Work in Iceland

Prospects Editor

August, 2026

Known for its peaceful way of life, healthy work/life balance and striking scenery, Iceland can be an attractive place to work if you have skills in demand

This Nordic island is sparsely populated (400,000) with a small number of urban areas, and while the summer days may seem to last forever (with 22 hours of daylight), the winter months can be particularly harsh. That said, there are a number of reasons why foreigners should consider working in Iceland.

The country has an impressive unemployment rate (3.4% in May 2024). Iceland is also the most peaceful country in the world - a title it has held since 2008, according to the Global Peace Index 2024.

Icelandic workers value a healthy work/life balance and employers strive for gender equality by actively trying to close the gender pay gap and allowing equal parental leave for both parents.

While Iceland is one of the more expensive European locations, there's plenty to see and do that won't cost you a penny. Make the most of your generous holiday allowance by exploring geysers, glaciers, mountains and volcanoes. You could visit the famous Blue Lagoon, or watch the Northern Lights dancing in the sky. The country also puts on an impressive number of festivals so check out the Winter Lights Festival, International Literary Festival, The Colour Run, Pride and the International Film Festival, all held in the capital city of Reykjavik.

This Nordic island has a small population of just under 400,000 and only a handful of urban areas, most notably the capital, Reykjavík. Summer days can bring near-round-the-clock daylight, while winter is darker and often harsh - but there are still plenty of reasons to consider working in Iceland.

For graduates with the right skills, Iceland offers opportunities in areas such as:

construction
engineering
healthcare
IT
tourism.

Tourism remains a key part of the economy, and Iceland was ranked the world's most peaceful country in the 2026 Global Peace Index, for the nineteenth consecutive year.

Icelandic workplaces tend to place a strong emphasis on equality, employee wellbeing and family-friendly policies, including parental leave. However, competition can be strong, and for many roles you'll need relevant experience, in-demand skills or some knowledge of Icelandic.

Living costs are high, especially in Reykjavík, so it's worth researching salaries, rent and everyday expenses before you make the move. Outside of work, Iceland's landscape is a big part of the appeal, with geysers, glaciers, mountains, volcanoes and waterfalls to explore.

For instance, you could visit the Blue Lagoon, watch the Northern Lights or make the most of Reykjavík's cultural calendar, from the Winter Lights Festival and Pride to its international film and literary festivals.

Jobs in Iceland

Iceland's economy is small but stable. The country welcomed around 2.3 million international visitors in 2025, highlighting the continued importance of tourism to the labour market.

Its major industries include:

aluminium production
fisheries and fish processing
geothermal and hydropower energy
healthcare and pharmaceuticals
technology and innovation
tourism.

You can search for jobs in Iceland at:

Popular graduate jobs

Construction
Engineering
Healthcare
IT
Tourism.

Local newspapers and trade unions are good places to find openings if you're job hunting in Iceland. It's also worth registering with recruitment agencies, such as Kollegi.is.

Skills shortages

Skills shortages in Iceland vary by sector and employer need, but demand is often reported in areas such as:

construction
engineering
healthcare
IT
tourism and hospitality.

Examples of shortage occupations include:

civil engineers
doctors
electrical engineers
hospitality staff
IT specialists
nurses
software developers.

You can check the latest labour market information through the European Employment Services (EURES).

How to get a job in Iceland

As Reykjavík is Iceland's economic, cultural and education hub, you're most likely to find success in the capital, unless you're hoping to work in agriculture, fisheries or another rural sector.

Job hunting can be challenging if you don't speak Icelandic, although some roles are advertised in English, particularly where employers are open to international applicants. As Iceland has a small labour market, it's worth identifying companies that match your skills, following their vacancy pages and contacting them directly. You can also use LinkedIn to build a network of contacts and discover opportunities.

Most companies accept job applications online or by email. Send a short introductory message with your CV and cover letter, tailoring both to the role. The Directorate of Labour advises keeping your CV clear and concise, usually one to two pages, with your most relevant education, experience, skills and achievements.

Interviews may feel more informal than you're used to. Depending on the employer and whether you're already in Iceland, they may take place face-to-face, by phone or online.

