Iceland, the Land of Fire and Ice, offers digital nomads a unique experience combining otherworldly landscapes with excellent infrastructure. As a Schengen/EFTA member, it provides visa-free access for many nationalities and has introduced a dedicated Long-term Remote Work Visa since October 2020. Despite high living costs, Iceland attracts remote workers with its exceptional internet connectivity (among world's fastest), safety (ranked #1 on Global Peace Index), tax-free status for remote workers, and access to stunning natural wonders including the Northern Lights, glaciers, hot springs, and volcanic landscapes.
8
Visa Types
184
Nationalities visa-free
🪪Your Passport:
Visa requirements vary by nationality
🎫 Available Visa Types
⭐Recommended for Digital Nomads
Tourist
Schengen Visa-Free Entry
Citizens of visa-exempt countries can enter Iceland and the Schengen Area without a visa for up to 90 days within any 180-day period for tourism, business meetings, or family visits.
90 days
Duration
€0
<$1 fee
+€50 additional
✅ Key Benefits
✓No visa application required
✓Free entry
✓Access to entire Schengen Area
✓Multiple entries allowed within 90/180 day limit
✓Can be combined with visits to other Schengen countries
📋 Requirements (6)
•Valid passport with at least 3 months validity beyond intended stay
•Passport issued within the last 10 years
•Proof of accommodation (hotel booking or invitation)
•Proof of sufficient funds for the stay
•Return or onward ticket
•Travel insurance recommended
📝 Application Process
Embassy Required⏱ Immediate entry at border
1Ensure passport meets validity requirements
2Have proof of accommodation and sufficient funds ready
3Arrive at Keflavík International Airport or other approved entry point
•Use a Schengen calculator to track your 90/180 days across all Schengen countries
•Keep proof of accommodation and funds accessible
•Iceland counts toward your overall Schengen stay limit
•Book return flights before arriving
•Travel insurance highly recommended due to high healthcare costs
⭐Recommended for Digital Nomads
Work
Long-term Visa for Remote Work
Iceland's digital nomad visa allows non-EEA/EFTA remote workers to live and work from Iceland for up to 180 days. Introduced in October 2020, it's designed for employees of foreign companies or self-employed individuals with foreign clients.
180 days
Duration
ISK 12,200
$13.2K fee
+ISK 150,000 additional
💰 Income Requirement
Minimum $1,000,000/per_month
Alternative: ISK 1,300,000 per month if applying with spouse/partner. Employment contract with salary information or freelance contracts showing agreed payments accepted as proof.
✅ Key Benefits
✓Tax-free income from foreign sources
✓Legal status to live and work remotely in Iceland
✓Access to stunning landscapes and high quality of life
✓Spouse and children can apply as family members
✓Access to Schengen Area during visa validity
✓Excellent internet infrastructure (289 Mbps average)
✓Safe country ranked #1 on Global Peace Index
📋 Requirements (9)
•Residency outside EEA/EFTA countries
•No visa requirement to enter Schengen Area (visa-exempt nationality)
•No long-term visa from Iceland in past 12 months
•Purpose is remote work only, not settling in Iceland
•Minimum income of ISK 1,000,000 per month (approximately €7,200 or $7,763)
•ISK 1,300,000/month if applying with spouse (approximately €9,400 or $10,130)
•Health insurance with ISK 2,000,000 minimum coverage
•Employment contract or proof of self-employment
•Confirmation of remote work authorization from employer
📝 Application Process
✓ Online Application⏱ 3-4 weeks, may be extended if additional documents required
1Download application form from island.is
2Complete form electronically with correct information
3Print and sign the application
4Gather required documents (passport, photos, insurance, income proof)
5Pay processing fee (ISK 12,200) via bank transfer
6Include payment receipt with name and date of birth
7Mail application to Directorate of Immigration or deliver in person
8Wait for email decision (3-4 weeks processing)
9Upon approval, travel to Iceland
10Contact Directorate of Immigration after arrival to receive visa
•Apply from your home country and wait for approval before traveling
•If you enter Schengen before approval, time will be deducted from your visa
•Income requirement is one of highest globally - budget accordingly
•Cost of living in Iceland is very high (€2,500-3,500/month)
•Best months are June-September for weather and daylight
•Book accommodation in advance as options are limited
•Children 6-16 must provide school confirmation for remote teaching
⭐Recommended for Digital Nomads
Special Program
EEA/EFTA Freedom of Movement
Citizens of EEA (European Economic Area) and EFTA (European Free Trade Association) countries can live, work, and study in Iceland without visa or residence permit. Must register if staying over 3 months.
