Remote Work Program Introduced

The situation

An amendment to an immigration regulation in Iceland now allows ​visa-exempt foreign nationals who work for foreign companies to work remotely in Iceland under a long-term visa for up to six months.

A closer look

• Eligibility. Visa-exempt foreign nationals are eligible for the visa.
• Required supporting documents. Applicants must demonstrate an employment relationship outside Iceland, sufficient monthly income as determined by the government, and health insurance and must submit original supporting documents to the Immigration Directorate in person, through a representative or by courier.

 

Impact

Visa-exempt nationals benefit from the program since they now have a path for legal remote work, and can enter Iceland under a long-term visa without the additional typical residency requirements such as an Icelandic identification number.

Background

• Restoring Icelandic economy and global trends. The program opens the door to a work authorization route for a new set of foreign workers that were previously unregulated under Iceland’s immigration law. Iceland follows several other countries that have recently implemented remote work visas, including Bermuda, Barbados, Estonia and Georgia, among other countries.
• Remote work visa warning. In countries where remote work is unregulated, workers and employers may unknowingly put themselves at risk of noncompliance with many aspects of the law, exposing them to possible fines or other penalties, depending on the country. Importantly, noncompliance with regulations could result in employers losing their rights to hire foreign labor. It will become increasingly important as such policies are developed (and in many countries where remote work is unregulated) for employers to analyze strategies and assess risks associated with implementing and/or continuing remote work policies with a trusted immigration partner.

 

Looking ahead

The Icelandic government is expected to extend the eligible stay period under the remote work visa program beyond the current six months.

As the non-traditional workforce grows and countries focus on post-COVID-19 economic remobilization, more governments will likely start to slowly adapt and update remote work policies. Fragomen will report on related developments.

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].