Residence permits based on work

A residence permit based on work is granted on the basis of Articles 61-64 of the Foreign Nationals Act No. 80/2016.

A necessary requirement for a residence permit based on work to be granted is that a work permit has been granted by the Directorate of Labor. 

Residence permits based on work are granted

• For work requiring expert knowledge
• Due to a shortage of labour 
• For athletes
• On the basis of collaboration or service contract

You might have the right to a residence permit based on work if all of the following requirements are met, as well as others

• You are older than 18 years,
• have found a job and are able to submit a signed employment contract,
• can prove that you are able to provide for yourself during your stay,
• you have a valid insurance with an insurance company licensed to operate in Iceland
• have not served a criminal sentence abroad during he last five (5) years or been sentenced by a court of law for an offence which would be punishable by more than three (3) months imprisonment, according to Icelandic law, and
• have a passport valid at least 90 days beyond the estimated period of residence permit.
  
  

You may not

• begin working until a work permit has been granted,
• work for an employer other than the one on which the work permit is granted,
• stay in another country longer than three (3) months in every 12-month period of the residence permit period; otherwise the residence permit may be cancelled or revoked.
  
  

If an applicant does not fulfill these requirements and the requirements discussed below, the application for a residence permit will be refused and the applicant must leave Iceland.  An applicant who does not leave the country may be subject to expulsion or an entry ban. An entry ban is also an entry ban into the Schengen Area for a specific period of time or for two (2) years as a minimum.

The applicant is responsible for applying for renewal of his/her residence permit at least four (4) weeks before the validity of the permit expires. If this is done, the applicant is permitted to stay in Iceland while the application for renewal is being processed by the Directorate of Immigration. If a renewal of a residence permit is not applied for before the period of validity expires, the application will be handled as if this were a first permit, not renewal. An application received after the previous permit has expired will be refused if the applicant does not have a permission to stay in Iceland while the application is being processed. See further information on the application process and permission to stay.

Types of residence permits based on work

Residence permit based on work requiring expert knowledge

Residence permit based on shortage of labour

Residence permit for athletes

Residence permit for qualified professionals based on a collaboration or service contract

Application for first permit

Renewal

Qualified professionals seeking work

Residence permit requiring expert knowledge

The expert knowledge of the applicant must be essential to the enterprise involved and must consist of university-level education, industrial, artistic or technical training, which is recognised in Iceland.

Further information on the requirements for a work permit is available on the website of the Directorate of Labour.

Rights attached to the permit

• An applicant who does not need a visa may stay in Iceland when submitting an application and while it is being processed, provided the stay in the Schengen Area does not exceed 90 days in the past 180 day period. An applicant who needs a visa may also stay in Iceland when applying for the permit and while it is being processed, provided his/her visa is valid. If the stay exceeds this period, processing the application will be stopped until the applicant has left Iceland and has presented a departure boarding card to prove it. An application by an applicant who does not have the aforementioned permit to stay will be refused.
• A residence permit may be granted for up to two (2) years, however, not longer than the period of validity of the work permit.
• A residence permit may be renewed for as long as two (2) years at a time, provided the requirements of the permit are still being met, however, not longer than the period of validity of the work permit.
• A residence permit of an applicant who has lost his/her job may be renewed for as long as three (3) months from the date of unemployment or the time the employment-termination period has passed, to enable the applicant to find new employment on grounds of his/her qualifications.
• The residence permit contains a right to family reunification for:
  • the applicant’s spouse or cohabitant after at least one year of cohabitation,
  • the applicant's children under the age of 18, if the applicant has custody of the children,
  • the applicant’s parents who are 67 years of age or older.

• The residence permit can be a basis for a permanent residence permit.
  
  

You may not

• Begin working until a work permit has been granted.
• Work for an employer other than the one to which the permit applies.
• Stay in another country longer than three (3) months in every 12-month period of the residence permit; otherwise the residence permit may be cancelled or revoked.

Residence permit based on shortage of workers

A residence permit based on a shortage of labour may be granted when employees cannot be found either on the Icelandic labour market or within the EEA/EFTA member states or the Faroe Islands.

