---
title: "Iceland short-term residence permit 2026: requirements and cost"
url: https://nostos.navoy.io/visas/iceland
description: "Iceland repealed its long-term visa for remote workers on 13 May 2026, so there is no remote-work visa today. income from $2,135/month, fee about $100, up…"
dataset: 2026.10.7 (2026-10-13)
license: CC BY 4.0
---

# Iceland short-term residence permit 2026: requirements and cost

Iceland repealed its long-term visa for remote workers on 13 May 2026, so there is no remote-work visa today. Most non-EEA nationals get only the Schengen 90 days in any 180. The replacement short-term residence permit (up to 180 days, once in 12 months, ISK 12,200) is reserved for extended family visits and for artists, scientists and athletes, not for remote work.

Long-stay route. Official name: Skammtímadvalarleyfi (21. gr. laga um útlendinga nr. 80/2016, as amended by lög um vegabréfsáritanir nr. 37/2026). Facts updated 2026-10-13. Not yet reviewed by a person.

## Key facts

| Fact | Value |
| --- | --- |
| Who can apply | Any nationality |
| Minimum income | $2,135/month (ISK 259,951/month for an individual (ISK 415,922 for a married couple), as a bank balance covering the whole stay) |
| Fee | about $100 (ISK 12,200 processing fee (not refunded if you withdraw)) |
| Processing time | up to 26 weeks |
| Initial stay | 6 months, not renewable |
| Renewable | no |
| Leads to permanent residence | no |
| Where to apply | Consulate, then in the country: On paper to the Directorate of Immigration (Útlendingastofnun), Dalvegur 18, 201 Kópavogur, by post or in the reception drop box. Visa-exempt nationals may apply while lawfully in Iceland; nationals who need a Schengen visa must apply from abroad. Visa questions go to the Ministry for Foreign Affairs since May 2026. |

## Who can apply

Any nationality can apply, but only for the purposes the Directorate of Immigration lists: an extended visit to a close family member (spouse, parent, child or sibling) or a stay as an artist, scientist or athlete that needs no other permit. Remote work for a foreign employer is not a listed purpose. You must be 18 or older, not intend to settle, and not have held a short-term permit in the previous 12 months. EEA/EFTA citizens do not need it.

## What you need

- Signed short-term residence permit application form, filled in on a computer and printed
- Receipt for the ISK 12,200 processing fee paid by bank transfer
- One 35x45 mm passport photo taken within the last six months
- Colour copies of the passport pages with personal data, signature and all stamps; the passport must be valid at least 90 days beyond the permit applied for
- Documents confirming the purpose of stay: invitation letter from the host, birth or marriage certificate proving the family relationship, confirmation of an artist residency, or a written statement of purpose
- Original bank-certified statement showing at least ISK 259,951 per month of stay (ISK 415,922 for a married couple) in a convertible currency; online printouts are not accepted
- Health and accident insurance certificate valid in Iceland for the whole stay with at least ISK 2,000,000 cover
- Return ticket or proof of funds to pay for the journey home
- Criminal record certificate if the Directorate requests one, and a power of attorney if someone else will deal with the Directorate for you

Income proof: The Directorate's secure-means-of-support figure, raised on 18 May 2026 and matching the City of Reykjavík basic financial-assistance rate; the funds must be shown for the whole permit period in a bank-certified original statement (online printouts and cash are not accepted). ISK 259,951 converted at the ECB reference rates of 2026-10-13 (EUR 1 = ISK 136.20 and USD 1.1188, i.e. ISK 121.74 per US dollar).

Fee: ISK 12,200 is set in the Directorate's fee table and in the Act on State Revenue as amended by Act 37/2026; it must be paid before the paper application is sent, and unpaid applications are returned. Converted at ISK 121.74 per US dollar (ECB reference rates of 2026-10-13). A Schengen visa, if you need one, costs EUR 90 separately.

Processing: The Directorate states that a decision on a new residence permit application can take up to six months and publishes the month currently being processed per permit type on its waiting-time page. No minimum is published; incomplete files are returned or delayed, and the Directorate will not give status updates by phone or email while the file waits.

## How to apply

Consulate, then in the country. On paper to the Directorate of Immigration (Útlendingastofnun), Dalvegur 18, 201 Kópavogur, by post or in the reception drop box. Visa-exempt nationals may apply while lawfully in Iceland; nationals who need a Schengen visa must apply from abroad. Visa questions go to the Ministry for Foreign Affairs since May 2026.

