The Iceland Digital Nomad Visa – All you need to know

Iceland is an island country with a total area of just over 103,000 km2. Between Greenland, Norway, and the UK, it is situated in the North Atlantic Ocean. Any adventurous digital nomad should explore this beautiful location. The nation has an extremely active geology. With over 20 active volcanoes and 11% of the island covered in glaciers, Iceland is known as the “Land of Fire and Ice.” Iceland has an air of a mythical place due to its thermal pools, erupting geysers, waterfalls, glaciers, black beaches, and Aurora Borealis, which makes it difficult to believe such landscapes actually exist. Also, innumerable rivers, streams, and waterfalls can be found all around the nation.

If all of this sparked your interest, check out our guide on making the most of your time as a digital nomad in Iceland.

Basic Things about Iceland you need to know

Population – Over 380,000

Capital – Reykjavik

Form of government – Democratic

Climate – Cold, temperate maritime

Official or general language – Icelandic Currency –Icelandic Krona (ISK)

When was the iceland digital Nomad visa launched

Since it was first made available in October 2020, the Icelandic visa for remote workers and digital nomads has drawn a lot of foreign nationals.

Who can apply for the Iceland digital nomad visa

  • You are a citizen of a non-EU/EEA/EFTA country.
  • Your country has a visa-free travel agreement with Iceland

How can you be eligible to apply for the Iceland digital Nomad visa

  • You have not acquired another Iceland long-term visa in the last year.
  • You must prove that you will work remotely.
  • You must prove that you have a monthly income of ISK 1,000,000 (appx. €7,300).

Requirements for the Iceland Digital Nomad Visa

  • Your valid passport: A copy of your current passport that is still valid for three months after the expiration of your visa is required.
  • Iceland digital nomad visa application form: You can submit an application for a visa to Iceland for digital nomads using the form on the country’s official website. It must be downloaded and electronically filled out.
  • Visa payment proof: You must demonstrate that you have paid the necessary €88 (ISK 12,200).
  • One passport-sized photo that is no more than six months old.
  • Health insurance: You must have medical coverage for the entirety of your visit to Iceland.
  • A letter from your employer: You must demonstrate that you will be working independently or remotely for a foreign employer.
  • Evidence of sufficient income: You must demonstrate that you make at least ISK 1,000,000 (about €7,300) per month.
  • A clean criminal record certificate is available from your neighborhood police department or station.

If you are bringing a family member (such as a spouse), you must also submit:

  • Marriage certificate.
  • Proof that you have lived together for at least one year.
  • An additional income of around €2,000 (ISK 300,000).

Iceland digital nomad visa application process

  • You must first obtain the necessary paperwork: These consist of a copy of your passport, identification, and proof of health insurance.
  • A processing charge of 12.200 ISK (about $96) must be paid before filing. Save the payment receipt for future reference because you will need it to send with your application and supporting documentation.
  • Print out the application form: Print it the form here. https://island.is/saekja-um-langtimavegabrefsaritun-vegna-fjarvinnu fill it, and sign it.
  • Sadly, there is no online application process for this visa. The application can only be made through mail. Therefore, once you’ve completed it and acquired all the necessary documentation, you must mail it to the office of Immigration.
  • The Directorate of Immigration will get in touch with you to let you know whether or not your application has been accepted.
  • When you arrive in Iceland, you will receive your visa, but be sure to have the approved confirmation with you.

Can I apply for an Iceland digital nomad visa online

It is not possible to apply for an Icelandic digital nomad visa online; it must be submitted via mail. Mailing the required documents to the immigration directorate in Kópavogur is required.

How Long Is The Iceland Digital Nomad Visa Valid For

  • If you apply from your home country and wait until the visa is approved before traveling to Iceland, your long-term visa will be good for roughly 180 days.
  • Your long-term visa will be valid for 180 days, minus the days you spent in the other Schengen countries, if you apply from your home country but enter any Schengen country before the visa is issued.
  • If you apply from a Schengen nation, the length of your long-term visa is typically 90 days.

How long does it take to get the Iceland digital Nomad visa

Normally, it takes three to four weeks to process this long-term visa application.

How Much is the Iceland Digital Nomad Visa Fee?

Icelandic remote workers must pay a fee of ISK 12,200, or around $94. You will need to pay ISK 12,200 for each applicant if you are bringing your partner or any dependents.

