Iceland, a land of surreal beauty and enchanting landscapes, and ranked by the Global Peace Index as the safest and best place to live in the world, welcomes digital nomads with the Iceland Digital Nomad Visa.
Launched in 2020, this special visa is known as Iceland’s long-term remote work visa serves as a temporary permit and allows remote workers, whether self-employed or under contract with a foreign employer, to live and work in the country for up to six months.
However, Iceland is notorious for its high cost of living and it may not be a financially sound and practical choice for many digital nomads, considering its income threshold requirement of $7,763/month- one of the highest in the world. But while the cost of living can be high, the overall experience of working and living in Iceland is likely to be both memorable and rewarding, such as being able to enjoy tax exemptions and other enticing benefits, as well as the assurance of safety and security in the country.
As an option, many digital nomads from the EU take advantage of the Schengen Agreement to enter Iceland visa-free as tourists for up to 90 days and then carry on with remote work. They cross borders or return to their home countries when or just before their time is up.
So, are you going to take the big step of pursuing a digital nomad lifestyle in Iceland? Let’s find out and see if this majestic Northern European island country is for you.
In this article, we delve into the details and intricacies of the Iceland digital nomad visa, how to acquire it, and navigate the application process if you want to live and work in Iceland.
What is the Iceland Digital Nomad Visa?
The Iceland Digital Nomad Visa is a specialized long-term remote work visa catering to the growing trend of digital nomadism. This visa is split into categories targeting self-employed individuals and those employed by companies outside of Iceland.
To be eligible, applicants must demonstrate a stable monthly income of no less than $7,763, highlighting Iceland’s high cost of living. This requirement ensures that digital nomads can comfortably sustain themselves during their stay. Additionally, applicants need to provide proof of health insurance, a clean criminal record, and a valid passport.
The visa allows for a stay of up to six months, providing an opportunity for digital nomads to immerse themselves in Iceland’s unique culture, breathtaking landscapes, and safe environment, while legally working remotely. The application process involves a detailed submission of documents, including a visa application form and a non-refundable fee of 12,200 ISK (approximately $94).
It’s recommended to apply from one’s home country and to plan the application well in advance due to the in-depth process and the processing time, which can vary from a few weeks to over a month.
The Benefits of the Iceland Digital Nomad Visa
- Co-Working Spaces and Connectivity: Reykjavik, the capital city of Iceland, boasts a range of coworking spaces catering to different needs. Spaces like Regus, Innovation House, and Hitt Húsið provide options for private offices, hot-desking, meeting rooms, and even gyms. This variety ensures a suitable working environment for different types of digital nomads, whether they are entrepreneurs or prefer a more traditional office setup.
- Tax-exempt: Digital nomads working remotely in Iceland are exempted from paying local taxes from income earned for remote work or business.
- Natural Beauty and Unique Experiences: Iceland’s natural landscapes are truly unparalleled. From witnessing the awe-inspiring Aurora Borealis to exploring ice fields and volcanoes, the country offers a backdrop like no other for those who want to blend work and exploration. This aspect of Iceland is particularly enticing for digital nomads who value unique experiences and a connection with nature.
- Safety and Infrastructure: Reputed for its crime-free environment, Iceland ranks as one of the safest countries and tops the list for the best place to live in the world, according to the Global Peace Index. This peace of mind is invaluable for digital nomads who often prioritize security when choosing a destination. Additionally, the country has a great infrastructure for remote workers, including reliable internet and plenty of cafés with free Wi-Fi.
- Vibrant Culture and Nightlife: Reykjavik is not just about work; it’s a city that knows how to celebrate life. With a rich cultural scene, including music, art, and food, digital nomads can immerse themselves in the local lifestyle. The city transforms from a calm community during the week to a lively hub over the weekend, offering a balanced lifestyle for work and play.
- High-speed internet connectivity: Iceland ranks 6th in the world with the fastest fixed access internet speed with an average of 289.17 mbps with 98% of households connected.
- Digital Nomad Visa: Iceland offers a digital nomad visa, allowing self-employed or foreign employees to live and work in the country for up to six months. This visa is part of Iceland’s effort to attract remote workers, making it easier for digital nomads to stay and work legally. However, it’s important to note that Iceland is an expensive country, and the visa requires proof of a stable income of around $7,763 per month.
- Language and Community: English is widely spoken in Iceland, especially among younger generations, making communication smooth for non-Icelandic speakers. The country has a close-knit community feel, which can be comforting for digital nomads looking to connect with locals and other international workers.
- Lifestyle and Gastronomy: For those interested in gastronomy, Reykjavik’s culinary scene has evolved significantly, offering a variety of dining experiences from traditional Icelandic cuisine to modern European dishes. The city’s small size also means it’s easy to explore, and its location makes it a bridge between continents.
Iceland Digital Nomad Visa- Requirements, Application & Costs
Basic Requirements
For the Iceland Digital Nomad Visa, applicants must meet certain qualifications and provide a variety of documents. Here’s a detailed list of the requirements and qualifications:
- Proof of Employment or Self-Employment: Applicants must be either self-employed or working for a company outside of Iceland. This needs to be documented through an employment contract, a confirmation letter from your employer, or proof of business ownership.
- Minimum Income Requirement: One of the key qualifications is to show proof of a stable monthly income, which is no less than $7,763. This high threshold is set to ensure that applicants can comfortably support themselves in Iceland, given its high cost of living.
- Valid Passport: Your passport must be valid for at least three months beyond your planned stay in Iceland. A copy of this passport must be included in your application.
