Living and working in Iceland
Iceland is known for its geysers, volcanoes, northern lights and glaciers. But what more does this country has to offer if you plan on moving there?
Here we will paint a more clear picture of what living in this lovely country can look like.
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Currency
The Icelandic Krona (ISO code: ISK, symbol: kr) is the official currency in Iceland
Famous people
Some famour Icelandic people are Björk, Halldór Laxness, and Eiður Guðjohnsen
Population
Iceland has ~372.500 residents, mainly living in the capital city Reykjavik
Typical food
Skyr (kind of yoghurt), lamb, seafood, Hákarl (fermented shark), Rúgbrauð (rye bread), Svið (sheep’s head)
Avg. working week
Iceland has a 36-40 hour work week. Possibility of 4 day work week
Location
Iceland is a European island country located in the North Atlantic Ocean. The capital city is Reykjavik
Languages
The official language is Icelandic, and they use Latin script as other Scandinavian countries
Healthcare
Icelandic healthcare has a high quality and is accessible to everyone living there
What you need to know about working in Iceland
Iceland might not be the most obvious place to think about when contemplating to live and work abroad. Nevertheless, a great expat community exists, containing many different nationalities.
Hierarchical structure is not followed as much as in other European countries. Icelandic people tend to be honest and straightforward in their business relations and meetings. Meetings often take place over lunch or with a cup of coffee. It’s also good to highlight that Iceland is ranked the highest in terms of gender equality worldwide.
The average salary is €2823 net and the work week is often Monday to Friday, 36-40 hours in total. With that said, it’s also possible to choose a 4 day work week some places in Iceland. The largest industry in the country is tourism, and right behind are fishing processing, geo and hydropower, pharmacy, or aluminium smelting.
Working in Reykjavik
There are many job opportunities in Iceland, however often you will find most availability in certain sectors. Economy is open for internationals and you are welcomed by nationals with open hands. Since the environment is pleasing, you can find a vibrant community for expats in Iceland, located especially in the region of the city centre.
If you are not sure how to prepare before going to a new place to live, check our tricks and tips about How to prepare before moving abroad.
Taxes in Iceland
Some of the paperwork you need to do when working in Iceland is to get a personal ID number (kennitala) and an electronic ID (rafræn skilríki) connected with the SIM card in your mobile phone for authentication purposes. To apply for a kennitala, you need to go to the Icelandic Register (Þjóðskrá) with a valid ID. With this you’ll be able to sign up for everything you need. This is necessary for tax purposes and for a job contract. In Iceland you pay income tax and municipal tax, along with some other contribution tax. The income tax rate starts with 17% and the municipality tax rate with 14,45%.
What you need to fix when you start working in Iceland
There are a couple of things you have to fix before you start your new life in Iceland:
- Register you residence; as EU resident you are allowed to live in Iceland
- Require a national ID number; required for banking, healthcare and renting
- Register with the tax authorities; register early, or you’ll be taxed at a higher default rate
- Open up a local bank account; needed for salary payments
- Healtcare regisration; gives you access to care if needed
- Get a local SIM card
Popular cities in Iceland
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What’s it like to live in Iceland?
The country’s breathtaking landscapes include glaciers, geysers, waterfalls, and volcanic formations. Icelanders enjoy a high quality of life, a strong sense of community, and a safe and clean environment. The Icelandic culture is rich in folklore, music, and literature, fostering creativity and artistic expression. For outdoor enthusiasts, Iceland is a paradise, offering opportunities for hiking, skiing, and exploring the wilderness. And you can witness the spectacular Northern Lights.
5 fun facts about Iceland
- Iceland was the last land to be discovered, and it was about 1.100 years ago by accident. The nordic viking Naddod who was blown off course sailing from Norway to the Faroe Islands in 861. This way he discovered the coast of Iceland and went back to Norway to tell them all about his discovery.
- Some of the people believe in elves and trolls, thanks to its vikings origins, and they keep stories of magic tales and creatures.
- You can enjoy natural hot springs baths all year round: they can be found all over the country, and they keep heated all year so be prepared to enjoy this as a common thing in Iceland.
- Almost all of the electricity in Iceland comes from renewable sources, this country has been awarded the Nordic Nature and Environment Prize in 2014.
- Their capital city, Reykjavík, translated as the smoky bay, is famous for being one of the world’s cleanest, greenest, and safest cities. If you’re thinking Iceland is all about ice, then think again.
