Destination guide · Northern Europe

Moving to Iceland from the U.S.

Name: Iceland
Address: Iceland

Which Icelandic work, family or study permit fits an American, why there is no retirement, own-means, investor or self-employment permit and what happened to the remote-work visa, what being in the EEA and Schengen but outside the EU means for you, the 2026 tax rules in krónur, the U.S. tax treaty and Social Security agreement, and what health care, rent, property and paperwork involve, with every figure taken from, or calculated from, an official source and dated.

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Rules and figures checked: October 2026Official sources: 123

CurrencyIcelandic króna (ISK)USD 1 = ISK 122.75 (Central Bank of Iceland, Oct 7, 2026); not the euro¹

EU / SchengenEEA, not EU / YesIn the European Economic Area and the Schengen area, but not an EU member; no EU Blue Card^2,3,4

Retirement visaNoneNo retirement, own-means, investor or self-employment permit; parents aged 67+ of an adult child in Iceland are the exception, as of October 2026; a draft bill would change family-reunification rules^5,6,7,8

Main work routeExpert knowledgeA job offer from a specific employer; no salary floor stated; fee ISK 80,000 (October 2026)^9,10

U.S. tax treatyYes, 2007 conventionSocial Security agreement in force since March 1, 2019^11,12,13

Permanent residenceAfter 4 yearsOf continuous residence, as of October 2026; a draft bill would make it six; fee ISK 60,000^6,14,8

What changed, 2024 to 2026

What Has Changed in Iceland Since 2024

In 2026 Iceland rewrote its visa law, which took away the legal basis of the remote-work visa; it also moved work permits to the Directorate of Immigration, tightened the rules for students, shortened the wait for public health insurance and made landlords register every lease. A government bill that would tighten residence rules further was out for consultation when we checked these pages on October 8, 2026. The changes, newest first.

October 1, 2026: the Ministry of Justice put a draft bill out for consultation that would, among other things, raise the residence needed for permanent residence from four to six years, require two years of cohabitation for partners, change other family-reunification rules and end au pair permits for people from outside the EEA. The Ministry says the bill would not revoke permits already granted. A draft is not law: as of October 8, 2026 the rules described on this page applied; check with the Directorate of Immigration before you rely on them⁸.
September 1, 2026: a temporary cut in VAT on petrol and diesel ended, and the rate rose from 11% to 24%; consumer prices were 5.9% higher in September than a year earlier¹⁵.
August 1, 2026: the wait for public health insurance after you register your legal domicile fell from six months to three months^16,17.
July 8, 2026: the Directorate of Immigration took over work permits from the Directorate of Labor. From that date students may work up to 60% of full time without a work permit, the job-search permit after graduation was cut from up to three years to up to 18 months, and students can no longer bring their parents^18,6.
May 2026: the new Visa Act, No. 37/2026, repealed the article of the Foreign Nationals Act on which long-term visas, including the remote-work visa, rested, and replaced the next article with a new short-term residence permit of up to 180 days; under the Regulation on Foreign Nationals as amended in 2026 it is for close family visits and for artists, scientists and athletes^19,20,18.
April 10, 2026: the EU’s Entry/Exit System became fully operational in the Schengen area, Iceland included, and replaced passport stamps²¹.
April 9, 2026: registered homestay letting was limited to your legal domicile and one other property you own outside an urban area; the 90-day and ISK 2,000,000 caps still apply²².
January 1, 2026: every landlord must register residential leases with the Housing and Construction Authority (HMS)²³; rent in a fixed-term lease may not change in the first 12 months²⁴; the means-of-support amount for permits rose to ISK 259,951 a month^25,26; from that date tax is paid on 75% of rent from registered residential leases, for up to two homes let²⁷; and new patient co-payments took effect²⁸.
September 1, 2024: a rent increase takes effect only once it is registered²⁴.
May 23, 2024: year-round licensed accommodation in urban areas must be in approved commercial premises²².

On this page

Who Iceland suits
Permits and the means test
If you are retiring
Step by step, in the right order
Cost of living and rents
Health care
Taxes, the treaty and Social Security
Renting and buying
Where to live
ID number, banks, driving, pets
Schengen, EES and ETIAS
A 12-month timeline
Questions
Sources

Is Iceland for you?

Who Iceland Suits, and Who It Frustrates

Iceland suits Americans with a job offer from an Icelandic employer that needs their expertise, people married to an Icelander or to someone who lives in Iceland, students, and, under the current rules, parents aged 67 or older of an adult child who lives there (a draft bill under consultation as of October 8, 2026 may change this)⁸. It frustrates retirees without such a child, remote workers, investors and the self-employed, because the Directorate of Immigration’s list has no permit made for them.

In its favor

No salary floor for the expert permit: the conditions are about the job and your training, and we found no minimum salary on the Directorate’s page or in the law (October 2026)¹⁰. You do need secure means of support of ISK 259,951 a month (2026)²⁹.
A tax break for incoming experts: for approved foreign experts, only 75% of wage income is taxed for the first three years³⁰.
No wealth tax as of October 2026, by our reading of the Income Tax Act³¹, and under the U.S. tax treaty U.S. Social Security paid to a resident of Iceland is taxable only in the United States¹².
A Social Security agreement with the United States has been in force since March 1, 2019¹³.
Public health insurance after three months (since August 1, 2026), and a daytime visit to a health center then costs ISK 500 (2026)^32,28.
Tenant protection: deposits are capped at three months’ rent, and an open-ended apartment lease needs six months’ notice from either side²⁴.

Against it

No retirement, own-means, investor or self-employment permit. The law bars non-EEA nationals from working as self-employed unless they are exempt from needing a work permit^6,5.
The remote-work visa appears to be gone: its legal basis was repealed in May 2026, by our reading as of October 8, 2026¹⁹.
Slow, paper-based first applications: first permits “can be up to 8–10 months”, and first applications can only be sent on paper^33,34.
Not in the EU: no EU Blue Card and, by our reading, no EU long-term resident status; Iceland’s permits are national^4,2.
Prices and inflation: consumer prices rose 5.9% in the year to September 2026, and new market leases in Reykjavík averaged about ISK 4,291 per m² a month in 2026, by our query of HMS’s rent register^15,35.
A U.S. driver’s license may be used for at most six months, and exchanging it takes a theory test and a practical test^36,37; imported dogs spend at least 14 days in quarantine³⁸.

Permits

Which Permit Fits You, and What It Takes in 2026

As an American you can visit Iceland without a visa: up to 90 days in any 180-day period in the Schengen area^39,9. To live or work in Iceland you need a residence permit, decided by the Directorate of Immigration (Útlendingastofnun) under the Foreign Nationals Act⁶; since July 8, 2026 the Directorate also processes the work permits that the Directorate of Labor used to handle¹⁸. Iceland is in the EEA and in Schengen, but not in the EU, and three points follow for Americans:

No EU Blue Card. The Blue Card Directive applies in 25 EU member states⁴, and the EEA Agreement does not cover justice and home affairs, which includes EU migration law². Iceland’s work permits are national permits, and by our reading none of them is a Blue Card.
No EU long-term resident status. For the same reason, the EU directive on long-term residents does not apply, by our reading, so permanent residence in Iceland is an Icelandic national status that gives no right to live in an EU country².
EEA free movement is not for you unless you are an EEA citizen: Nordic and EEA/EFTA citizens are exempt from holding a residence permit, Americans are not⁴⁰. As a Schengen country, Iceland also runs the EU’s Entry/Exit System, and will run ETIAS when it starts (see entry rules)^3,21.

Main routes for U.S. citizens, 2026. Directorate of Immigration pages and the Foreign Nationals Act, read October 8, 2026.
Route	Made for	Money test	Fee	Permit
Work requiring expert knowledge	A specific job with a specific employer, where your university-level, industrial, artistic or technical training, recognized in Iceland, is essential to the company^10,9	Secure means of support, ISK 259,951 a month; no salary floor stated^29,10	ISK 80,000⁹	Up to 4 years, not longer than the work permit; renewable⁴¹
Shortage of labor	Only in exceptional cases, after a labor-market test, often a three-week advertisement⁴²	ISK 259,951 a month²⁹	ISK 80,000⁹	Up to 1 year, renewable up to 2⁴²
Athletes; collaboration or service contracts	The two other types of work-based permit, each for a specific job with a specific employer⁹	ISK 259,951 a month²⁹	ISK 80,000⁹	—
Spouse or cohabiting partner	The spouse or partner of an Icelandic citizen or of a permit holder; cohabitation of at least one year; both 18 or older when you married or moved in together²⁵	ISK 259,951 a month (one person) or ISK 415,922 (married couple)²⁵	ISK 110,000; renewal ISK 60,000³⁴	Usually 1 year, at most 2, never longer than the sponsor’s⁴³
Parent aged 67 or older	A parent of an adult child who lives in Iceland and holds a status the Directorate accepts, for example as an Icelandic citizen or a permanent resident⁷	Secure means of support⁷	ISK 110,000³⁴	—
Student	Full-time study, mainly at university level⁶	ISK 259,951 a month⁴⁴	ISK 70,000⁴⁴	Up to 12 months at a time; 75% progress at each renewal⁶
Short-term residence permit	Visits of more than 90 and up to 180 days to a close family member, or as an artist, scientist or athlete; once in 12 months^20,19	ISK 259,951 a month⁴⁵	ISK 12,200²⁰	Up to 180 days; cannot be renewed; no legal domicile; does not lead to permanent residence²⁰

In dollars at the Central Bank of Iceland’s rate of October 7, 2026 (USD 1 = ISK 122.75), ISK 259,951 is about $2,118, ISK 415,922 about $3,388, ISK 80,000 about $652, ISK 110,000 about $896 and ISK 12,200 about $99¹. Expedited processing for a fee is no longer offered (as of October 2026)⁹. The means-of-support amounts are monthly, before tax, and change when the City of Reykjavík changes its basic financial assistance; check the Directorate’s page for the year you apply.

Means-of-support check

Does Your Income Meet the Directorate’s 2026 Amount?

