Jobs in Iceland – Work Permit, Visa, Salary & Hiring Guide

Iceland is a Nordic island nation and a member of the European Free Trade Association (EFTA) and the European Economic Area (EEA), situated in the North Atlantic Ocean between Greenland and Norway. With a population of approximately 390,000, Iceland is one of Europe's smallest nations yet punches far above its weight economically — holding one of the highest GDP per capita values in the world and consistently ranking at or near the very top of global indices for happiness, gender equality, quality of life, and human development. Iceland's economy is driven by fishing and fish processing, geothermal and renewable energy, tourism, aluminium smelting, pharmaceuticals, IT, and a growing creative and knowledge economy centred on Reykjavík.

Iceland is experiencing well-documented labour shortages across healthcare, construction, IT, tourism, fisheries, and renewable energy. Foreign nationals currently make up approximately 24% of Iceland's total workforce — one of the highest proportions of any European country — with the EURES labour market report identifying human health and social work as the sector with the highest vacancy rate in the country. Iceland is expected to create approximately 20,000–25,000 new job openings over the next decade due to industry expansion, demographic change, and consistent workforce shortfalls.

According to Statistics Iceland, average regular monthly earnings for full-time employees were ISK 845,000 — approximately €6,000 — in the most recently reported full year, with the median at ISK 753,000. Iceland has no statutory minimum wage — wages are instead set through collective bargaining agreements that cover approximately 90% of the workforce. The most widely referenced minimum under collective agreements is approximately ISK 513,000–515,000 per month for a full-time employee, as of the most recent collective agreements.

This guide covers everything you need to know about jobs in Iceland — including 40 verified shortage occupations with salary data, and a complete, accurate guide to the work permit, residence permit, and visa process based exclusively on official Icelandic government sources. Whether you are a job seeker, an employer, or a recruitment agency, Moving2Europe.eu is here to connect you with verified opportunities across Iceland and the wider European region.

Europe Job Market Overview

Europe is experiencing structural and sustained labour shortages driven by ageing populations, small domestic workforces, and economic growth that domestic labour supply cannot keep pace with. Iceland faces these challenges in their most concentrated form — a small nation of 390,000 people with one of the highest employment rates in the world and an economy that is simultaneously growing rapidly in tourism, clean energy, and technology.

Iceland's immigration framework is built around the principle of employer sponsorship — the employer applies on behalf of the worker, demonstrating that the role cannot be filled domestically or from within the EEA/EFTA area. The Directorate of Immigration — Útlendingastofnun — processes residence permits, while the Directorate of Labour — Vinnumálastofnun — issues work permits. Applications are submitted to the Directorate of Immigration, which forwards them to the Directorate of Labour.

For international job seekers, Iceland offers some of the highest wages in Europe, a 40-hour standard working week with 36 hours becoming increasingly common in the public sector, extraordinary natural beauty and quality of life, one of the world's most equal and progressive societies, and a genuinely multicultural workforce. For employers, the Work in Iceland portal is available at work. iceland.It provides structured guidance on all permit categories. For recruitment agencies, Iceland represents a premium and growing international hiring market.

Jobs in Iceland – Market Overview

Iceland's economy is built on several pillars that generate consistent, documented international demand for the workforce. Fishing and fish processing remain foundational industries, while geothermal and renewable energy are expanding rapidly. Tourism has grown dramatically, becoming a critical economic driver. Healthcare is under sustained demographic pressure. Construction and infrastructure continue at high levels. And a growing IT and shared services sector is generating demand for skilled technology professionals.

Key industries actively hiring international workers include:

Healthcare and Social Care: Healthcare is Iceland's most persistent shortage sector. The EURES labour market report consistently identifies human health and social work as the sector with the highest vacancy rate in the country. Nurses are in the most acute demand, followed by doctors — particularly specialists and general practitioners — physiotherapists, pharmacists, and mental health professionals. Foreign-trained healthcare workers who meet Icelandic licensing requirements have a realistic and well-supported path to employment.

Construction and Skilled Trades: Construction has historically had the most pronounced worker shortages of any sector in Iceland after healthcare. Major infrastructure investments, residential and commercial construction projects, and Iceland's sustained economic growth drive consistent demand for electricians, plumbers, carpenters, welders, bricklayers, roofers, and construction supervisors.