1. Check that your stay fits one of the permitted purposes (extended family visit, or artist, scientist or athlete) and that you have not held a short-term permit in the last 12 months; a remote-work purpose alone will be refused.
2. Pay the ISK 12,200 processing fee by bank transfer and keep a receipt showing your name, date of birth, the recipient, the amount and the date.
3. Buy health and accident insurance valid in Iceland for the whole stay with cover of at least ISK 2,000,000, and get an original bank-certified statement showing at least ISK 259,951 for every month applied for.
4. Download the short-term residence permit form, fill it in on a computer, print and sign it, and attach the receipt, a 35x45 mm photo, colour passport copies, proof of purpose, the bank statement, the insurance certificate and a return ticket or proof of funds for the return.
5. Post the originals to the Directorate of Immigration in Kópavogur or use its drop box; if you need a visa, do this from outside Iceland and do not enter while it is pending.
6. Wait for the confirmation email and the decision (up to six months); if refused you have 15 days to appeal to the Immigration and Asylum Appeals Board.

## After you arrive

Stay and renewal: Granted for the stay you prove you can fund, up to 180 continuous days in Iceland (time in other Schengen states counts). The Act allows only one short-term permit in any 12-month period; it cannot be extended and cannot be used to prolong a stay already under way. Long-term visas granted before 13 May 2026 remain valid until they expire.

Residence: Article 21 of the Act on Foreign Nationals says a stay on a short-term residence permit can never be the basis for a permanent residence permit, and the permit does not allow registration of legal domicile in Iceland. Residence that counts toward permanent residence requires another permit, such as one based on work for an Icelandic employer.

Family: There is no family-reunification track for this permit. A spouse can apply for their own short-term permit at the same time and may rely on the other spouse's funds (ISK 415,922 a month for the couple); a child under 18 can only be included in a parent's or guardian's application. Each person pays the ISK 12,200 fee.

Taxes: Skatturinn treats anyone in Iceland for less than six months in a 12-month period as having limited tax liability: only Icelandic-source income is taxed, so salary from a foreign employer for work done remotely is generally outside Icelandic tax. From six months in 12 you become tax resident from the day of arrival and pay tax on worldwide income at 2026 withholding rates of 31.49%, 37.99% and 46.29% (brackets at ISK 498,122 and 1,398,450 a month) with a personal credit of ISK 72,492 a month. A 180-day permit sits right at that six-month line, so keep stays shorter or take advice.

## In practice

- The long-term visa for remote work was repealed by the Visa Act (lög um vegabréfsáritanir nr. 37/2026) on 13 May 2026; the Directorate's pages for it no longer exist, and the short-term residence permit that replaced it lists family visits, artists, scientists and athletes as purposes but not remote work. This guide's nomadVisa flag is therefore false.
- For most remote workers the realistic stay is the Schengen rule: 90 days in any 180-day period across the whole Schengen area, visa-free for exempt passports or on a EUR 90 Schengen visa issued by Iceland's embassies in London, New Delhi, Beijing, Tokyo and Washington or by other Schengen states acting for Iceland.
- Under bilateral agreements some nationalities may stay up to three further months in Iceland after using their 90 Schengen days; the entry-requirements page does not list them, so ask the Ministry for Foreign Affairs before relying on it.
- A Schengen visa cannot be extended beyond 90 days except for force majeure or serious personal reasons (ISK 4,600 fee, apply by email to visa@utn.is); wanting to keep working remotely is not a ground.
- Working on the Icelandic labour market without a work permit, or looking likely not to leave when the permit ends, leads to revocation or refusal of the short-term permit; the permit also cannot be used to register a legal domicile, so you cannot get an Icelandic kennitala-based residence on it.
- Longer stays with a path to settlement require a residence permit based on work for an Icelandic employer or as a specialist; since July 2026 work permits are also processed by the Directorate of Immigration.

## By passport

| Passports | Note |
| --- | --- |
| EEA, CH | Free movement: enter with a passport or ID card, work remotely without any permit, and register with Registers Iceland if you stay longer than six months. |
| US, GB, CA, AU, NZ, JP, KR, BR, MX, AR, CL | Visa-exempt: 90 days in any 180 in the Schengen area. You may file a short-term residence permit application while lawfully in Iceland, but only for a listed purpose, and you must leave before your 90 visa-free days run out unless the permit is granted first. |
| All other passports | Visa-required nationals apply for a EUR 90 Schengen visa through the Ministry for Foreign Affairs' embassies or partner Schengen consulates; a short-term residence permit must be requested from outside Iceland and will be refused if you are in the country while it is pending. |