Most Icelandic permits, permanent residence and citizenship ask for secure means of support. For 2026 the Directorate of Immigration’s minimum is ISK 259,951 a month for one person and ISK 415,922 for a married couple, plus ISK 129,976 for each other family member aged 18 or older. The amounts are before tax and must be secure for the whole period of the permit^25,29. They follow the City of Reykjavík’s basic financial assistance, which rose from ISK 247,572 to ISK 259,951 a month on January 1, 2026²⁶. Enter a monthly income before tax in krónur or dollars; we compare to the exact eyrir (a hundredth of a króna). Dollars use the Central Bank of Iceland’s rate of October 7, 2026 (USD 1 = ISK 122.75)¹.

A check against a published figure only, by our arithmetic. ISK 415,922 is 1.6 times and ISK 129,976 half of ISK 259,951, rounded. We could not confirm an amount for children under 18; check the Directorate’s page for your permit. Meeting the figure does not mean a permit will be granted.

Applying from the United States

A first residence permit must normally be applied for before you come to Iceland. Because Americans do not need a visa, you may be in Iceland while the application is processed, but only within your 90 visa-free days⁶. First applications for work, family, study and the other permits “can only be submitted on paper”: you send them to the Directorate of Immigration at Dalvegur 18, 201 Kópavogur, by mail or through its drop box, with a receipt for the fee paid by bank transfer; renewals, permanent residence and citizenship are applied for online³⁴. There is no application center in the United States. Applicants who need a visa get an entry visa from an embassy, Washington, D.C. among them, after approval; as a visa-exempt American you normally do not need one⁴⁶.

How long it takes. The Directorate says first permits “can be up to 8–10 months” and most renewals take up to three months. On October 7, 2026 it was working on work-based applications received in June 2026, family applications for relatives of Icelanders and permit holders from September 2025, permanent residence from September 2025 and citizenship from March 2025³³. Paying for faster processing was not possible as of October 2026⁹.

Once the permit is granted, you must attend a photo appointment, report your place of residence and, if required, have a medical examination within two weeks of arriving, all within 90 days of the decision, or the permit is not issued⁴⁷. A permit can be revoked if you stay abroad for more than three months in a row⁴¹.

Directorate of Immigration fees and the applications it was working on, as published on October 8, 2026 (processing list updated October 7, 2026).
Application	Fee	Being processed on October 7, 2026
Residence permit based on work (first or renewal)	ISK 80,000	Received in June 2026^9,33
Spouse or cohabiting partner	ISK 110,000; renewal ISK 60,000	Family of Icelanders and permit holders: received in September 2025^34,33
Children	ISK 60,000	—³⁴
Parent aged 67 or older	ISK 110,000	—³⁴
Student	ISK 70,000	Deadlines: May 1 for the fall semester, October 1 for spring^44,33
Short-term residence permit	ISK 12,200	—²⁰
Permanent residence	Adults ISK 60,000; children ISK 30,000	Received in September 2025^14,33
Citizenship, adults	ISK 60,000	Received in March 2025^34,33

No retirement, investor or self-employment permit, and no remote-work visa

We read the Directorate of Immigration’s list of permits on October 8, 2026. It groups them as family reunification, work (including working holiday and youth mobility), studies and cultural exchange (students, volunteers, missionaries and au pairs), and other permits (among them special ties to Iceland, a legitimate and special purpose, and the short-term permit). None is for people who live on their own means, and none is for investors⁵. The Foreign Nationals Act goes further for the self-employed: a foreign national may not work in Iceland as a self-employed person unless exempt from the work-permit requirement, as permanent residents and the spouses of Icelanders are⁶.

The permit for a legitimate and special purpose is not a way around this. It is granted “in exceptional instances, and only when special circumstances exist”, with examples such as illness, a court case or pregnancy with an Icelandic child; it lasts up to a year and is not a basis for permanent residence⁴⁸.

What happened to the remote-work visa. Until 2026, a visa-exempt remote worker could get a long-term visa of up to 180 days by showing foreign income of ISK 1,000,000 a month, about $8,147, without working for Icelandic employers⁴⁹. The new Visa Act, No. 37/2026, repealed Article 20 of the Foreign Nationals Act, the legal basis of long-term visas, and the short-term residence permit that took the place of Article 21 is, under the Regulation on Foreign Nationals as amended in 2026, for close family visits and for artists, scientists and athletes; remote work is not mentioned^19,20,18. Long-term visas already granted remain valid under the new Act¹⁹. We found no official notice that says in so many words that the visa has been abolished. By our reading it is no longer available; check with the Directorate of Immigration before you plan on it.

Work requiring expert knowledge

This is the main route for an American with an Icelandic job offer. The work-based permit always rests on a work permit for a specific job with a specific employer^9,29.

The job and your skills: the job must call for expertise that is essential to the company, and your skills must consist of “university-level education, industrial, artistic or technical training, which is recognized in Iceland”¹⁰.
Pay: we found no salary floor on the Directorate’s page or in the law, as of October 2026¹⁰. Iceland has no statutory minimum wage, but pay agreed in collective agreements is the minimum for everyone in that occupation by law^50,51. You must also show secure means of support of ISK 259,951 a month²⁹.
Health insurance: private health insurance valid in Iceland for at least three months from the registration of your legal domicile, with cover of at least ISK 2,000,000, about $16,293²⁹.
Length: up to four years, but never longer than the work permit; renewable for up to four years at a time⁴¹.
If you lose your job: an expert may be granted a permit for one year to look for another job based on that expertise; a worker on a shortage permit, six months⁴¹.
Family: your spouse can apply to join you, and the spouse of an expert-permit holder may work without a work permit⁴³.
Tax: ask your employer whether the foreign-expert deduction applies to you; the application is due within three months of starting work (see taxes)³¹.

Shortage of labor, athletes and service contracts

A permit due to a shortage of employees is granted only in exceptional circumstances, after a labor-market test, which often means advertising the job for three weeks; it is for up to one year and can be renewed for up to two⁴². The other two work-based permits are for athletes and for work on the basis of a collaboration or service contract; like the others, they need a specific job with a specific employer⁹.

Married to, or living with, someone in Iceland

The spouse or cohabiting partner of an Icelandic citizen or of someone whose permit the Directorate accepts as a basis for family reunification can apply for a residence permit. If you apply as cohabiting partners, you must have lived together for at least one year, and both of you must have been 18 or older when you married or began living together²⁵. The means test is ISK 259,951 a month for one person or ISK 415,922 for a married couple, before tax; a married spouse need not show separate funds, but a cohabiting partner must. You also need three months of private health insurance with cover of at least ISK 2,000,000²⁵. The permit is usually for one year at a time, at most two, and never longer than your sponsor’s⁴³. The married spouse of an Icelandic citizen may start working as soon as the application is submitted and paid for⁴³. The fee is ISK 110,000³⁴. The draft bill of October 1, 2026 would change these rules, including the cohabitation period; as of October 8, 2026 it was in consultation, not law⁸.

Study

A student permit is for full-time study, mainly at university level, for up to 12 months at a time; at every renewal you must have completed at least 75% of a full study load⁶. The fee is ISK 70,000, and you need means of support of ISK 259,951 a month⁴⁴. Apply by May 1 for the fall semester or October 1 for spring³³. Since July 8, 2026, students may work up to 60% of full time without a work permit⁵²; after a bachelor’s, master’s or doctoral degree from an Icelandic university, a graduate can get a job-search permit of up to 18 months; and only the spouses and children of full-time degree students can join them¹⁸.

After the first permit: permanent residence

As of October 2026, you can be granted permanent residence after four years of continuous residence on a permit that can lead to it, such as a work, family or special-ties permit⁶; the short-term permit and the special-purpose permit cannot^20,48. “Continuous” means no more than 90 days abroad in total in each year you held a permit⁵³. You also need:

Icelandic: a course in Icelandic for foreigners at a recognized institution of at least 150 lessons, with at least 85% attendance, or a passed test⁵³.
Means of support: ISK 259,951 a month for one person, ISK 415,922 for a married couple⁵³.
The fee: ISK 60,000 for adults; the card is valid for five years and costs ISK 8,000 to renew¹⁴.

Spouses of Icelandic citizens can apply after three years⁵³. The draft bill of October 1, 2026, under consultation as of October 8, 2026, would raise the general residence requirement to six years; check with the Directorate of Immigration before you plan around four years⁸. Once you have permanent residence, you may also work as self-employed, because you are exempt from the work-permit requirement⁶.

Citizenship

Seven years of legal domicile and continuous residence for a U.S. citizen (four for Nordic citizens); for the spouse of an Icelandic citizen, four years after the marriage, if the spouse has been a citizen for five years; for a cohabiting partner, five years^54,55. Continuous means no more than 90 days abroad in any 12 months⁵⁵.
You must hold permanent residence, have supported yourself for the past three years without municipal assistance, and pass an Icelandic language test, with exemptions, for example for applicants aged 65 or older with seven years of domicile, or for medical reasons. Applicants who have lived in the United States must supply a criminal record with fingerprints⁴⁰.
No test dates are scheduled while the Ministry of Justice changes the test provider: “it is not yet clear when the next tests will take place” (as of October 8, 2026)⁵⁶.
The fee is ISK 60,000 for adults³⁴. The Nationality Act was last amended with effect from April 1, 2024⁵⁴, and Althingi can also grant citizenship by law, as an exception⁵⁷.
Dual citizenship: we could not confirm the current rule on an official page in our check; ask the Directorate of Immigration before you apply.

General information, not advice. Quantum Jetset does not give legal, tax, immigration, financial or investment advice. The Directorate of Immigration decides each case; check its page for your permit and, if your case is not simple, speak to an Icelandic immigration lawyer.