Information Technology: Iceland's IT sector contributes significantly to GDP and is projected to reach ISK 556.5 billion by a near-term forecast point. Software developers, IT system administrators, cybersecurity specialists, and data analysts are in documented shortage. Iceland's action plan explicitly identifies AI innovation as a national priority, generating growing demand for AI and machine learning specialists.

Tourism and Hospitality: Tourism has become one of Iceland's dominant industries, generating enormous and growing demand for chefs, hotel managers, front desk staff, housekeepers, tour guides, and restaurant workers. Demand is particularly acute during the summer season but increasingly extends year-round.

Fishing and Fish Processing: Iceland's fishing industry — one of the country's largest export sectors — generates consistent demand for fish processing workers, marine technicians, fisheries managers, and quality control specialists. Fish processing positions are among the most accessible for non-EEA workers without formal academic qualifications.

Renewable and Geothermal Energy: Iceland is a global leader in geothermal energy, and the country's ambitious green energy expansion is generating growing demand for geothermal engineers, renewable energy technicians, and environmental scientists.

Top Cities for Jobs in Iceland

Jobs in Reykjavík and the Capital Region

Reykjavík is Iceland's capital and the dominant economic and cultural centre of the country, with average gross monthly salaries in the capital region reaching approximately ISK 850,000 — approximately €6,000. The city is home to Iceland's most significant concentration of IT companies, financial institutions, healthcare facilities, government bodies, and international businesses. The capital region accounts for the majority of Iceland's total employment and offers the widest range of opportunities for both professional and skilled international workers.

IT professionals in Reykjavík earn ISK 800,000–1,800,000 or more gross per month. Engineers earn ISK 700,000–1,300,000. Healthcare professionals earn ISK 650,000–1,300,000. The city has a large and well-established international community, near-universal English proficiency, and a vibrant cultural and social scene.

Jobs in Akureyri

Akureyri is Iceland's second-largest town, situated in northern Iceland, and serves as the service centre for the country's north. The town offers employment in healthcare, education, tourism, fishing, and services. Salaries in Akureyri are competitive with a notably lower cost of living than Reykjavík. The town's university and regional hospital are significant employers.

Jobs in Ísafjörður, Selfoss, Egilsstaðir, and Regional Iceland

Regional Icelandic towns — including Ísafjörður in the Westfjords, Selfoss in the south, and Egilsstaðir in the east — offer employment in fishing, fish processing, tourism, construction, and healthcare. Many regional positions qualify for the Shortage of Labour permit category, as they cannot easily be filled from the domestic or EEA workforce. Average monthly salaries in regional Iceland are approximately ISK 675,000–700,000.

Job Opportunities in Iceland

Blue-Collar Jobs in Demand in Iceland

The following 20 blue-collar roles represent Iceland's most critical shortage occupations in skilled and trades sectors, based on verified data from Statistics Iceland, EURES Iceland, the Directorate of Labour, and the Work in Iceland portal at work.iceland.is. All 20 have documented workforce shortfalls.

Register as a Truck Driver → Browse Welder Opportunities →

White-Collar Jobs in Demand in Iceland

The following 20 white-collar roles represent Iceland's most critical shortage occupations in professional and highly skilled sectors, based on verified data from Statistics Iceland, EURES Iceland, the Directorate of Labour, and OECD skills forecasts.

Register as a Healthcare Worker → Explore All Opportunities →

Salary in Iceland

Iceland offers some of the highest wages in Europe, with salaries set exclusively through collective bargaining agreements rather than a statutory minimum wage. Approximately 90% of the Icelandic workforce is covered by collective agreements, making Iceland's effective wage floor one of the highest in the world.

According to Statistics Iceland, average regular monthly earnings for full-time employees were ISK 845,000 — approximately €6,000 — in the most recently reported full year, with the median at ISK 753,000. The most widely referenced floor under collective agreements is approximately ISK 513,000–515,000 per month for full-time employees. Reykjavík pays an average of approximately ISK 850,000 gross per month. The IT and technology sector and senior management roles pay significantly above average — directors and chief executives averaged over ISK 2,400,000 per month. Gross average earnings in Iceland — at approximately €6,184 per month — are nearly double the EU27 average of €3,417.

