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Moving to Iceland

In Iceland, the median gross salary is €4,965 a month (2022) and a single worker on the average wage keeps 72.8% of gross pay after income tax and employee contributions (2025).

Iceland had GDP per capita of US$98,323 in 2025 and life expectancy of 82.8 years in 2024. The national unemployment rate was 4.5% in 2025. Average gross salary was €9,652 per month in 2025, and there were 4.373 doctors per 1,000 people in 2023.

JSON Markdown

Last checked 2026-10-1053 sources

Population386,506people31 Dec 2024Official source · World Bank
Median gross salary4,965EUR/month31 Dec 2022Official source · Eurostat (Structure of Earnings Survey, earn_ses_monthly)
Unemployment rate4.5%31 Dec 2025Official source · Eurostat — Unemployment by sex and age — annual data (une_rt_a)
Median net income3,859EUR/month31 Dec 2025Official source · Income by sex and age 1990-2025
Foreign residents70,555people1 Jan 2026Official source · Foreign citizens 1950-2026 (Statistics Iceland PxWeb table MAN04001)

Can I move to Iceland?

Across 198 passports, 93 passports enter visa-free and 105 passports need a visa for Iceland. Check your passport below.

Visa-free
93
Visa required
105

198 accepted passport rules · rules effective as of 2026-09-05

Residence rules and exceptions
General starting points; personal circumstances and exceptions still apply.
Citizenship / situationStarting point
EU / EEA citizenshipFree movement; longer residence has conditions.[54]
Swiss citizenshipSeparate Swiss arrangements, including residence documentation for longer stays.[54]
Other citizenshipCheck work, study or family requirements.[55]
Existing status or family rightsA passport alone cannot establish your eligibility. Check the relevant authority’s guidance.

These are national starting points, not an eligibility decision. Long-stay residence, work authorisation and in-country application rules differ by route; a visa-free visit never settles them. Check the route that matches your purpose and circumstances with the responsible authority.

Visa and entry rules

Short stay and entry198 source-backed passport answersHighly skilled workerThe Iceland highly skilled route is for a qualified professional with eligible employment or activity; the applicant must meet qualification and job conditions.StudyA student admitted full time to an Icelandic undergraduate, graduate or doctoral programme may qualify for residence; they must show means, insurance and a clean criminal record, and the permit is normally limited to one year with work up to 60%.Family reunificationA child under 18 may qualify to reunite with a parent in Iceland when the parent has qualifying residence or citizenship status and the parent-child relationship and custody are established.Permanent residenceApplicants generally need four continuous years on a qualifying Icelandic residence permit, no more than 90 days abroad per year, secure means of support and 150 Icelandic language-course lessons with at least 85% attendance, subject to exemptions.CitizenshipIcelandic citizenship normally requires seven years of legal domicile and continuous residence, plus a permanent-residence status or exemption, Icelandic-language knowledge, self-support, no tax arrears and an acceptable criminal record.WorkOfficial route overview and current conditions.

Sources checked through 5 Sept 2026.

Work and income

What is the unemployment rate in Iceland?

The national unemployment rate was 4.5 % in 2025. Source: Eurostat — Unemployment by sex and age — annual data (une_rt_a)10

This is the Eurostat labour-force survey series used as the canonical national answer. Other published definitions exist and are shown in the table below.

What is the median gross salary in Iceland?

The median gross salary was 4,965 EUR/month in 2022.

Half of employees earn less than this. Mean gross and national-accounts averages use different definitions and are shown in the table below.

  • Median gross salary, monthly: 4,965 EUR/month · Eurostat (Structure of Earnings Survey, earn_ses_monthly)11
  • Average gross salary, monthly: 9,652 EUR/month · 2026-07-25 · Average annual wages2
MetricValuePeriodSource
Median gross salary, monthly4,965 EUR/month31 Dec 2022Eurostat (Structure of Earnings Survey, earn_ses_monthly)11Official · national figure
National unemployment rate4.5 %31 Dec 2025Eurostat — Unemployment by sex and age — annual data (une_rt_a)10Official · national figure

Public employment service in Iceland

Official job-search, registration, counselling and training routes. Private recruitment agencies are not included.

