Dreaming of Moving to Iceland? Here’s What to Know if You’re American

Many people consider Iceland a bucket-list destination with its beautiful scenery, fresh seafood, and chances to glimpse the Northern Lights. Although many plan stopovers in Iceland while traveling to Europe, the country beckons others to stay longer. If the possibility of lingering in the capital of Reykjavik or a rural area like Selfoss sounds appealing, it may be time to move to Iceland.

Whether you want to get a job along the coast, retire in the city, or work remotely, here are answers to a few frequently asked questions about moving to Iceland as an American.

Moving to Iceland as a United States citizen is possible. However, what the country allows is pretty restrictive. If you plan on staying for more than three months, you will need to contact the Directorate of Immigration to apply for a residence permit, and acceptance depends on your reason for staying. 

Commonly acceptable justifications include being a qualified worker, student, volunteer, or au pair, or needing to reunite with a family member, such as a spouse, minor, or aging parent. In particular circumstances, residency is considered on a case-by-case basis. 

Before heading to Iceland, you will also need to prove that you have secured a place of residence, and you may also have to submit your criminal record and consent to a mandatory medical examination. Also, be prepared to provide additional information to immigration, such as your passport and proof of having health insurance recognized in Iceland.

As expected, you will have to account for airfare and residence applications. “Both temporary and permanent residence permits cost 15,000 ISK, which is equivalent to $116,” advises Lum Kamishi, the editor of a visa guidance site. He also says that moving to Iceland requires obtaining a national ID number called a kennitala, which costs around $62, or 8,000 ISK. “You will need to present your kennitala when applying for work, seeking medical care, opening a bank account, and even when borrowing a book from the library,” Kamishi adds.

Although those are inexpensive initial investments, living in Iceland is pricier than residing in the United States. Consumer goods, eating in restaurants, and groceries all cost more. The good news is that the average monthly rent tends to be less. However, just like in the United States, where you choose to live will significantly impact how much it costs to live in Iceland.

According to Work in Iceland, the country has a lot going for it. The average Icelandic workweek, they say, is just 40 hours, and the country is known to be a leader in gender equality in the workplace. It’s generally an extremely safe country with a low crime rate, and obviously it’s quite beautiful, what with the Northern lights and all.

But perhaps one of the coolest benefits of living in Iceland is that after six months of legal residency, you can be part of the Icelandic Health Insurance system. Iceland’s health insurance caps your healthcare costs monthly. If you’re pregnant, health care is basically free, and prescription medication costs are also capped monthly. 

Iceland is also the third happiest country in the world, according to the World Happiness Report.

Moving to Iceland with your pet isn’t as simple as getting them a seat next to you on your flight. If you want to move your pet to Iceland, you need to make sure that they fulfill vaccine and testing requirements, per the Icelandic Food and Veterinary Authority. You should also know the country requires pets to be quarantined for two weeks after arriving in Iceland. 

Yes, it is possible to retire in Iceland or move prior to securing a job. However, if you don’t have employment before moving, you will need to prove that you have around $1,500 per month as an individual or about $2,200 per month as a couple for the duration of your intended stay. For example, if you plan to stay for a year without employment, you’ll have to prove that you have the required amount to support yourself for the entire year. If you cannot prove that you can fund your stay, you will need to work in Iceland, securing a job that the country deems necessary.