay in Iceland for an extended period.

How can Australians get a work visa for Iceland? Requirements and process

Looking for a job in Iceland as a Australian citizen? To work legally, you must apply for a work visa, along with a work and residence permit. Iceland offers many employment opportunities, but non-EU/EEA nationals like Australians must comply with strict immigration rules and submit the required paperwork.

What types of work visas are available in Iceland for Australian citizens?

If you're a citizen from Australia planning to move to Iceland for work, there are several work visa options based on your employment type:

1. Qualified professionals work visa

• Designed for individuals with specialized skills, higher education qualifications, or professional expertise.
• Suitable for sectors such as healthcare, engineering, IT, and finance.

2. General work visa

• For workers in various industries such as construction, fishing, manufacturing, and agriculture.
• Issued when no qualified EU/EEA candidates are available for the position.

3. Seasonal work visa

• Suitable for temporary work during peak seasons, especially in agriculture and tourism sectors.
• Typically valid for up to 6 months with the possibility of renewal.

How to qualify for an Iceland work visa as a Australian citizen

To successfully apply for an Icelandic work visa, Australian citizens must meet the following eligibility criteria:

- You must be at least 18 years old.

- Secure a confirmed job offer from an Icelandic employer.

- Hold relevant professional qualifications or substantial work experience.

- Your employer must provide proof that no EU/EEA candidate could fill the position.

- Show evidence of sufficient financial funds to support yourself in Iceland.

​​Iceland work visa duration and family reunification process

An Iceland work visa is usually issued for up to one year, with the possibility of extension based on ongoing employment. Over time, visa holders may apply for permanent residency, provided they meet all residency criteria and legal requirements.

Bringing your family to Iceland

Family members of work visa holders can join them by applying for a family reunification residence permit, which allows them to reside in Iceland legally. The application process requires:

• Official proof of relationship (such as marriage or birth certificates)
• Financial statements proving the ability to support dependents
• Health insurance for all family members

Iceland work visa process: all you need to know

Here’s a step-by-step breakdown of how to get a work visa for Iceland:

1. Obtain a job offer. Before applying, you must secure a formal job offer from an Icelandic employer. They must demonstrate that no EU/EEA candidates were available for the position.

2. Apply for a residence permit. Once employed, apply for a residence permit via the Directorate of Immigration or an Icelandic diplomatic office.

You'll need the following:

• A valid passport and application form
• A job contract outlining salary and role details
• Documents proving your qualifications
• Health insurance for your stay
• Proof of accommodation
• A criminal record certificate issued within the last six months

3. Submitting your application. The application can be submitted online by you or your employer, or in person at an embassy.

4. Paying the visa fee. Visa fees range from ISK 15,000 to ISK 30,000, depending on nationality and visa type.

5. Processing timeline. Expect the process to take around 90 days, though extra time may be needed for document verification.

6. Receiving your permits. Once your application is approved, you will receive a work and residence permit.

7. Registering after arrival. Once in Iceland, be sure to:

• Register with Registers Iceland to obtain your ID number (Kennitala)
• Notify authorities of your address and job status

Step-by-step guide to Iceland work visa documents

To apply for a work visa in Iceland, applicants must prepare and submit the following documentation:

• A completed application form (downloadable from the Directorate of Immigration website).
• A passport valid for at least 3 months beyond the intended departure date.
• Two recent passport-sized photos meeting Icelandic visa photo standards.
• An official employment contract with details of the position, salary, and duties.
• Proof of educational qualifications and work experience (certificates, diplomas, reference letters).
• Comprehensive travel medical insurance covering the full duration of the stay.
• Evidence of accommodation arrangements in Iceland.
• Financial proof showing funds of at least USD 33.97 per day and an entry fee of USD 169.81.
• A police clearance certificate issued within the past six months.
• A confirmed flight itinerary (either a round-trip ticket or a travel plan).
• A receipt confirming the visa fee payment.
• Additional documents (marriage or birth certificates if applying with dependents).

Where to apply for an Icelandic work visa – key information

When applying for an Iceland work visa, you can submit your application through:

1) The Directorate of Immigration in Iceland, responsible for visa processing.

2) The nearest Icelandic embassy or consulate in your home country for convenient processing.

Processing time: The standard timeframe is approximately 90 days, but it may take longer if further details or documents are required.

The EU Blue Card allows third-country nationals with higher education to be employed in Iceland according to their qualifications. 

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What documents do I need to provide to obtain an EU Blue Card?

1. Application form.

Completely filled in in English or Icelandic with the applicant's signature and date

2. Passport.

• Valid for at least six months after the date of your departure from Iceland and not older than 10 years.

3. Three photos

4. A copy of the identity card

• Valid for at least three months after the date of your departure from Iceland.

5. Copy of residence permit/visa (if your country of residence and citizenship are different)

6. Photocopies of

• Copy of the main page of your passport
• Copies of previous Schengen visa/residence permit in Iceland

7. Proof of employment in Iceland

• Employment Agreement or Contract/Binding Job Offer - contains the terms and conditions of employment with detailed information on the gross annual salary
• Deputation order - confirmation of the assignment, including basic information and reason for the assignment

8. Job description

• Format provided by the Employment Office or the company itself

9. Proof of qualifications

• General employment - all higher degrees and a certificate of vocational training are required
• Candidate for an EU Blue Card - Icelandic university degree or a recognized foreign university and a foreign degree comparable to the Icelandic one.