Retirees

If You Are Retiring

Iceland has no residence permit for people who live on a pension or savings: the Directorate of Immigration’s list has no retirement or own-means permit⁵. What we can say from the official sources:

The one retiree route is family. A parent aged 67 or older can get a residence permit if an adult child lives in Iceland and meets the Directorate’s requirements, for example as an Icelandic citizen or a permanent resident^7,6. The fee is ISK 110,000 (2026)³⁴. A draft bill under consultation as of October 8, 2026 may change this; check with the Directorate of Immigration⁸.
Married to an Icelander or a permit holder: the spouse route above does not depend on age²⁵.
Longer visits to family: the short-term residence permit allows a stay of more than 90 and up to 180 days, once in 12 months, to visit a spouse, parent, child or sibling; it cannot be renewed and does not make you a resident²⁰.
Health care: once resident, you are covered by public health insurance three months after your legal domicile is registered, and in the meantime you pay the full price³². If you are 67 or older, you pay a lower monthly co-payment cap, ISK 25,198 (2026), and nothing for a daytime health-center visit²⁸; people aged 67 or older pay at most ISK 41,000 a year (2026) for prescription medicines⁵⁸. On the capital area’s buses, passengers aged 67 or older get 50% off⁵⁹.
Your U.S. income: U.S. Social Security paid to a resident of Iceland is taxable only in the United States; a 401(k) or IRA paid to a resident of Iceland is taxable in Iceland, and the United States can still tax its citizens on it; a U.S. government-service pension, including the Thrift Savings Plan, is taxable only in the United States unless you are also an Icelandic national^12,60. Pensions taxable in Iceland are taxed in the same brackets as wages⁶¹. See taxes.
No wealth tax as of October 2026, by our reading³¹; inheritance tax is 10% above an exempt first ISK 6,789,790 in 2026, and spouses are exempt^62,63.
An Icelandic state pension: we could not confirm how Icelandic pension rights build up for a newcomer or how the U.S. agreement counts U.S. years toward them; ask the Social Security Administration and Iceland’s Social Insurance Administration. The agreement covers Iceland’s basic and mandatory occupational pensions⁶⁴.

Step by step

The Order of Operations, Step by Step

The sequence below is for a first residence permit based on work requiring expert knowledge, applied for from the United States⁹. Adjust it for your route.

Choose the route by what you will live on: an Icelandic job points to the work-based permit, a spouse or partner in Iceland to the family permits, a place at a university to the student permit, and an adult child in Iceland, if you are 67 or older, to the parent permit, under the current rules (a draft bill under consultation as of October 8, 2026 may change this; check with the Directorate of Immigration)^5,7,8.
Get the job offer from a specific employer, for work that needs your expertise, and check that your training is recognized in Iceland¹⁰.
Line up the money and the insurance: secure means of support of ISK 259,951 a month for the whole permit period, and private health insurance for the first three months with cover of at least ISK 2,000,000²⁹.
Send the paper application to the Directorate of Immigration in Kópavogur, with the receipt for the ISK 80,000 fee paid by bank transfer^34,9.
Allow for the processing time: up to 8–10 months for first permits; on October 7, 2026 the Directorate was working on work-based applications received in June 2026³³. You may wait in Iceland only within your 90 visa-free days⁶.
Once granted, within 90 days: the photo appointment, reporting your place of residence and, if required, the medical examination within two weeks of arrival⁴⁷.
Your kennitala (ID number) comes with the permit: the Directorate asks Registers Iceland to register your legal domicile, and you are given a personal ID number; registration is free^65,66,67.
Register with a health center and apply for a GP; public health insurance starts three months after your legal domicile is registered^68,32.
Open a bank account once you have a kennitala; the bank must decide on a basic payment account within ten business days^65,69.
Apply for the foreign-expert tax deduction, if your employer thinks it applies to you, no later than three months after you start work³¹.
Plan the driver’s license exchange: your U.S. license may be used for at most six months, and you can apply to exchange it only after six months of residence, with both a theory and a practical test, so book early^36,37.
Report any move within Iceland no later than seven days after it, and plan permanent residence from year four, with the Icelandic course or test in view^70,53.

Cost of living

What Things Cost, From Official Figures

Iceland uses the Icelandic króna (ISK), not the euro; being in the EEA does not change that. Dollar figures on this page use the Central Bank of Iceland’s official rate of October 7, 2026: USD 1 = ISK 122.75 (and EUR 1 = ISK 137.20)¹. Your costs are in krónur, so their dollar value moves with the exchange rate.

Consumer prices were 5.9% higher in September 2026 than a year earlier, up from 5.6% in August and 5.2% in January, and 5.7% higher without housing^15,71. Between August and September 2026, diesel rose 18.1% and petrol 16.1%, mostly because a temporary VAT cut on fuel ended on September 1, while international flights became 11.7% cheaper¹⁵.

Pay

Average regular monthly earnings were ISK 816,000 in 2025, about $6,648; for full-time employees ISK 913,000, with a median of ISK 826,000, and total earnings for full-time employees averaged ISK 1,058,000 a month (preliminary figures, published May 13, 2026)⁷². The wage index rose 5.7% in the twelve months to August 2026⁷³. Iceland has no statutory minimum wage: collective agreements set minimum pay, and by law they bind everyone in the occupation^50,51.

Rents: what the official figures cover

The Housing and Construction Authority (HMS) publishes a rent index for the capital area: it stood at 130.2 in August 2026 against 124.9 a year earlier, a rise of 4.2% by our arithmetic. HMS says the index is not meant for indexing leases^74,75. In September 2026 HMS put the rise in rents at about 5.2% so far that year, against about 8% in 2025 and 12% in 2024⁷⁶. Renters paid on average about 43% of their disposable income in rent in May 2026; among people in work, renters of foreign origin paid 45% and Icelanders 38%, and about 70% of renters of foreign origin rent from private individuals⁷⁷.

Rents by town are published only in HMS’s interactive rent price viewer, built on the register of leases. The table below is our query of that viewer: the average rent per square meter of market leases (from private individuals and for-profit companies, not municipal or non-profit landlords) registered from January to September 2026³⁵. Smaller homes cost more per square meter: in the capital region in 2026, about ISK 5,488 for one room, 4,561 for two, 3,877 for three and 3,373 for four, by the same query³⁵.

Average rent per m² a month of new market leases registered January to September 2026, by our query of HMS’s rent price viewer; a 70 m² apartment at that rate, by our arithmetic. Checked October 8, 2026.
Area	Leases	Rent per m² a month	70 m² a month
All of Iceland	10,718	ISK 3,887 (about $32)	ISK 272,090 (about $2,217)
Reykjavík	5,004	ISK 4,291 (about $35)	ISK 300,370 (about $2,447)
Reykjavík, postcode 101 (center)	1,089	ISK 4,776 (about $39)	ISK 334,320 (about $2,724)
Kópavogur	990	ISK 3,893 (about $32)	ISK 272,510 (about $2,220)
Garðabær	379	ISK 4,138 (about $34)	ISK 289,660 (about $2,360)
Hafnarfjörður	801	ISK 4,002 (about $33)	ISK 280,140 (about $2,282)
Reykjanesbær	981	ISK 3,835 (about $31)	ISK 268,450 (about $2,187)
Akranes	204	ISK 3,245 (about $26)	ISK 227,150 (about $1,851)
Akureyri	546	ISK 3,307 (about $27)	ISK 231,490 (about $1,886)
Selfoss (postcode 800)	338	ISK 3,368 (about $27)	ISK 235,760 (about $1,921)
Egilsstaðir (postcode 700)	36	ISK 2,929 (about $24)	ISK 205,030 (about $1,670)
Ísafjörður (postcode 400)	62	ISK 2,378 (about $19)	ISK 166,460 (about $1,356)

Source: HMS, rent price viewer (Leiguverðsjá), with HMS’s own filters: leases under 20 m² or over 500 m², and rents under ISK 200 or over ISK 20,000 per m², are left out³⁵. Each figure is the plain average of the leases’ rents per m². Samples outside the capital area are small (36 leases in Egilsstaðir), and for the smaller towns we used the postcode. Across Iceland the average rose from ISK 3,782 in September 2025 to 3,914 in September 2026 by the same query. Dollar amounts are our conversions.

Rent estimate

What a Rental Comes To for Your Size

Choose an area and enter the floor area. The estimate multiplies the average rent per square meter of market leases registered in January to September 2026, from our query of HMS’s rent price viewer, by your area³⁵, then converts at the Central Bank of Iceland’s rate of October 7, 2026¹.

An average of new market leases in 2026, not an offer; smaller homes cost more per square meter, and leases from municipal and non-profit landlords are left out. By our arithmetic: 70 m² at the Reykjavík rate of ISK 4,291 comes to ISK 300,370 a month.

Electricity and heating

You buy electricity from a supplier you choose, while the local grid company bills distribution. In the Reykjavík area, Veitur’s household distribution tariff from July 1, 2026 is ISK 12.05 per kWh including 24% VAT, plus a fixed ISK 59.97 a day, about ISK 1,800 for a 30-day month by our arithmetic⁷⁸. VAT is 24% on electricity and 11% on heating; cold water and sewage carry no VAT⁷⁹. We could not confirm the suppliers’ energy prices, which come on top.

Public transit

Strætó, the capital area’s bus company, charges ISK 690 for an adult single fare, about $6, ISK 12,000 for a 30-day adult pass, about $98, and ISK 120,000 for a year. Young people aged 12 to 17 and people aged 67 or older pay half, and students 18 or older pay half for passes; children aged 11 or under ride free. With its payment cap you never pay more than three adult fares a day or nine a week (as of October 2026)⁵⁹. We could not confirm current bus fares in Akureyri.

Build your own full budget, line by line and in both currencies, in the Relocation Planner workbook.

Health care

Public Health Care Through Residence, and the Medicare Question

Iceland’s public health insurance follows residence. Since August 1, 2026, the Health Insurance Act covers people who have lived in Iceland for at least the last three months; before that the wait was six months¹⁶. Iceland Health puts it this way: “An individual will automatically be covered by health insurance 3 months after the legal domicile was registered in Iceland if: You move to Iceland from a country outside the EEA”³².

How you join

Before you are covered, you pay the full price for care, and private insurance can be bought from insurance companies³². Your permit application needs private health insurance valid in Iceland for at least three months from the registration of your legal domicile, with cover of at least ISK 2,000,000, about $16,293^29,80. The Directorate warns that such cover typically does not extend to pregnancy and childbirth⁸⁰.
Children under 18 who live in Iceland are insured with their parents¹⁶.
Register with a health center (heilsugæsla) near you, for yourself and your family, and apply for a general practitioner⁶⁸.
A conflict in the official pages: on October 8, 2026, two Iceland Health help pages on island.is still said six months^81,82. The law, Iceland Health’s main page and the Directorate of Immigration say three months from August 1, 2026, and we follow them^16,32,17. Iceland Health’s main page also says an application should be submitted one day after your new legal domicile is registered, while calling cover for people from outside the EEA automatic; ask Iceland Health whether you need to apply³².

