Considering moving to Iceland? With its enchanting landscapes and northern charm, Iceland has become a sought-after destination not just for travel but also for relocation. If you're wondering how to move to Iceland and start a new life in Iceland, here's everything you need to know.
Epic landscapes are part of everyday life in Iceland—from weekend hikes to Highlands road trips. Photo: Gunnar Gaukur.
Living in Iceland is a unique experience. The country has a reputation as a safe, picturesque, and hospitable place with a robust community and high quality of life. However, before you make the big move, it's crucial to do thorough research to avoid potential issues.
To give you a snapshot of what Iceland is like, consider these quick facts:
Outdoor-ready life in Iceland: nature is always close, from quick hikes to weekend road trips.
Yes, Iceland is a good place to live. There are myriad reasons why this Nordic island is often regarded as one of the best places to live. First and foremost, the natural beauty is unparalleled. The landscapes here are breathtaking, from the mesmerizing northern lights to the endless summer days. But there are more reasons why living in Iceland is one of the best choices you can make.
Iceland consistently ranks as one of the safest countries in the world. In 2025, Iceland was placed as the world's 1st-safest country by the Global Peace Index (GPI). Berkshire Hathaway Travel Protection (BHTP) places the nation as the 4th safest country to visit in 2026. It highlights only one possible danger on the Scandinavian island—volcanic eruptions.
Safety in Iceland isn't just about the absence of external threats. It's about the internal peace and security that residents feel. The country boasts an impressively low crime rate. From minor offenses like theft to more severe crimes, incidents are rare. The police force doesn't even carry guns, and the country doesn't have an army. This trust extends to child safety, with many parents allowing their children to play outside without constant supervision.
Iceland is renowned for its unique landscapes, but did you know it also ranks high for air quality? The air is so clean and fresh that many Icelandic parents let their babies nap outdoors. Additionally, while Iceland is home to a variety of wildlife, none pose a threat to humans. From Icelandic horses to Arctic foxes, the animals you might encounter are more likely to charm than harm.
Iceland is a beacon for LGBTQ+ rights, with events like Gay Pride in Reykjavik celebrating love in all its forms. The country also stands out for its gender equality, with a virtually non-existent wage gap and active participation of women in politics. The Icelandic sense of community is strong, with locals known to be welcoming hosts to tourists, always ready to lend a helping hand.
Your road to moving to Iceland: plan the key steps before you arrive.
Moving to Iceland is thrilling but demands careful planning. If you're considering relocating to Iceland and integrating seamlessly, it's essential to prepare. Being an EU citizen makes things somewhat easier since Iceland, though not an EU member, is part of the Schengen Area. However, moving abroad always demands thorough preparation.
Online communities can make moving to Iceland feel far less overwhelming.
Before you move to Iceland, a good starting point is joining relevant social media groups. Engaging with travelers, immigrants, and fellow countrymen in Iceland can offer insights into common questions and solutions.
Here are some of the more popular groups about Iceland:
To truly integrate, it's vital to stay informed about local events and issues.
Here are some reliable English news sources about Iceland:
Brace for Iceland’s fast-changing weather—waterproof layers make all the difference.
The Icelandic climate can be challenging to adapt to, as it might rain one moment, blow powerful winds the next, and be sunny afterwards. Ensure you have appropriate clothing and be aware of potential issues, such as Seasonal Affective Disorder.
To understand the weather in Iceland, here are some valuable sources:
While Icelandic is the official language, about 98% of Icelanders speak English, making it possible for newcomers to navigate Iceland using just English.
However, for those whose first language isn’t English, learning Icelandic is crucial, especially for careers beyond basic roles like housekeeping or dishwashing. Even in entry-level positions, understanding basic to intermediate Icelandic is important, as it enables smoother communication and deeper integration into everyday life, helping newcomers feel more at home.
For anyone planning a longer stay or seeking meaningful local connections, learning Icelandic is essential. The language’s uniqueness makes locals value any effort to learn it. Fortunately, resources abound—from language apps and YouTube tutorials to dedicated websites—making it easier than ever to start your Icelandic journey.
Immersing yourself in the language not only opens professional doors but also enriches cultural experiences and fosters genuine relationships with Icelanders.
