Iceland is known for its breathtaking landscapes, but few people know that it also has a market economy that is actively developing. With competitive wages and job opportunities, the country offers good career prospects. Find out what it takes to get a job in Iceland in 2024

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Working abroad is a great opportunity to gain valuable professional experience, as well as to get to know another country, culture and new people.

Iceland is one of the most popular destinations for labor emigration, because it has a developed economy, a high standard of living and good salaries. Expats who plan to work in Iceland will find many prospects and opportunities here.

How to move to Iceland? Read more about the job in Iceland for expats in 2024 in this article.

Iceland's labor market

Labor market offers many jobs for foreigners in Iceland, because the country has a stable economy and a democratic government. Iceland's main industries are aluminum smelting, fishing and tourism.

The growth of the IT sector and the sustainability of renewable energy industries also contribute to increasing employment opportunities.

These factors indicate a strong labor market in the country, which is why the state attracts workers from abroad, including citizens of Pakistan, Nigeria, Nepal and India. Today, foreigners make up about 12-13% of the workforce, contributing to various sectors and strengthening Iceland's economy.

According to the latest data, the unemployment rate in Iceland is 3.4%, making it an attractive place for job seekers.

What positions do foreigners work in Iceland?

The list of the most sought-after positions in Iceland includes:

- Professionals in the tourism industry: Iceland ranks 37th in the world in terms of the number of tourists. This is why the tourism sector offers many employment opportunities for locals and foreigners.

- IT and technology professionals: Software developers, IT consultants, data analysts and cyber security experts are common positions.

- Healthcare workers: As in most countries, healthcare is a critical sector. That is why there is a demand for doctors, nurses, therapists and other medical professionals in Iceland.

-Fisheries and aluminum smelters – these sectors form the historical backbone of Iceland's economy, requiring a constant flow of workers from ship crew to aluminum smelter technicians.

- Education professionals: the demand for English-speaking teachers and lecturers in international schools and language centers is increasing.

- Professionals in the energy sector: Given Iceland's dependence on renewable energy sources, there are opportunities for engineers and technicians specializing in geothermal and hydroelectric power.

- Builders: Due to the constant development of infrastructure and the booming real estate sector, builders, architects and civil engineers are in demand.

Requirements for foreign workers for employment in Iceland

The rules for obtaining a work permit in Iceland depend on the expat's citizenship, in particular:

- Citizens of non-EU/EEA countries need a work permit and a residence permit to work in Iceland. Most often, the employer initiates the process of obtaining a permit by a foreigner.

- For EU/EEA citizens, the process is easier due to freedom of movement rights. They can live and work in Iceland without a permit. However, they must register with the Icelandic Directorate of Immigration if they plan to stay longer than three months.

Importantly! Regardless of origin, all foreign workers must have a kennitala (national identification number), which is required for almost all operations in Iceland, including opening a bank account and receiving a salary.

Types of work visas in Iceland

1. Work visa of a qualified employee

The most common visa for non-EU nationals who have obtained a job in Iceland.

The main requirements include having:

- A valid job offer from an Icelandic employer.

- Work, as a rule, should be in a field where there is a shortage of local specialists.

- The employer often needs to demonstrate that the position cannot be filled by a local or EU citizen.

2. Job seeker's visa

This visa is intended for persons who wish to enter Iceland in order to find work. It is important to note that this option may have more limitations and is less common. Requirements typically include:

- Confirmation of sufficient funds to support your stay in Iceland while looking for work.

- A clear job search plan or strategy.

- Appropriate qualifications and work experience in your field.

3. Business visa

For entrepreneurs or business professionals who intend to start a business or do business in Iceland. The requirements are as follows:

- Detailed business plan.

- Evidence of financial investment or support.

- Relevant business experience or qualifications.

The procedure for obtaining a residence permit in Iceland is at the link.

Seasonal work in Iceland

There are quite a lot of summer jobs in Iceland, so there will be no problems with seasonal employment. This type of employment will allow you to get to know the Icelandic culture and work in truly picturesque places. For seasonal work, you can choose one of the following vacancies:

- Tourism sector: tour guides, hotel and restaurant staff are in high demand. It's a great way to connect with travelers from all over the world.

- Fishing Industry: Temporary positions available in fishing and seafood processing, offering hands-on experience in an important industry in Iceland.

- Farming: Helping on a farm, especially on sheep and horse farms, can provide a full experience of rural Icelandic life.

- Event Staff: Music festivals, cultural events and sporting events often require temporary staff to ensure smooth operations.

In order to safely move, travel or work in a new country, you will need health insurance. You can issue an extended policy on our website using the link.

Where to look for a job in Iceland?

Most foreigners look for work in Iceland in one of the following ways:

- Job websites: Platforms such as Alfred, Storf.is, EURES, CareerBuilder offer ads for various jobs in Iceland.

- Staffing agencies: use staffing agencies such as Elja.is that have local expertise to help you find suitable vacancies.

- LinkedIn: Sign up for a LinkedIn account and use it to connect with local contacts and search for jobs.

- Government resources: Refer to government websites such as the Labor Office (Vinnumalastofnun) and Statistics Iceland (Hagstof Islands) for up-to-date information on the labor market.

Do you need to know Icelandic to get a job in Iceland?

It is also important to note that working in Iceland for English speakers is usually the easiest way to get a job in Iceland as an expat.

However, learning Icelandic can greatly improve social integration and employment opportunities.

Pros of employment in Iceland

The advantages of working in Iceland include the following:

1. An ideal balance between work and personal life.

If there's one thing Icelanders value, it's a healthy work-life balance. Icelanders are very family oriented, the average working week in Iceland is 40 hours, including a lunch break, and is very often flexible. Also, Iceland plans to be the first to officially switch to a four-day work week.

2. Equality in work.

Iceland has been a leader in gender equality since 2009. Although there is still room for growth, the gender pay gap for the same job is only 4.5%.

3. Easy business environment.

Iceland's business culture is not very hierarchical, and no matter where you work in the company, everyone is treated the same.

4. Strong social protection.

Iceland operates under the usual Scandinavian system of tripartite cooperation between employers, trade unions and the government. Therefore, employees can be sure of safety at the workplace, stable pay and a favorable working environment.

5. Innovation and creative approach are valued.

Despite its small size, Iceland impresses with the number of innovative solutions and the availability of creative products.

Taxes in Iceland

Expats working in Iceland must pay the same taxes as local residents. Taxes are automatically withheld from your paycheck. The municipal tax in Iceland is calculated at the following levels:

- 36.94% for income between 0 and 834,707 ISK (€5,540) per month.

- 46.24% for income exceeding ISK 834,708 (€5,540) per month.

Anyone over the age of 16 can apply for a tax card, which gives taxpayers personal tax relief.

Only 75% of your income as a foreign expert is taxed for the first three years of work in Iceland, provided that you apply within 3 months of the start date to the Icelandic Research Center.

Iceland is a promising country for the employment of expats, which attracts with an ideal balance between work and private life, a high level of social protection and competitive wages. Moving here will be a good stage in the life of foreigners.

We will remind you! We have already told you that in October 2024, the government of Iceland announced that the country could become the first state in the world where the four-day work week will be officially approved and become a standard.

Ihor Usyk - head of Visit World's legal department

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