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How To Move to Iceland (2024 Guide)

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Author Image Written by Shane Sentelle Updated 05/03/2024

Iceland isn’t just a popular travel destination—many people choose to relocate to Iceland because of its high quality of life, job opportunities, and pristine natural environment. As a U.S. citizen, moving to Iceland may be challenging, but there are several pathways to immigrate to Iceland. In this article, we’ll cover how to move to Iceland, the cost of moving, and factors to consider.


U.S. citizens must follow a series of steps to move to Iceland, beginning with determining if they are eligible for a residence permit. According to the Foreign Nationals Act, expats can move to Iceland by attending an Icelandic university, finding a job, family reunification, or marriage.

Attend an Icelandic University

The Directorate of Immigration says you can obtain a student visa 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

If you want to attend an Icelandic university during the fall semester, submit your application no later than June 1. The deadline for the spring semester is November 1.

Employment 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 obtain a residence permit based on work if any of the following situations apply:

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

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

Family Reunification

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

Marriage

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 may 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:

  • 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 Cases for Residency Permits

Americans can receive a residence permit on the grounds of legitimate and special circumstances, including the following:

  • International protection: Applicants must apply in person, either at the reception center for international protection applicants in Reykjavik or at any police station.
  • Missionary work: Iceland grants residence permits to individuals who stay in Iceland for a religious purpose on behalf of a registered religious organization.

Missionaries must fill out a paper application, pay a processing fee of 16,000 ISK, and provide supporting documents, including the following:

  • A criminal record certificate
  • A valid passport
  • Confirmation of an unpaid work offer
  • Documents on means of financial support
  • Health insurance confirmation
  • Payment receipt

Applying for a Permanent Residency

If you’re moving from the United States, you can apply for permanent residency if you satisfy the following:

  • You can financially support yourself.
  • You’ve continuously held a valid residence permit and haven’t lived abroad for more than 90 cumulative days each year.
  • You don’t have an open case in the criminal justice system.
  • You have a valid residence permit.
  • You have attended an Icelandic language course.
  • You have lived in Iceland for four years (there are exceptions for the spouse and child of an Icelandic citizen, foreign nationals with an Icelandic doctoral degree, and former students in Iceland).

You can fill out the application for a permanent residence permit online and pay the 16,000 ISK processing fee before applying. You must also show a copy of your passport and documents proving you have enough funds to support yourself.


Kennitala

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.


Reasons To Move to Iceland

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: Schools are free, with optional after-school programs at a low cost.
Environment and wildlife: Iceland is a leader in sustainable energy and has an abundance of wildlife and untouched nature.
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.

Costs of Moving to Iceland

Moving out of the country always comes with a steep price tag. Not only do you need to get yourself there, but also you need to pay to ship your items and move household goods through customs.

According to International Van Lines, the cost to move overseas could range anywhere from $1,500–$12,000, depending on the size of your home and your destination. This range represents moving company costs only and does not include visa fees, travel expenses, and other associated costs. For example, moving the contents of a one- or two-bedroom home to Europe costs $3,500–$7,000 on average, but moving the contents of a three- to four-bedroom home can cost as much as $12,000.

Most goods imported to Iceland are subject to customs duty and a value-added tax (VAT). The standard VAT rate is 24%, with a reduced rate of 11% for some goods. The exact fee depends on your items’ value and is at the discretion of Icelandic authorities.

Cost of Living in Iceland

The cost of living in Iceland is 15.7% higher than in the United States, but rent is 9% lower on average.* A single person spends approximately $1,269.70 (179,262 ISK) per month, not including rent, while a family of four spends around $4,695.80 (662,956.20 ISK) per month.

* Percentages retrieved from Numbeo are accurate as of April 19, 2024, and subject to change.


Finding a Place To Live

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.


Factors To Consider When Moving to Iceland

Before you move to Iceland, you need to take the following factors into account:

Health insurance coverage: The state covers health care, and residents contribute through taxes and service fees.
Icelandic weather: The climate is temperate, but the weather is volatile. Icelanders typically break the year into two seasons, long summer and long winter.
Language: Icelandic is the official language, but many people speak English.
Seasonal depression: Iceland sits closer to the Arctic Circle than most U.S. regions, and winters are typically darker.

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.


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, there are some challenges. There’s a high cost of living, especially for housing, food, and transportation.

What are the requirements to move to Iceland?

Americans don’t need a visa to visit Iceland, but if you plan to live there on a long-term basis, you’ll need a residence permit. 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 for 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 $12,000, 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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