On October 27, 2026, the government announced its approval of the Minister of Justice’s proposed bill amending the residence permit section of the Immigration Act. The government stated that these are the most extensive changes to the system in a decade.
The bill is primarily intended to harmonize Icelandic rules with legislation in other Nordic countries and create a solid foundation for a clear and efficient residence permit system that supports consistent decision-making.
The bill has four main components:
- Secure applicant identification;
- Harmonization of conditions for family reunification and permanent residence permits with other Nordic countries;
- Strengthening the legal status of victims of human trafficking and labor market violations;
- Changes to individual permit categories, including the cancellation of residence permits due to employment.
More stringent requirements for applicants
The bill proposes, among other things, changes to the conditions for family reunification. The minimum period of cohabitation will be extended from one year to two years and both spouses must be 24 years of age when permission is granted, as is the case in both Norway and Denmark. The age requirement is intended, among other things, to prevent forced and arranged marriages. It will also be required that the applicant for family reunification has at his disposal a residential property that can accommodate the entire family.
There will also be clearer requirements for applicants to be able to prove their identity. The bill proposes that identification will be an independent condition for a residence permit, but it will be permitted to take a photograph and fingerprints for the application earlier in the process.
It is proposed that the general period of residence required to obtain a permanent residence permit be extended from four years to six. It is also required that the person concerned is free from public debt. A permanent residence permit includes a permanent right of residence and is a step towards citizenship. A permanent right of residence should be based on solid ties to society.
Increased protection against abuse
The bill also contains important changes intended to improve the situation of victims of human trafficking and prevent violations in the labor market. Among other things, it will be permitted, under certain conditions, to grant people suspected of having been exploited a residence permit of up to 12 months so that they can seek their rights and find another job without risking losing their right of residence.
It is also proposed that residence permits for au pairs for people from outside the EEA be abolished. The aim is to reduce the risk of abuse of people whose residence rights are tied to one family and who have limited opportunities to seek their rights.
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.