How to get a work visa and authorization in Iceland as an employer
Expanding operations to Iceland offers organizations access to a highly skilled workforce and a thriving economy. However, hiring foreign nationals requires a firm understanding of Iceland’s work visa and authorization processes. Employers must navigate immigration laws carefully to remain compliant and avoid costly delays.
This guide outlines the work visa process for Iceland, employer responsibilities, and key considerations for companies hiring talent from abroad. For more general guidance on managing international workforces, visit Global Employment and EOR Services: Why Use Them?
Understanding work visas in Iceland
Work visas in Iceland are mandatory for most foreign nationals outside the European Economic Area (EEA) and European Free Trade Association (EFTA) countries. Employees from within the EEA/EFTA can generally live and work in Iceland without prior authorization, but non-EEA/EFTA nationals must secure a work and residence permit before starting employment.
Without proper work authorization, both the employer and employee may face legal penalties. According to the Directorate of Immigration Iceland, employers must verify their employees' right to work before the individual begins their role.
Employers can explore further best practices with Cross-Border Hiring: 7 Steps.
Importance of work authorization for employers
Obtaining work authorization ensures that an employer can legally onboard foreign talent while avoiding reputational damage and potential fines. It also supports the company's commitment to ethical hiring practices and ensures employee well-being throughout the relocation process.
Additionally, as competition for international talent increases, companies that streamline visa processes strengthen their global employer brand.
Overview of Iceland work visa process
Steps to apply for a work visa
First, the employee must secure a signed employment contract from an Icelandic company. Once the job offer is confirmed, the employee needs to gather essential documents, including the signed contract, a copy of their passport, a criminal record certificate, and proof of health insurance. The completed application for both the residence and work permit is then submitted to the Directorate of Immigration, either by the employee or their employer on their behalf. Processing typically takes up to 90 days. After receiving approval, the employee is issued a residence permit card, allowing them to travel to Iceland and begin their employment.
Requirements and eligibility
Applicants must:
- Hold a signed employment contract
- Demonstrate qualifications suitable for the job role
- Provide proof of sufficient means to support themselves
- Possess no criminal record
- Have valid health insurance
Employers must show that the position could not be filled by a local candidate and that the working conditions meet Icelandic labor laws, as noted by Work in Iceland.
Types of work visas and permits in Iceland
Temporary and permanent work permits
Temporary work permits are the most common for non-EEA/EFTA nationals. They typically last for up to one year but can be renewed if employment continues. After four years of continuous employment, an individual may become eligible for permanent residence.
Employer sponsorship requirements
Employer sponsorship is crucial for most non-EEA/EFTA applicants. The employer must justify the necessity of hiring a foreign worker and commit to following Iceland's employment standards. Certain sectors, like technology and healthcare, may have streamlined paths to approval based on skill shortages.
Considerations for employers
Hiring foreign employees
When hiring international talent, employers must:
- Offer contracts that align with Icelandic employment standards
- Assist with relocation logistics, such as housing and integration support
- Monitor visa expiration dates and initiate timely renewals
Navigating legal and regulatory framework
Employment laws in Iceland are comprehensive. Employers must ensure compliance with the Directorate of Labor's regulations on wages, working conditions, and employee rights. Violations can lead to serious consequences, including restrictions on future hiring.
Tips and resources for a successful application
Applying for work authorization in Iceland is straightforward with careful preparation. Employers and employees should:
- Start early. Apply at least three months before the planned start date.
- Double-check documentation. Make sure applications are complete.
- Stay updated on requirements. Check the Directorate of Immigration for updates.
Utilizing support from EOR providers
An Employer of Record (EOR) is a third-party organization that hires and pays employees on behalf of another company. EORs handle compliance with local labor laws, payroll, benefits administration, and immigration requirements. By partnering with an Employer of Record, companies can quickly and compliantly hire employees in Iceland without setting up a legal entity. This helps avoid administrative complexities, speeds up onboarding, and mitigates compliance risks.
How Velocity Global can help
Velocity Global simplifies the complexities of hiring international talent. With our Employer of Record solution, companies can seamlessly hire employees in Iceland without the need for entity establishment. We manage compliance, payroll, benefits, and onboarding, so organizations can focus on growth.
Our experts offer tailored guidance through Iceland's regulatory landscape and ensure that talent starts work quickly and compliantly. Learn more about how Velocity Global empowers businesses to hire anywhere, effortlessly.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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Topic:
Immigration + Relocation
