Iceland Digital Nomad Visa: EASY Steps To Apply in 2024

iceland digital nomad visa hot springs

Remote workers from around the world can now work from the land of hot springs and aurora borealis – with the Iceland digital nomad visa.

Iceland is one of the world’s top-rated countries for quality of life, community, internet speed, safety, natural beauty, and much more.

If that’s on your radar for 2023, then this article will be an essential read.

We’ll walk you through all the necessary info about the Iceland digital nomad visa, including benefits, eligibility requirements, list of documents, and how to apply.

Visa Overview

The Iceland digital nomad visa is a long-term stay permit for remote workers who don’t need a visa to enter Iceland. The permit was introduced in October 2020, just a few months after Estonia launched a similar visa.

This visa will allow you to stay in Iceland for up to six months. You must meet several requirements to qualify. For starters, you must come from a country with a visa-free agreement with Iceland.

Only non-EEA/EFTA citizens who don’t need a visa to enter Iceland can apply.

To apply, you must provide various documents to prove you meet the income requirements and health insurance conditions.

You’ll also need to be employed in a company or be the owner of your own company. Both must be registered outside of Iceland.

What’s more, you can’t extend the Icelandic digital nomad visa after the six months is up. But, after it expires, you can leave Iceland, wait for 12 months, then reapply for a new one.

Key Benefits

The key benefit of the Iceland digital nomad visa is that you won’t have to pay income tax to the country. Of course, tax liabilities to your home country are a different issue. Double-check your home country’s tax regulations, as they vary from state to state.

Other benefits of working remotely for digital nomads in Iceland are the fantastic internet connection and the fact that it offers a lot of workspaces. 

Additionally, Iceland has been ranked the world’s safest country, with friendly, welcoming people and amazing history. You can enjoy the Earth’s most mosquito-free zone, plus the Aurora Borealis’ mesmerizing lights.

Who is Eligible?

Iceland’s long-term visa for remote work gives you a fantastic opportunity to experience the beauty of this gem in the north. However, you have a few conditions to meet to get this permit.

For starters, not all everyone is eligible to get a remote-work visa in Iceland. You can get a long-term visa if you:

  • Don’t live in an EEA/EFTA country
  • Don’t need a visa to enter the Schengen area
  • Don’t plan to settle in Iceland
  • Didn’t hold a long-term visa from the Icelandic authorities in the past 12 months
  • Meet the income requirements (ISK 1,000,000 – 6663.47 EUR; 7,062.88 USD)
  • You’ll work for a company or your own company registered outside of Iceland
  • You won’t in any way participate in the Icelandic labor market.

Document Requirements

We’ll discuss the application process in the next section. But first, we have to check which documents are required for the visa application. This is very important!

You should double-check the requirements and ensure you have all these documents before applying. You should also speak to the Icelandic embassy or consulate in your home country to be sure you haven’t left any documents out.

List of documents for the Iceland digital nomad visa

  • Payment receipt (proof of visa application payment)
  • Visa application form
  • Passport photo – The photo must be 35 x 45mm and not older than six months
  • Copy of passport – You’ll have to send a copy of the personal information page, signature page, visas, and all entry and exit stamps from the Schengen area during the last year. Also, your passport must be valid for at least 90 days more than your planned stay.
  • Copy of a health insurance policy – The copy must contain information on the insurance validity in terms of territory and period, meaning it has to be valid in Iceland and the Schengen area and cover the period you intend to stay in Iceland. The required coverage is a minimum of ISK 2,000,000 (13,326 EUR; 14,125 USD) per person.
  • Purpose-of-stay document – You’ll have to provide a document that confirms the purpose of your stay in Iceland. The document can be:
    • Confirmation from your employer stating that you’re allowed to perform your work remotely in Iceland;
    • Confirmation that you’re self-employed in a company that’s not registered in Iceland.
  • Proof of income – Your monthly income must correspond to ISK 1,000,000 per month (6663.47 EUR; 7,062.88 USD). The document can be:
    • Employment contact with information on the monthly salary;
    • If you’re self-employed, you can show a contract for the project you intend to work on and the agreed payment(s).
  • The Directorate of Immigration may request a criminal record certificate.