Here are pages and materials that could help you learn the language:
Harpa in Reykjavík: a modern capital with high salaries—and higher everyday costs.
Iceland boasts impressive living standards. The unemployment rate has shown a steady decline in recent years: 3.38% in 2023, 3.37% in 2024, and 3.93% in 2025. Salaries in Iceland are notably high compared to many other countries. However, it's essential to note that Iceland ranks among the most expensive countries globally.
Before considering a move to Iceland, it's advisable to thoroughly research living expenses to get a realistic understanding of the financial landscape. In short, Iceland is not a budget-friendly place. According to cost-of-living comparisons, consumer prices in Iceland are about 35% higher than in the US, and restaurant prices about 42% higher, while rent is closer to US levels (see sources below).
Want to verify the latest numbers before you budget? These sources help you compare the cost of living in Iceland, Reykjavík prices, and the wider economy.
Cost of living:
Economy and indicators:
Reykjavík is Iceland’s economic hub—research costs and wages before you relocate.
Before making the move, it's a good idea to keep an eye on job listings in Iceland. This will give you insight into the in-demand professions and the language requirements for each. For instance, roles in the tourism and hospitality sectors are typically easier to secure with just English proficiency. On the other hand, landing a corporate or office position might be challenging without a grasp of Icelandic. So, if you're aiming for a more ambitious career path, it's crucial to be mentally prepared and set clear objectives.
Moreover, wages in Iceland have been rising. The average monthly wage of 867,000 ISK (EUR 5,901 / USD 6,829) in 2023 grew to 909,000 ISK (EUR 6,187 / USD 7,160) in 2024, according to Trading Economics.
Here are reliable sites to monitor job opportunities in Iceland:
Real estate outside of the capital city is less costly, but still expensive.
Most Icelanders own their homes, leading to a smaller rental market. Renting is less common, with 80% of properties being privately owned. The rental market is primarily driven by classified ads in local newspapers.
Quickly, you'll realize that securing an affordable rental might be a tougher challenge than landing a job. When a decent apartment is listed, the demand is immense. Those with local references and stable employment often have the upper hand over newcomers. It's essential to have a strategy to demonstrate that you're a reliable and outstanding tenant.
If you’re wondering which Icelandic cities are best for expats, Reykjavik, the capital, is the obvious choice, as it is vibrant and culturally rich. Additionally, Hafnarfjörður is known for its Viking culture, and Akureyri is ideal for outdoor enthusiasts!
Here are the most useful sites and groups for finding rentals in Iceland:
Iceland’s growing tourism industry is increasing demand for international workers.
By 2030, Iceland anticipates the need for an additional 30,000 international workers, largely driven by the booming tourism sector. With over 2 million tourists flocking to Iceland annually, the local population of almost 400,000 struggles to meet the demand. Consequently, the call for foreign workers is on a steady rise.
This trend is underscored by data. According to Statistics Iceland data, immigrants accounted for approximately 18.9% of the country’s total population, or around 73,000 people, as of January 1st, 2025.
This is an increase from 18.2% in 2024, representing approximately 69,000 people. They are distributed across the island, with most (around 50%) in the capital and the southwest.
Grasping your rights and duties is essential, especially when you’re transitioning from a different cultural and legal background. What might be standard practice in one country could be legally controversial in another. Equally important is recognizing your rights as an expatriate, laying the foundation for a smoother integration into your new home.
The Icelandic Human Rights Centre plays a key role in promoting human rights awareness and research in Iceland. They also monitor the status and implementation of human rights in the country.
For people with disabilities, the Centre offers legal counseling sessions on Tuesdays and Fridays between 09:00 AM and 04:00 PM, or by email at rettindagaesla@mannrettindi.is.
Another valuable resource is the Multicultural and Information Centre, which provides insights into the diverse cultures and backgrounds of people residing in Iceland.
Given the chance, take a road trip around Iceland.
Establishing oneself in a new country usually begins with securing accommodation and employment. It also involves gathering essential documents to successfully integrate into the local community.
Before you arrive, here are the basics on entry, visas, and permits for moving to Iceland:
Settling in Iceland starts with the essentials—register your address and apply for a kennitala early.