## Cities in Iceland

- [Akureyri](https://nostos.navoy.io/cities/akureyri): Iceland's capital of the north, a fjord town far from Reykjavík's crowds
- [Reykjavík](https://nostos.navoy.io/cities/reykjavik): Small capital at the edge of the Arctic

## FAQ

### Who can apply for the Iceland short-term residence permit?

Any nationality can apply, but only for the purposes the Directorate of Immigration lists: an extended visit to a close family member (spouse, parent, child or sibling) or a stay as an artist, scientist or athlete that needs no other permit. Remote work for a foreign employer is not a listed purpose. You must be 18 or older, not intend to settle, and not have held a short-term permit in the previous 12 months. EEA/EFTA citizens do not need it. Iceland repealed its long-term visa for remote workers on 13 May 2026, so there is no remote-work visa today. Most non-EEA nationals get only the Schengen 90 days in any 180. The replacement short-term residence permit (up to 180 days, once in 12 months, ISK 12,200) is reserved for extended family visits and for artists, scientists and athletes, not for remote work.

### How much income do you need for the Short-term residence permit (remote-work visa repealed in 2026)?

About $2,135 per month (ISK 259,951/month for an individual (ISK 415,922 for a married couple), as a bank balance covering the whole stay). The Directorate's secure-means-of-support figure, raised on 18 May 2026 and matching the City of Reykjavík basic financial-assistance rate; the funds must be shown for the whole permit period in a bank-certified original statement (online printouts and cash are not accepted). ISK 259,951 converted at the ECB reference rates of 2026-10-13 (EUR 1 = ISK 136.20 and USD 1.1188, i.e. ISK 121.74 per US dollar).

### How much does the Short-term residence permit (remote-work visa repealed in 2026) cost and how long does it take?

The fee is about $100 (ISK 12,200 processing fee (not refunded if you withdraw)); ISK 12,200 is set in the Directorate's fee table and in the Act on State Revenue as amended by Act 37/2026; it must be paid before the paper application is sent, and unpaid applications are returned. Converted at ISK 121.74 per US dollar (ECB reference rates of 2026-10-13). A Schengen visa, if you need one, costs EUR 90 separately. Processing time: up to 26 weeks. The Directorate states that a decision on a new residence permit application can take up to six months and publishes the month currently being processed per permit type on its waiting-time page. No minimum is published; incomplete files are returned or delayed, and the Directorate will not give status updates by phone or email while the file waits.

### How long can you stay in Iceland on the Short-term residence permit (remote-work visa repealed in 2026), and can it be renewed?

6 months, not renewable. Granted for the stay you prove you can fund, up to 180 continuous days in Iceland (time in other Schengen states counts). The Act allows only one short-term permit in any 12-month period; it cannot be extended and cannot be used to prolong a stay already under way. Long-term visas granted before 13 May 2026 remain valid until they expire.

### Does the Short-term residence permit (remote-work visa repealed in 2026) lead to permanent residence in Iceland?

Not by itself. Article 21 of the Act on Foreign Nationals says a stay on a short-term residence permit can never be the basis for a permanent residence permit, and the permit does not allow registration of legal domicile in Iceland. Residence that counts toward permanent residence requires another permit, such as one based on work for an Icelandic employer.

### Can family members come with you on the Short-term residence permit (remote-work visa repealed in 2026)?

There is no family-reunification track for this permit. A spouse can apply for their own short-term permit at the same time and may rely on the other spouse's funds (ISK 415,922 a month for the couple); a child under 18 can only be included in a parent's or guardian's application. Each person pays the ISK 12,200 fee.

### Do you pay tax in Iceland on the Short-term residence permit (remote-work visa repealed in 2026)?

Skatturinn treats anyone in Iceland for less than six months in a 12-month period as having limited tax liability: only Icelandic-source income is taxed, so salary from a foreign employer for work done remotely is generally outside Icelandic tax. From six months in 12 you become tax resident from the day of arrival and pay tax on worldwide income at 2026 withholding rates of 31.49%, 37.99% and 46.29% (brackets at ISK 498,122 and 1,398,450 a month) with a personal credit of ISK 72,492 a month. A 180-day permit sits right at that six-month line, so keep stays shorter or take advice.