- Application Form for Remote Work Visa: This form must be fully completed. It’s available on the official Icelandic government website or through Icelandic consulates and embassies.
- Application Fee Payment: The application includes a non-refundable fee of 12,200 ISK (about $94). Proof of payment, such as a receipt, must be provided.
- Passport Photo: Applicants need to provide a recent passport photo, adhering to the standard passport photo requirements (usually 35×45 mm and not older than six months).
- Health Insurance: Valid health insurance that covers your entire stay in Iceland is required. This is to ensure that applicants have access to healthcare without burdening the local system.
- Clean Criminal Record: A document or certificate proving that you have a clean criminal record is necessary. This is standard for many visa applications to ensure the safety and security of the host country.
- Proof of Accommodation: While not always explicitly stated, it’s generally advisable to have proof of where you will stay in Iceland, such as a rental agreement or a hotel reservation.
- Purpose of Stay Documentation: You may need to provide additional documentation that clarifies the purpose of your stay in Iceland. This can include a detailed itinerary, a letter of invitation from an Icelandic host, or other relevant documents.
Application Process
Getting the Iceland Digital Nomad Visa involves a clear but thorough process. Here’s a step-by-step guide tailored for digital nomads seeking this unique opportunity to live and work in Iceland:
Step 1- Determine Eligibility
Before starting the application process, ensure that you meet the basic eligibility criteria. This includes being self-employed or employed by a company outside of Iceland, and having a stable monthly income of $7,763.
Step 2- Gather Necessary Documents
Prepare all the required documents. These include a valid passport (with at least three months’ validity beyond your stay), a recent passport photo, proof of stable income, a clean criminal record, valid health insurance, and proof of employment or self-employment. Additionally, having proof of accommodation in Iceland, though not always explicitly required, is highly recommended.
Step 3- Complete the Application Form
Download and fill out the Remote Work Visa application form. This form is usually available on the official Icelandic government website or at Icelandic consulates and embassies. Ensure that all information provided is accurate and complete.
Step 4- Pay the Application Fee
The application process includes a non-refundable fee of 12,200 ISK (approximately $94). Payment details are typically available on the Icelandic government’s website. Make sure to keep the receipt as proof of payment.
Step 5- Submit the Application
Once all the documents are ready and the form is completed, submit your application along with the documents to the relevant Icelandic authority. This could be an Icelandic consulate or embassy in your country, or another designated authority.
Step 6- Wait for Processing
After submission, there is a processing period which can vary from a few weeks to over a month. During this time, your application and documents will be reviewed. It’s important to plan your travel accordingly and not book any non-refundable tickets or accommodations until your visa is approved.
Step 7- Respond to Any Follow-Up Requests
If there are any additional requests for information or documents from the Icelandic authorities, respond promptly to avoid delays in your application process.
Step 8- Receive Your Visa
Once your application is approved, you will receive your Digital Nomad Visa. It’s important to check the visa for any errors and understand its terms, such as the duration of stay and any conditions attached.
Step 9- Plan Your Journey
After obtaining your visa, you can finalize your travel and accommodation plans. Remember, living in Iceland can be expensive, so it’s advisable to budget accordingly and perhaps connect with local digital nomad communities for tips and advice.
Step 10- Arrive in Iceland
Upon arrival, you might have to register your stay with the local authorities, depending on the duration of your stay. It’s also a good time to familiarize yourself with local laws and customs.
Costs
When applying for the Iceland Digital Nomad Visa, there are several costs involved, which can be categorized as basic and incidental. Here’s a breakdown of these costs and other key considerations:
- Application Fee: The primary cost is the application fee for the visa. This fee is 12,200 ISK, which is approximately $94 USD. This is a non-refundable fee that must be paid at the time of application.
- Health Insurance: Applicants must have valid health insurance that covers their entire stay in Iceland. The cost of health insurance can vary widely based on coverage, duration, and the provider. It’s important to get a quote from an insurance provider for the most accurate cost.
- Proof of Income Documentation: If you need to get official documentation or statements to prove your income, there might be incidental costs depending on your bank or financial institution. These costs can vary.
- Criminal Record Check: Obtaining a clean criminal record certificate might involve a fee, depending on the country of issuance. This cost can vary widely based on local regulations and processes.
- Passport Photos: Passport photos are required for the application. The cost for these can vary, but on average, you might expect to pay around 1,500 – 2,000 ISK ($12 – $16 USD) for a set of passport photos.
- Passport Fees: If you need to renew or obtain a passport for the application, this will involve a fee that varies by country.
- Travel Costs: While not a direct cost of the visa application, travel costs to and from Iceland should be considered. These costs include flights, transportation, and any accommodations needed during travel.
- Accommodation in Iceland: Proof of accommodation might be required. The cost will depend on the type and duration of the accommodation. Renting an apartment, for example, can be a significant cost, especially in Reykjavik.
- Living Expenses: While living in Iceland, you’ll incur daily living expenses, which in Iceland can be higher than in many other countries due to its high cost of living.
The cost of living in Iceland can vary significantly depending on lifestyle choices, location within the country, and personal spending habits. Here’s a breakdown to give you a clearer picture, especially if you’re considering the Iceland Digital Nomad Visa.
- Housing: Rent is a major part of living expenses. For a furnished 85 sqm (900 sqft) accommodation, you could expect to pay about 334,968 ISK ($2,460 USD) in an expensive area and around 284,853 ISK ($2,092 USD) in a more average area per month.
- Utilities: Monthly utilities for two people in an