Iceland Digital Nomad Visa – Application and Requirements

Discover the Iceland Digital Nomad Visa: eligibility, application process, costs, and benefits for remote workers. Live and work in Iceland for up to 180 days.

Iceland, often referred to as the land of fire and ice, has become a magnet for digital nomads seeking a unique blend of stunning natural beauty, high-speed internet, and a safe, progressive society. The Iceland Digital Nomad Visa, officially known as the Long-term Visa for Remote Work, allows remote workers to live and work in this Nordic gem for up to 180 days. Introduced in 2020, this visa caters to self-employed individuals or those employed by foreign companies, offering a chance to experience Iceland’s unparalleled landscapes and vibrant culture while maintaining professional commitments. In this comprehensive guide, we’ll explore the visa’s eligibility criteria, application process, costs, benefits, and practical considerations for digital nomads, ensuring you have all the information needed to make Iceland your temporary home.

What is the Iceland Digital Nomad Visa?

The Iceland Digital Nomad Visa is a specialized long-term visa designed for remote workers who wish to live in Iceland while working for employers or clients based outside the country. Unlike traditional work permits, this visa does not allow participation in the Icelandic labor market, ensuring that digital nomads remain tied to foreign employers or self-employed ventures. The visa is valid for up to 180 days if applied for from outside the Schengen area, or up to 90 days if applied for from within it. It targets non-EEA/EFTA citizens who can enter Iceland visa-free, making it an attractive option for professionals from countries like the United States, Canada, or Australia.

Iceland ranks 42nd on the VisaGuide.World Digital Nomad Index with a score of 2.00, reflecting its appeal as a destination for remote workers. With an average internet speed of 265.25 Mbps, a tax-free status for visa holders, and a high quality of life, Iceland offers a compelling environment for digital nomads despite its high cost of living.

Eligibility Criteria for the Iceland Digital Nomad Visa

To qualify for the Iceland Digital Nomad Visa, applicants must meet specific conditions. These ensure that only financially stable remote workers who align with Iceland’s immigration policies can participate. The key eligibility criteria are:

• Nationality: Applicants must be from a country outside the European Economic Area (EEA) or European Free Trade Association (EFTA).
• Visa-Free Entry: You must not require a visa to enter the Schengen area.
• No Recent Long-Term Visa: You cannot have been issued a long-term visa by Icelandic authorities in the past 12 months.
• Remote Work Purpose: The purpose of your stay must be to work remotely, either as an employee of a foreign company or as a self-employed individual.
• No Intention to Settle: You must not plan to establish permanent residency in Iceland.
• Income Requirements: You must demonstrate a minimum monthly income of ISK 1,000,000 (approximately €6,663 or $7,063) for individuals, or ISK 1,300,000 (€8,663 or $9,182) if applying with a spouse or cohabiting partner.
• Family Members: Spouses, cohabiting partners, and children under 18 may apply as dependents, provided they are also exempt from Schengen visa requirements.

These criteria ensure that applicants can sustain themselves in Iceland’s high-cost environment while adhering to immigration regulations.

Application Process: Step-by-Step Guide

The application process for the Iceland Digital Nomad Visa is paper-based, requiring careful preparation and submission to the Directorate of Immigration in Kópavogur, Iceland. Below is a detailed step-by-step guide to help you navigate the process:

1. Verify Eligibility: Confirm that you meet all eligibility criteria, including nationality, income, and visa-free entry to the Schengen area.
2. Gather Required Documents: Collect all necessary documents (detailed in the next section) to support your application.
3. Complete the Application Form: Download the L-802 application form from the Directorate of Immigration’s website, fill it out electronically, and sign it.
4. Pay the Application Fee: Pay the non-refundable processing fee of ISK 12,200 (approximately €81 or $86) via bank transfer. Retain the payment receipt for inclusion with your application.
5. Submit the Application: Send the completed application form, supporting documents, and payment receipt by regular mail to the Directorate of Immigration at Dalvegur 18, 201 Kópavogur, Iceland. Alternatively, deliver it to the Directorate’s drop box or a District Commissioner’s office outside the capital area.
6. Await Processing: The processing time typically ranges from 3 to 4 weeks, depending on the volume of applications. Ensure your application is complete to avoid delays.
7. Respond to Requests: The Directorate may request additional documents. Respond promptly to avoid rejection or delays.
8. Receive Approval: You’ll be notified via email if your application is approved. You must enter Iceland within 90 days of approval, or you’ll need to resubmit income and health insurance documents.
9. Obtain the Visa: Upon arrival in Iceland, contact the Directorate of Immigration to have the visa issued. The visa’s validity begins on the date of issuance.