The immigration procedures vary for EEA/EFTA and non-EEA/EFTA citizens. And understanding a few nuances can smooth your transition. Nationals from EEA/EFTA regions can reside in Iceland for up to three months without registering a domicile.
For long-term plans, you need to secure “kennitala,” a ten-digit personal identification number. To obtain this, one must personally visit the Þjóðskrá Íslands (Registers Iceland). The approval process can take up to 9 weeks, so it's advisable to submit your kennitala application as soon as you arrive in Iceland.
For official guidance on registration, residence rules, and kennitala requirements, use these resources:
Kennitala first: it unlocks work, banking, and everyday life in Iceland.
In Iceland, a kennitala (personal ID number) is a must. Think of it as your all-access pass, linking you to employment, taxation, healthcare, and social benefits. Whether you're opening a bank account, seeking employment, or renting a place, your kennitala is key.
For EEA/EFTA newcomers, a swift approach is to first register for a short-term stay and then acquire a kennitala from banks like Arion Banki or Islandsbanki. This will cost around 9,200 ISK (EUR 62.93 / USD 72.98), and you'll need an ID photo for your new debit card.
During this phase, there's no need to formalize your residency in Iceland. You can use a provisional address, whether it’s from a friend, your employer, a host family, or even your Airbnb. This temporary kennitala allows you to legally look for jobs and rent accommodations. However, note that it expires in three months if you don't secure employment.
Once you've landed a job and have a fixed address, it's essential to register your domicile with the Icelandic National Registry to upgrade to a permanent kennitala, a process that typically spans 2 to 3 months.
A smooth move to Iceland starts with the right permit and up-to-date requirements.
For those outside the EEA/EFTA regions, moving to Iceland might come with its share of red tape. Most individuals must secure a residence permit from the Directorate of Immigration if they plan to stay beyond three months. Once this permit is in hand, they can apply for their kennitala upon setting foot in Iceland.
An integral part of this application requires that you demonstrate your financial self-sufficiency in Iceland. According to Registers Iceland, individuals need a minimum monthly income of 247,572 ISK (EUR 1,693.38 / USD 1,966.42) monthly (or 396,115 ISK (EUR 2,709.40 / USD 3,146.52) for couples) as of January 16th, 2026.
The Directorate of Immigration provides comprehensive information on Iceland’s immigration requirements and procedures. While amendments in August 2023 extended the validity of certain permits and strengthened family reunification rights, further changes have since been introduced.
From 2024 onward, adjustments were made to the duration of some protection-based permits, family reunification conditions, and asylum procedures, along with updated income requirements and higher application fees. As regulations continue to evolve, it is advisable to consult official sources regularly for the most current guidance.
For the latest official rules on permits and registration, start with these resources:
Only the latter two (qualified professionals and family reunification) lead to a permanent residence permit. The rest of the permits are temporary and expire when the work/course expires, and you must leave Iceland immediately.
After residing legally in Iceland for six months, individuals automatically become part of the Icelandic social insurance system, irrespective of nationality. Iceland offers advanced healthcare in urban areas. The system is state-run and funded through taxation. Only citizens and residents are entitled to public healthcare, with some fees applicable for certain services.
For EEA citizens, the transition is smoother; they can shift their health insurance to Iceland from the day they register their legal residence. To facilitate this, EEA citizens should acquire the E104 form, which verifies their insurance from their last country of residence.
This form, along with the 'Application for Health Insurance,' should be submitted to Icelandic Health Insurance. If you haven't secured the E104 form, the European Health Insurance Card can act as a safety net, covering emergency expenses.
It’s advisable to consult Icelandic Health Insurance for the most up-to-date information. Since October 2023, login via Íslykil has been discontinued and replaced by secure e-ID access through Ísland.is.
Digital services have continued to expand, allowing users to manage applications, renew aids, and handle medical equipment bills online. From April 2025, official communications are delivered exclusively through the Ísland.is digital mailbox.
Official resources for health insurance in Iceland:
Start work legally and understand your rights—especially in service-sector roles.
Engaging in undeclared work or volunteering in exchange for food and accommodation in economically active sectors, such as farming, is prohibited in Iceland. Newcomers, especially those navigating the rental and employment markets, can find themselves in dangerous situations if they're unaware of their rights.