A national service does not prove that an office exists in every city. City pages show an office only after an exact address is linked to that city. Sources checked through 10 Aug 2026.

Taxes in Iceland

National rates and comparable published scenarios. Personal tax depends on income, household and residence circumstances.

Top income-tax rate46.29 %
Corporate tax rate20 %
Pre-filled with the national median gross salary (2022).
Take-homeISK 541,120a month after tax ≈ €3,817Open the full calculator for Iceland Check a job offer in Iceland
Verified from the linked official or intergovernmental records. Open the primary source. Sources checked through 3 Aug 2026.

Benefits newcomers may qualify for in Iceland

Public schemes where an official source defines an eligible migration or residence status. Amounts and conditions are kept in their native terms.

ProgrammePublished amountSource and application

Atvinnuleysisbætur — Unemployment support

383,870 ISK / Monthly

Directorate of Labour

Open official application
Eligibility and amount details

Gross basic unemployment benefit at 100% benefit entitlement: ISK 383,870 per month.

The official Ísland.is unemployment-benefit page states that an applicant must have worked in Iceland, be able to work in a general workplace, have legal domicile in Iceland and be in the country. This is the bounded profile of a worker with Icelandic work history and legal domicile in Iceland; the published age, fitness, unemployment and statutory entitlement conditions also apply.

Basic services for applicants for international protection — Arrival and reception support

—–28,000 ISK / Weekly

Directorate of Labour

Open official application
Eligibility and amount details

The current official Ísland.is basic-services page states that applicants for international protection receive a weekly diet allowance paid by card; the amount varies by family size and is never more than ISK 28,000 per week.

The official Ísland.is basic-services page states: ‘The Directorate of Labour provides basic services to applicants for international protection while the Directorate of Immigration processes the application.’ exact profile international Protection Applicant In Iceland With Application Processed By Directorate Of Labour. The source says the basic service is granted according to a specific process that begins when an individual or family submits an application for international protection at a police station; it includes housing, necessary healthcare and a weekly diet allowance for applicants who meet the source conditions. It does not generalize to recognized refugees, ordinary immigrants or every foreign resident.

EEA child benefits — Family and child support

345,000–514,500 ISK / Annual

Iceland Revenue and Customs (Skatturinn)

Open official application
Eligibility and amount details

The official 2026 table gives ISK 514,500 per child for single parents and ISK 345,000 per child for married couples and cohabiting partners, plus ISK 130,000 per child under 7; income reductions apply.

The official Ísland.is EEA child-benefits page states that children resident outside Iceland may qualify when their supporter works in Iceland and is fully taxable in Iceland and a citizen of a country within the European Economic Area (EEA), a member state of the European Free Trade Association (EFTA) or the Faroe Islands; when the supporter is resident abroad and insured in Iceland under the Social Security Act; or when the supporter works abroad for an employer that pays insurance tax in Iceland. The page requires the child to be resident in the EEA, an EFTA Member State or the Faroe Islands and states that only child supporters are entitled. three source-defined profiles and does not generalize to all foreign residents.

Housing benefits — Housing support

50,792–99,552 ISK / Monthly

Housing and Construction Authority (HMS)

Open official application
Eligibility and amount details

The official Ísland.is table headed ‘Income limits from January 1st. 2026’ gives maximum monthly housing benefits of ISK 50,792 for a one-member household, ISK 67,553 for two, ISK 78,728 for three, ISK 85,331 for four, ISK 92,442 for five and ISK 99,552 for six or more; benefits cannot exceed 75% of the rental price.

The official Ísland.is conditions page states: ‘To apply for housing benefits you need to have permanent registration in Iceland.’ It also states: ‘You need to live and be registered with legal address in your place of rent’ and that a person domiciled abroad is not eligible. With Permanent Registration In Iceland And Legal Rental Address and retains the age, lease, household, income, asset and rental conditions; it does not generalize to every foreign resident.

