IcelandWork

Iceland work visa (shortage of labour permit)

Residence and work permit due to a shortage of labour (Article 9, Act No. 97/2002)

In short

Jobs that do not require expert qualifications can be filled by non-EEA workers only through the shortage-of-labour permit, which the Directorate of Labour grants in exceptional cases when no one can be found in Iceland, the EEA, EFTA or the Faroe Islands. The employer leads the application, the fee is ISK 80,000, the first permit lasts up to a year, and visa-required workers must wait for the decision outside Iceland.

Apply on Directorate of Labour – Apply for a work permit checked 24 October 2026

Key facts

Maximum stay
Up to one year for the first permit, or the length of a seasonal or clearly defined project; renewable for up to two years at a time.
Validity
For one named employer; every additional employer needs its own work permit.
Fee
ISK 80,000ISK 80,000 for the first permit and each renewal (fee table, October 2026), paid by bank transfer before filing.
Funds required
ISK 259,951 per monthMinimum secure support for one person before tax; wages must also follow the relevant Icelandic collective agreement.
Processing time
Up to six months for a new permit; may include a job advertisement of about three weeks.
Work
Only for the employer in the permit, and only after the permit is granted.
Family
Spouse, cohabiting partner after a year together, children under 18 and parents aged 67 or over; spouses need their own work permit to work.
Path to permanent residence
Yes, the permit can be the basis for permanent residence after four continuous years.
Where to apply
From abroad only for visa-required nationals: the employer files with the Directorate of Immigration; D visa from the embassy responsible for your place of residence.

Athletes and service contracts

The same form and fee cover two other work permits. Athletes employed by a club under the National Olympic and Sports Association of Iceland can get up to two years, renewable two years at a time, and the permit can lead to permanent residence. Specialists sent under a service or collaboration agreement by a foreign company without an Icelandic branch get up to one year per contract, renewable six months at a time, without a path to permanent residence.

When a shortage permit is possible

Three conditions apply: the employer has asked the Directorate of Labour for help finding a worker in Iceland, the EEA, EFTA or the Faroe Islands; you have signed an employment contract; and the employer explains in detail why it must hire from outside that area and why the post matters to the business. The Directorate states that these permits are exceptional and meant only for temporary swings in the Icelandic labour market, and the search for workers with free access to the market must be repeated at each extension.

Job advert and employer’s role

The employer files form D-107, signed by both parties, with the employment contract and the residence permit documents at the Directorate of Immigration, paying ISK 80,000 beforehand. During processing the Directorate of Labour may require the job to be advertised through its own service and EURES, preferably for at least three weeks, with requirements that are not tailored to you. Regulated trades and health professions need a licence or recognition before the permit can be granted.

Seasonal needs, such as the slaughter season, can be covered by permits limited to that period; Iceland has no separate seasonal-worker visa.

  1. The employer asks the Directorate of Labour for help recruiting within Iceland and the EEA.
  2. If no suitable worker is found, you and the employer sign the contract and form D-107.
  3. You gather passport copy, photo, criminal record certificate with translation and health insurance.
  4. The employer pays ISK 80,000 and files everything with the Directorate of Immigration while you stay outside Iceland.
  5. The employer posts any job advertisement the Directorate of Labour requests.
  6. After approval, collect the D visa from the embassy designated for you and travel.
  7. Complete the photo appointment, residence notification and any medical check within 90 days.

Where you wait and how long

Unlike expert applicants, visa-required workers may not be in Iceland when the shortage application is lodged or while it is processed; such files are refused unless compelling reasons of fairness apply. Visa-free nationals may wait in Iceland within their 90 days in 180. New permits can take up to six months; check the waiting-time page for the months currently being processed.

After the permit is granted

When the Directorate approves the application, it asks the relevant embassy to issue an entry visa (D visa), normally the mission responsible for your place of residence. Within 90 days of the grant you must attend a photo appointment at the Directorate of Immigration in Kópavogur or a District Commissioner’s office, submit a notification of residence, and, if you come from a country on the Directorate of Health list, have a medical examination within two weeks of arrival. Miss any of these and the permit is not issued.

Once these steps are done the residence card is ordered; you are emailed and can collect it five days later where your photo was taken. The Directorate asks Registers Iceland to record your legal domicile, which gives you an Icelandic ID number (kennitala).

Renewal, new employer and job loss

Renewals must meet every original condition, so the job may have to be advertised again, and the employer must have paid tax and insurance contributions for your work. File the renewal at least four weeks before expiry to keep working with the same employer while it is processed. A change of employer counts as a new application with a new labour market check.

If you lose the job, you can apply for a six-month residence permit to look for another one. If you leave early, tell the Directorate of Immigration by email at work@utl.is. Workers on permits have the same rights under collective agreements as domestic staff.

Refusal and appeal

A refusal is a written decision that can be appealed to the Immigration and Asylum Appeals Board (Kærunefnd útlendingamála) within 15 days of receiving it. An appeal does not normally suspend the decision unless you ask for suspension; refused applicants who are in Iceland are usually given about 30 days to leave. If you miss the deadline, the refusal becomes final.

Documents

Required documents

Identity

  • Passport photo 35 x 45 mm and colour copy of the passport (personal data page, signature page, stamps), valid at least 90 days beyond the permit

Money

  • Documents showing secure means of support for the permit period (normally the salary in the contract)

Work

  • Form D-107 signed by both you and the employer
  • Original employment contract signed by employer and employee
  • Employer’s detailed justification for hiring from outside the EEA/EFTA

Insurance

  • Health insurance valid in Iceland for at least 3 months from domicile registration, minimum cover ISK 2,000,000, from an insurer authorised in Iceland

Other

  • Signed application form and payment receipt for the processing fee
  • Criminal record certificate from your country of residence, not older than 12 months, with an authorised translation if not in English or a Nordic language

Supporting documents (where they apply)

Work

  • Licence or recognition for regulated trades or health professions

Study

  • Educational records and diplomas, if relevant to the job

Frequently asked questions

Can I apply for an Iceland work permit myself?

Not for a first permit. Without an Icelandic residence permit, the employer is responsible for applying; both of you sign form D-107.

Can I go to Iceland on a Schengen visa and wait there?

Not for a shortage-of-labour permit. Visa-required applicants must be outside Iceland when applying and during processing.

Is there a seasonal work visa for Iceland?

No separate visa. Seasonal labour needs are covered by shortage-of-labour permits limited to the season concerned.

Can I work for two employers?

Only with a separate work permit for each employer; permits never transfer to a new employer.

Official sources

Summarised from the official sources above. Rules, fees and processing times change: confirm with the embassy or the official portal before you apply.

Other visa types for Iceland

Visits and short stays

Business and self-employment

  • Business visa Maximum stay: Up to 90 days in any 180-day period in the whole Schengen Area.

Study and training

  • Student visa Maximum stay: Granted for up to one year, renewable a year at a time with satisfactory study results.
  • Au pair visa Maximum stay: As long as the au pair agreement, never more than one year; renewable once for a further year.

Work

Family

  • Spouse and partner visa Maximum stay: Usually one year at a time, at most two years, and never longer than the sponsor’s own temporary permit.
  • Family reunification visa Maximum stay: Usually one year at a time, at most two years, and never longer than the sponsor’s temporary permit.

Residence

  • Residence permit Maximum stay: A continuous stay of up to 180 days; days in other Schengen states count as days in Iceland.
  • Permanent residence Maximum stay: Unlimited right of residence; the card is valid for five years.

Protection

Iceland visa guide