Recommended places to live in Iceland as a digital nomad

  • Reykjavik: Since Reykjavik is Iceland’s capital city, there are numerous things you can do there. You may shop, visit museums, go sightseeing, and most importantly, work in one of the many coworking spaces this city provides while you’re there.
  • Hafnarfjörur: This city’s stunning harbor and fascinating history make it a popular destination for tourists.
  • Akureyri: If you’re a digital nomad, this city’s abundance of coworking spaces is ideal for you. Make sure you ski at Hldarfjall, view the aurora borealis, see the Arctic botanical garden, and other attractions while you’re here.
  • Kópavogur: You can work as a digital nomad in this city and take use of the lovely scenery, retail areas, and tallest building in Iceland, among other things.

Coworking Spaces in Iceland

Some of the country’s most noteworthy coworking spaces include (prices shown are for hot desks):

Regus (Reykjavík):

  • $300 / week
  • $500 / month

The Ocean Cluster House (Grandagarður):

  • $73 / day
  • $300 / month

Quarter (Reykjavik):

  • $38 / day
  • $260 / month

The Blue Bank (Westfjords):

  • $28 / day
  • $110 / week

Digital nomad life in Iceland

Housing: In Iceland, especially in major towns like Reykjavik, housing may be rather expensive for digital nomads. However, there are inexpensive alternatives including co-living areas, hostels, and temporary rentals in the suburbs.

Mobility: Iceland’s well-developed transportation infrastructure makes it possible for digital nomads to travel easily. Buses are an effective form of public transit in big towns like Reykjavik, which makes it simple for nomads to travel and explore Iceland’s natural beauties while leading a remote work lifestyle.

Food: Lamb stew and fish porridge used to be the fundamentals of Icelandic meals. Some of the restaurants in Reykjavik are currently among the best in Europe and the meat they use are usually smoked, and is one of the most well-liked meals (smoked lamb). Skyr (whey), a dairy product, is a major hit with visitors, especially in the late summer when it’s served with fresh blueberries. You must try the Icelandic specialty of shark. If you frequently eat at restaurants, it’s a good idea to be aware that virtually always, the bill is settled at the bar following your meal. If you’re moving to Iceland, you can forget about carrying cash because most purchases are made using credit or debit cards.

Activities you should not miss out on

  • Visiting the Aurora borealis: Many tourists travel to Iceland in order to see the stunning Northern Lights, which are a natural phenomena. Anyone who sees these lights, which are brought on by changes in the magnetic field, will never forget it.
  • Go whale watching: There are numerous firms that provide whale watching cruises, and Iceland’s seas are home to a wide variety of whale species.
  • Go on a glacier hike: Some of Europe’s biggest glaciers are found in Iceland, and guided glacier walks are a well-liked tourist activity.
  • Visit the Blue Lagoon: One of Iceland’s most well-known attractions is the Blue Lagoon, a geothermal bath situated in a lava field. As you unwind in the warm, mineral-rich water, you will see beautiful beauty all around you.

Advantages of living in Iceland

  • Great Healthcare services
  • Great internet connection
  • An opportunity to learn a new language
  • An opportunity to read books as Icelanders are ardent book readers.


The cost of living is quiet high.

What Are The Financial Requirements For The Iceland Digital Nomad Visa?

One of the highest salary criteria in the world as you must be self-employed or work for a company based outside of Iceland and earn a least of $7763 each month to qualify for the visa.

Do digital nomads pay taxes in Iceland?

You won’t be required to pay any taxes while you’re in Iceland if you have a visa for digital nomads. However, you will still be required to pay taxes in the nation where you are recognized as an official employee or business owner.

VAT in Iceland

In Iceland, the usual VAT rate is 24%. However, a reduced VAT rate of 11% is applied to some goods and services.

Does the Iceland digital nomad visa lead to permanent residency?

A digital nomad visa from Iceland does not grant permanent residence. It is not possible to live in Iceland for four years straight on this visa which is a necessity in order to earn permanent residency in Iceland.

What Is The Cost Of Living In Iceland

A family of four estimated monthly costs are 4,735.3$ (621,881.8kr) without rent. A single person estimated monthly costs are 1,282.8$ (168,470.0kr) without rent.

What Is The Internet like in Iceland

The quality of the internet in Iceland is good but can vary depending on location and service provider. In larger cities and towns, the internet is better compared to the other parts of the country.

Can the Iceland digital Nomad visa be extended

Iceland’s digital nomad visa is not extendable. The only choice is to apply for a new visa when a year has passed since your last trip to Iceland on a digital nomad visa.


In conclusion, for individuals looking to mix business and travel in a gorgeous, magical setting, the Iceland Digital Nomad Visa opens the doors to a world of limitless possibilities. Your time in Iceland will be marked by easy integration, unforgettable experiences, and a healthy work-life balance if you abide by the detailed instructions and advice given in this article. So, pack your bags, ignite your wanderlust, and let Iceland’s magnetic charm redefine your notion of remote work as you create cherished memories amidst the land of fire and ice.

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