Iceland

Iceland is a small country of 394,324 people with an employment rate far above the EU average: 85.8% of people aged 20–64 have a job (EU: 76.1%).

Unemployment is low, but it went up in 2025 – from 3.6% in 2024 to 4.5% (2022: 3.8%), still below the EU average of 6.0%. Youth unemployment is also low: 9.5% among people aged 15–24, compared with 15.2% in the EU.

Iceland is not in the EU, but it is part of the EEA. So as an EU/EEA citizen you do not need a work permit. Keep two things in mind: most Icelandic employers advertise jobs in Icelandic, and finding a flat is hard – demand for rentals is much higher than supply and rents are high.

The best official signal of where employers are hiring is the job vacancy rate. According to EURES, the sectors with the highest job vacancy rates are:

• human health and social work,
• education,
• arts, entertainment and recreation,
• public administration and defence,
• administrative and support services.

The biggest employers by sector are wholesale and retail trade (18.5% of jobs), manufacturing (15.2%), construction (11.8%) and accommodation and food services (11.4%).

Public-sector vacancies – in health care, education, research, administration and specialist roles – are listed on the government job board Starfatorg; when we checked in October 2026 it showed 176 open positions.

For graduates, health care, education and public services look most promising – and Icelandic is a big advantage everywhere.

The Directorate of Labour (Vinnumálastofnun) is Iceland’s public employment service and EURES office. Start here:

• Directorate of Labour – jobs – vacancies registered with the Directorate, by region and job percentage, including EURES jobs,
• Starfatorg – all vacant jobs in the government sector (in Icelandic),
• EURES – the EU job portal; EURES Iceland answers questions at eures@vmst.is.

Prepare well before you move: study the main job websites and media, and have your documents ready. Most employers advertise in Icelandic unless the job is posted through EURES, and more and more of them use electronic application forms on their own websites.

For step-by-step advice on job search, CVs and interviews in any EU country, see our How to find a job abroad – 10 practical guides.

In Iceland you normally send a CV with your application. The Directorate of Labour recommends:

• a CV – usually 1–2 pages, most recent education and jobs first; you do not need to list everything, only what matters for this job; add referees who can assess your work, e.g. your current or previous boss, colleagues or teachers; check spelling carefully,
• a cover letter (letter of introduction) – half a page to one page, focused on the job and why your skills fit it, not on your life story.

See the Directorate’s guide to CVs and letters of introduction; you can also use Europass. Translate your documents into English and/or Icelandic before you come.

The interview: be ready to answer questions about everything in your CV.

Diplomas: the ENIC-NARIC office evaluates foreign higher education free of charge (evaluation of foreign higher education). For regulated professions you need a separate licence.

• No statutory minimum wage. Minimum pay is negotiated for each sector by the social partners and can differ between sectors – but salaries and terms of employment may never be lower than in the collective agreements.
• Working time: daytime work is usually 40 hours a week (173.33 hours a month); work beyond that is paid extra. On average you may not work more than 48 hours a week over a 4-month period. You get at least 11 hours of continuous rest a day, and a break of at least 15 minutes on days longer than 6 hours.
• Overtime is paid per hour at 1.0385% of your monthly daytime wage. Shift work gets at least 33% extra from 17:00 to 24:00 on weekdays and 45% from 24:00 to 08:00.
• Holidays: at least 2 working days for each month worked – 24 working days a year – with at least 14 days in the summer period (2 May–15 September). A holiday allowance of at least 10.17% of total wages is set aside whenever salary is paid.
• Sick leave: at least 2 days for each month worked.
• Contract: if your job lasts more than a month and you normally work more than 8 hours a week, you must get a written contract or confirmation within 2 months of starting. It refers to the collective agreement and states your pay, working hours, pension fund and notice period.

Students from the EU/EEA can work in Iceland without any permit. If you stay longer than 3 months, register with Registers Iceland – students have their own registration category.

• Student and holiday jobs are covered by the collective agreements like any other job – your pay and terms may not be lower.
• Short jobs: if you work in Iceland for less than 6 months without registering legal domicile, you need a system ID number (kerfiskennitala) for tax purposes – Iceland Revenue and Customs (Skatturinn) applies for it, usually at your employer’s request (form RSK 3.30). It gives you no residence rights.
• Tax: tell your employer to use your personal tax credit (ISK 72,492 a month in 2026). With a small part-time income, it can cover all of your income tax.

Students from outside the EEA with a student residence permit may work without a work permit for up to 60% of full-time during their studies, and more during scheduled breaks between terms.

Thinking of studying there first? See Studying in Iceland – practical information.

1. Register with Registers Iceland (Þjóðskrá): EEA/EFTA citizens staying longer than 3 months must register; from 6 months on, registering your legal domicile is compulsory. As an employee, use form A-271 with your passport or ID card and your employment contract (normally for at least 10 weeks); your employer confirms with form A-272. You must identify yourself in person at Registers Iceland or a police station. Processing takes up to 10 working days.
2. ID number (kennitala): you get it when you register – you need it for public services, banking and much more.
3. Health insurance: you are automatically covered by Icelandic health insurance (Sjúkratryggingar Íslands) 6 months after registering your legal residence – immediately if you hand in the E-104 certificate from your previous country together with your registration.
4. Tax: in 2026 tax is withheld at 31.49% on monthly income up to ISK 498,122, 37.99% up to ISK 1,398,450 and 46.29% above that, minus a personal tax credit of ISK 72,492 a month. If you stay less than 6 months in a 12-month period, you have limited tax liability.
5. Bank account: open one once you have your kennitala – banks need it.

Problems with your rights as an EU/EEA worker? Your Europe Advice and SOLVIT help for free.

EU/EEA citizens can live and work in Iceland under the EEA Agreement – you just register (see above). Nordic citizens follow separate rules.

If you are not an EEA/EFTA citizen, you need a residence permit based on work from the Directorate of Immigration (Útlendingastofnun), and you must have a job offer from an Icelandic employer. The main work-based permits are for:

• work requiring expert knowledge,
• a shortage of labour – if you need a visa, you may not be in Iceland while your application is processed,
• athletes, and work under a collaboration or service contract.

Graduates of Icelandic universities (bachelor’s, master’s or doctoral degree) can get a special residence permit to look for a job after graduation – a bridge between the student permit and a permit for work requiring expert knowledge. The processing fee for work-based permits is ISK 80,000.

All the conditions and application steps are explained on island.is.

• Eurostat – population on 1 January, unemployment by age, employment rate (data for 2025 and 2026),
• EURES – Living and working conditions: Iceland, Labour market information: Iceland,
• Directorate of Labour – jobs, jobs in Europe (EURES), CV and letter of introduction,
• Ísland.is – Starfatorg (government jobs), registration of EEA/EFTA citizens, evaluation of foreign higher education, licence for a regulated profession,
• Registers Iceland – EEA/EFTA citizens, employees, staying less than 6 months,
• Iceland Revenue and Customs – tax liability and withholding rates, personal tax credit 2026,
• Directorate of Immigration – residence permit based on work, students’ rights and obligations,
• Your Europe – working abroad.

Updated: October 2026.