How to Apply

The application procedure slightly differs from applying for a visa in some other countries. For starters, you can’t apply online. Whether you’re in Iceland at the moment of applying or in your home country, you have to send your file in paper form by regular mail to the Directorate of Immigration, which is in Kopavogur.

Here’s what you have to do:

  1. Pay the application fee

Keep in mind that you have to pay the processing fee before you send your application. In fact, you must include the receipt in the file as proof that you’ve paid for the application. We’ll check the application fees in the next section.

  1. Collect and submit the necessary documents

Besides the payment receipt, you’ll have to include all the necessary documents (listed above) in your application file. You’ll need a copy of the appropriate certificates, but don’t forget that the Directorate of Immigration may request the originals.

Also, you should know that you’ll need translated versions of certificates issued in languages other than Icelandic or English. Of course, these translated versions have to be prepared by an authorized translator and submitted in the original format.

Note: You can send the application to the Directorate of Immigration via postage or drop it off at the Directorate’s lobby if you’re in Iceland. You should know that you can also submit your application at the offices of District Commissioners located outside of the capital area.

  1. Wait for approval and enter Iceland

You’ll receive an email if the Directorate needs additional documents or information. Also, it will send you an email to notify you of your visa approval.

Once you get approval, you have 90 days to enter the country. This is very important to remember since if you don’t go to Iceland within 90 days, you’ll have to send the income and health insurance documents to the Directorate of Immigration again.

Once you arrive in Iceland, you’ll have to contact the Directorate of Immigration to get the visa. The permit validity starts from the date of issue.

How much time does it take?

The processing period usually takes three to four weeks. The process may take longer depending on how many applications are sent to the Directorate.

How long is Iceland’s digital nomad visa valid?

As we mentioned, the long-term visa for remote workers in Iceland can be valid for up to six months. The duration depends on where you’re located at the time of application. Possible scenarios are:

  • You may get a visa for up to 180 days if you’re in your home country when you apply and don’t go to Iceland before the Directorate grants you the permit.
  • In case you apply while still in your country but enter the Schengen area before the Directorate approves your application, you may get a visa for up to 180 days, minus the days you stayed in the Schengen area before the Directorate issued you the visa.
  • If you apply after you enter the Schengen area, you can get a visa for up to 90 days.

Application Fees

The Iceland digital nomad visa costs ISK 12,200 (81.29 EUR; 86.17 USD). As we mentioned earlier, you have to pay for the application processing before you send the application to the Directorate of Immigration because your file must include the payment receipt.

This link contains information on the bank account and how to make payments from abroad.

Bringing Your Family

Your close family members may be allowed to get a long-term visa and travel with you to Iceland. Of course, if you want to take your spouse/partner or child with you, you’ll have to provide additional documents.

Besides providing additional documents, you’ll also have to show proof of a higher monthly income. While the required monthly income for a digital nomad visa is ISK 1,000,000, you’ll need an income of ISK 1,300,000 (8,662.52 EUR; 9,181.74 USD) to include your spouse or cohabitating partner in the application. 

Take a look at the following subsections to find out which documents are required for your close family members to get long-term visas based on your visa for remote work in Iceland.

Documents for long-term visas for spouses/partners of remote workers

  • Payment receipt (proof of visa application payment)
  • Passport photo – The photo must be 35 x 45mm and not older than six months
  • Copy of passport – You’ll have to send a copy of the personal information page, signature page, visas, and the entry and exit stamp into and out of the Schengen area made during the last year. Also, the passport must be valid for at least 90 days more than your planned stay.
  • Copy of a health insurance policy – The copy must contain information on the insurance validity in terms of territory and period.
  • A marriage certificate or document confirming that you and your partner lived together for at least one year.