Required Documents

The Iceland Digital Nomad Visa application requires a comprehensive set of documents to verify eligibility and purpose of stay. Incomplete or inaccurate submissions may lead to delays or rejection. Below is a detailed list of required documents:

For Remote Workers

• Payment Receipt: Proof of payment for the ISK 12,200 application fee.
• Passport Photo: A 35×45 mm photo, not older than 6 months.
• Passport Copy: Include the personal information page, signature page, visas, and entry/exit stamps from the Schengen area in the last year. The passport must be valid for at least 90 days beyond the visa’s duration.
• Health Insurance: A policy valid in Iceland and the Schengen area, with minimum coverage of ISK 2,000,000 (€13,326 or $14,125) per person for the entire stay. If not insured with an Icelandic company, provide detailed information on foreign insurance.
• Proof of Remote Work:
• Employees: A letter from your employer confirming authorization to work remotely from Iceland.
• Self-Employed: Documentation verifying self-employment in your home country or primary work location.
• Proof of Income: Evidence of a minimum monthly income of ISK 1,000,000 (€6,663 or $7,063) for individuals, or ISK 1,300,000 (€8,663 or $9,182) if applying with a spouse/partner. Acceptable documents include:
  • Employment contract stating monthly salary.
  • Contracts for self-employed projects with agreed payments.
• Criminal Record Certificate: May be requested by the Directorate of Immigration.

For Spouses or Cohabiting Partners

• Payment Receipt: Proof of payment for the ISK 12,200 fee.
• Passport Photo: A 35×45 mm photo, not older than 6 months.
• Passport Copy: As described above.
• Health Insurance: As described above.
• Relationship Proof: A marriage certificate or documentation confirming cohabitation for at least one year. Copies are acceptable, but originals may be requested.

For Children (Under 18)

• Payment Receipt: Proof of payment for the ISK 12,200 fee.
• Passport Photo: A 35×45 mm photo, not older than 6 months.
• Passport Copy: As described above.
• Health Insurance: As described above.
• Birth Certificate: A copy, with originals potentially requested.
• Custody Documents:
  • Custody documents issued by a competent authority (e.g., court or district commissioner), not older than 6 months.
  • If shared custody, a certified statement from the non-custodial parent agreeing to the child’s visa.
  • Divorce papers or a death certificate if applicable.
• Education Documents (for children aged 6-16):
  • Confirmation of remote instruction from a school in the home country.
  • Proof of enrollment in an Icelandic school.
  • Evidence of homeschooling.

All certificates in languages other than English or Scandinavian languages must be translated by an authorized translator and submitted in their original format.

Costs Associated with the Iceland Digital Nomad Visa

The costs of obtaining and living under the Iceland Digital Nomad Visa include both application-related expenses and living costs in Iceland. Below is a breakdown:

Application Costs

• Visa Application Fee: ISK 12,200 (€81 or $86) per applicant, paid via bank transfer before submission.
• Passport Photos: Approximately ISK 1,500–2,000 (€10–13 or $12–16) for a set.
• Health Insurance: Costs vary depending on the provider and coverage, but expect to budget for a policy with at least ISK 2,000,000 coverage.
• Criminal Record Certificate: Fees depend on the issuing country, typically ranging from $10–50.
• Document Translation: If required, costs for authorized translations vary by document and language.
• Passport Renewal: If needed, costs depend on your country of origin (e.g., $130 for a U.S. passport).