Further information on the requirements for a work permit is available on the website of the Directorate of Labour.

Rights attached to the permit 

• An applicant who must have a visa may not be in Iceland when the residence permit is applied for and while it is being processed. Such an application will be refused. An applicant who does not need a visa may be in Iceland when the application is submitted and while it is being processed provided the stay in the Schengen Area does not exceed 90 days in the past 180 day period. If the stay exceeds this period, processing the application will be stopped until the applicant has left Iceland and has presented a departure boarding card to prove it.
• A residence permit may be granted for up to one (1) year, however, never longer than the period of validity of the work permit.
• A residence permit may be renewed for up to one (1) year at a time, provided the requirements of the permit are still being met, however, not longer than the period of validity of the work permit. In the instance of a clearly defined and temporary work project the residence permit may be renewed for a longer period of time.
• Obtaining a permit on these grounds again is not possible until the applicant has stayed abroad continuously for two (2) years after the expiry of the permit’s period of validity. The exception is when an applicant works in Iceland for less than eight (8) months per every 12-month period.
• The residence permit does not contain a right to family reunification.
• The residence permit may be a basis of a permanent residence permit.
  
  

You may not

• Begin working until a work permit has been granted.
• Work for an employer other than the one to which the permit applies.
• Stay in another country longer than three (3) months in every 12-month period of the residence permit period; otherwise the residence permit may be cancelled or revoked cancelled or revoked.

Residence permit for athletes

A residence permit may be granted for athletes who are employed by a sports club under the umbrella of the National Olympic and Sports Association of Iceland. The association’s website contains an overview of all its member organizations.

Further information on the requirements for a work permit is available on the website of the Directorate of Labour.

The rights attached to the residence permit are as follows

• An applicant who does not need a visa may stay in Iceland when his/her application is submitted and while the application is being processed provided his/her stay in the Schengen Area does not exceed 90 days in the past 180 day period. An applicant who must have a visa may also be in Iceland when applying for the permit and while it is being processed, provided his/her visa is valid. If the stay exceeds this period, processing the application will be stopped until the applicant has left the country and has presented a departure boarding card to prove it. An application by an applicant who does not have the aforementioned permit to stay will be refused.
• The residence permit may be granted for up to one (1) year, however, never longer than the period of validity of the work permit.
• The residence permit may be renewed for up to two (2) years at a time, provided the requirements of the permit are still met, however, not longer than the period of validity of the work permit.
• The residence permit contains the right to family reunification for:
  • the applicant’s spouse or cohabitant after at least one year of cohabitation,
  • the applicant's children under the age of 18, if the applicant has custody of the children,
  • the applicant’s parents who are 67 years of age or older.

• The residence permit may be a basis of a permanent residence permit.
  
  

You may not

• Begin working until a work permit has been granted.
• Work for an employer other than the one to which the permit applies.
• Stay in another country longer than three (3) months in every 12-month period of the residence permit period; otherwise the residence permit may be cancelled or revoked.

Residence permit for qualified professionals based on collaboration and service contracts

A residence permit may be granted based on specialized work for an employer who does not have its premises of operation in Iceland on the basis of a service contract, between a foreign service undertaking and an Icelandic user enterprise, or a collaboration agreement for educational, scholarly or scientific work. 

Further information on the requirements for a work permit is available on the website of the Directorate of Labour.

The rights attached to the residence permit are as follows

• An applicant who does not need a visa may stay in Iceland when his/her application is submitted and while the application is being processed provided his/her stay in the Schengen Area does not exceed 90 days in the past 180 day period. An applicant who must have a visa may also be in Iceland when applying for the permit and while it is being processed, provided his/her visa is valid. If the stay exceeds this period, processing the application will be stopped until the applicant has left the country and has presented a departure boarding card to prove it. An application by an applicant who does not have the aforementioned permit to stay will be refused.
• The residence permit shall generally not be granted for a longer period than six (6) months on grounds of the same contract, however, not longer than the period of validity of the work permit.
• The residence permit may be renewed for as long as six (6) months at a time, however, not longer than the period of validity of the work permit.
• The residence permit does not contain a right to family reunification.
• The residence permit cannot be the basis for a permanent residence permit.
  