Municipal financial aid (municipality-specific rules) — Minimum-income support

Amount set per household by formula / Monthly

Municipal social-services authority

Open official application
Eligibility and amount details

The current official Ísland.is service states that each municipality has its own financial-assistance rules and publishes no single national amount. The official Reykjavík page gives a municipality-specific ceiling of up to ISK 259,951 per month for an individual and ISK 415,922 per month for married couples and common-law partners, subject to income, asset and household rules; this is a municipal example, not a national rate formula.

The official Ísland.is municipal financial-aid service states that each municipality has its own rules on financial assistance under the laws on social services, and that an applicant can apply to the municipality where the applicant has legal residence. source-defined residence profile person With Legal Residence In Iceland For Municipal Financial Aid; it does not convert municipality-specific rules into a single national entitlement or amount. The service describes temporary aid for people without other income and requires the applicant to check other assistance first. Reykjavík’s official current financial-aid page separately states that a person with legal residence in Reykjavík may be eligible subject to its income and asset rules.

ImmigrationDB shows published rules; it does not decide personal eligibility. Confirm your status, contribution record and household circumstances with the responsible authority before applying. Sources checked through 12 Aug 2026.

Can migrants receive medical care in Iceland?

Yes — migrants can receive medical care in Iceland when the official insurance or residence conditions are met.

Verified 2026-08-03. Open the official coverage rules.

Language courses and integration in Iceland

Government programmes, public integration services and exact provider records. The section expands only from fields present in the source; missing prices, refunds or contacts are not replaced with estimates.

3verified programmes
1cities with exact local records
2verified location records
1listed providers

Directorate of Labour Icelandic courses for registered foreign jobseekers — State Language Course

Directorate of Labour

For foreign jobseekers registered for unemployment benefits.

IcelandicIn PersonFree
Open official information

Recognised Icelandic teaching provider grant route — Other

Rannís and the Icelandic authorities

For recognised providers teaching Icelandic to foreigners.

Icelandic
Open official information

Reykjavík refugee Icelandic course and civic orientation route — Integration course

City of Reykjavík and Directorate of Labour

For refugees receiving Reykjavík City financial assistance.

IcelandicIn PersonFree
Open official information
Country programmes describe the national or named local framework. Availability in a city is shown only when a source names that place exactly. Sources checked through 2026-08-10.

All Iceland language courses and where they take place

Living and moving context for Iceland

#1 by populationReykjavikurborg139,804 residents · Capital hub#2 by populationKópavogur40,286 residents#3 by populationHafnarfjörður32,398 residents

Iceland cities by population

The largest published cities appear first. Population is taken from the reusable official city layer; hub labels come from the existing city taxonomy.

Rank Iceland's cities by what a salary leaves each month

Open city finder
CityPopulationNet rent, €/m²/monthMedian gross salary, €/month
ReykjavíkCapital hub139,804Population24.29Net rent, €/m²/mo—Median gross salary, €/mo
Kópavogur40,286Population—Net rent, €/m²/mo—Median gross salary, €/mo
Hafnarfjörður32,398Population—Net rent, €/m²/mo—Median gross salary, €/mo
Keflavík22,697Population—Net rent, €/m²/mo—Median gross salary, €/mo
Reykjanesbaer22,697Population—Net rent, €/m²/mo—Median gross salary, €/mo
Gardabaer20,724Population—Net rent, €/m²/mo—Median gross salary, €/mo
Akureyrarbaer20,284Population—Net rent, €/m²/mo—Median gross salary, €/mo
Akureyri20,284Population—Net rent, €/m²/mo—Median gross salary, €/mo
Mosfellsbaer13,772Population—Net rent, €/m²/mo—Median gross salary, €/mo
Selfoss12,671Population—Net rent, €/m²/mo—Median gross salary, €/mo
Sveitarfelagid Arborg12,671Population—Net rent, €/m²/mo—Median gross salary, €/mo
Akranes8,440Population—Net rent, €/m²/mo—Median gross salary, €/mo
Mulathing5,235Population—Net rent, €/m²/mo—Median gross salary, €/mo
Fjardabyggd5,228Population—Net rent, €/m²/mo—Median gross salary, €/mo
All published cities in Iceland (14)

14 of 14 shownSearch all cities

Reports with this country

Accepted report pages with a row for this country.

