Iceland Proposes Major Amendments to the Aliens Act on Residence Permits

The government has published planned amendments to the provisions of the Aliens Act concerning the issuance of residence permits and their basic conditions, as part of a full review of the residence permit regulatory framework.

According to the government, the aims of the proposed changes are:

  • to increase the importance of security factors when processing applications for residence permits; and
  • to harmonize legal requirements and implementation with the legislation of the other Nordic countries and eliminate specific Icelandic rules in the family reunification category;

Changes are also planned to the provisions of residence permits for victims of human trafficking.

It is proposed that two new residence permit categories be introduced:

  • a temporary residence permit for victims of serious labor market violations; and
  • a special residence permit for students staying in Iceland in connection with the authorities’ development cooperation projects.

It is also planned to amend Article 90 of the Act to meet the requirements of Article 10(3) of Regulation (EU) 2019/1157, which stipulates that biometric information collected for the issuance of identity cards or residence documents be kept in a highly secure manner and only until the date of collection of the document and, in any case, no longer than 90 days from the date of issue. After this period, these biometric identifiers must be immediately erased or destroyed.

The government invites comments on these proposals until February 6, 2026.

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