An important additional incentive for expert workers: only 75% of the income earned as a foreign expert is taxed for the first three years of work in Iceland, provided certain conditions are met. This tax incentive is available through the Icelandic Centre for Research and must be applied for within three months of commencing work.

Work Permit Process in Iceland

Two authorities manage Iceland's work permit and residence system for non-EEA/EFTA nationals. The Directorate of Immigration — Útlendingastofnun — at utl. is processing residence permit applications. The Directorate of Labour — Vinnumálastofnun — at vinnumalastofnuItis reviews and issues work permits. The official information portal is work.iceland.The official government services portal is an island. is.

Iceland is an EFTA and EEA member but not a member of the European Union. EE,d EFT,s and Nordic citizens may work freely in Iceland without a permit, though they must register with Registers Iceland if staying longer than three months. Non-EEA/EFTA nationals require both a work permit and a separate residence permit.

Types of Work Permits for Non-EEA/EFTA Nationals

• Shortage of Labour (Fækkun á vinnuafli): For positions in industries experiencing documented shortages where neither Icelandic nor EEA/EFTA candidates are available. This is the most commonly used category for skilled trades, fish processing, and service roles.
• Expert Knowledge (Sérfræðiþekking): For qualified professionals with university-level education or recognised specialist training who bring expertise not readily available domestically. Includes a 25% income tax exemption on the first three years of earnings.
• Athletes: For professional athletes and coaches joining clubs affiliated with the Icelandic Sports Federation.
• Collaboration or Service Contract (Samstarfs- eða þjónustusamningur): For employees of foreign companies performing temporary specialised work in Iceland under a service agreement.

Important Rules for Non-EEA/EFTA Workers

Non-EEA/EFTA nationals may not be self-employed in Iceland — only salaried employment is permitted under a work permit. All employment contracts must meet the terms of the applicable collective agreement. Contracts with less favourable terms than collective agreements are considered invalid. Work permits are employer-specific — a change of employer requires a new work permit application, which must be granted before the worker begins at the new employer.

Step-by-Step Work Permit Process

Step 1 – Secure a Confirmed Employment Contract. The process begins with a signed employment contract from a legally registered Icelandic employer. The contract must meet the terms of the relevant collective agreement. The employer — not the worker — submits the work permit application.

Step 2 – Employer Submits the Combined Application to the Directorate of Immigration.n The employer submits the combined application package — including both the residence permit application and the work permit documentation — to the Directorate of Immigration. Applications are paper-based and submitted by mail, drop-off, or in person. The application must be submitted and approved before the worker arrives in Iceland.

Step 3 – Directorate of Immigration Reviews the Residence Permit Conditions. The Directorate of Immigration reviews whether the conditions for issuing a residence permit are met, including proof of accommodation, financial means, and a clean criminal record.

Step 4 – Application Forwarded to the Directorate of Labour. If the Directorate of Immigration finds that the conditions for the residence permit are met, it forwards the application to the Directorate of Labour. The Directorate of Labour reviews the employment conditions — confirming the salary meets the collective agreement, the employer is compliant with tax and social security obligations, and the shortage of labour or expert knowledge conditions are satisfied. A decision must be issued within two months of receipt.

Step 5 – Work and Residence Permits Issued. If approved, the Directorate of Labour issues the work permit. The Directorate of Immigration issues the residence permit. The first work permit is generally issued for one year. If there are no issues with wages or tax compliance, the permit may be renewed for two years at a time.

Step 6 – Worker Travels to Iceland. Citizens of countries that require a visa must obtain one before travel — Iceland follows Schengen short-stay visa rules.

Step 7 – Register in Person Within One Week of Arrival. Within one week of arriving in Iceland, the worker must appear in person at the Directorate of Immigration in Reykjavík — or at a district commissioner's office outside the capital region — to be photographed and registered.

Step 8 – Register with Registers Iceland and obtain a Kennitala — Icelandic national identity number — required for all employment, banking, and administrative purposes.

