Iceland work permit for US citizens

If you are a US citizen planning to work in Iceland, obtaining a work permit is a crucial step in the employment process. Iceland requires non-EEA/EFTA nationals to secure a work permit before starting any employment. The process involves your prospective employer applying on your behalf, along with securing a residence permit to legally stay in the country.

Types of Iceland work permits for Americans

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.

Iceland work permit application process for Americans

The application for an Icelandic work permit must be submitted by the prospective employer, not the employee. The process involves the following steps:

Step 1: Job Offer and Employer Responsibilities

• The employer must provide a formal job offer, specifying the job position, salary, and employment conditions.
• The employer must demonstrate that efforts were made to recruit within the EEA/EFTA before offering the job to a non-EEA national.

Step 2: Submission to the Directorate of Immigration

The employer submits the completed application and required documents to the Directorate of Immigration, which assesses whether the foreign national meets residency conditions.

Step 3: Approval from Directorate of Labor

Once the residence permit is approved, the application is forwarded to the Directorate of Labor, which processes and grants the work permit if all conditions are met.

Step 4: Notification and Arrival in Iceland

• Once approved, the applicant is notified and may travel to Iceland to begin work.
• Upon arrival, they must register with Registers Iceland and obtain an Icelandic ID number (Kennitala).

Required documents for an Iceland work permit application

To apply for a work permit in Iceland, the following documents must be submitted by the employer:

• Completed work permit application form (provided by the Directorate of Immigration).
• Valid passport (must be valid for at least 3 months beyond intended stay).
• Two recent passport-sized photographs (meeting Icelandic visa requirements).
• Employment contract, specifying job position, salary, and terms of employment.
• Proof of professional qualifications (e.g., degrees, diplomas, certificates).
• Criminal record certificate, issued within the last 6 months.
• Medical travel insurance, covering the entire duration of stay.
• Proof of accommodation, such as rental agreements or employer-provided housing.
• Financial proof, ensuring the applicant can sustain themselves during their stay.
• Receipt of application fee payment (ISK 15,000–30,000, depending on permit type).

Processing time for Iceland work permits

The standard processing time for a work permit application is up to 90 days, depending on the complexity of the case and the completeness of the submitted documentation. Delays can occur if additional documents are requested.

Work permit validity and renewal

• Work permits in Iceland are usually issued for up to 12 months, with the possibility of renewal based on continued employment.
• The renewal application must be submitted at least 4 weeks before the permit expires.
• After continuous employment in Iceland, individuals may be eligible for a long-term residence permit.

Important considerations for work permit holders

1. A work permit does not grant automatic residency rights. A separate residence permit must be obtained.

2. Employment Restrictions: work permits are usually tied to a specific employer and job position. Changing employers requires a new application.

3. Compliance with Icelandic labor laws: foreign workers are protected by Icelandic labor laws, including wage agreements and work 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

FAQs about Iceland work permits

1. Can I apply for a work permit myself?

No, only the prospective employer in Iceland can apply on your behalf.

2. Do I need a work permit if I am from an EEA/EFTA country?

No, EEA/EFTA nationals do not require a work permit but must register their stay.

3. What happens if my work permit application is denied?

If your application is denied, you can reapply after addressing the reasons for rejection or seek legal advice for appeal procedures.

4. Can I bring my family with a work permit?

Yes, family members can apply for a family reunification residence permit to join you in Iceland.

Iceland work visa (long-term work visa) for Americans: complete guide for 2025

To work in Iceland as a non-EU/EEA national, including Americans, you must obtain a work visa, a work permit, and a residence permit. Iceland offers a range of employment opportunities, but strict immigration rules require that applicants meet specific conditions and provide the necessary documentation.

Types of Iceland work visas for US citizens

Depending on the nature of employment, Iceland offers several types of work visas for Americans, including:

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.

Iceland work visa requirements for Americans

To qualify for an Iceland work visa, applicants must meet the following conditions:

• Be at least 18 years old.
• Have a confirmed job offer from an Icelandic employer.
• Possess relevant professional qualifications or exceptional experience.
• Provide evidence that the employer could not find a local (EU/EEA) candidate for the position.
• Demonstrate sufficient financial means to support their stay.

Required documents for an Iceland work visa

Applicants must submit a comprehensive set of documents to support their work visa application, including:

• Completed application form (available from the Directorate of Immigration).
• Valid passport (with at least 3 months of validity beyond intended stay).
• Two recent passport-sized photos.
• Employment contract, detailing job title, salary, pension contributions, and work responsibilities.
• Proof of professional qualifications (diplomas, certificates, work experience letters).
• Medical travel insurance (covering the entire duration of stay).
• Proof of accommodation arrangements in Iceland.
• Financial proof, demonstrating a minimum of USD 33.97 per day and USD 169.81 entrance fee.
• Criminal record certificate, issued within the last 6 months.
• Flight itinerary (round-trip ticket or travel plan).
• Receipt of visa fee payment.
• Marriage and birth certificates, if applying with family members.

Where to apply for an Iceland work visa?

Work visa applications for Iceland should be submitted to the Icelandic Directorate of Immigration, or through the nearest Icelandic embassy or consulate in the applicant’s home country.

Processing time: the application review process takes approximately 90 days, but may take longer if additional documentation is required.

Step-by-step process to obtain an Iceland work visa

1. Secure a Job Offer

Before applying for an Icelandic work visa, securing an official job offer from an employer is mandatory. The employer must confirm that the position could not be filled by an EU/EEA national.

2. Apply for a Residence Permit

Once a job offer is secured, the applicant must apply for a residence permit through the Directorate of Immigration or the nearest Icelandic diplomatic mission.

Required documents for residence permit application:

• Valid passport and completed residence permit application form.
• Employment contract.
• Proof of qualifications.
• Health insurance valid in Iceland.
• Housing confirmation.
• Criminal record certificate.

3. Submit the application

Applications can be submitted either by the applicant or their employer via the Directorate of Immigration website or in person at an Icelandic embassy.

4. Pay the visa application fee

The visa processing fee ranges from ISK 15,000 to ISK 30,000, depending on the visa type and applicant's nationality.

5. Processing time

The typical processing period is up to 90 days, but delays may occur if additional documents are required.

6. Obtain work and residence permit

Once approved, applicants receive their work and residence permits, allowing them to legally work and reside in Iceland.

7. Arrival in Iceland & Registration

Upon arrival, it is mandatory to:

• Register with the Registers Iceland for obtaining an Icelandic ID number (Kennitala), required for taxation and social services.
• Inform local authorities of your residence address and employment status.

Work visa duration and extensions

• Iceland work visas are typically issued for up to 12 months, with the option for renewal based on continued employment.
• After a certain period, applicants may become eligible for permanent residency, provided they meet residency requirements.

Bringing family members to Iceland

Family members of work visa holders can apply for a family reunification residence permit, which allows them to join the worker in Iceland.

Required documents for family applications include:

• Proof of relationship (marriage or birth certificates).
• Proof of sufficient financial means to support family members.
• Valid health insurance for dependents.

Key points to remember about Iceland work visas for Americans

1. A work permit is always required alongside a work visa.

2. It is illegal to work in Iceland without a valid work visa and permit.

3. The Icelandic labor market has a high demand for skilled workers, particularly in construction, tourism, and fishing industries.

4. Iceland has a strong labor union presence, which ensures fair wages and working conditions for foreign workers.

5. The cost of living in Iceland is high, so it is essential to plan financially before moving.

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 Americans / 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 Americans, 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 US 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 Americans

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 Americans

An Icelandic business visa for Americans 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 Americans 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.