Do Austrian citizens need a work permit to work in Iceland?

However, if you plan to stay in Iceland for more than three months (or six months if arriving as a jobseeker), you are required to register your stay with Registers Iceland, the official national registry.

What do Austrians need to do instead of a work permit?

Although a work permit is not required, EEA nationals must take the following steps to legally stay and work in Iceland:

1. Register with Registers Iceland

• If you plan to stay in Iceland for over three months, you need to register as a resident.
• Jobseekers can stay up to six months before registering.

2. Obtain an Icelandic ID Number (Kennitala)

• This number is essential for tax purposes, healthcare access, and other services.
• You can apply for a Kennitala at Registers Iceland upon registration.

3. Proof of Financial Means

If you're seeking work, you may need to demonstrate sufficient financial resources to support yourself during your stay.

4. Health Insurance Coverage

It’s recommended to have valid health insurance until you become eligible for the Icelandic health system.

How to register with registers Iceland

Registration can be completed at:

Registers Iceland Offices:

Reykjavík: Borgartúni 21, 105 Reykjavík

Akureyri: Hafnarstræti 107, 600 Akureyri

Website: www.skra.is

Phone: (+354) 515-5300

FAQ about working in Iceland without a work permit

1. Do I need a work permit if I’m an EEA national?

No, EEA nationals do not need a work permit to work in Iceland.

2. What happens if I don’t register after three months?

Failure to register may lead to difficulties in accessing essential services such as healthcare and taxation.

3. Can I bring my family with me?

Yes, EEA nationals can bring their family members, who may also live and work in Iceland without restrictions.

Iceland work visa for Austrian citizens: is it required?

If you are a Austrian citizen from an EEA (European Economic Area) country, you do not need a work visa to enter, live, or work in Iceland. Iceland, as part of the EEA agreement, allows EEA nationals to move freely within its borders for work and residence purposes.

However, if you intend to stay in Iceland for more than three months (or six months if you arrive as a jobseeker), you must register your stay with Registers Iceland, the national registry, and obtain an Icelandic ID number (Kennitala).

What to do instead of applying for an Iceland work visa?

Since a visa is not required, Austrian citizens should follow these steps to legally stay and work in Iceland:

1. Register with Registers Iceland

• This step is mandatory if staying for more than three months.
• It ensures access to social services and taxation systems.

2. Obtain an Icelandic ID Number (Kennitala)

• Required for employment, taxation, and healthcare.
• Employers will often ask for this number before signing contracts.

Arrange Health Insurance

It’s advisable to have private health insurance until you qualify for the Icelandic health system.

Provide Proof of Financial Means (if applicable)

Jobseekers may be required to demonstrate sufficient financial resources.

How long can Austrian citizens stay in Iceland without a visa?

- Up to 3 months without the need for registration.

- Up to 6 months if entering Iceland as a jobseeker.

- Long-term stays require official registration with Registers Iceland.

Where to register your stay in Iceland?

You can complete your registration at the following offices:

Registers Iceland Offices:

Reykjavík: Borgartúni 21, 105 Reykjavík

Akureyri: Hafnarstræti 107, 600 Akureyri

Website: www.skra.is

Phone: (+354) 515-5300

FAQ about Iceland work visas for Austrians

1. Do I need a work visa to enter Iceland?

No, EEA nationals do not require a work visa to enter, live, or work in Iceland.

2. What happens if I stay longer than three months without registering?

You may face difficulties in accessing public services and tax benefits.

3. Can I travel to Iceland and look for work without restrictions?

Yes, EEA nationals can enter Iceland and look for work for up to six months before registering.

4. What benefits do I get after registering?

After registration, you can access healthcare, social security, and tax benefits.

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 Austrians / 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 Austrians, 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 Austrian 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 Austrians

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 Austrians

An Icelandic business visa for Austrians 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 Austrians 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.