Iceland isn’t just a dream vacation spot—it’s a country known for its incredible quality of life, stunning landscapes, and strong sense of community. If you’re a U.S. citizen considering a move, it might seem a little overwhelming at first. The good news? With the right approach, you can make it happen. Here’s everything you need to know about relocating to Iceland, from the reasons people move there and the cost of moving to the logistics of getting settled.

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Why Move to Iceland?

Moving to Iceland offers plenty of benefits beyond the scenery. Iceland is one of the best places to live in terms of quality of life, safety, and overall happiness. Here are several reasons why U.S. citizens choose to move to Iceland:

• Education: Public education, including universities, is free, and after-school programs are affordable.
• Environment and wildlife: Iceland is a leader in sustainable energy. It runs almost entirely on renewable energy and boasts some of the world’s most pristine landscapes.
• Health care: After living in Iceland for six months, you’ll qualify for the Icelandic Health Insurance system.
• Inclusivity: Since 2009, Iceland has been a leader in gender equality and ranks highly on the worldwide Social Progress Index in inclusiveness and acceptance, especially for members of the LGBTQ+ community.
• Income: Wages in Iceland are among the highest in Europe.
• Safety: Iceland has one of the world’s lowest crime rates.

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How Can a U.S. Citizen Move to Iceland?

Iceland’s immigration system is designed to welcome qualified individuals while maintaining the country’s social and economic stability. According to the Foreign Nationals Act, there are four main ways to gain residency in Iceland as a U.S. citizen: education, employment, family reunification, or marriage. Each pathway has its own requirements, so let’s break them down.

Attending an Icelandic University

Studying in Iceland gives you a chance to immerse yourself in the culture while earning a degree. The Directorate of Immigration says you can obtain a student residency permit if any of the following apply to you:

• You are a graduate looking for employment.
• You are a postgraduate student collaborating with an Icelandic university.
• You are a student in technical studies and recognized workplace studies in higher education.
• You are an exchange student from an acknowledged exchange student organization.
• You attend an Icelandic university full-time.
• You are doing an internship.

Students attending Icelandic secondary schools (except for approved exchange programs), attending courses in the Icelandic language, or studying abroad from foreign universities do not qualify for residency.

You’ll need to fill out a paper application and pay a processing fee of 16,000 Icelandic krona (ISK) to obtain a student visa. The Directorate of Immigration requires supporting documents, including the following:

• A criminal record certificate
• A valid passport
• An application processing receipt
• Confirmation of studies
• Documents on means of financial support
• Health insurance confirmation

Apply by June 1 for fall semesters or November 1 for spring semesters.

Working in Iceland

According to The Foreign Nationals’ Right to Work Act, there are several types of work visas available to U.S. citizens. Americans can get a residence permit based on work if any of the following situations apply:

• You work as an au pair in a family home in Iceland and are between the ages of 18 and 25.
• You’re participating in a collaboration or service contract.
• You are an athlete.
• Your job requires expert knowledge and skills.
• There is a labor shortage.

You’ll need to complete a paper application and pay a processing fee of 16,000 ISK for a work visa. You can expedite your application if you pay an additional 48,000 ISK. Applicants must also be 18 or older and have an appropriate work permit granted by the Directorate of Labour on the basis of a specific job for a specific employer.

The Directorate of Immigration requires supporting documents, including the following:

• A criminal record certificate
• A valid passport
• An application processing receipt
• Application for a work permit
• Documents on means of financial support
• Employment contract
• Health insurance confirmation

Reuniting With Family in Iceland

Iceland grants residence permits for spouses, children under the age of 18, parents of children younger than 18, and parents who are 67 or older and have adult children in Iceland. You must complete a paper application and pay a processing fee of 16,000 ISK for a family reunification visa.

To qualify for family reunification, the visa applicant’s family member in Iceland must be an Icelandic citizen, a Nordic citizen, a permanent residence permit holder, or a temporary residence permit holder. If both parents have custody of a child under 18 who is requesting a residence permit, the parent not applying for family reunification must agree to the child receiving a residence permit. 

For parents of children under 18, you must have the following:

• A legal stay in Iceland when applying
• A child with Icelandic citizenship or a residence permit
• A residence permit that can no longer be renewed on the same grounds
• Sole or shared custody
• Visitation rights according to a certified agreement

The Directorate of Immigration requires supporting documents, including the following:

• A criminal record certificate for children 15 and older
• A valid passport
• An application processing receipt
• Birth certificate of child, if applicable
• Confirmation of right of access to child, if applicable
• Documents confirming custody of the child, if applicable
• Documents confirming marriage and/or cohabitation, if applicable
• Documents on means of financial support
• Health insurance confirmation
• Statement on why a residence permit is necessary for the child to continue living in Iceland, if applicable

Marrying an Icelandic Citizen

According to Iceland’s Directorate of Immigration, an American may receive a residence permit on the basis of marriage or cohabitation with a spouse. U.S. citizens can stay in Iceland when applying. The only exception is if you’re applying on the basis of marriage or cohabitation with a student of advanced studies.