Living Costs in Iceland

Iceland’s high cost of living is a critical consideration for digital nomads. According to Numbeo, the average monthly cost (excluding rent) is approximately $1,324 for an individual and $4,918 for a family of four. Below is a table of common expenses:

These costs highlight the need for the visa’s high income requirement to sustain a comfortable lifestyle.

Benefits of the Iceland Digital Nomad Visa

The Iceland Digital Nomad Visa offers several advantages that make it an appealing choice for remote workers:

1. Tax Exemption: Visa holders are not considered tax residents and are exempt from Icelandic income taxes, though tax obligations in your home country may still apply.
2. High-Speed Internet: Iceland boasts an average internet speed of 265.25 Mbps, with 98% of households connected, ensuring seamless remote work.
3. Safety and Stability: Ranked first on the Global Peace Index, Iceland is one of the safest countries in the world, offering peace of mind for nomads.
4. Natural Beauty: From the Northern Lights to glaciers, volcanoes, and hot springs, Iceland’s landscapes provide an inspiring backdrop for work and leisure.
5. Vibrant Culture: Reykjavik’s cultural scene, with its music, art, and cuisine, offers a dynamic lifestyle for digital nomads.
6. English Proficiency: Most Icelanders, especially younger generations, speak fluent English, easing communication for international workers.
7. Coworking Spaces: Reykjavik and other cities offer modern coworking spaces like Regus and The Blue Bank, catering to various professional needs.
8. Schengen Mobility: The visa allows travel within the Schengen area for up to 90 days within a 180-day period, offering flexibility to explore Europe.

Challenges of the Iceland Digital Nomad Visa

While Iceland is an attractive destination, there are challenges to consider:

• High Cost of Living: Iceland is one of the most expensive countries, with high costs for housing, food, and transportation.
• Short Visa Duration: The visa is limited to 90–180 days and cannot be extended, requiring a 12-month wait before reapplying.
• High Income Requirement: The minimum income of ISK 1,000,000/month is one of the highest for digital nomad visas globally.
• Housing Shortages: Affordable housing, especially in Reykjavik, can be difficult to secure.
• Isolation: Iceland’s remote location and long, dark winters may feel isolating for some nomads.
• Limited Eligibility: Only those from visa-free countries can apply, excluding many potential applicants.

Best Places in Iceland for Digital Nomads

Iceland offers a range of cities and towns suitable for digital nomads, each with unique attractions and amenities. Below are some top destinations:

• Reykjavik: The capital is the hub for digital nomads, offering coworking spaces like Regus – Kalkofnsvegur ($500/month) and a vibrant cultural scene. It’s ideal for those seeking urban amenities and natural attractions like the Blue Lagoon.
• Hafnarfjörður: A charming town near Reykjavik with a strong arts community and access to nature, perfect for a balanced lifestyle.
• Akureyri: Located in northern Iceland, it’s ideal for outdoor enthusiasts with activities like skiing and viewing the Northern Lights.
• Selfoss: A quieter option near the Golden Circle, offering proximity to natural attractions and a peaceful work environment.

Coworking Spaces in Iceland

Iceland’s coworking spaces cater to digital nomads with modern facilities and flexible pricing. Below is a table of popular options:

These spaces provide high-speed internet, meeting rooms, and community events, making them ideal for remote work.

FAQs About the Iceland Digital Nomad Visa

Conclusion

The Iceland Digital Nomad Visa offers a unique opportunity to live and work in one of the world’s most stunning and safest countries. With its high-speed internet, vibrant culture, and breathtaking landscapes, Iceland is an ideal destination for digital nomads seeking adventure and productivity. However, the high income requirement and cost of living make it a premium choice, best suited for those with stable, high-earning remote jobs. By carefully preparing your application and understanding the requirements, you can embark on a memorable journey to work remotely from the land of fire and ice. For the latest updates, visit the Directorate of Immigration’s website or explore resources like Atlys.com and iVisa.com.

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