Iceland Proposes Stricter Residence Permit Rules

The Ministry of Justice has announced publication of a bill on the government’s consultation portal to amend the law on residence permits for foreigners. The amendments primarily concern people from countries outside the European Economic Area, and the purpose is to bring the legislation closer to that in force in other Nordic countries.

Among the main changes in the bill are:

  • Six years of residence required, instead of four, before applying for a permanent residence permit;
  • Changed age requirement for spouses and two years of cohabitation;
  • Changed conditions for family reunification;
  • New permit for victims of labor market violations;
  • Cancellation of residence permits for au pairs for people outside the EEA.

The bill is based on the recommendations of a working group appointed by the Minister of Justice in 2025. The group submitted a report called Iceland in Rapid Growth.

The bill clarifies the government’s responsibilities while increasing the requirements for applicants. The bill does not invalidate permits that have already been granted, and the right of EEA citizens to live and work in Iceland remains unchanged.

Erickson Insights & Analysis

Erickson Immigration Group will continue to monitor developments and share updates as more news becomes available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.