When you begin legal employment in Iceland, a minor union fee is automatically deducted from your salary. This union serves as your advocate, ready to assist with queries about your rights, earnings, vacation days, or any other work-related matters.
Two of the most prominent unions in Iceland are Efling and VR. The VR union provides a wide range of services to its members, including career development support, vocational training grants, and other member benefits. As of August 2023, VR ended its relationship with Íslandsbanki, moving its banking operations elsewhere. In addition, the union has launched the Blær housing initiative, which has already begun allocating apartments to members.
Personal income tax in Iceland is progressive, ranging from 31% to 46%. However, we’d advise you to get professional tax advice when moving to Iceland.
Useful websites where you can find more information:
In Iceland, people can find communities where they can feel welcomed.
Finding a community and making new friends is an important part of settling into a new country. Local associations can help immigrants adjust, and connecting with others in similar situations is always valuable.
If you’re curious about love and social life in Iceland, learning about the Icelandic dating scene can offer interesting insights. Understanding the country’s approach to relationships and the role of Icelandic women in society can also shed light on local culture.
For those looking to truly integrate and build lasting connections with Icelanders, learning the native language and embracing its cultural norms are essential. Being aware of local etiquette and social nuances can go a long way in forming meaningful relationships and feeling at home in this unique and enchanting nation.
Here are more helpful sources to check if you plan on living in Iceland:
Iceland is full of surprises, with stunning sights waiting around every corner.
Building a new life in a foreign country is never without its challenges. Even with careful preparation, unexpected obstacles often arise. Winters can be harsh, and the weather unpredictable throughout the year.
Yet these difficulties are balanced by breathtaking wonders, from the ethereal Northern Lights to the magical midnight sun in Iceland. Beyond the natural beauty, life here offers remarkable benefits: low pollution, strong social trust, deeply held values, and a high standard of living—all of which make calling this place home feel truly rewarding.
Moving to Iceland can be challenging, mainly due to strict immigration and residency requirements. Non-EU citizens usually need a work or residence permit, which requires a job offer or other qualifying reason. The high cost of living and limited housing options can also make settling in more difficult. However, for those who plan carefully and secure employment, the process is manageable.
Moving to Iceland introduces you to stunning natural beauty, a high standard of living, and a strong focus on education, healthcare, and safety. It also offers a close-knit community and year-round opportunities for outdoor activities. On the downside, the cost of living is very high, housing can be scarce, and the long, dark winters may be challenging for some. Additionally, job opportunities can be limited, especially for non-Icelandic speakers.
Yes, a U.S. citizen can live in Iceland, but they need the proper visa or residence permit. For stays longer than three months, this usually means obtaining a work, student, or family reunification permit. Short visits of up to 90 days for tourism do not require a visa. Long-term residence also involves registering with Icelandic authorities and meeting certain financial or employment requirements.
Yes, you can legally move to Iceland, but you must follow immigration rules. Non-EU/EEA citizens need a residence permit, usually for work, study, or family reasons. You also must register with local authorities and meet financial or employment requirements. Failing to obtain the proper permits would make living there illegal.
Yes, living in Iceland is generally expensive. Housing, groceries, and dining out cost more than in many other countries. Utilities and transportation are also pricey due to the country’s remote location. However, higher costs are often balanced by strong social services, healthcare, and a high standard of living.
Yes, a foreigner can live in Iceland, but they need the appropriate residence permit. EU/EEA citizens have an easier process, while non-EU/EEA citizens usually need a work, study, or family visa. Long-term residence requires registration with Icelandic authorities and meeting financial or employment criteria.
Moving to Iceland can be a great idea if you value safety, natural beauty, and a high quality of life. The country boasts strong healthcare and education, along with a close-knit, peaceful society. However, the high cost of living, limited job market, and long, dark winters can be challenging. Overall, the nation is ideal for those prepared for its unique lifestyle and environment.
Yes, EU/EEA citizens can move to Iceland relatively easily. They do not need a visa but must register with Icelandic authorities if staying longer than three months (90 days). This process involves showing proof of employment, study, or sufficient funds to support themselves. Once registered, they can live, work, and access many public services in Iceland.
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