Iceland is renowned for its stunning landscapes, vibrant culture, and progressive social policies.
With a unique blend of natural beauty and high quality of life, the Nordic island attracts droves of expatriates in search of opportunity and adventure.
From the Northern Lights to the country’s strong focus on gender equality and a welcoming multicultural environment, moving to Iceland makes sense in so many ways.
If you’re thinking of joining the almost 65,000 foreign nationals living there, here’s a Remitly guide to moving to Iceland.
Visas and residence permits
The rules for moving to a new country invariably depend on where you’re from, and Iceland is no different:
EEA citizens
Citizens of European Economic Area (EEA) member states, or the Nordic states that have an agreement with Iceland—Norway, Denmark, Finland and Sweden—can move there without a visa.
You will simply have to register with Registers Iceland and obtain an Icelandic ID number (Kennitala) within three months of arrival.
Non-EEA citizens
Non-EEA citizens, including US citizens, must apply for a residence permit before moving to Iceland.
Applicants may need to obtain a work visa, student visa, or provide proof of sufficient financial means during the application process.
Non-EEA citizens can apply for permanent residence after living in Iceland for four years.
Visa types
Work visa
A work visa is necessary for non-EEA citizens who plan to work in Iceland.
To obtain a work visa, you must have a job offer from an Icelandic employer.
This is easier for highly skilled workers as the company must be able to demonstrate that the position cannot be filled by an Icelandic or EEA national.
Work permits are usually issued for one year and can be renewed.
Alternatively, you might be eligible for Iceland’s digital nomad visa.
Student visa
Foreign nationals planning to study in Iceland must obtain a student visa.
The application process requires proof of enrollment in an Icelandic educational institution, sufficient financial means, and health insurance coverage.
How does the cost of living in Iceland compare to the US?
The country’s local currency is the Icelandic Króna (ISK) and at the time of writing, $1 is equal to about 138 ISK.
The cost of living in Iceland is relatively high compared to other European countries and even parts of North America.
Key factors contributing to the higher cost include:
- Housing: renting or buying a property in Reykjavik can be expensive. Prices are generally lower in smaller towns like Akureyri.
- Utilities: monthly utilities for an apartment, including electricity, heating, water, and internet typically range from ISK 15,000 to 25,000 ($110–180).
- Groceries: food prices are higher due to Iceland’s reliance on imports, but local produce and seafood can be affordable.
- Dining out: eating out can be costly, with meals in restaurants ranging from ISK 2,500 to 7,000 ($20–50) per person.
What are the best places to live in Iceland?
Reykjavik
Reykjavik, the capital and largest city, is the cultural and economic center of the country and where most immigrants make their new home.
It offers a vibrant urban lifestyle with a mix of modern amenities and historical charm.
Some of the top neighborhoods include:
- Vesturbær: offering a family-friendly environment, proximity to schools, and the University of Iceland.
- Miðborg: bustling with shops, restaurants, and nightlife. This city center neighborhood is an ideal spot to try Iceland’s national dish, Hangikjöt.
- Laugardalur: known for its parks, swimming pools, and recreational facilities, perfect for active lifestyles.
Akureyri
Akureyri is Iceland’s second-largest city, and often referred to as the “Capital of the North.” With its beautiful views and strong sense of community, it’s the perfect place for movers looking to escape the hustle and bustle of big city life while still enjoying urban amenities.
Selfoss
Selfoss, located in the southern part of Iceland, is a growing town combining the calmness of a more rural lifestyle with modern conveniences.
It’s a great base for exploring Iceland’s natural wonders like waterfalls and geysers.
Kópavogur
Kópavogur is a suburb of Reykjavik that provides the perfect blend of city life and suburban comfort. It’s known for its excellent schools, shopping centers, and family-friendly atmosphere.
Hafnarfjörður
Hafnarfjörður is known for its vibrant cultural scene and beautiful harbor views.
This town is famous for its annual Viking Festival and is a great choice for those interested in Icelandic history and culture.
What should I know before making the move to Iceland?
Official language and communication
Icelandic is the country’s official language. Of course, learning the Icelandic language will definitely enrich your experience, but English is widely spoken and understood here.
In Reykjavik and other urban areas, most Icelanders are fluent in English, making it easier for expats to communicate and integrate into society.
Healthcare system
Iceland is known for its high-quality healthcare system. Anyone working in the country and making social security contributions has access to the comprehensive, state-funded Icelandic healthcare services.
Private healthcare
Health insurance is mandatory for all Icelandic residents. A public version is included as part of your social security contributions but expatriates can opt to contract additional private health insurance.