Employers ready to begin the international hiring process can register here →

Work Visa Process in Iceland

Iceland is a Schengen Area member. Nationals of Schengen visa-required countries must obtain a short-stay Schengen visa to enter Iceland for permit collection purposes. The Directorate of Immigration publishes all visa information at utl. is and the Ministry for Foreign Affairs of Iceland at mfa. is.

Step 1 – Confirm Visa Requirements for Your Nationality. Visit utl .is to confirm whether your nationality requires a Schengen short-stay visa to enter Iceland. Iceland follows standard Schengen entry rules.

Step 2 – Employer Submits the Work and Residence Permit Application First. The work permit and residence permit must be applied for and approved before the worker travels to Iceland. The employer submits the combined application to the Directorate of Immigration, which then forwards the work permit elements to the Directorate of Labour.

Step 3 – Obtain a Schengen Visa if required. If your nationality requires a Schengen visa, apply for a short-stay visa at the nearest Icelandic diplomatic mission or an embassy representing Iceland in your country after the work and residence permit has been approved.

Step 4 – Travel to Iceland and Register Within One Week. Travel to Iceland after the permits are approved and the visa — if required — is obtained. Within one week of arrival, attend the Directorate of Immigration in person to be photographed and complete registration.

Step 5 – Register and Obtain the Kennitala Register your residential address with Registers Iceland and obtain your kennitala. This is required for all administrative, employment, banking, and social insurance purposes.

Embassy Guidance

Use the Work in Iceland Portal for All Work Permit Information: The official information portal for working in Iceland — work. Iceland— provides complete guidance on all work permit categories, required documents, the application process, and processing timelines.

The Employer Must Submit the Application — Not the Worker: Under Icelandic law, the employer is responsible for applying for the work permit. The worker cannot submit a work permit application independently. The employer must not allow the worker to begin working before the permit is granted.

The Application Must Be Approved Before the Worker Arrives in Iceland: The residence permit and work permit must be applied for and approved before the worker travels to Iceland. Entering Iceland and commencing work without a permit is illegal and can result in fines, deportation, and a future entry ban.

Permits Are Employer-Specific — Changing Employer Requires a New Permit: If the worker changes employer, the new employer must apply for a new work permit and receive approval before the worker begins at the new workplace.

All Employment Contracts Must Meet Collective Agreement Terms: Iceland's collective agreements are legally binding for all employees, including non-EEA workers. Contracts that specify less favourable terms than the applicable collective agreement are invalid.

Foreign Experts Benefit From a 25% Tax Exemption for the First Three Years: Workers qualifying for the Expert Knowledge permit category are taxed on only 75% of their income for the first three years of work in Iceland. This application must be made within three months of commencing work through the Icelandic Centre for Research.

Register in Person Within One Week of Arrival: Within one week of arriving in Iceland, the worker must appear in person at the Directorate of Immigration or a district commissioner's office to be photographed and registered.

Required Documents

The following documents are required for a work permit and residence permit application in Iceland, based on official requirements from the Directorate of Immigration at utl. is and the Work in Iceland portal at work.iceland.is.

Always verify current requirements at utl. is and work .iceland.is before submitting.

How to Avoid Rejection

Worker Commences Work Before the Permit is Granted: It is a serious legal violation for a worker to begin employment before both the residence permit and work permit have been issued. This can result in fines or imprisonment of up to 2 years for both the employer and the worker.

Application Submitted After the Worker's Arrival in Iceland: The residence and work permit application must be submitted and approved before the worker arrives in Iceland. Applications submitted after arrival — except in narrow exemptions for visa-free nationals applying for the first time — are not accepted.

Employment Contract Below the Collective Agreement Standard: All employment contracts must meet the terms of the applicable collective agreement for the sector and role. Contracts specifying lower wages or fewer benefits than the collective agreement are legally invalid.

Employer Has Not Demonstrated Labour Market Test: For Shortage of Labour permit applications, the employer must provide evidence of attempts to recruit domestically and within the EEA/EFTA area without success. Insufficient evidence leads to refusal.

Failure to Register in Person Within One Week of Arrival: The worker must attend the Directorate of Immigration or the district commissioner's office in person within one week of arriving in Iceland to be photographed and registered.