What you pay

A health-center visit in the daytime costs ISK 500, about $4; children, people aged 67 or older and disabled people pay nothing; out of hours ISK 3,100, and a home visit ISK 3,400 by day or ISK 4,500 out of hours (2026)²⁸.
An emergency department visit costs ISK 9,221, about $75; people aged 67 or older and disabled people ISK 6,057; children nothing (2026)²⁸.
A monthly cap of ISK 37,794, about $308, on what you pay for health care under the regulation, or ISK 25,198 for people aged 67 or older, disabled people and children; unused room under the cap carries over between months (2026)²⁸.
Prescription medicine: you pay at most ISK 62,000 a year, or ISK 41,000 for people aged 67 or older, disability pensioners and people under 22 (2026). A fourth co-payment step was added on January 1, 2026⁵⁸.

Emergencies and advice

Call 112 for police, fire and ambulance, or use the 112 web chat; from abroad, or if 112 fails, call +354 599 0112⁸³. For telephone advice on acute illness or injury, call 1700, 24 hours a day⁸⁴. The two official pages disagree on the hours of the 1700 web chat (8 a.m. to 10 p.m. daily on 112.is, 8 a.m. to 3:30 p.m. on weekdays on island.is)^68,84.

Waiting times

The Directorate of Health’s benchmark is that 80% of patients should have surgery within 90 days; in April 2024, too many patients waited longer in all but three groups of operations⁸⁵. In January 2026 the rule that patients sent to private providers for hip and knee replacements needed a full assessment at a public hospital first was dropped, which, the announcement says, has shortened waits⁸⁶. We could not confirm current waiting times or figures on the shortage of family doctors.

Medicare does not follow you

Medicare generally does not pay for care outside the United States, and Medicare drug plans do not cover prescriptions bought abroad⁸⁷. Most Medigap plans include foreign travel emergency coverage, but it pays 80% after a $250 deductible, up to $50,000 in a lifetime, and only for emergencies that start in the first 60 days of a trip⁸⁸. That is travel coverage, not residence coverage.

Whether to keep paying the Part B premium ($202.90 a month in 2026) is a real decision: if you drop Part B and re-enroll later, the premium rises by 10% for each full 12-month period you could have been enrolled but were not, usually for life⁸⁹. Decide with your whole plan in view.

Taxes for Americans

Two Tax Systems, With a Treaty Between Them

Moving to Iceland adds a second tax system; it does not remove the first while you remain a U.S. citizen. The United States taxes its citizens on worldwide income wherever they live⁹⁰. The two countries have an income tax convention of 2007, which the IRS links on its Iceland page; it replaced the treaty of 1975, so we cite the 2007 text^11,12. They also have a Social Security totalization agreement, in force since March 1, 2019¹³. The EEA Agreement does not cover direct taxation, so EU tax rules do not apply in Iceland². What follows is the map; the route is a job for a cross-border tax adviser. All figures are for the 2026 income year.

When you become tax resident

Under the Income Tax Act you have unlimited tax liability, on your worldwide income, if you are domiciled in Iceland or stay there for more than 183 days in any 12-month period; people who move away stay liable for three years unless they show they are tax resident elsewhere³¹. Skatturinn’s English page puts it as a stay of “six months or longer” in twelve months, which makes you resident from the day you arrive⁹¹; where the wording differs, the Act is what counts. We could not confirm the filing deadline for the Icelandic tax return; check it with Skatturinn.

Income tax for 2026

Iceland taxes wages and pensions in one schedule: a state income tax in three brackets plus a municipal income tax (útsvar), withheld together each month^27,63:

Withholding rates: 31.49% on monthly income up to ISK 498,122, 37.99% up to ISK 1,398,450 and 46.29% above; in dollars the thresholds are about $4,058 and $11,393 a month^27,61.
The split: state tax of 16.55%, 23.05% and 31.35%, plus the average municipal rate of 14.94%; the annual thresholds are ISK 5,977,470 and ISK 16,781,397⁶³. Each municipality sets its own rate within the legal range of 12.44% to 14.97%; withholding uses the average, and the difference is settled at assessment⁹².
Personal tax credit: ISK 72,492 a month, ISK 869,898 a year, deducted from the tax and prorated for the days you are domiciled in Iceland in the year you arrive^93,31.
Pension contributions: employees pay at least 4% of wages into a pension fund, which is deductible, and may deduct up to 4% more in voluntary saving; the minimum total contribution is 15.5%, so the employer pays at least 11.5%, by our arithmetic^94,51.
Pensions and other non-wage income are taxed in the same brackets; Skatturinn’s worked example is a pensioner⁶¹.

The employer pays a social security tax of 6.35% on wages in 2026²⁷. Capital income (interest, dividends, gains and rent) is taxed at 22%, with the first ISK 300,000 a year of interest and income from listed shares tax-free, ISK 600,000 for a couple; on rent from registered residential leases you pay capital income tax on 75% of the rent, if you let no more than two homes under the Tenancy Act²⁷.

The 25% deduction for foreign experts

For approved foreign experts, “only 75% of the income is taxed for the first three years from the start of employment provided certain conditions are met”; social security tax and pension contributions are still calculated on the full wage³⁰. In the Income Tax Act the 25% and the pension contribution are separate deductions, each from the wage, so with a 4% contribution 71% of the wage is taxed, by our reading³¹. The conditions, in the Income Tax Act and its regulation as Skatturinn sets them out: the employer is domiciled in Iceland or has a permanent establishment there; you were not resident in Iceland in the 60 months before you started (your first three months in Iceland do not count); your expertise is scarce in Iceland; and the work is research and development, teaching or specialized work, or management or core projects. The application, to a committee, must arrive no later than three months after you start work^31,30. There is no special regime for retirees or remote workers, by our reading³¹.

Income tax estimate

Estimate Icelandic Tax on a 2026 Monthly Wage

Enter your gross monthly wage in krónur. The estimate deducts your pension contribution, applies the three 2026 state brackets and a municipal rate to the rest, and subtracts the ISK 72,492 personal tax credit, to the króna^63,93,92,94. You can apply the foreign-expert deduction, which takes 25% of the gross wage off alongside the pension contribution^30,31. Dollars use the Central Bank of Iceland’s rate of October 7, 2026 (USD 1 = ISK 122.75)¹.

A simplification, by our arithmetic from the 2026 rates cited. It works month by month, as withholding does, and assumes the wage is your only income and that you are domiciled in Iceland for the whole month. With the foreign-expert option, 25% of the gross wage is deducted alongside the pension contribution (Income Tax Act, art. 30(1)(A), points 4 and 6, by our reading), so with a 4% contribution 71% of the wage is taxed; ask Skatturinn. It leaves out the settlement at assessment, the proration of the credit in your first year, other income, credits for U.S. tax and U.S. tax itself. Your payslip and the tax assessment are the figures that count.

Examples: 2026 tax on a monthly wage, with a 4% pension contribution and the 14.94% average municipal rate, by our arithmetic; the last column applies the foreign-expert deduction.
Gross wage a month	Pension contribution	Tax before the credit	Tax after the credit	Share of wage	Left after tax and pension	Tax with the expert deduction
ISK 500,000 (about $4,073)	ISK 20,000	ISK 151,152	ISK 78,660	15.7%	ISK 401,340	ISK 39,298
ISK 800,000 (about $6,517)	ISK 32,000	ISK 259,385	ISK 186,893	23.4%	ISK 581,107	ISK 110,913
ISK 1,000,000 (about $8,147)	ISK 40,000	ISK 332,326	ISK 259,834	26.0%	ISK 700,166	ISK 164,859
ISK 1,500,000 (about $12,220)	ISK 60,000	ISK 518,127	ISK 445,635	29.7%	ISK 994,365	ISK 299,723
ISK 2,000,000 (about $16,293)	ISK 80,000	ISK 740,319	ISK 667,827	33.4%	ISK 1,252,173	ISK 436,377

Pensions, Social Security and retirement accounts

The saving clause, and what it does not touch. Article 1(4) of the 2007 convention lets the United States tax its citizens as if the convention had not come into effect. Its exceptions, in article 1(5), include article 17(2) on social security and 17(4) on pension schemes, and articles 22 to 24, but not article 17(1) on private pensions¹².

U.S. Social Security paid to a resident of Iceland, or to a U.S. citizen, is taxable only in the United States (article 17(2)), protected from the saving clause¹².
Private pensions are taxed where you live: pensions and similar remuneration paid to a resident “in consideration of past employment” are taxable only in the country of residence (article 17(1)). The Treasury’s technical explanation says this covers periodic and lump-sum payments and plans such as 401(a) qualified plans, IRAs including SEP and SIMPLE IRAs, 403(a) and 403(b) plans, and some 457 plans^12,60.
Government pensions: a pension for U.S. federal, state or local government service, including the Thrift Savings Plan and government 403(b) and 457 plans, is taxable only in the United States (article 18(2)), unless you are also an Icelandic national; article 17(1) is subject to article 18^12,60.
A double-tax risk for citizens: because article 17(1) is not protected from the saving clause, the United States can still tax a citizen’s 401(k) or IRA that Iceland taxes as the country of residence, with relief under article 22. This is our reading; take it to an adviser¹².
Growth inside a U.S. plan is not taxed in Iceland until it is paid out (article 17(4))¹².
Roth IRAs are named in the technical explanation’s list of pension schemes, but we found no statement on how Iceland taxes a Roth distribution⁶⁰.

Questions for your tax adviser, not rules we can state. How Iceland taxes a Roth IRA distribution, how contributions to U.S. plans are treated while you live in Iceland, and how the U.S. foreign tax credit works against Icelandic tax on a 401(k) withdrawal: we did not find official guidance on these. Settle them before you move.

