Permanent residence permit
After four years of continuous residence on a qualifying permit, foreign nationals can apply for permanent residence. They must complete 150 lessons of Icelandic with 85% attendance or pass an approved test, show secure means of support, and have no open criminal or expulsion case. Spouses of Icelandic citizens can apply after three years.
Life in Iceland
Money
3
Currency
Icelandic Króna
ISK
Icelandic Króna
Cost of living
130
Price level · US = 100
World Bank price levels, 2025
Tax
31.49–46.29%
Income tax (national)
VAT 24%
Withholding rates combine state and municipal tax: 31.49% up to ISK 498,122 a month, 37.99% to ISK 1,398,450, 46.29% above; personal tax credit ISK 72,492 a month.
Living
1
Happiness
#2 of 145 countries
World Happiness Report 2025
Your edge here Members
What gives you an edge here: passports, visas and permits you hold, work, study, language and family ties
Who it’s for
Long-term holders of qualifying Icelandic residence permits.
Eligibility
Qualifying permit
Family reunification, expert work, labour shortage, international protection, humanitarian grounds, or certain student permits (with restrictions).
Residence period
You need four years of continuous residence, or a shorter period if you are a spouse or child of an Icelandic citizen.
Years of continuous residence
- Most applicants
- Four years
- Spouse of citizenspouses of Icelandic citizens
- Three years
- Child of citizenchildren of Icelandic citizens
- Two years
Official wording
Four years continuous (three for spouses of Icelandic citizens, two for children of Icelandic citizens).
Icelandic
Show you completed Icelandic lessons with enough attendance, or passed an approved Icelandic test.
Icelandic course requirement
- Lessons
- 150 lessons
- Attendanceminimum attendance
- 85%
- An approved test pass can be used instead of the course.
- Exemptions exist, including age 65+ with seven years in Iceland.
Official wording
150 lessons with 85% attendance, or a pass in an approved test; exemptions include age 65+ with seven years in Iceland.
A sneak peek at what's inside
- Next requirementMeans
- Document checklistApplication
- FeesPermanent residence application
The full requirements are for members
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- 2 more requirements
- 3 documents
- 2 fees
- 3 steps
- Processing times and conditions
Places to visit in Iceland
Attractions picked for you, based on your profile and interests.
Finding places for you…
Official sources
Other routes to Iceland
- Visit & tourismSchengen tourist & business visa
- StudyResidence permit for students
- Work permitsResidence permit based on work
- FamilyResidence permit for spouse or cohabiting partner
- Status in-countryRight of residence for EEA/EFTA citizens
- CitizenshipIcelandic citizenship by application
