Your first weeks working abroad – registration, tax, insurance

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.