Wealth, inheritance and gift taxes

No wealth tax: the Income Tax Act’s wealth tax applied only to the assessments of 2010 to 2013, and we found no other, as of October 2026³¹.
Inheritance tax is 10%; the first ISK 6,789,790 of an estate is exempt in 2026, about $55,314, and spouses are fully exempt. Icelandic real estate is taxed even if the deceased and the heirs live abroad^62,63.
No separate gift tax: gifts are taxable income for the person who receives them, except small occasional gifts, and an advance on an inheritance is taxed as inheritance³¹.
Property costs and municipal property tax: see buying.

Social Security contributions and the totalization agreement

The employer pays Iceland’s social security tax of 6.35% on wages²⁷, and both sides pay into a pension fund, at least 15.5% in total⁹⁴. The U.S.–Iceland agreement covers Iceland’s basic pension and its mandatory occupational pensions⁶⁴.

Sent by a U.S. employer: if the work in Iceland is not expected to last more than five years, you stay in the U.S. system only⁹⁵; workers covered only by U.S. law, and their employers, are exempt from contributions to all mandatory Icelandic benefit and pension programs⁶⁴.
Self-employed: covered by the country where you live, so a self-employed American living in Iceland is in the Icelandic system⁶⁴.
An Icelandic pension: we could not confirm how pension rights build up for a newcomer; see If you are retiring.

What you still file in the United States

U.S. filings for citizens living abroad, tax year 2026. Sources: IRS and FinCEN, checked October 7, 2026 unless the source list says otherwise.
What	The rule
Form 1040	Due April 15; citizens living abroad get an automatic extension to June 15 (interest still runs from April 15)⁹⁰.
Foreign Earned Income Exclusion	Up to $132,900 of earned income for 2026 ($130,000 for 2025). It does not cover pensions, Social Security or investment income^96,97.
Foreign Tax Credit	Claim Icelandic tax paid on Form 1116; no credit on income you excluded⁹⁸.
FBAR	Required when your foreign accounts together exceed $10,000 at any time in the year; due April 15, with an automatic extension to October 15^99,100.
Form 8938 (FATCA)	For taxpayers living abroad: over $200,000 at year end or $300,000 at any time (single); $400,000 and $600,000 (joint)¹⁰¹.

For U.S. tax preparation and planning, our sister brand eTaxNexus works with Americans abroad.

Questions to take to your tax adviser

On which date will I become tax resident in Iceland, and does my former U.S. state still treat me as resident?
Does the foreign-expert deduction apply to me, and will my employer apply within three months of my start date?
How will Iceland and the United States each tax my 401(k), IRA and Roth IRA withdrawals, given that article 17(1) is not protected from the saving clause?
Which Social Security system covers my work, and do I need a certificate of coverage?
How is rent from a U.S. property, or interest on U.S. accounts, taxed in Iceland as capital income?
Which municipal rate will apply to me, and how will the settlement at assessment work in my first year?

Renting and buying

Lease Rules, Buying Costs, and Short-Term Rentals

Renting under the Tenancy Act

Residential leases are governed by the Tenancy Act, No. 36/1994; we read its consolidated text of October 1, 2026²⁴.

Fixed-term or open-ended: a lease can be either; without a written lease it counts as open-ended, and there is no minimum term. A fixed-term lease ends on the agreed date without notice, and can be ended early only on grounds named in the lease, with at least three months’ notice²⁴.
Notice on an open-ended lease: six months from either side for an apartment, three months for a room; a company that lets homes as a business must give 12 months if you have rented for more than 12 months. Notice runs from the first day of the next month²⁴.
Deposit: a cash deposit or a third-party guarantee may not exceed three months’ rent; a cash deposit must be kept in a separate interest-bearing account, and the landlord must claim against it within four weeks of getting the keys back or return it. Bank guarantees and rent-guarantee insurance have no legal cap²⁴.
Registration: since January 1, 2026, every landlord must register residential leases with HMS, within 30 days of signing^23,24. Leases signed electronically on island.is are registered automatically and are free for both sides²³.
Rent changes: rent must be fair and reasonable; in a fixed-term lease it may not change in the first 12 months; after that a cost-based increase needs three months’ written notice, and the tenant can accept it, refer it to the Housing Complaints Committee or end the lease. Since September 1, 2024 an increase takes effect only once it is registered, and a tenant can refuse to pay an unregistered one²⁴.

Buying: who can, and what it costs

An individual from outside the EEA may own real estate in Iceland if they are an Icelandic citizen or have legal domicile in Iceland; otherwise a minister’s permit is needed, which the Act allows only for a business need, for someone with strong ties to Iceland (for example marriage to an Icelandic citizen), or for a registered home or vacation home on leased land. A permit covers one named property, as a rule of at most 3.5 hectares, and the applicant may not own other property in Iceland; leases of three years or less need no permit¹⁰². By our reading, an American living in the United States can buy only in those cases, while an American with a residence permit and a registered domicile needs no permit. We could not find an official English page on the permit or its processing time.

Stamp duty on the deed: 0.8% for an individual, 1.6% for a company; half, 0.4%, on an individual’s first purchase of a home, if you have never been a registered owner of a home¹⁰³. The duty on a deed transferring real estate is charged on the property’s assessed value (fasteignamat) as registered in the property register when the duty falls due, reflecting the building stage at handover, not on the price¹⁰³. Whether a home owned abroad counts for the first-home rule is not specified, and we could not confirm the registration fees; check before you sign.
Annual property tax (fasteignaskattur) on homes: up to 0.5% of the assessed value, which a municipality may raise by up to 25%⁹². Reykjavík’s 2026 assessment notice sets 0.18% for homes¹⁰⁴.
No wealth tax as of October 2026, by our reading: see taxes³¹.

Purchase costs

What the Stamp Duty Comes To

Enter the home’s registered assessed value (fasteignamat) in krónur, the base of the duty. The estimate applies the Stamp Duty Act’s 0.8% for an individual, or 0.4% on a first home¹⁰³, and, for a home in Reykjavík, the city’s 2026 property tax of 0.18% a year on the same value¹⁰⁴. Dollars use the Central Bank of Iceland’s rate of October 7, 2026¹.

By our arithmetic, in whole krónur. The assessed value is not the price: find it in the property register before you buy. Registration and lender fees, agents’ fees and insurance are left out. Example: an assessed value of ISK 60,000,000 gives a duty of ISK 480,000, or ISK 240,000 on a first home, and ISK 108,000 a year of property tax in Reykjavík.

What property costs

HMS’s house price index, which started in January 2024 and has been calculated back to 2020, stood at 113.6 in August 2026 for the whole country against 111.1 a year earlier: by our arithmetic a rise of 2.3% (2.1% in the capital area, 2.6% in the rest of the country), below consumer price inflation of 5.6% in the year to August 2026^74,105,71. HMS also publishes every registered purchase contract, updated daily; the medians below are our calculation from that register, and HMS’s own price viewer may show slightly different figures¹⁰⁶.

Median price per m² and median price of finished homes, contracts signed October 1, 2025 to September 30, 2026, by our calculation from HMS’s register of purchase contracts. Checked October 8, 2026.
Area	Sales	Median per m²	Median price
All of Iceland	7,098	ISK 763,000 (about $6,216)	ISK 68.8 million
Reykjavík	2,779	ISK 819,000 (about $6,672)	ISK 69.2 million
Kópavogur	744	ISK 806,000 (about $6,566)	ISK 78.9 million
Garðabær	482	ISK 877,000 (about $7,145)	ISK 89.2 million
Hafnarfjörður	740	ISK 777,000 (about $6,330)	ISK 71.0 million
Reykjanesbær	424	ISK 640,000 (about $5,214)	ISK 55.0 million
Akranes	148	ISK 648,000 (about $5,279)	ISK 58.0 million
Akureyri	475	ISK 682,000 (about $5,556)	ISK 59.5 million
Selfoss (postcode 800)	243	ISK 649,000 (about $5,287)	ISK 59.0 million
Egilsstaðir (postcode 700)	51	ISK 560,000 (about $4,562)	ISK 51.0 million
Ísafjörður (postcode 400)	53	ISK 446,000 (about $3,633)	ISK 40.0 million

Apartments and houses, finished, in contracts HMS marks as usable; price divided by floor area. For the smaller towns we used the postcode. Medians in places with few sales, such as Egilsstaðir’s 51, move a lot from year to year¹⁰⁶. Dollar amounts are our conversions.

Short-term rentals

Letting your own home to visitors (heimagisting, homestay) must be registered with the District Commissioner and renewed every year. It is limited to 90 days a year in total and to income below ISK 2,000,000, the VAT registration threshold, and since April 9, 2026 to your legal domicile and one other property you own outside an urban area. The registration number must appear in every listing^22,107. Anything beyond that needs an operating license, and since May 23, 2024 year-round licensed accommodation in towns must be in approved commercial premises²². A further amendment takes effect on January 1, 2027; we could not read its content, so check the rules before you let²². We could not confirm whether the EU regulation on short-term rental data applies in Iceland.

Our position on property. We take no developer or property commissions. We may receive a referral fee from some professional partners. It never changes what you pay, and we tell you when it applies.

Where to live

Ten Towns, Compared on Official Numbers

Iceland had 394,324 residents on January 1, 2026, 1.3% more than a year earlier; Reykjavík is by far the largest municipality, with 139,804¹⁰⁸. We compare ten towns below on population^109,110, rents from our query of HMS’s rent register³⁵ and prices per square meter by our calculation from HMS’s purchase register¹⁰⁶. Our groupings are starting points for a scouting trip, not verdicts.

Capital and U.S. Embassy

Reykjavík has 138,753 people in the town itself¹⁰⁹ and the U.S. Embassy, at Engjateigur 7¹¹¹. New market leases averaged about ISK 4,291 per m² a month in 2026, and ISK 4,776 in the central postcode 101, by our query³⁵; homes sold at a median of ISK 819,000 per m², by our calculation¹⁰⁶. A 30-day bus pass costs ISK 12,000⁵⁹.