You’ll need to fill out a paper application for residence and pay a processing fee of 16,000 ISK. All applicants must satisfy the following qualifications:

• Be 18 or older
• Be marrying or cohabitating with an Icelandic citizen, a Nordic citizen, a holder of a permanent residence permit, or a holder of a temporary residence permit
• Have a marriage that meets the requirements for registration according to the law on legal domicile
• Have a spouse with no convictions within the past five years
• Have lived with their spouse for at least one year
• Have the same permanent address as their spouse

The Directorate of Immigration requires supporting documents, including the following:

• A criminal record certificate
• A valid passport
• An application processing receipt
• Documents confirming marriage and/or cohabitation
• Documents on means of financial support
• Health insurance confirmation

Special Residency Cases

The bulk of applicants for Icelandic residency will fall into the above four categories. However, there are some special circumstances that may grant a residency permit. For example:

• Missionary work: Religious organizations can sponsor a permit for unpaid missionary work.
• Refugee status: While rare for Americans, refugees must demonstrate a risk of persecution in their home country.

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Preparing for the Move to Iceland

Once your residence permit is approved, it’s time to prepare for your move to Iceland by setting your budget and finding housing. Here’s how to tackle the logistics.

Estimating Moving Costs

Moving to Iceland, just like any overseas move, is expensive. International Van Lines estimates that a move from the U.S. to Europe can cost anywhere from $3,500 for a 1-bedroom home to $17,000 for a 6-bedroom home. But the price of shipping your belongings isn’t the only cost to consider. Take into account the following:

• Airfare for you and your family
• Temporary housing upon arrival
• Customs duties and value-added tax (VAT) on imported goods
• Buffer for unexpected expenses

Iceland has a 24% VAT on most goods, so budget for potential extra costs when importing your belongings.

Finding Housing

Finding housing can be difficult, even for Icelanders, and most people in Iceland live in urban areas. Finding a place that meets your needs and budget may take a few months. You’ll also need to save two to three months’ worth of rent for a deposit on a rental. Long-term housing contracts are subject to government subsidies, which are available to people who cannot afford a house.

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Legal Considerations After Arrival to Iceland

Once you arrive in Iceland, there are several important legal steps you need to take to establish your residency and integrate into Icelandic society.

Obtaining a Kennitala (National ID Number)

After moving to Iceland, the first step you must take is to register your legal address and set up your national ID number, called kennitala. Every person living in Iceland has a kennitala, which is a unique, 10-digit number that acts as your identification number or social security number.

You’ll need a kennitala to open a bank account, register your legal domicile, and set up a new home telephone. Americans get their kennitala as part of their residence permit through the Directorate of Immigration.

Registering Your Legal Address

Within seven days of arriving in Iceland, you must register your legal address with Registers Iceland (Þjóðskrá Íslands). This step is crucial for accessing various services and receiving important communications.

Opening a Bank Account

To open a bank account in Iceland, you’ll need:

• Your kennitala
• A valid passport
• Proof of address
• Your residence permit

Major banks in Iceland include Landsbankinn, Íslandsbanki, and Arion Bank.

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Life in Iceland: What To Expect

Understanding what life is like in Iceland can help you prepare for the transition and set realistic expectations for your new home.

Cost of Living

The cost of living in Iceland is 25.3% higher than in the United States, and rent is 2.9% higher on average.* A single person spends approximately $1,340.40 (182,998.7 ISK) per month, not including rent, while a family of four spends around $4,992.40 (681,608.0 ISK) per month. While groceries, dining out, and transportation tend to be more expensive, health care and education costs are often lower.

*Percentages retrieved from Numbeo are accurate as of November 2024 and subject to change.

Weather and Climate

Iceland’s climate is milder than many expect, thanks to the Gulf Stream. But it’s still much closer to the Arctic Circle than the U.S., so winters can be long and dark, while summers feature nearly 24 hours of daylight. Icelanders typically break the year into two seasons: long summer and long winter. 

Be prepared for rapidly changing weather conditions and consider how this might affect your lifestyle. If you’re prone to seasonal depression, you may need to take extra steps to protect your mental health.

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Applying for Permanent Residency in Iceland

Icelandic residency permits can be granted for periods of up to five years. If you want to stay in Iceland long-term, you’ll need to apply for permanent residency after four years. Requirements include:

• Continuous residency with a valid permit
• Financial stability
• Completion of an Icelandic language course

The fee is 22,000 ISK, and you’ll need to provide proof of your status and income.

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Our Conclusion

Icelanders boast a higher quality of life than most countries, but the cost of living is substantial. If you’re moving across the Atlantic, you’ll also need to factor in the cost of hiring an international moving company, shipping your belongings, and going through customs.

Moving to Iceland or any new country isn’t an easy feat, but it’s possible if you’re prepared. We recommend getting several quotes from international movers, packing up your house as efficiently as possible, and searching for a place to live before you board your flight.

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FAQ About How To Move to Iceland

What are the pros and cons of moving to Iceland?

The biggest advantages of moving to Iceland are the higher standard of living, health care and education systems, and low crime rates. However, the cost of living is high, especially for housing, food, and transportation.

What are the requirements to move to Iceland?

Americans don’t need a visa to visit Iceland, but you’ll need a residence permit if you plan to live there longer than six months. According to the Foreign Nationals Act, non-EEA/EFTA foreign nationals can move to Iceland either through marriage, by attending an Icelandic university, by finding a job, or by family reunification.

Can you go to Iceland if you only speak English?

Yes, you can go to Iceland if you only speak English. You don’t need to learn Icelandic to live in Iceland, but it can help if you plan to move there.

How much money do I need to have to move to Iceland?

You’ll need to save a significant amount of money before moving to Iceland. An international moving company costs as much as $17,000, and you’ll need two to three months’ rent before renting an apartment. This doesn’t include the costs of importing goods through customs.

What jobs are in demand in Iceland?

The jobs in highest demand in Iceland are in tourism, hospitality, and transportation. Other industries with skill shortages include technology, renewable energy, manufacturing, and creative arts.

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