News in Iceland
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Iceland Removes Work Permit Requirement for Student Residence Permit Holders
Iceland's Directorate of Immigration has announced that amendments to the Foreign Nationals Act and the Act on the Employment Rights of Foreign Nationals now allow student residence permit holders to work without obtaining a separate work permit.
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Iceland Moves Work Permit Processing from Directorate of Labour to Directorate of Immigration
On June 18, 2026, Iceland's parliament passed amendments to the Foreign Nationals Act and the Act on the Employment Rights of Foreign Nationals, transferring work permit application processing and issuance from the Directorate of Labour to the Directorate of Immigration. The amendments take effect the day after publication.
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Iceland Moves Visa Processing from Directorate of Immigration to Ministry for Foreign Affairs
Under the new Visa Act (No. 37/2026), Iceland has transferred full responsibility for visa processing from the Directorate of Immigration to the Ministry for Foreign Affairs. The Ministry will now handle both visa issuance and application processing for Iceland.
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Iceland Increases Minimum Income Requirement for Residence Permits and Citizenship from May 2026
Effective May 18, 2026, Iceland's required monthly financial means for adults applying for a residence permit or citizenship rises from ISK 247,572 to ISK 259,951 pre-tax. The threshold for married couples increases from ISK 396,115 to ISK 415,922 per month.