  

You may not

• Begin working until a work permit has been granted.
• Work for an employer other than the one to which the permit applies.
• Stay in another country longer than three (3) months in every 12-month period of the residence permit period; otherwise the residence permit may be cancelled or revoked.

Application for first permit

An application for a residence permit and an application for a work permit as well as the necessary supporting documents shall be submitted to the Directorate of Immigration or at the offices of the district commissioners outside of the Reykjavík Metropolitan Area to confirm that the requirements for a residence permit are met.

The Directorate of Immigration forwards the application for a work permit to the Directorate of Labour to be processed.

The Directorate of Immigration can only issue a residence permit based on work if the Directorate of Labour grants a work permit.

Documents to be submitted

1. Payment receipt (if the application has been paid for at a bank). The name of the person for whom payment is being made must be clearly stated. List the name of the applicant, his/her date of birth as a reference.
2. Application for a residence permit. (Please download and save on computer before filling out). In original format, carefully filled out and signed by the applicant. (It is important that the applicant states his/her place of residence in Iceland. If the address is not stated when the application is made the applicant must notify his/her place of residence within two (2) weeks from the applicant’s date of arrival in Iceland (for example when being photographed).
3. Passport photo (35 mm x 45 mm).
4. Photocopy of passport. The period of validity must be at least 90 days beyond the period of validity of the residence permit. This must include photocopies of the passport’s personal information page and the page containing the applicant’s signature.
5. A copy of criminal record certificate issued by country of residence. A criminal record must not be older than 12 months when submitted and must be issued by the highest authority competent to issue such certificates in the respective country.
6. Translation by an authorized translator of the criminal record certificate. Applies only if the foreign certificate is in another language than English or a Nordic languages. Note that the translation must be authenticated if the translator is not an authorized translator in Iceland.
7. Health Insurance. The applicant shall submit a certificate of insurance from an Icelandic insurance company (see insurance companies) or a foreign insurance company authorized to operate in Iceland (see foreign insurance companies). The insurance shall be valid for six (6) months from the date of the applicant being registered in Registers Iceland and the coverage shall be at least IKR 2000,000.  Registration in Registers Iceland is usually valid from the day the applicant‘s photo is taken at either the Directorate of Immigration or at a District Commissioner‘s office for a residence permit card, given that the applicant has stayed in Iceland from that date.
8. Application for the appropriate work permit, in original format, signed both by the applicant and the employer, and confirmed by the relevant trade union.

a. Application for a temporary work permit for work requiring expert knowledge.

b. Application for a temporary work permit based on shortage of workers.

c. Application for a temporary work permit for athletes.

d. Application for a temporary work permit for qualified professionals on grounds of collaboration or service contracts.

9. Employment contract, in original format, signed by both the applicant and the employer. The contract must state the applicant’s wages and terms of employment, and must fulfill the statutory minimum wage terms.

Documents that may be submitted

• Power of Attorney signed by two (2) witnesses. The Power of Attorney does not have to be submitted unless the applicant wants someone other than him/her to receive information about the processing of the application by the Directorate of Immigration.
  
  

The applicant is responsible for submitting the necessary supporting documents with his/her application. If satisfactory documents are not received by the Directorate of Immigration, this may result in delays in processing the application or in the application being refused. The Directorate of Immigration may request additional information when special circumstances warrant it.

If the applicant meets all requirements of a residence permit, the permit will be granted and the applicant will be sent a notification of the granting of the permit. The residence permit will not be issued, however, until the applicant has:

• come to be photographed at the offices of the Directorate of Immigration or at offices of district commissioners outside of the Reykjavík Metropolitan Area, within one (1) week from his/her arrival in Iceland,
• reported his place of residence to the Directorate and
• undergone a medical examination, within two (2) weeks from arrival in Iceland.