5 fun facts about Iceland
For Icelandic people family is extremely important, and from an early age, kids are taught to be self-sufficient. Something that might be surprising is that they don’t have surnames: they have patronymic names instead. It is created by taking the fathers first name followed by -son or -dottir (respectively “son of” or “daughter of”), e.g. Anna Einarsdottir and Johannes Einarsson.
They are also very proud of their gender equality, which is very high, and the same goes for tolerance. One of their biggest prides lies in their nature. Stunning landscapes you won’t experience anywhere else in the world are the reason so many tourists are heading there. And of course the northern lights.
Cuisine in Iceland
Icelandic food is a result of the extreme natural circumstances their ancestors had to deal with. Their food is simple but still worth trying. Meals are usually meat-based befitting descendants of Vikings.
Due to its location by the ocean, fish is of a very high quality, and an important ingredient in national dishes. Furthermore, lamb and skyr (a kind of low-fat yoghurt) is also a big part of typical Icelandic food.
Some of the most interesting, and more or less controversial meals are:
- Hákarl (fermented shark)
- Kjötsúpa (lamb soup)
- Bæjarins Beztu Pylsur (Icelandic hot dog)
- Rúgbrauð (rye bread)
- Svið (sheep’s head)
Finding accommodation in Iceland
Finding accommodation in Iceland is kind of a challenge, especially in Reykjavik. This means the prices are higher and the amount of available apartments are sparse. After you decide, you can start looking at Facebook groups (which are very helpful) for accommodation in that particular place. Expect this for the average monthly rent in Iceland:
- 1-bedroom apartment in the city center: €1,700-€2,500
- 1-bedroom apartment outside the city center: €1,400-€2,000
- Room in a shared apartment: €500-€900
Cost of living in Iceland
The cost of living in Iceland is high due to its remote location. Here’s a detailed list of common expenses:
- Groceries: €400-€650 a month
- Basic meal in a restaurant: €25-€35
- Coffee in a café: €5-€7
- Beer in a bar: €10-€16
- Gym membership: €50-€90 a month
- Cinema ticket: €12-€18* Prices can vary depending on the neighbourhood, the number of people living in the apartment and facilities.
Still not convinced about Iceland?
Although living in Iceland can be challenging due to its remote location and harsh weather conditions, the resilient and warm-hearted Icelandic community makes it a welcoming place to call home:
- Iceland is a place well-known for the overall satisfaction, rich culture, social wellness and welcoming nationals which all create an expat-friendly environment.
- Expats moving to Iceland claim that it’s less isolated than they expected, and once you get settled you can start exploring: there is much to discover. High costs of living are compensated with a fair salary, high living standards and a great work culture.
FAQ
No, citizens of EU and EEA do not need to apply for a work permit or visa to work in Iceland. You can read more about it here. Essentially it makes it easy to find work in Iceland for EU citizens.
Icelandic is considered to be one of the hardest languages in the world. Approximately 300.000 people can speak Icelandic, which is almost equal to the number of nationals!
Fortunately, most of the society speaks English, however, it still would be good to know some basic sentences. Language knowledge is useful not only in making contact with Icelandic people but also allows us to understand the culture better. If you would like to try, there are a lot of free online courses like this one. If you prefer to take lessons in person, there is also a possibility like that. Most of the courses offered already on site are paid. You can check how are the exemplary prices for a course here. The fact that you study Icelandic is a good sign for your future employer, it shows that you treat this place and job seriously and for a longer run and you can be sure he will notice it.
In Iceland, temperatures vary significantly throughout the year:
- Spring: Unpredictable, snow still possible. 0°C to 10°C
- Summer: Cool and mild, with long days. 8°C to 15°C
- Autumn: Cooling down, more snow and wind. 2°C to 10°C
- Winter: Cold, very windy, mix of snow and rain. -1°C to 4°C
In Iceland, getting around is primarily done by car, as public transportation is limited, especially outside Reykjavik. Renting a car is a popular option to explore the country’s breathtaking landscapes at your own pace. Domestic flights and buses are available for longer journeys between towns. During winter, be prepared for challenging road conditions and consider guided tours for more remote areas.
Healthcare in Iceland is of high quality and accessible to all residents. The country has a comprehensive public healthcare system that provides essential medical services to its citizens, and emergency medical care is readily available. Additionally, Iceland has modern medical facilities, well-trained healthcare professionals, and a focus on preventive care, contributing to the overall well-being of its population.