0 days
Duration
€0
<$1 fee
✅ Key Benefits
✓No visa or work permit required
✓Full access to labor market
✓Right to live and work indefinitely
✓Access to public healthcare
✓Equal treatment as Icelandic citizens
✓Can bring family members
✓Access to education and social services
📋 Requirements (3)
•Valid passport or national ID card from EEA/EFTA country
•For stays over 3 months: register at Registers Iceland
•For job seekers: can stay up to 6 months looking for work
📝 Application Process
Embassy Required⏱ Immediate entry, registration within 3 months of arrival
1Arrive in Iceland with valid passport or national ID
2Stay freely for up to 3 months
3If staying longer, register at Registers Iceland (Þjóðskrá)
•Obtain kennitala as soon as possible after registration
•Nordic citizens (Denmark, Finland, Norway, Sweden) have simplified procedures
•Bring EHIC card from home country for initial healthcare access
Schengen Visa (Type C)
Tourist
Short-stay visa for citizens of countries requiring a visa to enter the Schengen Area. Valid for tourism, business, family visits, or short courses for up to 90 days within 180 days.
90d
Duration
€90
$98 fee
+€80 additional
📍Apply: Embassy
⏱Approximately 15 calendar days, may take longer in peak season
🔄No extension
View full details
💰 Cost Breakdown
EURUSD
Required
Visa application feeStandard adult fee as of 2024, non-refundable
€90$98
Additional (estimated)
VFS Global service feeIf applying through external service provider
💡 Costs may vary. Additional costs are estimates and may not all apply to your situation. Always verify current fees with official sources.
📋 Requirements
•Valid passport with at least 3 months validity beyond intended stay
•Completed visa application form
•Two recent passport-sized photos (35x45mm)
•Travel medical insurance with minimum €30,000 coverage
•Proof of accommodation in Iceland
•Round-trip flight reservation
•Proof of sufficient financial means
•Employment letter or business registration
•Travel itinerary
•Visa fee payment receipt
📝 Application Steps
1Check if you need a Schengen visa at island.is
2Download and complete the application form electronically
3Gather all required documents
4Schedule appointment through VFS Global or Icelandic embassy
5Pay visa fee (€90) and service fee if applicable
6Attend appointment in person for biometric data collection
7Wait for processing (approximately 15 calendar days)
8Collect visa or receive decision notification
⚠️ Restrictions
•Cannot work in Iceland
•Cannot stay beyond 90 days
•Must leave Schengen Area when visa expires
•Cannot convert to residence permit while in Iceland
💡 Tips
•Apply at least 15 days before travel, up to 6 months in advance
•Iceland has outsourced visa processing to VFS Global in many countries
•Ensure all documents are in English or translated
•Children under 6 are exempt from visa fees
•Children 6-11 pay reduced fee of €45
Residence Permit Based on Work
WorkPopular
For non-EEA/EFTA citizens who have secured employment with an Icelandic company. Requires job offer and employer sponsorship. Allows full participation in Icelandic labor market.
365d
Duration
ISK 16,000
$17.4K fee
+ISK 100,000 additional
📍Apply: Embassy
⏱2-3 months or longer depending on labor market situation
Yes, Iceland introduced the Long-term Visa for Remote Work in October 2020, making it one of the first Schengen countries to offer such a program. The visa allows remote workers from visa-exempt countries to live and work from Iceland for up to 180 days. Applicants must earn at least ISK 1,000,000 per month (approximately €7,200 or $7,763) from foreign sources, have health insurance with ISK 2,000,000 coverage, and work for a foreign employer or be self-employed with foreign clients. The application fee is ISK 12,200 (about €88). A major advantage is that income earned while on this visa is tax-free in Iceland.
Can I work remotely in Iceland on a tourist visa?
