Updated Mar 21, 2026 · Published Sep 12, 2023 · 10 min read
Share this guide
Americans moving to Iceland fall outside the EEA, which means no automatic right to live or work. There are four legal routes: a work permit, student visa, digital nomad visa, or family reunification. This guide covers what each requires, how long each takes, and what to do when you arrive.
Founding Editor
Helping you navigate your move and settling in the land of fire and ice.
Iceland's digital nomad visa (Long-Term Visa for Remote Work) allows non-EEA remote workers to live in Iceland for up to 180 days. This guide covers eligibility, income requirements, the application process, and what to expect.
Taxes in Iceland are progressive, with three income brackets ranging from 31.49% to 46.29% (as of 2026). A personal tax credit makes the first portion of income tax-free, and your employer handles all withholding.
A complete guide to family reunification in Iceland covering eligibility, income requirements, application fees, required documents, and processing times for bringing your family to join you.
Americans moving to Iceland face a non-EEA immigration process: no automatic right to live or work, no converting a tourist stay into residency. You need a residence permit, secured before you relocate.
The United States is consistently one of the top non-EEA countries sending inquiries to Iceland's Directorate of Immigration, and that interest has grown sharply since 2020. Americans cite safety, quality of life, and social infrastructure as the main draws.
There are four legal routes. Which one applies depends on your situation.
Each route is covered in detail below. For a broader comparison of all visa types available to anyone moving to Iceland (not just Americans), see our visa and immigration guide.
What Americans can and cannot do without a permit
The US is part of the Schengen visa-free agreement. Americans can enter Iceland without a visa and stay up to 90 days within any 180-day period. No paperwork, no advance application.
That 90-day window catches a lot of people out. It is a tourism allowance, not a stepping stone to residency. You cannot convert a tourist stay into a work permit, and you cannot begin working until a permit is granted. That said, Americans do not need to remain in the US while an application is being processed. As a visa-exempt nationality, you can be physically present in Iceland during the processing period, but you can't work until the permit is in hand.
Working during those 90 days is also prohibited. Remote work for a US employer sits in a legal grey area, but it is not the same as holding a valid work or digital nomad permit. For the full picture of Iceland's residency framework, see our complete guide to moving to Iceland.
Visa options for Americans moving to Iceland
There are four realistic paths to legal long-term residency in Iceland for US citizens.
Work permit (employer-sponsored)
The most common route. An Icelandic employer hires you, applies for a work permit on your behalf, and you relocate once it is approved.
Iceland's labour market prioritises EEA workers. Before issuing a work permit for a non-EEA national, the employer must demonstrate the position could not reasonably be filled by an EEA citizen. In practice, this is easier to satisfy in sectors with genuine shortages: healthcare, engineering, software development, construction, and skilled trades.
The employer submits the combined application package (covering both the residence permit and the work permit) directly to the Directorate of Immigration. The Directorate then forwards the work permit portion to the Directorate of Labour for processing. Required documents include a signed employment contract, proof of qualifications, a criminal background check, and confirmation of housing in Iceland.
First-time applications take up to 8–10 months to process, according to the Directorate of Immigration (as of early 2026). Renewals are faster, typically around three months. The permit is initially issued for one year; on renewal, it is typically granted for two years. After four years of continuous legal residence, you can apply for a permanent residence permit.
The permit is tied to a specific employer. If you change jobs, you need to apply for a new permit. A new application does not reset your residency clock.
See our Iceland work permit guide for the full document checklist, timeline, and step-by-step process.
Student visa
If you have been accepted at a recognised Icelandic university or educational institution, you can apply for a student residence permit. Accepted institutions include the University of Iceland, Reykjavík University, and several smaller colleges.
You must show proof of enrolment, financial means (247,572 ISK per month for the duration of your studies, as of February 2025 per the Directorate of Immigration), and health insurance covering at least 2,000,000 ISK per person valid in Iceland and the Schengen area. Student permits allow up to 22.5 hours of work per week during term and full-time work during study breaks.
This route works well if you are planning to study in Iceland and potentially build a career there. Time spent on a student permit counts toward permanent residency.
Digital nomad visa
Iceland launched a long-term visa for remote workers in 2020. It is designed for people who work for a foreign employer or are self-employed and earn income from outside Iceland.
The requirements: proof of employment or self-employment outside Iceland, minimum monthly income of roughly 1,000,000 ISK (as of early 2026), and health insurance covering at least 2,000,000 ISK per person, valid in Iceland and the Schengen area for the full duration of the stay. The visa is valid for up to 180 days when applying from outside the Schengen area. If you apply after already entering the Schengen area, the maximum is 90 days. The visa cannot be extended or renewed while in Iceland, and a 12-month waiting period must pass from the date of the previous visa's issue before reapplying.
This is not a path to permanent residency on its own. Because the stay is capped at 180 days, most holders do not meet the 183-day threshold for Icelandic tax residency, and Icelandic income tax generally does not apply to foreign-sourced earnings during the stay. US tax obligations remain regardless of where you live.
