Work Residence Permit – Labour Shortage (Dvalarleyfi vegna vinnu – skortur á vinnuafli)

Iceland•Europe

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Work Residence Permit – Labour Shortage (Dvalarleyfi vegna vinnu – skortur á vinnuafli)

Work PR PathwayThis visa can lead to permanent residency, the right to live and work here indefinitely without renewing your visa. Dependents Allowed

At a Glance

Processing Time

8-10 weeks

Application Fee

80,000 ISK

Stay Duration

1 year

Renewable

Yes

Job Offer

Required

Dependents

Allowed

PR Pathway

Available

Remote Work

Not Required

Official Information

Overview

Work permit for foreign nationals filling documented labour shortages in Iceland when qualified EEA/EFTA workers cannot be found.

Iceland's Work Residence Permit for Labour Shortage is granted when an employer cannot fill a role with available workers from Iceland, the EEA/EFTA, or the Faroe Islands. It requires a specific job offer and demonstrates secure means of support. The visa is renewable and covers sectors including healthcare, construction, IT, and renewable energy.

The application fee is ISK 20,000. The initial permit is typically issued for up to one year and can be renewed, provided conditions continue to be met. Spouses can work unrestricted, dependents are allowed, and the permit leads to permanent residence.

This visa is ideal for skilled workers in documented labour-shortage sectors who have secured a job offer from an Icelandic employer.

Stay & Extensions

Initial grant

1 year

Conversion Paths

Visas you can typically switch to from this status.

Permanent Residence Permit (Ótímabundið dvalarleyfi)

Iceland

Permanent Residence Permit (Ótímabundið dvalarleyfi)

ValidityVaries (Renewable if financial conditions continue to be met)

ProcessingVaries

View Visa Details

Requirements

ELIGIBILITY REQUIREMENTS

Applicant must be 18 years or older.

Must have a specific job offer from an employer in Iceland.

The employer must have unsuccessfully searched for a qualified worker within the Icelandic labour market, EEA/EFTA member states, or the Faroe Islands.

Must be granted a work permit by the Directorate of Labour.

Must demonstrate secure means of support (minimum monthly income requirement).

Must have valid health insurance from an insurance company licensed to operate in Iceland.

Must provide a criminal record certificate from all countries where the applicant has resided for the last five years.

Must have a valid passport (valid at least 3 months beyond the permit's expiry).

Visa-required applicants must be outside Iceland when applying and while the application is processed.

KEY CRITERIA

Job Offer

Required

Education

vocational or higher

Experience

1+ years

Min. Income

259,951 EUR/yr

REQUIRED DOCUMENTS

Original application for a residence permit (signed).

Application for a work permit.

Employment contract signed by both parties.

Passport-sized photo (35mm x 45mm).

Copy of valid passport.

Criminal record certificate (with apostille or double authentication).

Confirmation of health insurance (valid for at least 6 months, minimum coverage 2,000,000 ISK).

Proof of payment of the processing fee.

Advantages & Considerations

Key Benefits

Employer proves labour shortage; applicant qualifies by job offer, not credentials
Renewable up to 2 years per extension cycle with no statutory cap on total length
Direct pathway to permanent residence (convertible to is-permanent visa)
Spouse and dependents can work and accompany without restriction
Expedited processing available: 8–10 weeks total vs. standard 8–10 months
Minimum education requirement only vocational; employer selects skill fit
Dual intent permitted — can explore permanent settlement while working
Health insurance and criminal check required but straightforward documentation

Worth Knowing

Standard processing takes 8–10 months; expedited track adds cost and employer coordination
Employer must document failed recruitment across Iceland, EEA/EFTA before approval
Minimum monthly income requirement of ISK 259,951 must be continuously maintained
Application fee raised to ISK 80,000; visa-required applicants must remain outside Iceland during processing
Requires job offer from Icelandic employer; cannot self-petition or apply without sponsorship
Employer must prove genuine labour shortage in Icelandic and EEA/EFTA markets (niche sectors)

Application Process

Gather financial documentation: Bank statements, pension documents, investment proof showing monthly income

Prepare application: Complete financially independent person application

Submit to Directorate: Send to immigration office

Pay fee: ISK 20,000

Financial assessment: Officials verify income sufficiency

Receive permit: Residence permit issued if income verified

Application Forms

Application for a temporary work permit due to a shortage of staff

Fill online

Verified Claims (9)

Last verified Jun 20, 2026

Fee Breakdown	Application fee: 80000 ISK	island.is
Fees	ISK 80000	island.is
Forms	Application for a temporary work permit due to a shortage of staff	island.is
Official Info	https://island.is/en/permit-based-on-work	island.is
Max Stay	Up to 1 year initially; renewable for up to 2 years per extension	island.is
Max Stay Estimate	type: years, initialDays: 365, notes: Up to 1 year per initial grant; renewals up to 2 years each	island.is
Min Income	259951	island.is
Min Income Currency	ISK	island.is

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Overview

Work permit for foreign nationals filling documented labour shortages in Iceland when qualified EEA/EFTA workers cannot be found.

This visa is ideal for skilled workers in documented labour-shortage sectors who have secured a job offer from an Icelandic employer.

Requirements

ELIGIBILITY REQUIREMENTS

Applicant must be 18 years or older.

Must have a specific job offer from an employer in Iceland.

The employer must have unsuccessfully searched for a qualified worker within the Icelandic labour market, EEA/EFTA member states, or the Faroe Islands.

Must be granted a work permit by the Directorate of Labour.

Must demonstrate secure means of support (minimum monthly income requirement).

Must have valid health insurance from an insurance company licensed to operate in Iceland.

Must provide a criminal record certificate from all countries where the applicant has resided for the last five years.

Must have a valid passport (valid at least 3 months beyond the permit's expiry).

Visa-required applicants must be outside Iceland when applying and while the application is processed.

KEY CRITERIA

Job Offer

Required

Education

vocational or higher

Experience

1+ years

Min. Income

259,951 EUR/yr

REQUIRED DOCUMENTS

Original application for a residence permit (signed).

Application for a work permit.

Employment contract signed by both parties.

Passport-sized photo (35mm x 45mm).

Copy of valid passport.

Criminal record certificate (with apostille or double authentication).

Confirmation of health insurance (valid for at least 6 months, minimum coverage 2,000,000 ISK).

Proof of payment of the processing fee.

Advantages & Considerations

Key Benefits

Employer proves labour shortage; applicant qualifies by job offer, not credentials
Renewable up to 2 years per extension cycle with no statutory cap on total length
Direct pathway to permanent residence (convertible to is-permanent visa)
Spouse and dependents can work and accompany without restriction
Expedited processing available: 8–10 weeks total vs. standard 8–10 months
Minimum education requirement only vocational; employer selects skill fit
Dual intent permitted — can explore permanent settlement while working
Health insurance and criminal check required but straightforward documentation

Worth Knowing

Standard processing takes 8–10 months; expedited track adds cost and employer coordination
Employer must document failed recruitment across Iceland, EEA/EFTA before approval
Minimum monthly income requirement of ISK 259,951 must be continuously maintained
Application fee raised to ISK 80,000; visa-required applicants must remain outside Iceland during processing
Requires job offer from Icelandic employer; cannot self-petition or apply without sponsorship
Employer must prove genuine labour shortage in Icelandic and EEA/EFTA markets (niche sectors)

Application Process