All reports
Cities with the highest published monthly salaries Countries with the lowest published household electricity price Countries ranked by fixed broadband penetration Countries ranked by corporate tax rate Countries ranked by GDP per capita Countries ranked by grocery price level

What different occupation groups earn in Iceland

We hold earnings rows for 9 occupation groups in Iceland, but their earnings basis is still being verified against the source: the recorded magnitudes are not plausible as the EUR/month means they are labelled as, so no figure is shown and none of these groups is presented as comparable yet.

Held occupation groups (figures withheld pending unit verification): Managers, Professionals, Technicians and associate professionals, Clerical support workers, Service and sales workers, Skilled agricultural, forestry and fishery workers, Craft and related trades workers, Plant and machine operators, and assemblers, Elementary occupations.

Source: ILO (ILOSTAT mean earnings by occupation (EAR_EMTA_SEX_OCU_CUR_NB)) · observed 2020 · checked 2026-07-30.

Iceland facts

Current source-backed observations, grouped the way the city pages are, with geographic scope and observation periods.

Population and profile

How many people live in Iceland?

The published population was 386,506 people in 2024. Source: World Bank45

National, resident population scope. Foreign-resident and migration-background figures are separate metrics in the table below.

How many foreign residents live in Iceland?

The foreign-resident population was 70,555 people in January 2026. Source: Foreign citizens 1950-2026 (Statistics Iceland PxWeb table MAN04001)18

Residents without Iceland citizenship. The migration-background population is a broader measure and appears in the table below.

MetricValuePeriodSource
Foreign residents70,555 people1 Jan 2026Foreign citizens 1950-2026 (Statistics Iceland PxWeb table MAN04001)18Official · national figure
Population386,506 people31 Dec 2024World Bank45Official · national figure

Legal, tax and other context

MetricValuePeriodSource
Rent deposit can be paid in instalments08 Oct 2026Húsaleigulög (Rent Act No. 36/1994)19Official · national figure
Typical rent deposit3 months8 Oct 2026Húsaleigulög (Rent Act No. 36/1994)19Official · national figure
Public healthcare access for foreign residentsConditional3 Aug 2026Ísland.is — Sjúkratryggingar (Icelandic Health Insurance)25Official · national figure
Area103,000 km²31 Dec 2023World Bank46Official · national figure
Gross-to-net pay for a sample householdsingle person no children — 12,433,527 gross → 9,055,929 net a year (2025, national currency)31 Dec 2025Taxing Wages 2026 — labour taxation decomposition40Official · country household scenario
Population by year368,792 people (2021)1 Jan 2021Population on 1 January by age and sex (DEMO_PJAN)37Official · country annual series
Doctors per 1,000 residents4.37 per 1,00031 Dec 2023World Bank indicator SH.MED.PHYS.ZS49Official · national figure
Household electricity price0.202 EUR/kWh31 Dec 2025Eurostat5Official · national figure
Employer social contribution rate6.35 %31 Dec 2025OECD Centre for Tax Policy and Administration30Official · national figure
People employed in agriculture, forestry and fishing6,910 people2025ec.europa.eu3Official · national figure
People employed in mining and quarrying150 people2025ec.europa.eu3Official · national figure
People employed in manufacturing21,610 people2025ec.europa.eu3Official · national figure
People employed in electricity, gas, steam and air conditioning1,900 people2025ec.europa.eu3Official · national figure
People employed in water supply, sewerage and waste management1,300 people2025ec.europa.eu3Official · national figure
People employed in construction19,060 people2025ec.europa.eu3Official · national figure
People employed in wholesale and retail trade; motor vehicle and motorcycle repair26,680 people2025ec.europa.eu3Official · national figure
People employed in transportation and storage13,510 people2025ec.europa.eu3Official · national figure
People employed in accommodation and food services16,110 people2025ec.europa.eu3Official · national figure
People employed in information and communication8,890 people2025ec.europa.eu3Official · national figure
People employed in finance and insurance5,710 people2025ec.europa.eu3Official · national figure
People employed in real estate2,010 people2025ec.europa.eu3Official · national figure
People employed in professional, scientific and technical services10,530 people2025ec.europa.eu3Official · national figure
People employed in administrative and support services11,010 people2025ec.europa.eu3Official · national figure
People employed in public administration, defence and compulsory social security15,300 people2025ec.europa.eu3Official · national figure

School for children who move here. School is compulsory from age 6 to 16. Newly arrived pupils get support in the school language: íslenska sem annað tungumál (Icelandic as a second language instruction). How to enrol a child (menntamalaraduneyti.is).

