Iceland: Permit Validity and Dependent Rights Improved

August 31, 2023

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Country / Territory

At a Glance

The government has implemented several key improvements in residence and work permit validity periods and other aspects of the immigration process for foreign nationals, dependents and students in an effort to improve current labor and skills shortages. Key changes include:

  • Four-year validity for a residence permit for a job that requires expertise (up from two years);
  • A new rule allowing foreign nationals who completed university studies in Iceland to now renew their residence permit for up to three years from the date of graduation (up from six months) to look for a job in Iceland; and
  • A new rule for dependent spouses and children of foreign citizens with a residence permit for work that requires specialist knowledge to work automatically without a work permit in Iceland.

The situation

The government has implemented several key improvements in residence permit validity periods and other aspects of the immigration process for foreign nationals, dependents and students.

CHANGE DETAILS IMPACT
Residence permit validity improvements
    • Four-year validity for a residence permit for a job that requires expertise (up from two years). Additionally, this group now has one year to look for work if their residence permit is terminated (up from three months).
    • Two-year validity for residence permits for athletes (up from one year).
    • One-year validity for residence permits for specialized workers based on a partnership or service agreement (up from six months).
    • Two-year validity for ‘labor shortage’ residence permits (up from one year). Additionally, the cooling-off period has been eliminated for this category (meaning those under this permit no longer need to be abroad for two consecutive years before applying again). This permit type is intended only as a temporary response to labor fluctuations, and may be granted only if suitable employees cannot be found in the domestic or European labor markets.
    • Residence permits due to lack of staff and residence permits for specialized workers based on a partnership or service agreement now include the right to family reunification with spouses, children and parents over 67 years of age.
 Longer validity periods under various permits will help keep foreign workers in Iceland, which is crucial during the current labor and skills shortages in the country.
Improvements for residence permit holders based on study and cultural exchange
    • Doctoral students can now apply for a residence permit in Iceland (previously they had to apply from abroad).
    • Foreign nationals who completed university studies in Iceland can now renew their residence permit for up to three years from the date of graduation (up from six months) to look for a job in Iceland.
    • Residence permits for studies now include the right to family reunification with spouses, children and parents over the age of 67 for all students.
    • A residence permit for studies now allows work for up to 22.5 hours per week (up from 15 hours).
 Students and cultural exchange participants now benefit from easier access to residence and work permit rights in Iceland, which will help to improve current labor shortages in Iceland and the region.
Residence permit based on family reunification
    • Children born in Iceland whose parents are holders of residence permits that do not include the right to family reunification can now apply for a residence permit (a ‘dependent permit’ based on family reunification grounds).
    • Children who have reached the age of 18 who were not yet 18 when their residence permit application was submitted now qualify to apply for a residence permit (a ‘dependent permit’ based on family reunification grounds).
    • Dependents (spouses and children) of foreign citizens with a residence permit for work that requires specialist knowledge can now work automatically without a work permit in Iceland.
 These improvements make it easier for children and spouses (as applicable) to obtain residence and/or work rights in Iceland.

These changes – which seek to advance a more transparent and consistent residence permit process – come amid an increase in the number of immigrants to Iceland (especially from outside the European Economic Area (EEA)) and an increased impetus to ensure Iceland remains economically competitive.  

  • Increased non-EEA national migration. Iceland anticipates more non-EEA nationals to migrate to the country over the coming years, and migration rules are likely to continue to be liberalised in line with this trend.
  • Tight labor market. Iceland is currently facing a labor shortage in certain industries, and will look to continue to liberalise immigration pathways in order to attract global talent.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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