This is a gray area. Technically, visa-free entry is for tourism, business meetings, and short visits - not for working. However, Iceland specifically created the Long-term Remote Work Visa for digital nomads who want to work legally. For short stays under 90 days, enforcement is practically non-existent for remote workers quietly doing their own work, but you would not have legal status to work. For longer stays or if you want legal certainty, the Remote Work Visa is the proper option. Working for Icelandic companies or in the local labor market always requires proper work authorization.
What is the cost of living in Iceland for digital nomads?
Iceland is one of the most expensive countries in the world. Digital nomads should budget €2,500-3,500 per month for a comfortable lifestyle in Reykjavik. Breakdown: rent for a studio or 1-bedroom apartment €1,300-1,800/month, groceries €400-600, dining out €300-500, transport €100-150, coworking €200-500. Outside Reykjavik, costs are similar or even higher due to limited options. Many digital nomads reduce costs by cooking at home, using Airbnb long-term discounts, and limiting expensive tourist activities. The high income requirement for the Remote Work Visa (€7,200/month) reflects this reality.
How is the internet connectivity in Iceland?
Iceland has excellent internet infrastructure, ranking among the top countries globally for internet speed. Average fixed broadband speed is around 289 Mbps, with 98% household coverage. Reykjavik and other towns have reliable fiber connections. Most cafes, coworking spaces, and accommodations offer high-speed WiFi. Mobile 4G/LTE coverage is excellent in populated areas, though remote highland areas may have limited connectivity. Major providers include Siminn, Vodafone Iceland, and Nova. The digital infrastructure makes Iceland very suitable for remote work requiring video calls and large file transfers.
What are the best cities for digital nomads in Iceland?
Reykjavik is the primary hub with 60% of Iceland's population, multiple coworking spaces (Regus, Innovation House, Reykjavik Coworking Unit), numerous cafes with WiFi, and all amenities. It offers vibrant nightlife, cultural activities, and direct access to Golden Circle attractions. Akureyri, the "Capital of North Iceland," is a smaller alternative with a more relaxed vibe, the Innovation House coworking space, and access to northern attractions like Godafoss waterfall and Northern Lights. Ísafjörður in the Westfjords offers stunning scenery but limited coworking options. Most digital nomads base themselves in Reykjavik and take trips around the country.
How do I open a bank account in Iceland as a foreigner?
Opening a bank account in Iceland requires a kennitala (national ID number), which in turn requires legal residency registration. Short-term visitors and Remote Work Visa holders typically cannot get a kennitala. For digital nomads on shorter stays, alternatives include: Wise (TransferWise) multi-currency account, N26 (if already a member), Revolut, or keeping your home country accounts. Iceland is nearly cashless - cards are accepted everywhere, even in remote areas. Once you have legal residency and a kennitala, the three main banks (Íslandsbanki, Landsbankinn, Arion Bank) offer English-language services and straightforward account opening.
What about healthcare and insurance requirements?
For the Remote Work Visa, health insurance with minimum ISK 2,000,000 (approximately €14,000) coverage per person is mandatory. Schengen visa applicants need minimum €30,000 coverage. Digital nomads commonly use SafetyWing, Cigna Global, or Allianz Care. Iceland has excellent healthcare but is expensive for uninsured visitors - a simple GP visit costs €80-120. New residents face a 6-month waiting period before accessing public healthcare through Iceland Health. EU/EEA citizens can use the European Health Insurance Card (EHIC) for emergency care at local rates. Given the high costs and adventure activities many visitors pursue, comprehensive travel insurance is essential.
What is ETIAS and how will it affect travel to Iceland?
ETIAS (European Travel Information and Authorization System) is a new pre-travel screening system expected to launch in late 2026. Once implemented, citizens of visa-exempt countries (US, UK, Canada, Australia, Japan, etc.) will need to obtain ETIAS authorization online before traveling to Iceland or any Schengen country. The process involves completing an online form, paying a €7 fee, and receiving approval (usually within minutes to hours). ETIAS is valid for 3 years or until passport expiry and allows multiple visits up to 90 days within 180-day periods. It is NOT a visa - just a pre-screening authorization similar to the US ESTA system.
⚠️
Important Disclaimer
Visa requirements can change frequently. This information is provided for general guidance only and should not be considered legal advice. Always verify current requirements with the official embassy or immigration authorities before making travel plans. Last updated: December 4, 2024