Consider: Reykjavík

The Capital-Area Towns

Kópavogur (40,228), Hafnarfjörður (32,398) and Garðabær (17,755)¹⁰⁹ border Reykjavík and share its bus network⁵⁹. Rents per m² were close to Reykjavík’s, ISK 3,893 to 4,138³⁵, and Garðabær had the highest median price per m² in our table, ISK 877,000¹⁰⁶.

Consider: Kópavogur · Hafnarfjörður · Garðabær

The North

Akureyri (20,067)¹⁰⁹ is the one northern town in our table. New leases averaged ISK 3,307 per m²³⁵ and homes ISK 682,000 per m²¹⁰⁶. It is the driest town in our climate table, about 574 mm of precipitation a year, with a January mean of −0.5°C (31°F), by our averages of the Met Office’s station series¹¹².

Consider: Akureyri

Lower Prices per Square Meter

Reykjanesbær, Akranes and Selfoss had median prices of ISK 640,000 to 649,000 per m², and Ísafjörður ISK 446,000, the lowest in our table¹⁰⁶. Árborg, the municipality around Selfoss, grew 5.0% in 2025, the fastest of the large municipalities¹⁰⁸.

Consider: Reykjanesbær · Selfoss · Akranes

Population of the town itself (urban nucleus) on January 1, 2026 and 2025, and of its municipality in 2026; rent per m² a month of new market leases, January to September 2026 (our query of HMS’s register); median price per m², October 2025 to September 2026 (our calculation from HMS’s register). Checked October 8, 2026.
Town	Population, Jan 1, 2026	Jan 1, 2025	Municipality, 2026	Rent per m² a month	Median price per m²
Reykjavík	138,753	137,690	Reykjavíkurborg, 139,804	ISK 4,291	ISK 819,000
Kópavogur	40,228	40,009	40,286	ISK 3,893	ISK 806,000
Hafnarfjörður	32,398	31,525	32,398	ISK 4,002	ISK 777,000
Reykjanesbær (Keflavík and Njarðvík)	22,572	22,377	22,697	ISK 3,835	ISK 640,000
Akureyri	20,067	19,817	20,284	ISK 3,307	ISK 682,000
Garðabær	17,755	17,372	20,724, with Álftanes	ISK 4,138	ISK 877,000
Selfoss	11,000	10,420	Árborg, 12,671	ISK 3,368	ISK 649,000
Akranes	8,429	8,276	8,440	ISK 3,245	ISK 648,000
Ísafjörður	2,807	2,705	Ísafjarðarbær, 3,987	ISK 2,378	ISK 446,000
Egilsstaðir	2,719	2,711	Múlaþing, 5,235	ISK 2,929	ISK 560,000

Sources: Statistics Iceland, tables MAN030101 and MAN02005^109,110; HMS^35,106. For Selfoss, Egilsstaðir and Ísafjörður, the rent and price columns use the town’s postcode; for the other towns, the municipality.

Climate

The Icelandic Met Office publishes monthly values for each weather station, but we did not find a table of 1991–2020 normals for these towns, so the figures below are our averages of its monthly station series for 1991–2020. Only Reykjavík, Keflavík airport, Akureyri and Hjarðarland have complete records for those years; the others are shorter, as shown, and Akranes’s station closed in 1987¹¹².

January, July and yearly mean temperature and yearly precipitation, by our arithmetic from the Icelandic Met Office’s monthly station values, 1991–2020 or the years shown. Checked October 8, 2026.
Town (station; years)	January mean	July mean	Year mean	Precipitation a year
Reykjavík (Reykjavík, station 1; 1991–2020)	0.7°C (33°F)	11.6°C (53°F)	5.1°C (41°F)	876 mm (34 in)
Reykjanesbær (Keflavík airport, 990; 1991–2020)	1.0°C (34°F)	11.2°C (52°F)	5.1°C (41°F)	1,104 mm (43 in)
Akureyri (Akureyri, 422; 1991–2020)	−0.5°C (31°F)	11.2°C (52°F)	4.2°C (40°F)	574 mm (23 in)
Selfoss area (Hjarðarland, 931, inland; 1991–2020)	−1.1°C (30°F)	11.9°C (53°F)	4.1°C (39°F)	1,336 mm (53 in)
Selfoss area (Eyrarbakki, 923, on the coast about 12 km away; 1991–2016, incomplete)	0.1°C (32°F)	11.8°C (53°F)	4.9°C (41°F)	1,464 mm (58 in)
Egilsstaðir (Egilsstaðir, 570; 1991–1998 only)	−1.3°C (30°F)	10.9°C (52°F)	3.5°C (38°F)	845 mm (33 in)
Ísafjörður area (Bolungarvík, 252; 1994–2018, incomplete)	0.0°C (32°F)	10.1°C (50°F)	3.8°C (39°F)	871 mm (34 in)

By our arithmetic from the Met Office’s station files¹¹²; the station used for each town is our choice. Reykjavík’s station is the nearest guide for Kópavogur, Hafnarfjörður and Garðabær. The Ísafjörður station itself recorded about 1,036 mm a year. Fahrenheit and inch conversions are our arithmetic. Compare Iceland with other destinations.

Practical matters

Paperwork: ID Number, Banks, Driving and Pets

Your kennitala and legal domicile

As an American you do not apply for an ID number (kennitala) separately: “your national ID number is obtained as part of your residence permit through the Directorate of Immigration”. You need it to open a bank account, register your legal domicile and get a home telephone, among other services⁶⁵. When it issues a permit, the Directorate asks Registers Iceland to register your legal domicile, and everyone registered for the first time gets a personal identification number⁶⁶. Registration is free; a “system ID” issued for other purposes is not a residence permit and gives no rights⁶⁷.

There is no separate registration with the town hall: Registers Iceland holds your legal domicile, and your municipality follows from it, by our reading. Report any later change of address within seven days. The registered owner of a home decides how many people may register there, so ask your landlord before you sign⁷⁰.

A bank account

Anyone lawfully resident in the EEA, Iceland included, has the right to open and use a basic payment account, and the bank must decide no later than ten business days after a complete application; it must refuse where opening the account would breach anti-money-laundering law⁶⁹. In practice you need your kennitala first⁶⁵. We could not confirm bank fees.

Driving on a U.S. license

“If the license is from a country outside the EEA, it may not be used in Iceland for longer than 6 months”³⁶. Holders of licenses from outside the EEA, the UK and Japan must apply for an Icelandic license after six months of permanent residence, and must pass both a theory test and a practical driving test; you cannot apply before six months. No U.S. state is exempt from the tests; the countries whose licenses are exchanged without them are the EEA countries, the UK, Switzerland and Japan. Issuing the license costs ISK 8,600 (as of October 2026)³⁷. Read together, the two rules seem to leave a gap between month six and passing the tests; the official pages do not say what happens in between, so book the tests early and ask the Transport Authority.

Pets

Iceland runs its own pet-import regime under its national Regulation No. 200/2020, not the EU’s pet-travel rules, by our reading, and the United States is a category 2 country^38,113. A dog coming from the United States needs, among other things³⁸:

An import permit from MAST, applied for preferably at least 30 days ahead and valid for one year³⁸.
A rabies vaccination and an antibody test of at least 0.5 IU/ml, with import at least 90 days after the blood sample; dogs from the United States must also be vaccinated against canine influenza³⁸.
A Brucella canis test (and a Leishmania test for intact dogs) within 30 days, two parasite treatments, and a vet examination 5 to 10 days before travel; MAST’s guidelines also require other tests, treatments and vaccinations, such as an Angiostrongylus vasorum test and treatment³⁸.
Entry only through Keflavík airport, arriving between 6 a.m. and 5 p.m. on days the quarantine station admits animals, then at least 14 days of quarantine at Hafnir in Reykjanesbær or Mósel near Hella³⁸. Pets may travel in the cabin if the airline agrees, and are handed over to the approved service provider at Keflavík¹¹⁴.

MAST’s pages disagree on the permit fee: ISK 39,633 on its main import page and ISK 40,648 per animal in its questions and answers, so budget for the higher figure, about $331 (as of October 2026)^114,115. The quarantine stations set their own fees; MAST says to contact them directly¹¹⁴. If you have owned the animal for less than 12 months, VAT is due on its purchase price³⁸. Cats from the United States follow MAST’s category 2 guidelines for cats¹¹³.

Banned dog breeds include the pit bull terrier, American Staffordshire terrier, Staffordshire bull terrier, American bulldog, Fila brasileiro, Tosa inu, Dogo argentino, Cane corso, Presa canario and Boerboel³⁸.

Shipping your household

Iceland is not in the EU customs union, and it has its own rule, by our reading. Your household goods are free of duty if you have lived abroad for at least 12 months, register legal residence in Iceland, and have owned and used the goods for at least a year, and if they arrive with you or within six months. Adults may also bring up to ISK 140,000 (as of October 2026), about $1,141, of goods owned for a shorter time (half that for under-18s)¹¹⁶. Cars have separate rules we did not read.

Schools

School is compulsory, normally from age 6 to 16, and every municipality must provide schooling for the children who have their legal domicile there. Teaching in public compulsory schools is free, including the required materials; the law lets municipalities charge for school meals, and we could not confirm whether meals are free in practice¹¹⁷.

Your U.S. services, and emergencies

The U.S. Embassy in Reykjavík is at Engjateigur 7, 105 Reykjavík; switchboard (+354) 595 2200¹¹¹. All consular services, including passports and notarials, are by appointment, requested online through the Consular Navigator; the embassy does not answer questions by telephone. Outside business hours, for an emergency involving a U.S. citizen, call (+354) 595 2248 (as of October 2026)¹¹⁸.
Emergencies: 112 for police, fire and ambulance; 1700 for medical advice, 24 hours a day^83,84. For urgent illness, see the health section.

Entry rules

Before the Permit: Visiting Under Schengen, EES and ETIAS

Iceland is not an EU member, but it is one of four non-EU countries in the Schengen area of 29 countries^119,3, and one of three EFTA states in the European Economic Area². U.S. citizens do not need a visa: the EU’s visa regulation lets them stay for no more than 90 days in any 180-day period³⁹. The Directorate of Immigration applies the same rule: a visa-free stay must not exceed 90 days within the past 180 days in the Schengen area⁹.