Summer jobs

Iceland's long summer days and busy tourism season can create opportunities for temporary work.

English language skills can be useful in hospitality, where seasonal roles may be available in:

bars
hotels
restaurants.

For a different summer experience, you could also look for au pair work, farm work, casual jobs or volunteering opportunities with providers such as:

For more guidance, visit the Icelandic Directorate of Labour - Jobs.

Teaching jobs

There's limited scope to teach English in Iceland, as most of the population speaks the language to a high standard and it is taught in schools from an early age.

However, opportunities may exist in:

higher education - teaching at university level, particularly if you have specialist subject knowledge
international schools - teaching English or other subjects in English
language schools - delivering English courses to adults or small groups
private tutoring - supporting individuals with conversational or academic English
workplace language training - helping professionals improve the English they use at work.

You'll usually need a Bachelors degree and a relevant English language teaching qualification, such as a TEFL certificate. For school-based roles, a degree in education, a teaching licence or previous classroom experience may also be required.

As the teaching market is small and competitive, stronger qualifications, prior teaching experience and specialist subject knowledge can improve your chances.

Internships

Completing an internship in Iceland can be a good way to gain international experience while exploring a new country. Most opportunities are based in Reykjavík, and internships may be unpaid, so check the terms carefully before applying.

You can search for internships at:

It may also be possible to secure an internship by applying speculatively to companies you're interested in.

If you don't speak Icelandic, focus on larger organisations or international employers where English is commonly used in the workplace.

Icelandic visas

If you're moving to Iceland from a European Economic Area (EEA) or European Free Trade Association (EFTA) country, you can live and work without a work permit or visa. Swiss nationals have the same rights as EEA/EFTA citizens.

However, if you plan to stay in Iceland for longer than three months - or six months if you arrive in the country as a jobseeker - you'll need to register with Registers Iceland and obtain an Icelandic ID number.

If you're from a non-EEA/EFTA country, such as the UK, you'll usually need a residence permit and work permit before you can work in Iceland. In most cases, you'll need to have a job offer first, and your employer will be involved in the application process.

Work-related residence permits are available for:

athletes
employees working in Iceland for a company based abroad, under a service contract
qualified professionals with expert knowledge
workers filling temporary labour shortages.

For more information, see the Directorate of Labour - Residence permit based on work.

Application fees and processing times vary, so you should check the latest requirements before applying and allow plenty of time before your planned move.

You may also need private health insurance when you first move to Iceland. Read about the latest health insurance requirements at Work in Iceland - Health Insurance.

Language requirements

Most people in Iceland speak English, so learning Icelandic won't be necessary to move there. However, having a basic grasp of the language can help you settle in, manage everyday situations and show employers that you're committed to becoming part of Icelandic life.

You can start learning the language before you arrive, with free courses available through Icelandic Online. Offered at different difficulty levels, the course also provides a premium service for beginners and lower-intermediate learners for an additional fee.

How to explain your qualifications to employers

Qualifications gained in the UK and elsewhere in Europe are often understood by employers in Iceland, but recognition can vary by role and sector. For regulated professions, you may need to have your qualifications formally assessed.

Explore getting your qualifications recognised at ENIC-NARIC.

What it's like to work in Iceland

A typical office working week in Iceland runs Monday to Friday, with eight-hour days including lunch and coffee breaks. You're also entitled to at least 11 hours of continuous rest in a 24-hour period. For example, if you travel for work and arrive home late, your next working day should start 11 hours later, even if that's after your usual start time.

Workers are entitled to a minimum of 24 days of paid leave per year, in addition to public holidays, known locally as 'rauðir dagar' (red days), of which there are usually 15 or 16 depending on the calendar year.

The amount of tax you pay in Iceland depends on your salary. A specific tax relief scheme is available to some foreign experts, under which only three-quarters (75%) of their eligible income is taxed for the first three years, provided certain conditions are met.

You must apply for this relief through Rannís, The Icelandic Centre for Research, within three months of the date you start work.

Find out more

Get the lowdown on living in Iceland at Work in Iceland.
Discover what it's like to study in Iceland.