10. Curriculum vitae (CV) of your professional career, indicating the certificates, diplomas and qualifications you have obtained

11. Proof of residence

• Accommodation (if not specified in the invitation or contract) - a confirmed reservation of accommodation (hotel, hostel, apartment) with the applicant's name, date and address of residence.

12. Police report

A document not older than six months, which confirms that you have not committed any criminal activity in the last 5 years.

13. Proof of financial capabilities (if the company is not sponsoring the trip)

• A personal bank statement for at least the last 6 months prior to application, personal property, assets, etc.

14. Health insurance

• You must purchase health insurance with an insurance company authorized to operate in Iceland with a validity period of one year. Travel insurance is not accepted. 

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What is the processing time for the EU Blue Card?

The average processing time for an EU Blue Card is 10-60 calendar days.

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Where do I apply for the EU Blue Card?

You should apply for your EU Blue Card at an Icelandic visa application center, embassy or consulate, depending on which one accepts visa applications in your country of residence. If your country does not have one, you should contact the nearest embassy or consulate to your place of residence.

Icelandic labor law is important for regulating labor relations in the country. Here are the main aspects of Icelandic labor law:

1. Labor rights: All employees are entitled to fair working conditions, safety and hygiene in the workplace, and protection from discrimination. There is also a right to rest, vacation and paid holidays.
2. Working hours: The law sets a maximum working time, which is usually 40 hours per week. There are also restrictions on employees' working hours at night.
3. Vacations: Employees are entitled to paid annual vacations. The number of vacation days usually depends on the length of the employee's employment.
4. Employee protection: The legislation provides for measures to protect employees from any form of discrimination, violence, harm or abuse in the workplace

Entrepreneurship in Iceland for Australians / Business visa

Types of business entities available for company registration in Iceland 

Before starting the process of company registration in Iceland, it is important to understand the different types of business structures available.

The business structure you choose will impact operations, taxes, and the extent of your personal liability. Selecting the right structure ensures a balance between legal protection and business benefits.

Sole proprietorship or private company

A self-employed business is run by an individual. The requirements are relatively simple, and the independence of the owner is a significant advantage. However, the owner's liability is direct and unlimited, making this type of business less suitable for large-scale ventures.

Private limited company (Einkahlutafélög (ehf.))

A private limited company is one of the most common legal forms for foreign investors, including Australians, looking to establish a business in Iceland.

Key features:

• Limited liability protection for directors and shareholders.
• Requires at least one shareholder and one director (must be domiciled in Iceland, the EEA, or an OECD country).
• A registered office and agent are mandatory.

Minimum share capital: ISK 500,000.

When registering a private limited company, essential documents include:

• Articles of Association
• VAT certificate
• Board resolution and company establishment notice

Public limited company (Hlutafélög)

Public limited companies are typically used by larger businesses seeking capital from multiple investors. They are governed by stricter regulations compared to private limited companies.

Minimum share capital: ISK 4,000,000.

Requirements: a board of directors with at least three members, one of whom must be an Icelandic, EEA, or OECD resident.

Partnership companies (Sameignarfélög)

To establish a partnership company, at least two partners are required. Liability is direct and unlimited, meaning partners are personally responsible for the company's debts.

Advantages:

• Low start-up costs.
• Simplicity in liquidation and withdrawal of funds.
• Favorable tax conditions for profit distribution.

Limited Partnership

A hybrid between a partnership and a private limited company, requiring at least one partner with unlimited liability. Other partners may have limited liability.

Branch Office

A branch office allows foreign companies to operate in Iceland under the same conditions as local businesses. A local representative and office registration are required.

How to register a company in Iceland for Australian citizens

To legally establish a business in Iceland, follow these steps:

1. Choosing the optimal business structure

2. Fulfilling registration requirements

- One director/shareholder must be a local resident.

- Registered office address in Iceland.

3. Reserving a company name in the Icelandic Business Register.

4. Preparing corporate documents, such as articles of association and business plans.

5. Submitting documents to the Icelandic Companies Registry.

6. Opening a corporate bank account for depositing share capital.

7. Applying for a business license (if required for specific industries).

8. Registering for tax and VAT purposes.

Annual reporting and tax requirements for Australians

Corporate Income Tax: 20% on annual profits.

VAT: 24% (not applicable to export goods).

Social Security Contributions: 7.6% of employee wages.

Personal Income Tax: Ranges from 37% to 46%.

Iceland business visa for Australians

An Icelandic business visa for Australians is a short-term Schengen visa, allowing individuals to enter Iceland and engage in business-related activities for up to 90 days within a six-month period.

Documents required for an Iceland business visa

• Completed visa application form.
• Two passport-size photos.
• Valid passport (at least two blank pages, valid for three months after departure).
• Copy of passport pages.
• Full travel itinerary (flight tickets, accommodation details).
• Medical insurance with a minimum coverage of €30,000.
• Proof of employment status (employment contract, bank statements).
• Proof of financial means (€29 per day for expenses).
• Invitation letter from an Icelandic company detailing the purpose of the visit.

How much does an Iceland business visa cost?

The standard fee for a business visa to Iceland is €90.

How long can Australians stay in Iceland with a business visa?

The maximum period of stay is 90 days within a six-month period, in compliance with Schengen visa regulations.

How to apply for a multiple-entry business visa for Iceland

If you frequently travel for business, you can apply for a multiple-entry visa, allowing you to enter Iceland multiple times without reapplying.

To qualify, you must provide proof of:

- Previous business trips to Iceland or Schengen countries.

- Invitations to future events and business meetings.

- Hotel and flight reservations for planned visits.