Iceland Digital Nomad Visa: Your 2025 Guide for Remote Work in Iceland

Iceland offers a Long‑Term Visa for Remote Workers, commonly referred to as its digital nomad visa, introduced in late 2020. It allows remote professionals and freelancers from select countries to live and work remotely in Iceland for up to six months (180 days) with the option to apply again after a one‑year break.

What Is the Iceland Digital Nomad Visa?

This is a Type D long‑stay visa designed for non‑EEA/EFTA nationals who don’t require a tourist visa to enter Iceland but wish to reside temporarily while working remotely for foreign-based employers or clients. The visa grants legal residency and allows Schengen travel privileges during its validity.

Who Can Apply?

Applicants must:

• Be non‑EU/EEA/EFTA citizens from countries with Schengen visa‑free access.

• Work remotely for a foreign company, or freelance for international clients—not Iceland-based.

• Provide evidence of foreign-sourced income at the required minimum level.

• Have valid health insurance, clean criminal records, and plan to leave Iceland after the stay.

Income Requirements & Family Adjustments

You must demonstrate a monthly income of at least ISK 1,000,000 (~USD 7,100) for a single applicant.

If accompanied by a spouse, the requirement rises to approximately ISK 1,300,000/month (~USD 9,400). There is no documented scheme for dependents beyond a partner.

Required Documents

Required materials generally include:

• Fully completed and signed visa application form.

• Copy of passport (valid at least three months beyond intended visa duration; with Schengen entry/exit stamps).

• Recent passport‑style photo (35 × 45 mm).

• Proof of foreign income or contract indicating remote work status.

• Receipt of the non‑refundable application fee.

• Health insurance policy covering at least ISK 2,000,000 and valid in Iceland and Schengen.

• Clean criminal record certificate.

• If bringing a spouse, a marriage certificate and proof of cohabitation. 

  
  

Application Process & Fees

• Pay a non‑refundable application fee of ISK 12,200 (~USD 90) per person via bank transfer before submitting.

• Submit the completed application by mailing it to the Icelandic Directorate of Immigration, or in person if already in Iceland.

• Processing generally takes 3–4 weeks, but may stretch if additional documents are requested.

• Approved candidates receive an email confirmation; the visa is officially issued upon arrival in Iceland.

  
  

Duration & Renewal Rules

• The visa permits a stay for up to 180 days (six months) per issuance.

• No direct renewal is allowed. After the visa expires, you must leave Iceland and wait at least 12 months before reapplying.

  
  

Tax Considerations & Legal Notes

• Remote income earned abroad is generally not subject to Icelandic income tax for stays under 183 days.

• You must still comply with tax obligations in your home country, including any treaty-related declarations.

• The visa does not lead to permanent residency or citizenship; longer-term residency requires alternate immigration pathways.

  
  

Cost of Living & Remote-Working Lifestyle

Iceland is known for high living standards and stable infrastructure, but costs are higher than many remote-work destinations:

• Rent (1BR central Reykjavík): ~USD 1,500–2,500/month

• Utilities & internet: ~USD 150–200/month

• Groceries & meals: ~USD 500–700/month

• Coworking, transport, entertainment: ~USD 250–400/month

Iceland appeals through stunning natural scenery, safety, reliable connectivity, and unique culture—ideal for short‑term remote work retreats.

Frequently Asked Questions

How long can I stay in Iceland on this visa?

The maximum stay is 180 days (six months). You cannot renew this visa; instead, you'll need to wait 12 months before reapplying.

What income must I show?

You must demonstrate at least ISK 1,000,000/month (~USD 7,100). If applying with a spouse, the threshold increases to ISK 1,300,000/month (~USD 9,400).

Can my spouse join me?

Yes, but you must meet the higher income requirement and submit a marriage certificate and proof of cohabitation. Children are not formally recognized under this permit. 

Will I pay tax in Iceland on my income?

No, if you stay under 183 days and your income is from abroad, it is not taxed locally. However, you must follow tax rules in your home country. 

Can I apply while already in Iceland?

Yes. You may apply in person at Directorate of Immigration or District Commissioner offices if you are legally present in Iceland. The same rules apply regarding visa validity and income thresholds.

How long does the process take?

Expect 3 to 4 weeks for processing, though delays are possible if documents are incomplete or additional materials are requested.

Pros & Cons Summary

Pros:

• Legal stay of up to six months while working remotely with foreign-sourced income.

• No income tax liability for non-residents on foreign income.

• Straightforward eligibility and application; no application cost other than the small fee.

• Access to a safe, scenic, digitally connected environment.

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Cons:

• High minimum income requirement.

• No renewal—must wait 12 months after end of permit to reapply.

• Limited family inclusion (spouses only).

• Cost of living is one of the highest within digital-nomad destinations.

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Is Iceland a Good Option for Remote Professionals?

Iceland is best suited for remote workers who can sustain a higher monthly income and seek a unique, safe, and digitally equipped environment for up to six months. If you prioritize nature, stability, and Schengen access—and don’t mind the cost—it may be an ideal short-term remote base.

But maybe somewhere warmer would suit you better. In that case, take a look at the Mauritius digital nomad visa.