How to get a work visa for Iceland in 2025: step-by-step guide for Nepali citizens

If you're a Nepali citizen and want to work in Iceland, you'll need a valid work visa, work permit, and residence permit. Iceland has many job opportunities, but strict immigration laws mean you must meet certain criteria and submit the right documents to qualify. 

Types of work visas for Iceland: options for Nepali citizens

If you're a Nepali citizen looking to work in Iceland, there are different types of work visas available based on your job role and industry:

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.

Where to submit your Iceland work visa application

If you're applying for a work visa to Iceland, you can submit your application through:

1. The Icelandic Directorate of Immigration, which handles all visa-related processes.

2. The nearest Icelandic embassy or consulate in your home country.

Processing time: The review process usually takes around 90 days, but it may take longer if additional documents are requested.

Requirements for an Iceland work visa for Nepali citizens

If you're a Nepali citizen planning to work in Iceland, you must meet several criteria to qualify for a work visa. The key requirements include:

• You must be at least 18 years old.
• A valid job offer from an employer in Iceland is mandatory.
• You should have the necessary qualifications or significant work experience relevant to the job.
• Your employer must prove that no EU/EEA citizen was available to fill the position.
• Proof of sufficient financial resources to support your stay in Iceland.

Documents needed to apply for an Iceland work visa

To successfully apply for a work visa in Iceland, applicants must provide a full set of documents, including:

• A filled-out application form (available on the Directorate of Immigration website).
• A valid passport with at least 3 months of validity beyond the intended stay.
• Two recent passport-sized photographs.
• An official employment contract specifying job details, salary, and benefits.
• Proof of qualifications (diplomas, certificates, and work references).
• Medical travel insurance covering the entire stay.
• Confirmation of accommodation arrangements in Iceland.
• Proof of sufficient funds (at least USD 33.97 per day + USD 169.81 entrance fee).
• A criminal background check issued within the past 6 months.
• A flight itinerary (round-trip ticket or detailed travel plan).
• Proof of visa fee payment.
• Marriage/birth certificates if applying with family.

How to get an Iceland work visa: step-by-step guide

If you're planning to work in Iceland, follow these steps to obtain a work visa:

1. Secure a job offer

You must first obtain a confirmed job offer from an Icelandic employer. The employer must prove that no EU/EEA candidate was available for the position.

2. Apply for a residence permit

Once you have a job offer, submit your residence permit application through the Directorate of Immigration or the nearest Icelandic embassy.

Required documents include:

• Valid passport and completed application form
• Employment contract
• Proof of qualifications
• Valid health insurance
• Housing confirmation
• Criminal record certificate

3. Submit your application

The application can be submitted by you or your employer either online via the Directorate of Immigration website or in person at an Icelandic embassy.

4. Pay the visa fee

The visa application fee ranges from ISK 15,000 to ISK 30,000, depending on your nationality and visa type.

5. Wait for processing

Processing typically takes up to 90 days but may take longer if additional documentation is required.

6. Receive your work and residence permit

Once approved, you'll receive both permits, allowing you to legally work and live in Iceland.

7. Arrival and registration

Upon arriving in Iceland, you must:

• Register with Registers Iceland to obtain an Icelandic ID (Kennitala)
• Report your address and employment details to local authorities

Iceland work visa duration

Icelandic work visas are generally issued for a period of up to 12 months, with the possibility of renewal if the applicant maintains employment. After meeting specific residency criteria, work visa holders may qualify for permanent residency, allowing them to stay in Iceland long-term.

Bringing family to Iceland

Family members of work visa holders can apply for a family reunification residence permit to join them in Iceland. To apply, the following documents are required:

• Proof of relationship, such as marriage or birth certificates
• Financial proof demonstrating the ability to support dependents
• Health insurance covering all family members

How Nepali citizens can get a work permit for Iceland

Planning to work in Iceland as a Nepali citizen? Securing a work permit is a mandatory part of the process. Non-EEA/EFTA nationals must have their employer apply for a work permit before they can begin employment. At the same time, applicants need to obtain a residence permit to stay in Iceland legally.

How to apply for an Iceland work permit: process for Nepalese

For Nepalese seeking employment in Iceland, the work permit application must be handled by the employer. The process follows these steps:

Step 1: Receiving a job offer

The employer issues a job offer with details on the role, salary, and working conditions.

They must show proof that recruitment efforts within the EEA/EFTA were unsuccessful.

Step 2: Submitting the application

The employer submits all required paperwork to the Directorate of Immigration for review of residency eligibility.

Step 3: Labor department approval

Once the residence permit is approved, the application is forwarded to the Directorate of Labor for work permit processing.

Step 4: Arrival and registration in Iceland

After receiving approval, the applicant can enter Iceland and must register with Registers Iceland to obtain an Icelandic ID (Kennitala).

Iceland work permit processing time – what to expect

Typically, the processing of an Icelandic work permit application takes up to 90 days, although the actual duration may vary based on the complexity of the case and the accuracy of submitted documents. In cases where extra paperwork is required, delays are possible.

Types of Iceland work permits

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.

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

Iceland work permit document checklist

To apply for a work permit in Iceland, your employer must submit the following paperwork on your behalf:

• Work permit application form, duly filled and obtained from the Directorate of Immigration.
• A valid passport, with at least 3 months’ validity beyond your stay.
• Two passport-sized photos, meeting Icelandic photo requirements.
• A signed employment contract, specifying job position, salary, and work conditions.
• Verified proof of qualifications, such as degrees, certificates, and diplomas.
• A criminal background check, issued within the last 6 months.
• Health insurance coverage for the entire duration of your stay in Iceland.
• Proof of accommodation, like a lease agreement or employer’s housing confirmation.
• Financial proof, ensuring the applicant has sufficient means to live in Iceland.
• A receipt for the visa processing fee, which ranges from ISK 15,000 to 30,000.

How long is an Iceland work permit valid, and can it be renewed?

Icelandic work permits are issued for a period of up to 12 months, with the possibility of renewal if the applicant remains employed. The renewal process requires submitting an application no later than 4 weeks before the current permit expires.

Those who have maintained continuous employment in Iceland may eventually become eligible for a long-term residence permit, which offers extended stay rights.

Important information for Iceland work permit holders

1. Holding a work permit in Iceland comes with several key responsibilities and considerations:

2. Residency requirements: a work permit does not automatically grant residency rights; you must apply separately for a residence permit.

3. Job limitations: your permit is linked to a specific job and employer, meaning a new application is required if you switch jobs.

4. Worker rights: Icelandic labor laws ensure fair wages, workplace conditions, and employee protections for foreign workers.

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 Nepalese / 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 Nepalese, 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 Nepali 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 Nepalese

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 Nepalese

An Icelandic business visa for Nepalese 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 Nepalese 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.