Since April 10, 2026 (after a gradual start on October 12, 2025), the EU’s Entry/Exit System (EES) has recorded your entries and exits in the Schengen area, Iceland included, instead of passport stamps²¹. Once you hold an Icelandic residence permit, you are not registered in the EES; you show the permit with your passport¹²⁰.

As of October 8, 2026, ETIAS, the EU travel authorization for visa-free visitors, is not in operation, and its fee has been set at EUR 20^121,122. Under the ETIAS regulation, travelers under 18 and over 70 are exempt from the fee, and an authorization is valid for three years or until the passport expires; holders of a residence permit will not need it¹²³.

Timeline

A Realistic Twelve Months

Built backwards from the rules above, for a work-based permit. The Directorate says a first permit can take up to 8–10 months, so the application has to go in early; family applications were moving more slowly than work-based ones in October 2026. Your own dates depend on your route and on how quickly your documents come together.

Months 12–10

Decide and test

Choose the route and check what the Directorate needs for it. Book a session with a cross-border tax adviser about your 401(k), IRA and Social Security and the foreign-expert deduction. Plan a scouting trip within your 90 visa-free days.

Months 10–9

Land the job and apply

Get a written offer from your employer, buy three months of health insurance with at least ISK 2,000,000 of cover for the start of your stay, and send the paper application with the ISK 80,000 fee. Start pet preparations: the import permit, the rabies vaccination and the antibody test, which must be at least 90 days before import.

Months 9–2

Wait, and prepare

Allow up to 8–10 months for the decision. Meanwhile, research neighborhoods and rents, and list household goods you have owned for at least a year.

Months 2–1

Prepare the move

Once the permit is granted, line up a lease and ask the landlord to register it with HMS, book your pet’s quarantine place and arrival at Keflavík, and ship household goods to arrive with you or within six months.

Arrival

Register

Attend the photo appointment, report your place of residence and do the medical examination, if required, within two weeks of arrival, all within 90 days of the decision; open a bank account once you have your kennitala; register with a health center; and keep private cover until public insurance starts three months after your domicile is registered.

By month 12

Returns and the license

Book the driving tests: your U.S. license may be used for at most six months. File your Icelandic tax return, with your foreign income and pensions, and put the U.S. return (June 15 for Americans abroad) and FBAR on the calendar.

Questions

What Americans Ask Us About Iceland

Does Iceland have a retirement visa?

No. The Directorate of Immigration’s list of permits, read on October 8, 2026, has no retirement or own-means permit⁵. The one route for a retiree without a spouse in Iceland is the permit for a parent aged 67 or older of an adult child who lives there⁷; a draft bill under consultation as of October 8, 2026 may change this; check with the Directorate of Immigration. See our section on retiring.

Can I still get Iceland’s remote-work visa?

By our reading, no. Act No. 37/2026 repealed the article of the Foreign Nationals Act on which the long-term visa for remote workers rested¹⁹, and the short-term residence permit introduced in 2026 is for family visits and for artists, scientists and athletes²⁰. We found no official notice that says it is abolished in so many words; check with the Directorate of Immigration.

How much do I need to earn for an Icelandic work permit?

We found no salary floor for the expert permit on the Directorate’s page or in the law (October 2026)¹⁰. You must show secure means of support of ISK 259,951 a month before tax (2026), about $2,118, for the whole permit period²⁹, and pay must meet the collective agreement for the occupation, which is binding by law⁵⁰.

Can I work for myself or invest my way into Iceland?

No. A foreign national may not work in Iceland as self-employed unless exempt from the work-permit requirement, as permanent residents and the spouses of Icelanders are⁶, and the Directorate’s list has no investor permit⁵.

Is Iceland in the EU? Can I get an EU Blue Card there?

Iceland is not an EU member. It is in the European Economic Area and the Schengen area^2,3. The EU Blue Card applies in 25 EU member states, not Iceland, so Americans use Icelandic permits such as the permit for work requiring expert knowledge^4,9.

How long can I stay in Iceland without a visa?

Up to 90 days in any 180-day period in the Schengen area^39,9. After a gradual start on October 12, 2025, the EU’s Entry/Exit System has recorded your entries and exits instead of passport stamps since April 10, 2026²¹.

Will Iceland tax my U.S. Social Security or 401(k)?

Under the 2007 treaty, U.S. Social Security paid to a resident of Iceland is taxable only in the United States (article 17(2)). Pensions paid to a resident in consideration of past employment, which the technical explanation says include qualified 401(a) plans such as 401(k)s, IRAs and lump sums, are taxable only in Iceland (article 17(1)), but the saving clause lets the United States tax its citizens on them too, with relief under article 22^12,60. A U.S. government-service pension, including the Thrift Savings Plan, is taxable only in the United States unless you are also an Icelandic national (article 18(2))^12,60. Ask a cross-border adviser how this works for your accounts.

Do I get public health care?

Yes, once you are resident: since August 1, 2026 you are covered three months after your legal domicile is registered, and until then you pay the full price^32,16. Your permit application needs private insurance for those three months with cover of at least ISK 2,000,000²⁹.

Can Americans buy property in Iceland?

Yes, without a permit, once you have legal domicile in Iceland; a non-EEA individual without it needs a minister’s permit, which the law limits to a few cases, such as a business need or strong ties to Iceland like marriage to an Icelandic citizen, and which covers one named property¹⁰². Stamp duty is 0.8% of the registered assessed value, not the price, for individuals, and half that on a first home purchase¹⁰³.

Can I drive on my U.S. license?

For at most six months³⁶. After six months of residence you must exchange it, with both a theory and a practical test; the license costs ISK 8,600 (as of October 2026)³⁷.

How long until I can become an Icelandic citizen?

Seven years of legal domicile for a U.S. citizen, holding permanent residence, with an Icelandic language test^54,40; as of October 8, 2026 no test dates were scheduled while the test provider changes⁵⁶. We could not confirm the rule on dual citizenship on an official page; ask the Directorate of Immigration.

What changes in 2027?

A draft bill out for consultation since October 1, 2026 would raise the residence needed for permanent residence from four to six years and change family-reunification rules⁸; it was not law on October 8, 2026. A further change to the accommodation rules, including homestays, takes effect on January 1, 2027; we could not read its content²². The tax figures on this page are those set for 2026⁶³, and the means-of-support amount follows the City of Reykjavík’s financial assistance²⁹; check Skatturinn and the Directorate of Immigration for 2027.

Sources

Every Figure on This Page, and Where It Comes From

We use official sources only: the Directorate of Immigration and the other agencies that publish on Ísland.is, the government portal, among them Iceland Health, the Transport Authority and the Directorate of Health; Althingi’s consolidated law collection and the Official Gazette; the Government Offices; Iceland Revenue and Customs (Skatturinn); the Central Bank of Iceland and Statistics Iceland; the Housing and Construction Authority (HMS); Registers Iceland; the Food and Veterinary Authority (MAST); the Icelandic Met Office; the City of Reykjavík, and the municipally owned Strætó and Veitur; the 112 emergency line; the EU; and U.S. federal agencies and the U.S. Embassy in Reykjavík. Some figures are our own queries of or calculations from official data, and we say so where they appear. Icelandic-language titles are given in English. Each source was read on the date shown; where a page gives its own last-updated date, we say so. Where official texts disagree, we say what each one says. If you spot something that has changed, email [email protected].