Family reunification
If you are married to or in a registered partnership with someone who holds legal residence in Iceland (including Icelandic citizens), you can apply through family reunification. The sponsoring partner must demonstrate adequate income and housing.
The application is submitted through island.is. Processing times are similar to first-time work permits: up to 8–10 months (as of early 2026). Full details are in our family reunification guide.
The job search: what Americans moving to Iceland need to know
A view towards Esja mountain, overlooking Reykjavik cityIceland's work permit system requires a job offer before you can apply. You cannot move to Iceland on a tourist stay, search for work while you are there, and then apply. The timeline does not allow for it, and working without a permit is a violation of Icelandic immigration law.
In practice, Americans find Icelandic jobs through direct applications to companies with international hiring, LinkedIn, the EURES Iceland job portal, and recruitment agencies in shortage sectors. Skills in healthcare, technology, or engineering carry the most weight.
The interview process for most professional roles happens remotely. Icelandic employers are accustomed to international hiring and will typically initiate the work permit process once they decide to hire.
Costs and financial preparation
Iceland is expensive by most international standards, comparable to New York City or Zurich. Groceries, restaurants, alcohol, and imported goods run higher than in the US. Utilities run lower, thanks to geothermal energy.
Our 2026 cost of living guide covers realistic monthly budget figures in full. As a baseline, a single person renting a one-bedroom apartment in Reykjavik should budget at least 400,000–550,000 ISK per month (approximately $2,800–$3,900 USD, as of early 2026) for rent, food, transport, and utilities. The minimum wage under Icelandic collective agreements is 513,000–515,000 ISK per month gross (as of January 2026), with average total monthly earnings for full-time workers (including overtime and bonuses) running approximately 984,000 ISK per month (as of 2024).
On taxes: Iceland and the US do not have a bilateral income tax treaty. Americans living in Iceland owe Icelandic tax on Icelandic income and remain subject to US filing requirements on worldwide income. The Foreign Earned Income Exclusion reduces double taxation in most cases, but the rules are complex. Consult a tax advisor familiar with both jurisdictions before you move.
Timeline: what to expect
Here is a realistic sequence from decision to arrival.
Months 1–3: Research, job search, and outreach to Icelandic employers. If you are going the student route, apply to programmes and wait for acceptance letters.
Months 2–4: Once you have a job offer or acceptance letter, begin gathering documents. Getting your FBI background check apostilled, including U.S. Department of State authentication, takes 8–12 weeks (as of early 2026) and should be started early. Have all other supporting documents notarised or certified as required.
Months 3–6: Application submitted to the Directorate of Immigration. First-time processing takes up to 8–10 months. You can be present in Iceland during this period but cannot work. Track your application at island.is.
Months 9–13: Permit approved. Book your start date with your employer and confirm housing.
The realistic minimum from job offer to arrival is around nine months. Twelve to fourteen months is a safer planning assumption for most first-time applicants.
When you arrive: the first steps
On arrival, your first priority is registering at the National Registry and obtaining your kennitala (Iceland's national identification number). The kennitala unlocks almost everything else: a bank account, a phone contract, tax registration, and access to government services.
You cannot register until you have a confirmed address in Iceland. Sorting housing before you arrive removes a significant source of friction in those first weeks. Our first 30 days in Iceland checklist covers the full setup sequence in order.
Frequently asked questions
Can an American move to Iceland without a job offer?
Not for long-term residency, in most cases. The 90-day visa-free window allows for visiting, not settling. The digital nomad visa is the main exception: it does not require an Icelandic job offer, but does require proof of employment outside Iceland and a minimum monthly income.
How long does it take to get a work permit in Iceland?
First-time applications are processed by the Directorate of Immigration and take up to 8–10 months (as of early 2026). Starting your documentation, particularly the FBI background check, well in advance is the single best way to avoid adding delays on top of that.
Do Americans need a visa to visit Iceland?
No. Americans can enter Iceland visa-free for up to 90 days within any 180-day period under the Schengen Agreement. This allows for tourism and short stays, but not for working or establishing residency.
Can I move to Iceland if I work remotely for a US company?
Yes, through the digital nomad visa. You must show proof of employment or self-employment outside Iceland, meet the income threshold (approximately 1,000,000 ISK per month, as of early 2026), and hold valid health insurance. The permit is valid for up to 180 days, is non-renewable, and does not lead directly to permanent residency.
What happens to my US taxes when I live in Iceland?
Americans abroad remain subject to US tax filing requirements on worldwide income. Iceland also taxes Icelandic-sourced income. The Foreign Earned Income Exclusion reduces US tax liability for many expats, but the interaction between the two systems is complex. Engage a tax professional with US expat experience before you relocate.
Is Iceland open to American immigrants?
Iceland does not target American immigration specifically, but actively recruits in sectors with labour shortages. American applicants with skills in healthcare, technology, engineering, and skilled trades are well-positioned. The process is identical to that for other non-EEA nationals.
The US is part of the Schengen visa-free agreement. Americans can enter Iceland without a visa and stay up to 90 days within any 180-day period. No paperwork, no advance application.
If you have been accepted at a recognised Icelandic university or educational institution, you can apply for a student residence permit. Accepted institutions include the 