You can provide a copy of the certificate. However, remember that the Directorate of Immigration may request the original and legal confirmation.

Documents for long-term visas for children of remote workers

  • Payment receipt (proof of visa application payment)
  • Passport photo – The photo must be 35 x 45mm and not older than six months
  • Copy of passport – You’ll have to send a copy of the personal information page, signature page, visas, and the entry and exit stamp into and out of the Schengen area made during the last year. Also, the passport must be valid for at least 90 days more than your planned stay.
  • Copy of a health insurance policy – The copy must contain information on the insurance validity in terms of territory and period.
  • A birth certificate
  • Custody documents – You have to show proof of custody to apply for a residence permit for your child. You can provide:
    • A custody document issued by a competent authority (e.g., district commissioner or a court of law) not older than six months. If you share custody, you have to provide a copy of a certified statement by the other custodian in which the other custodian gives an agreement for the child to be granted a long-term visa.
    • Divorce papers – If you and the other child’s custodian are divorced, you have to submit divorce papers proving you’re the custodian.
    • Death certificate – If you hold sole custody of your child because the other custodian is deceased, you have to provide a death certificate.
  • Documents of the child’s education – If the child is 6 to 16 years old, you have to provide written confirmation that:
    • The child receives remote instruction from a school;
    • The child was accepted in a school in Iceland;
    • The child receives home schooling or instruction.

Tax for Digital Nomads in Iceland

The biggest advantage of working remotely in Iceland with this visa is that you won’t have to pay income tax. Since this visa allows you to stay in Iceland for up to six months, the country doesn’t consider you a tax resident. 

Plus, unlike in some other countries, you won’t be registered with a legal address, and the country won’t give you a Kennitala (Social Security Number).

Can the Iceland Digital Nomad Visa Lead to Permanent Residency or Citizenship?

No. The Iceland digital nomad visa isn’t renewable and hence not suitable as a pathway to citizenship. To apply for Icelandic citizenship, you’ll need seven continuous years of residency. With the digital nomad visa, you have to leave Iceland and wait for 12 months after the expiry date to apply for a new one.

FAQs: Iceland Digital Nomad Visa

Can I apply for a digital nomad visa from within Iceland?

Yes, you can apply for a visa whether you’re in Iceland, in another Schengen country, or in your home country. But you can’t do it online. Instead, you must send your documents to the Directorate of Immigration by post.

How long is the processing time?

Typically, the processing time ranges from three to four weeks. Still, the processing period may be longer if the Directorate needs more information.

Is it hard to get a digital nomad visa in Iceland?

Getting the Iceland digital nomad visa is not hard as long as you comply with the requirements. Remember, you can apply if you don’t need a visa to enter Iceland, have a monthly income of ISK 1,000,000 (1,200,000 if you take a family member), provide all the necessary documents, and don’t plan to settle in the country. Also, you must work for a company or own a company registered outside of Iceland.

Do I need a visa to travel within Schengen while working remotely in Iceland with a digital nomad visa?

No, you don’t. You can travel within the Schengen area during your stay in Iceland and stay in a Schengen country for up to 90 days in every 180-day period.

Is the Iceland digital nomad visa extendable?

Unfortunately, no. You can get a long-term visa for remote work that’s valid for up to six months. After the visa expires, you’ll have to leave Iceland and wait a minimum of 12 months to apply for this permit again.

Before you go…

The digital nomad lifestyle is taking off around the world. It has quickly become one of the most popular routes for digitally-savvy people to change their lives and seek adventure.

How are you feeling about the Iceland digital nomad visa after reading our guide? Does it seem like the right fit for you?

If so, you’ve now got all the information you need to apply. If you’re still not sure, then why not check out one of Europe’s alternative digital nomad visas?

More are being launched all the time, so keep an eye on our constantly updated guides for all the latest info.

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