Official exchange rate (fixing of October 7, 2026). Central Bank of Iceland (Seðlabanki Íslands). Official page. Checked October 8, 2026.
Summary: Agreement on the European Economic Area (policy areas not covered). EUR-Lex. Official page. Checked October 7, 2026.
Do you need a visa? (Schengen member states). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
EU Blue Card (applies in 25 EU Member States). European Commission, Migration and Home Affairs. Official page. Checked October 8, 2026.
Residence permits: the list of permit types. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Foreign Nationals Act No. 80/2016 (consolidated, edition of October 1, 2026). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Residence permit for parents aged 67 and older: requirements. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Conditions changed and stricter requirements for applicants (draft bill out for consultation, October 1, 2026). Government Offices of Iceland (Stjórnarráðið), Ministry of Justice. Official page. Checked October 8, 2026.
Residence permit based on work (four types; fee; visa-free stay). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Work permit for work requiring expert knowledge. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Iceland: tax treaty documents (links the 2007 convention and the 2008 technical explanation). Internal Revenue Service. Official page. Checked October 8, 2026.
Convention between the United States and Iceland for the avoidance of double taxation (2007). U.S. Department of the Treasury. Official page. Checked October 8, 2026.
U.S. international social security agreements (Iceland: March 1, 2019). Social Security Administration. Official page. Checked October 8, 2026.
Permanent residence permit (fee). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Consumer price index in September 2026. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Health Insurance Act No. 112/2008 (consolidated; three-month residence rule from Act 50/2026). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
When do I enter the Icelandic health insurance system? (three months since August 1, 2026). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
New residence and work permit rules take effect (news, July 8, 2026). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Act No. 37/2026 on visas (repeals Article 20 and replaces Article 21 of the Foreign Nationals Act). Official Gazette of Iceland (Stjórnartíðindi), A division. Official page. Checked October 8, 2026.
Short-term residence permit (new in 2026). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Entry/Exit System (EES). European Commission, Migration and Home Affairs. Official page. Checked October 8, 2026.
Act No. 85/2007 on accommodation, restaurants and entertainment (homestay rules). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Making and registering leases (registration duty from January 1, 2026). Ísland.is (HMS information). Official page. Checked October 8, 2026.
Tenancy Act No. 36/1994 (consolidated, edition of October 1, 2026). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Residence permit for a spouse or cohabiting partner: requirements. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Proposal to raise the basic amounts of financial assistance from January 1, 2026 (ISK 247,572 to 259,951). City of Reykjavík, Welfare Council (fundur.reykjavik.is). Official page. Checked October 8, 2026.
Key figures 2026 (Helstu tölur): tax brackets, capital income, rental income, social security tax. Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Regulation No. 1495/2025 on patient co-payments (in force from January 1, 2026). Regulation database (reglugerd.is). Official page. Checked October 8, 2026.
Residence permit based on work: requirements (means of support; health insurance). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Foreign experts (in English). Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Income Tax Act No. 90/2003 (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Apply for health insurance (three-month wait; coverage from outside the EEA). Iceland Health (Sjúkratryggingar Íslands), on Ísland.is. Official page. Checked October 8, 2026.
Processing times (applications being processed, updated October 7, 2026). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Fees (and how first applications are submitted). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Rent price viewer (Leiguverðsjá), market leases registered January to September 2026. Housing and Construction Authority (HMS). Official page. Checked October 8, 2026.
Help: can I use a foreign driving license while waiting to change to an Icelandic one? Icelandic Transport Authority, on Ísland.is. Official page. Checked October 8, 2026.
Foreign driving licenses (exchange, tests and fee). Icelandic Transport Authority, on Ísland.is. Official page. Checked October 8, 2026.
Guidelines for importing dogs from category 2 countries (updated July 1, 2025). Icelandic Food and Veterinary Authority (MAST). Official page. Checked October 8, 2026.
Regulation (EU) 2018/1806 listing visa-exempt countries (Annex II, United States). EUR-Lex. Official page. Checked October 7, 2026.
Icelandic citizenship: conditions. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Residence permit based on work: rights (length, job loss, stays abroad). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Work permit due to a shortage of labor. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Residence permit for a spouse or cohabiting partner: residence rights. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Residence permit for students. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Short-term residence permit: requirements. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Embassies issuing entry visas. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Residence permit based on work: permit granted (photo, residence, medical exam within 90 days). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Residence permit on grounds of a legitimate and special purpose. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Regulation No. 540/2017 on foreign nationals, as shown in the regulation viewer (Article 5a, remote work). Ísland.is regulation database (Reglugerðir). Official page. Checked October 8, 2026.
Act No. 55/1980 on working terms and pension rights (collective agreements as minimum terms). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Salary (collective agreements; pension contributions). Ísland.is. Official page. Checked October 8, 2026.
Residence permit for students: residence rights (work up to 60%). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Permanent residence permit: requirements. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Icelandic Nationality Act No. 100/1952 (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Icelandic citizenship: when can I apply? Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Icelandic language test for citizenship. Ísland.is (Ministry of Justice test information). Official page. Checked October 8, 2026.
Application to Althingi for citizenship by law. Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Changes to co-payments for medicines at the turn of the year (September 26, 2025). Government Offices of Iceland (Stjórnarráðið), Ministry of Health. Official page. Checked October 8, 2026.
Fares. Strætó bs., the capital-area bus company owned by its municipalities. Official page. Checked October 8, 2026.
Technical Explanation of the 2007 U.S.-Iceland convention (2008). U.S. Department of the Treasury. Official page. Checked October 8, 2026.
Tax brackets 2026 (in English). Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Inheritance Tax Act No. 14/2004 (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Ministry of Finance notice B 1521/2025: 2026 income tax rates and thresholds, average municipal tax, personal tax credit, inheritance tax threshold. Official Gazette of Iceland (Stjórnartíðindi), B division, on Ísland.is. Official page. Checked October 8, 2026.
Totalization agreement with Iceland (pamphlet). Social Security Administration. Official page. Checked October 8, 2026.
National ID numbers for immigrants. Ísland.is (Registers Iceland information). Official page. Checked October 8, 2026.
I am a citizen of a country outside the EEA/EFTA (moving to Iceland). Registers Iceland (Þjóðskrá). Official page. Checked October 8, 2026.
ID numbers (personal ID number and system ID). Registers Iceland (Þjóðskrá). Official page. Checked October 8, 2026.
Healthcare centers. Neyðarlínan (112 Iceland). Official page. Checked October 8, 2026.
Act No. 5/2023 on payment accounts (the right to a basic payment account). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Legal Domicile and Residence Act No. 80/2018 (report a change within seven days). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Table VIS01000: consumer price index, annual change. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Wage distributions in the Icelandic labor market 2025 (published May 13, 2026). Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Monthly wage index in August 2026 and related indices. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Indices: house price index and rent index. Housing and Construction Authority (HMS). Official page. Checked October 8, 2026.
Rent index, capital area (data file leiguvisitala.csv, published October 7, 2026). Housing and Construction Authority (HMS), open data. Official page. Checked October 8, 2026.
Signs that more people are stuck in the rental market (news, September 25, 2026). Housing and Construction Authority (HMS). Official page. Checked October 8, 2026.
Renters of foreign origin feel less secure in their housing (rental survey 2026; news, October 1, 2026). Housing and Construction Authority (HMS). Official page. Checked October 8, 2026.
Electricity distribution tariff from July 1, 2026. Veitur, the utility owned by Reykjavík Energy. Official page. Checked October 8, 2026.
Price lists (VAT on heating and electricity). Veitur, the utility owned by Reykjavík Energy. Official page. Checked October 8, 2026.
Residence permit based on special ties: supporting documents (health insurance). Directorate of Immigration (Útlendingastofnun), on Ísland.is. Official page. Checked October 8, 2026.
Help: I moved to Iceland from the United States a year ago but have not yet moved my legal domicile (still says six months). Iceland Health (Sjúkratryggingar Íslands), on Ísland.is. Official page. Checked October 8, 2026.
Help: I have just moved to Iceland from a country outside the EEA (still says six months). Iceland Health (Sjúkratryggingar Íslands), on Ísland.is. Official page. Checked October 8, 2026.
112 Iceland: emergency number. Neyðarlínan (112 Iceland). Official page. Checked October 8, 2026.
Information center: 1700 telephone advice. Capital Area Primary Health Care (Heilsugæsla höfuðborgarsvæðisins), on Ísland.is. Official page. Checked October 8, 2026.
Waiting for selected surgeries: updated dashboard, April 2024. Directorate of Health (Embætti landlæknis), on Ísland.is. Official page. Checked October 8, 2026.
Improved processes for joint replacement surgery. Ísland.is (Digital Health news). Official page. Checked October 8, 2026.
Travel outside the U.S. Medicare.gov. Official page. Checked October 8, 2026.
Medicare coverage outside the United States (Product 11037, April 2026). Medicare.gov. Official page. Checked September 25, 2026.
Avoid late enrollment penalties. Medicare.gov. Official page. Checked September 25, 2026.
U.S. citizens and resident aliens abroad. Internal Revenue Service. Official page. Checked October 7, 2026.
Tax liability (in English). Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Municipal Revenues Act No. 4/1995 (municipal income tax range; property tax). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Withholding tax 2026 (personal tax credit; pensions from abroad). Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Act No. 129/1997 on mandatory pension insurance and pension funds (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Agreement between the United States and Iceland on social security (text). Social Security Administration. Official page. Checked October 8, 2026.
Figuring the foreign earned income exclusion. Internal Revenue Service. Official page. Checked October 7, 2026.
Foreign earned income exclusion: what is foreign earned income. Internal Revenue Service. Official page. Checked September 25, 2026.
Foreign tax credit. Internal Revenue Service. Official page. Checked September 25, 2026.
Report of Foreign Bank and Financial Accounts (FBAR). FinCEN, U.S. Treasury. Official page. Checked October 7, 2026.
Report of Foreign Bank and Financial Accounts (FBAR): due dates. Internal Revenue Service. Official page. Checked October 7, 2026.
Do I need to file Form 8938? Internal Revenue Service. Official page. Checked October 7, 2026.
Act No. 19/1966 on the right to own and use real estate (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Stamp Duty Act No. 138/2013 (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Property tax assessment notice 2026, reverse side (rates). City of Reykjavík. Official page. Checked October 8, 2026.
House price index (data file kaupvisitala.csv, August 2026 released September 15, 2026). Housing and Construction Authority (HMS), open data. Official page. Checked October 8, 2026.
Register of property purchases (Kaupskrá fasteigna), with the data file kaupskra.csv. Housing and Construction Authority (HMS). Official page. Checked October 8, 2026.
Value Added Tax Act No. 50/1988 (ISK 2,000,000 threshold). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
Population on 1 January 2026. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Table MAN030101: population of urban nuclei, January 1. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Table MAN02005: population by municipality, January 1. Statistics Iceland (Hagstofa Íslands). Official page. Checked October 8, 2026.
Contact (address and switchboard). U.S. Embassy in Iceland. Official page. Checked October 8, 2026.
Monthly values by weather station (list of station files; each station has its own file by number). Icelandic Met Office (Veðurstofa Íslands). Official page. Checked October 8, 2026.
Guidelines for importing cats from category 2 countries. Icelandic Food and Veterinary Authority (MAST). Official page. Checked October 8, 2026.
Import of live animals (pets). Icelandic Food and Veterinary Authority (MAST). Official page. Checked October 8, 2026.
Import of live animals: frequently asked questions. Icelandic Food and Veterinary Authority (MAST). Official page. Checked October 8, 2026.
Moving to Iceland: home inventory (customs). Iceland Revenue and Customs (Skatturinn). Official page. Checked October 8, 2026.
Compulsory School Act No. 91/2008 (consolidated). Althingi, the Icelandic Parliament: consolidated law collection (Lagasafn). Official page. Checked October 8, 2026.
U.S. citizen services (consular services by appointment; after-hours emergency number). U.S. Embassy in Iceland. Official page. Checked October 8, 2026.
The Schengen area (29 countries, including Iceland). European Commission, Migration and Home Affairs. Official page. Checked October 7, 2026.
Entry/Exit System fully operational from 10 April 2026: who is exempt. European Commission, Migration and Home Affairs. Official page. Checked September 25, 2026.
ETIAS, the EU travel authorization for visa-free visitors. European Commission, Migration and Home Affairs. Official page. Checked October 8, 2026.
Commission Delegated Regulation (EU) 2025/1411: ETIAS fee of €20. EUR-Lex. Official page. Checked September 25, 2026.
Regulation (EU) 2018/1240 establishing ETIAS. EUR-Lex. Official page. Checked September 25, 2026.

General information, not advice. Quantum Jetset does not give legal, tax, immigration, financial or investment advice. Rules and costs change; check the official sources above and speak to a qualified professional before you act. Next scheduled review: April 2027.

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