Iceland

Country: Iceland

No statutory minimum wage – but pay and terms may never be lower than in the collective agreements, and you get at least 24 working days of holiday a year. 85.8% of people aged 20–64 have a job (EU: 76.1%) and unemployment is 4.5%. Find out where to look, how to register and get your ID number (kennitala), and how tax works.

  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.


published: 2014-09-03
last modification: 2026-10-03

Common questions about job applications and interviews

Key figures: Eurostat (population on 1 January 2026; unemployment and employment rates 2025; minimum wages July 2026); for the United Kingdom – Office for National Statistics; for Liechtenstein – national statistics. Country information: EURES – Living and working conditions, public employment services and the official government websites listed under each country. Rules, thresholds and amounts can change – check the official sources before you move. Updated: October 2026.

StudentNews Group Websites for students and future students — in Poland since 2007, across Europe since 2014. Over 50 websites and millions of users a year (Google Analytics). Studies in Europe Universities in Europe Bachelor’s Master’s Doctorate MBA Study guide Work abroad Travel For partners Advertising and cooperation Reach (online report) Contact advertising@studentnews.eu © 2003–2026 Grupa StudentNews.pl sp. z o.o., Modlnica, Poland
Privacy Policy