Changing Employer Without Obtaining a New Permit: The work permit is employer-specific. The worker must not change employers without the new employer first applying for and receiving a new work permit.

Hiring Foreign Workers in Iceland

Iceland urgently needs international workers across healthcare, construction, IT, fisheries, tourism, and renewable energy. With foreign nationals already making up 24% of the workforce and documented shortfalls across key sectors, employers who build structured international hiring pipelines access a wider talent pool and gain a decisive competitive advantage.

Why Hire International Workers in Iceland? Iceland's small domestic labour market makes international recruitment structurally necessary across multiple key sectors. The Work in Iceland portal at work. iceland provideguidance for employersoyer guidance. The Shortage of Labour permit category provides a transparent route for most blue-collar and trades roles. The Expert Knowledge route provides a tax-advantaged pathway for specialist and professional hires.

How to Begin the Hiring Process

Step 1 – Register as an Employer on Moving2Europe.eu Create your employer profile, specify your sector, required roles, and workforce needs. Register as an Employer →

Step 2 – Confirm the Correct Work Permit Category. Visit work. iceland.is to confirm whether the role qualifies under Shortage of Labour or Expert Knowledge, and gather the required documentation.

Step 3 – Conduct the Labour Market Test. Advertise the role domestically and within the EEA/EFTA area and document the recruitment attempts. This evidence is required for the Shortage of Labour permit application.

Step 4 – Issue a Signed Employment Contract. Issue a contract meeting the applicable collective agreement terms.

Step 5 – Submit the Combined Application to the Directorate of Immigration. Submit the full application package before the worker travels. Ensure all employer documentation is complete to avoid processing delays.

Step 6 – Support Post-Arrival Registration:n Assist the worker in attending the Directorate of Immigration within one week of arrival and in registering with Registers Iceland to obtain the kennitala.

How Job Seekers Can Apply

Step 1 – Check Work Permit Eligibility and Category Visit work .iceland.is to identify which permit category applies to your role and qualifications.

Step 2 – Prepare Your Documents: ts Gather your passport, qualification certificates, police clearance certificate, and health insurance. Ensure all documents are current and meet Icelandic requirements.

Step 3 – Register on Moving2Europe.eu

• Register as a Truck Driver →
• Register as a Welder →
• Register as a Healthcare Worker →
• Explore All Opportunities →

Step 4 – Apply for Available Positions Browse verified job listings and apply to positions that match your qualifications and experience.

Step 5 – Your Employer Submits the Work and Residence Permit Application.ion Once you have a confirmed employment contract, your employer submits the combined application to the Directorate of Immigration before your departure.

Step 6 – Travel to Iceland and Register Within One Week After permit approval, travel to Iceland. Attend the Directorate of Immigration in person within one week of arrival. Register with Registers Iceland and obtain your kennitala.

Recruitment Agencies & Partnerships

Moving2Europe.eu collaborates with international recruitment agencies, workforce supply companies, and staffing partners to build a consistent, reliable pipeline of pre-screened, work-ready candidates for employers across Iceland and the wider European region.

For agencies operating in Asia, Africa, the Middle East, or Eastern Europe, a partnership with Moving2Europe.eu provides direct access to a growing network of verified Icelandic employers actively seeking international talent across healthcare, construction, IT, fisheries, tourism, and renewable energy.

Why Partner with Moving2Europe.eu?

• Access to a verified network of Icelandic employers actively hiring across all major shortage sectors
• A structured, transparent matching process aligned with Iceland's work permit requirements
• Compliance support across the Shortage of Labour and Expert Knowledge permit categories
• Long-term business development opportunities as Iceland's international workforce demand continues to grow
• A trusted, professional platform built on transparency and accountability

Register as a Recruitment Partner →

Declaration

Moving2Europe.eu provides information on jobs, work permits, visas, and international hiring strictly for guidance purposes only. We do not guarantee job placement, work permit approval, or visa issuance under any circumstances.

All applications, hiring decisions, and approvals are subject to individual employer requirements, applicable immigration laws, and the final decision of the respective country's embassy or government authorities.

Users are strongly advised to independently verify all information, ensure the accuracy of their documents, and follow official procedures before submitting any application.