This will cover services not included in the public system and ensure access to private healthcare options.
Day-to-day life in Iceland
Here’s a practical look at what to expect from Iceland as you settle into your new country.
Banking
Opening a bank account is a pretty straightforward process. Most banks in Iceland require proof of identity and residence, and a Kennitala (the Icelandic ID number).
Popular banks include:
Education
Iceland is well known for its high standards of education with a strong emphasis on inclusivity and gender equality.
The education system includes public and private schools, with several international schools catering to expatriate families.
The University of Iceland in Reykjavik is the country’s top higher education institution and offers programs in English.
Also read: Unlocking the World: Your Guide to Choosing the Perfect Study Abroad Program
Crime rates
Iceland is famous for having extremely low crime rates and is considered one of the safest countries in the world.
The strong sense of community and effective law enforcement contribute to the country’s crime-free nature.
Gender equality and social policies
Iceland is known as a progressive nation, a global leader in gender equality and social policies.
The country consistently ranks high in gender equality indices, with strong laws promoting equal rights and opportunities for all genders. This creates an inclusive environment for expatriates.
Public transport
Iceland’s public transport system is mainly bus-based, with extensive routes in Reykjavik and limited services in rural areas.
The country’s small size makes driving a popular option for exploring its natural beauty. Car rentals and ride-sharing services are also widely available.
Cultural and social life
Iceland’s capital Reykjavik is a hub of cultural and social activity. The city offers numerous museums, galleries, and theaters, showcasing Iceland’s rich heritage and contemporary arts. It also hosts various festivals throughout the year, including the Reykjavik Arts Festival and Iceland Airwaves Music Festival.
Northern Lights
One of Iceland’s most spectacular natural phenomena is the Northern Lights, or Aurora Borealis. The best time to witness the world-renowned display is from September to April.
Popular spots for viewing the Northern Lights include Reykjavik, Thingvellir National Park, and the northern regions around Akureyri.
Waterfalls and natural hotspots
Iceland is famous for its stunning waterfalls, geysers, glaciers, and hot springs. Some must-visit natural attractions include:
- Gullfoss: a powerful, two-tiered waterfall on the Golden Circle route.
- Seljalandsfoss: known for its scenic beauty and the pathway that allows visitors to walk behind the falls.
- Skógafoss: a large waterfall with a viewing platform offering magnificent views.
- Blue Lagoon: a geothermal spa with milky-blue waters, perfect for relaxation and rejuvenation.
Swimming pools and hot springs
Icelanders enjoy a strong swimming culture, and the country boasts numerous natural pools and hot springs. These facilities are not just for exercise but also serve as social gathering spots.
The Blue Lagoon is the most famous, but there’s also the Mývatn Nature Baths and various other public swimming pools throughout Reykjavik.
A move to Iceland promises a unique blend of natural beauty, cultural curiosities, and high standards of living.
Whether you’re looking for new opportunities, pursuing a top-class education or simply seeking a change of pace, we hope this Remitly guide has provided some practical insights.
For more detailed information, visit the Directorate of Immigration’s official website.
FAQs: Moving to Iceland
Is it difficult to immigrate to Iceland?
Immigrating to Iceland is relatively straightforward for EEA/EFTA citizens from Europe and Nordic countries, who only need to register and obtain a Kennitala (ID number).
For non-EEA nationals like Americans, the immigration process is more complex. US citizens must secure a residence permit before arriving, typically for work, study, or proving financial means.
Can US citizens move to Iceland?
Yes, US citizens can move to Iceland. Assuming they’re granted residence before arriving, they must sign up with Registers Iceland on arrival and obtain a Kennitala. After four years of continuous residence,
US citizens can apply for permanent residence. Iceland is particularly open to qualified professionals from the USA in fields like technology and healthcare.
How much money do I need to immigrate to Iceland?
Financial requirements for immigrating to Iceland include:
- Visa fees: around ISK 10,000–20,000.
- Proof of funds: sufficient financial resources are required.
- Living costs: monthly expenses typically range from ISK 200,000–400,000, depending on lifestyle and location.
- Initial setup costs: include deposits and household setup.
What are the downsides of living in Iceland?
- High cost of living, especially in Reykjavik.
- Winter darkness: Limited daylight in winter.
- Isolation: Small population and remote location.
- Icelandic weather: Unpredictable and often severe conditions.
How does a US citizen permanently move to Iceland?
US citizens must apply for a residence permit through the Directorate of Immigration, usually based on work or financial means.
After arriving, they must get a Kennitala and register with Registers Iceland. After four years, they can apply for permanent residence and potentially Icelandic citizenship, attracting many qualified professionals from the USA.