### Where do you apply for the Short-term residence permit (remote-work visa repealed in 2026)?

Consulate, then in the country: On paper to the Directorate of Immigration (Útlendingastofnun), Dalvegur 18, 201 Kópavogur, by post or in the reception drop box. Visa-exempt nationals may apply while lawfully in Iceland; nationals who need a Schengen visa must apply from abroad. Visa questions go to the Ministry for Foreign Affairs since May 2026.

### Does Iceland still have a digital nomad or remote-work visa?

No. The long-term visa for remote work (up to 180 days for well-paid remote employees of foreign companies) was abolished when the Visa Act 37/2026 took effect on 13 May 2026. Visas already issued stay valid until they expire. The new short-term residence permit is limited to family visits and to artists, scientists and athletes.

### Can I work remotely for my foreign employer while in Iceland as a tourist?

Iceland's entry rules do not address remote work for a foreign employer during a Schengen stay of up to 90 days; what is prohibited is taking employment on the Icelandic labour market without a work permit. Tax is limited to Icelandic-source income while you are under six months in any 12. If you stay beyond 90 days without a permit the stay becomes illegal regardless of how you work.

## Sources

- [Short-term residence permit](https://island.is/en/short-term-residence-permit), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (Purposes (family visit, artist, scientist, athlete), 180-day cap, once in 12 months, ISK 12,200 fee, paper application in Kópavogur, up to six months to decide, in-country filing only for visa-exempt nationals, grounds for refusal)
- [Short-term residence permit: requirements](https://island.is/en/short-term-residence-permit/requirements), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (Secure means of support ISK 259,951 a month (ISK 415,922 for couples), insurance of ISK 2,000,000, passport valid 90 days beyond the permit, age 18 rule)
- [Short-term residence permit: supporting documents](https://island.is/en/short-term-residence-permit/supporting-documents), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (Document list: fee receipt, 35x45 mm photo, passport copies, proof of purpose, bank-certified statement, insurance, return ticket, criminal record on request, spouse support rule)
- [Fees](https://island.is/en/o/directorate-of-immigration/fees), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (Short-term residence permit ISK 12,200 in the Directorate's fee table)
- [Visa services transferred to the Ministry for Foreign Affairs](https://island.is/en/o/directorate-of-immigration/news/visa-services-transferred-to-the-ministry-for-foreign-affairs), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (13 May 2026 notice: Visa Act 37/2026 in force, long-term visa provision repealed, short-term residence permit introduced)
- [New residence and work permit rules take effect](https://island.is/en/o/directorate-of-immigration/news/new-residence-and-work-permit-rules-take-effect), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (8 July 2026 notice: regulation chapter on short-term permits (90 to 180 days, family visits, artists, scientists, athletes); work permits move to the Directorate)
- [Lög um vegabréfsáritanir nr. 37/2026](https://adverts.stjornartidindi.is/A_nr_37_2026.pdf), Stjórnartíðindi (Icelandic official gazette), A-deild, published 11 May 2026, retrieved 2026-10-13 (Article 23: deletes Article 20 (long-term visa) of the Act on Foreign Nationals and rewrites Article 21 as the short-term residence permit (max 180 days, once per 12 months, revocable for unauthorised work, no basis for permanent residence or legal domicile); fee ISK 12,200; Schengen visa EUR 90; granted long-term visas keep their validity)
- [Entry requirements to Iceland](https://island.is/en/entry-requirements-to-iceland), Directorate of Immigration (Útlendingastofnun), island.is, retrieved 2026-10-13 (90 days in 180 for non-EEA nationals, residence permit needed beyond that, bilateral three-month extensions for some nationalities, EEA registration after six months)
- [Apply for a visa to Iceland (Schengen visa)](https://island.is/en/get-a-visa), Ministry for Foreign Affairs, island.is, retrieved 2026-10-13 (EUR 90 fee, about two weeks' processing, Icelandic embassies in London, New Delhi, Beijing, Tokyo and Washington plus partner Schengen states)
- [Visa extension](https://island.is/en/apply-for-visa-extension), Ministry for Foreign Affairs, island.is, retrieved 2026-10-13 (No extension beyond 90 days in 180 except force majeure or serious personal reasons; ISK 4,600 fee; applications to visa@utn.is)
- [Tax liability](https://www.skatturinn.is/english/individuals/tax-liability/), Skatturinn (Iceland Revenue and Customs), retrieved 2026-10-13 (Limited liability under six months in 12, unlimited liability on worldwide income from six months, 2026 withholding brackets and ISK 72,492 monthly personal credit)

Not yet reviewed by a person. Not legal advice; confirm with the issuing authority before you book.

HTML page: https://nostos.navoy.io/visas/iceland