Please note that the applicant must present a valid passport when photographed for identification. 

The Directorate of Immigration will not issue a residence permit if the applicant does not meet the requirements stated above. This could lead to illegal stay and expulsion.

Renewal

A residence permit may be renewed if the requirements of the permit are met. A renewal of a residence permit must be applied for at least four (4) weeks before the permit’s period of validity expires. If this is done the applicant is permitted to stay in Iceland while the application for renewal is being processed by the Directorate of Immigration.

If a renewal of the residence permit is not applied for before the period of validity expires, the application will be processed as if this were an application for a first permit, not a renewal. An application that is received after the period of validity of the older permit has expired will be refused if the applicant does not have permission to stay in Iceland while the application is being processed.

An application for a residence permit based on a shortage of labour that is received after the period of validity of the older permit expires will be refused irrespective of whether the applicant may stay in Iceland or not during the processing of the application. A residence permit based on a shortage of labour cannot be issued again until the applicant has stayed continuously abroad for two (2) years from the end of the permit’s period of validity. See further the application process and permission to stay.

The applicant must appear in person when applying for renewal of his/her residence permit, either at the offices of the Directorate of Immigration or at offices of district commissioners outside of the Reykjavík Metropolitan Area. The applicant will be photographed and must submit a sample of his/her signature. The applicant should bring his/her passport along.

Documents to be submitted

1. Payment receipt (if the application has been paid for at a bank). The name of the person for whom payment is being made must be clearly stated. List the name of the applicant, his/her date of birth as a reference.
2. Application for a residence permit. (Please download and save on computer before filling out). In original format, carefully filled out and signed by the applicant.
3. Photocopy of the passport. The period of validity must be at least 90 days beyond the period of validity of the residence permit. This must include photocopies of the passport’s personal information page and the page containing the applicant’s signature.
4. Application for the appropriate work permit, in original format, signed by both the applicant and the employer, and confirmed by the relevant trade union.

a. Application for temporary work permit for work requiring expert knowledge..

b. Application for temporary work permit based on shortage of workers.

c. Application for temporary work permit for athletes.

d. Application for temporary work permit for qualified professionals on grounds of collaboration or service contract.

4. Employment contract, in original format and signed both by the applicant and the employer. The contract must state the applicant’s wages and terms of employment, and must fulfill at least the statutory minimum wage terms.

Documents that may be submitted

• Power of Attorney signed by two (2) witnesses. The Power of Attorney does not have to be submitted unless the applicant wants someone other than him/her to receive information about the processing of the application by the Directorate of Immigration.  
  
  

The applicant is responsible for submitting the necessary supporting documents with his/her application. If satisfactory documents are not received by the Directorate of Immigration, this may result in delays in processing the application or in the application being refused. The Directorate of Immigration may request additional information when special circumstances warrant it.

Qualified professionals seeking work

Renewing the residence permit based on work requiring expert knowledge is permitted for as long as three (3) months after the applicant lost his/her job or the employment-termination period has ended in order to enable the applicant to seek other employment on grounds of his/her expert knowledge. It is a precondition for granting a residence permit for a qualified professionals seeking work that the application must be submitted within the validity period of the previous residence permit.

Documents to be submitted

1. Application for a residence permit. (Please download and save on computer before filling out). In original format, carefully filled out and signed by the applicant.
2. Photocopy of the passport. The period of validity must be at least 90 days beyond the period of validity of the residence permit. This must include photocopies of the passport’s personal information page and the page containing the applicant’s signature.
3. Documents on sustenance expenses by the applicant, confirming that his/her support is securely covered during the stay in Iceland.

Documents that may be submitted

• Power of Attorney signed by two (2) witnesses. The Power of Attorney does not have to be submitted unless the applicant wants someone other than him/her to receive information about the processing of the application by the Directorate of Immigration.

The applicant is responsible for submitting the necessary documents with his/her application. If satisfactory documents are not received by the Directorate of Immigration, this may result in delays in processing the application or in the application being refused. The Directorate of Immigration may request additional information when special circumstances warrant it.