Iceland•EuropeWork Residence Permit - Labour Shortage (Dvalarleyfi vegna vinnu - skortur á vinnuafli)
At a Glance
8-10 weeks
ISK kr 80,000
1 year
Renewable
Renewal
Renewable
Family
Dependents allowed
PR Pathway
Yes
Sponsor
Job offer required
Work
Remote not required
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.
IcelandPermanent Residence Permit (Ótímabundið dvalarleyfi)
Requirements
PUBLISHED 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
Education
vocational or higher
Experience
1+ years
Min. Income
259,951 ISK/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 |
Related visas
More visas in Iceland
Work visas in other countries
- Academic Visitor Visa
New Zealand
- General Employment Permit
Ireland
- D2 Entrepreneur Visa
Portugal
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