Sources: eurydice.eacea.ec.europa.eu · 2026.

Settling-in index

How the conditions a newcomer meets in Iceland compare with the other 35 scored destinations: integration policy, getting by in English, an established foreign community and language courses. Every point comes from the component table below.

Full ranking and method
Score62 / 100
Rank19 of 36

Above the median on the size of the foreign community; below it on integration policy; about the median on language courses.

ComponentReadingScore (0–100)WeightAddsSource
Integration policy (MIPEX)33 of 100333515.4MIPEX 2020
An established foreign community18.3% of residents732019.5Foreign citizens 1950-2026 (Statistics Iceland PxWeb table MAN04001) 2026; population 2024
Language courses for newcomersDirectorate of Labour Icelandic courses for registered foreign jobseekers (Free)1002026.7Directorate of Labour Icelandic courses for registered foreign jobseekers

Working as… in Iceland

Open a profession for its available regulation, recognition and work-route evidence.

Nurse Physician Teacher Engineer Architect Software developer Accountant Childcare worker Electrician Plumber

Compare Iceland

Side by side with the destinations people most often weigh it against, on official measurements only.

All comparisons
Iceland vs United States

Common questions

Answered from the published values on this page, each with its source and date.

What is the unemployment rate in Iceland?

The national unemployment rate was 4.5 % in 2025. Source: Eurostat — Unemployment by sex and age — annual data (une_rt_a).

How many people live in Iceland?

The published population was 386,506 people in 2024. Source: World Bank.

What is the median gross salary in Iceland?

The median gross salary was 4,965 EUR/month in 2022. Source: Eurostat (Structure of Earnings Survey, earn_ses_monthly).

Cite this page

Open a format to select or copy this ImmigrationDB compilation citation. The native disclosure and text fallback work without JavaScript.

APA citation
ImmigrationDB. (2026, October 16). Moving to Iceland: population, rent, salary, cost of living [ImmigrationDB compilation; version b6bed4115cd84f9ca5cad7794c4897fa]. ImmigrationDB. https://immigrationdb.com/countries/iceland/ Retrieved 2026-10-16. Compilation license: CC BY 4.0, https://creativecommons.org/licenses/by/4.0/
BibTeX citation
@misc{immigrationdb_immigrationdb_moving-to-iceland-population-rent-salary-cost-of-living_f1343e705377,
  author = {ImmigrationDB},
  title = {Moving to Iceland: population, rent, salary, cost of living},
  publisher = {ImmigrationDB},
  year = {2026},
  date = {2026-10-16},
  version = {b6bed4115cd84f9ca5cad7794c4897fa},
  url = {https://immigrationdb.com/countries/iceland/},
  note = {Retrieved 2026-10-16. ImmigrationDB compilation. Compilation license: CC BY 4.0, https://creativecommons.org/licenses/by/4.0/},
}
Markdown citation
[Moving to Iceland: population, rent, salary, cost of living](https://immigrationdb.com/countries/iceland/) — ImmigrationDB; ImmigrationDB; version b6bed4115cd84f9ca5cad7794c4897fa; retrieved 2026-10-16; built 2026-10-16.

This citation identifies the ImmigrationDB compilation/page. Underlying source publishers and datasets retain their own terms; inspect the Sources section and cite those records separately. View the underlying source records.

Sources

Every number above comes from one of these records. Open the original source for its geographic scope and publication date.

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    Official Iceland starting point for EU/EEA/Swiss residence; national guidance only, not a personal eligibility decision.

  45. Iceland Directorate of Immigration — applications and forms

    Official Iceland national residence and immigration guidance; not a personal eligibility decision.