Overview
On 13 May 2026 the Directorate of Immigration announced that responsibility for visas had been transferred to the Ministry for Foreign Affairs and that “the provision in the Foreign Nationals Act concerning long-term visas has been repealed”. That provision was the legal basis of the remote-work visa introduced in 2020.
A new “short-term residence permit” now exists for stays of up to 180 days, but it is aimed at close family members and at artists, scientists and athletes — the Directorate's page does not cover remote work for a foreign employer, and it cannot be used to extend a stay already in progress.
Editor's note — Many guides still list Iceland's visa with its old figures. As of September 2026 there is no route for a non-EEA remote worker to stay in Iceland beyond the 90-day Schengen allowance on the strength of foreign employment alone.
Who is eligible
- Former rule: nationals of countries exempt from Schengen visas, working for a foreign employer or own business, with monthly income of ISK 1,000,000 (ISK 1,300,000 for a couple).
- Former rule: stays of up to 180 days, non-renewable, applied for from outside Iceland.
- Now: EEA/EFTA nationals may live and work in Iceland freely.
- Now: non-EEA nationals can visit for 90 days in any 180 under Schengen rules.
- Now: longer stays need a residence permit on another basis (work with an Icelandic employer, family, study).
Income & financial requirements
Family/artists/scientists/athletes only.
Cannot extend an existing stay.
For visa-exempt nationals.
For new residence permits.
The repealed visa required ISK 1,000,000 a month for a single applicant and ISK 1,300,000 for a couple, evidenced by contracts, payslips and bank statements. No income-based remote-work category has replaced it.
Costs & fees
- Short-term residence permit (if you qualify under another category): ISK 12,200 processing fee.
- Ordinary residence permits carry their own fees and processing times of up to six months.
- Iceland is among the most expensive countries in Europe for housing and food.
Taxes
Anyone present in Iceland for more than 183 days in a 12-month period becomes fully tax liable there at progressive rates above 31%. For 90-day Schengen visits no Icelandic tax registration is normally triggered.
How to apply
Check whether you need a permit at all
EEA/EFTA nationals need none; others may visit 90 days per 180.
Consider the remaining categories
Work permit tied to an Icelandic employer, family reunification, study, or the narrow short-term permit for artists, scientists and athletes.
Apply from abroad
Residence permit applications go to the Directorate of Immigration (Útlendingastofnun), Dalvegur 18, Kópavogur.
Watch for new rules
The Directorate said further guidance on short-term permits was pending; check island.is for updates.
Duration & renewal
Not applicable — the remote-work visa has been repealed. Schengen visits are limited to 90 days in any 180-day period.
Bringing family
The former visa allowed spouses and children to accompany the applicant. The new short-term residence permit is itself a family-visit category (spouse, parent, child or sibling of a resident), not a nomad route.
Pros & cons
Advantages
- EEA nationals keep full free movement
- 90-day Schengen visits remain possible
- Clear official statement of the change
Considerations
- No remote-work visa since May 2026
- Short-term permit excludes remote workers
- Very high cost of living
- Long processing for other permits