How to Move to Iceland: Step-by-Step Relocation Guide (Costs, Visas & Tips)

Thinking about moving to Iceland? Man, I get it. Those volcano photos and Northern Lights videos got me too when I first visited. But actually relocating? That's a whole different ball game. After helping dozens of folks make the jump (and surviving my own messy move last year), I'll walk you through everything – the good, the bad, and the shockingly expensive.

Ice cold reality check: My first grocery run in Reykjavík nearly gave me heart failure. $12 for a loaf of bread? Yep. But then I watched the sunset over the ocean at 11pm in June and forgot all about it.

Why Bother Moving to Iceland Anyway?

Look, it's not for everyone. If you hate nature or need constant sunshine, maybe reconsider. But if these things speak to you...

  • Safety first – I let my kids walk to school alone here. Crime rates are laughably low.
  • Nature overdose – Within 45 minutes of my apartment, I can hike glaciers, soak in hot springs, or chase waterfalls.
  • Work-life balance – Most Icelanders work 35-hour weeks. My boss actually scolds me if I answer emails after 5pm.

That said, the darkness in winter is brutal. Like, "is the sun broken?" brutal. And everything costs more. Everything.

Before You Even Think About Packing

Paperwork. So much paperwork. When I moved, I almost got tripped up by these:

Document Type Where to Get It Processing Time Cost (USD)
Passport Your home country 4-8 weeks $110-$170
Police Certificate Local police department 1-3 weeks $20-$75
Birth Certificate (Apostille) State government 1-4 weeks $15-$40
Marriage/Divorce Docs Issuing authority 2-6 weeks $20-$100+

Pro tip: Start your police certificate early! Mine took 6 weeks because of "backlogs". Icelandic winters are cold but their bureaucracy moves slower than frozen molasses.

The Visa Maze Demystified

When I first researched moving to Iceland, the visa options made my head spin. After three coffees and a migraine, here's the simple breakdown:

Work Visas (Most Common Path)

Unless you've got Icelandic roots, this is likely your ticket. You'll need:

  • A job offer from an Icelandic company
  • Signed contract meeting minimum salary (around $3,500/month gross)
  • Proof of qualifications (degrees, certificates)

The application involves:

  1. Employer submits work permit request
  2. You apply for residence permit at Icelandic embassy
  3. Wait 3-6 months (yep, seriously)
  4. Register with Registers Iceland upon arrival

Brutal truth: The Directorate of Immigration website looks like it was designed in 1998. Save yourself the rage – bookmark utl.is and bring patience.

Student Visas

Easier to get but comes with restrictions:

Requirement Details
Proof of acceptance From recognized Icelandic institution
Financial proof ~$1,500/month in savings
Work allowance Max 15 hours/week during semester
Health insurance Mandatory coverage

Family Reunification

Married to an Icelander? This route requires:

  • Marriage/civil union certificate
  • Proof of cohabitation (bills, leases)
  • Sponsor's financial stability proof

Processing takes 6-9 months. And yes, they interview you separately about your partner's toothbrush color. Not kidding.

Finding Shelter Without Going Broke

Apartment hunting in Reykjavík makes New York look easy. When I moved during peak season, I crashed in a hostel for 3 weeks before finding a place. Here's what you need to know:

Where to Look

  • Leigulistinn – The dominant rental site (think Icelandic Craigslist)
  • Facebook Groups – "Leiga á Íslandi" is most active
  • Mbl.is classifieds – Old-school but still used

Reality Check on Costs

Housing Type Reykjavík Center Suburbs Small Towns
1-Bedroom Apartment $1,800-$2,400 $1,400-$1,800 $900-$1,300
2-Bedroom Apartment $2,400-$3,200 $1,800-$2,200 $1,200-$1,600
Shared Room $800-$1,200 $600-$900 $500-$700

Warning: Expect to pay 3-5 months' rent upfront (first month + security deposit + broker fee). Yes, it hurts. No, there's no way around it.

Red Flags I Learned the Hard Way

  • Avoid landlords who refuse to sign formal leases (happens more than you'd think)
  • Photos with furniture but "unfurnished" listing? Probably a scam
  • If they ask for Western Union payments, run

Mastering the Icelandic Bureaucracy Gauntlet

Moving to Iceland feels like playing a video game where every level is paperwork. Here's your survival map:

Step 1: Kennitala (Your Magic Number)

This 10-digit ID makes everything possible – bank accounts, doctors, even library cards. Apply at Registers Iceland (Þjóðskrá) your first week. Bring passport, residence permit, and proof of address.

Step 2: Bank Account Drama

Banks here love saying no. Requirements vary but usually:

  • Kennitala
  • Passport
  • Proof of Icelandic address
  • Employment contract

Hot tip: Arion Bank and Landsbankinn are most foreigner-friendly. Avoid trying on Fridays – bankers apparently morph into pumpkins after 3pm.

Step 3: Health Registration

Register at your local health center (heilsugæslustöð). You'll get:

  • Icelandic health insurance card
  • Assigned general practitioner
  • Access to subsidized care

Emergency info: Dial 112 anywhere in Iceland. Ambulances won't bankrupt you here – thank the Nordic welfare model.

Surviving the Icelandic Winter (And Loving It)

My first January in Reykjavík, I didn't see direct sunlight for 27 days. Here's how not to go insane:

Essential Gear

  • Waterproof everything – Rain here comes sideways
  • Quality insulated boots – Skip fashion, choose function
  • Vitamin D supplements – Not optional, biologically speaking

Mental Health Hacks

  • Get a daylight therapy lamp ($70-$150 on Amazon)
  • >
  • Join a svellabóð (hot pool) crew – Social soaking is therapy
  • Embrace þorrablót festivals – Fermented shark builds character

The Money Talk Nobody Wants to Have

Let's rip the band-aid off: Iceland will devour your wallet. Some real numbers:

Item Cost (USD) Comparison (USA)
Monthly bus pass (Reykjavík) $110 ~$70
Basic lunch (restaurant) $25-$35 $12-$18
1-bedroom apartment utilities $250-$400 $150-$250
Fast food meal $15-$20 $8-$12
Beer at a bar $10-$14 $6-$8

Saving Strategies That Work

  • Shop at Bónus – The discount supermarket with the pig logo
  • Cook at home – Restaurant markups are criminal
  • Buy used everything – Facebook groups are goldmines
  • Learn to love tap water – It's literally glacier runoff

The Language Barrier Myth

Before moving to Iceland, I panicked about Icelandic. Reality check? Everyone under 50 speaks flawless English. But learning some Icelandic changes everything:

Why Bother?

  • Landlords trust you more
  • Faster integration with locals
  • Essential for citizenship later

Learning Options

Method Time Commitment Cost/Month Best For
Mímir Language School 6-8 hours/week $350-$450 Serious learners
Online Tutors (iTalki) Flexible $15-$25/hour Busy schedules
Tungumálatorg Conversation 2 hours/week Free Practice speaking

Surprising Things Nobody Tells You

  • No mosquitoes! Seriously, zero. Best perk ever.
  • You'll become a weather app addict. Conditions change hourly.
  • First names only directory. Phone books list people by first name. Good luck finding "Jón".
  • Hot dogs are religion. Bæjarins Beztu Pylsur is the Vatican of wieners.

Cultural confession: After 18 months, I still can't pronounce Eyjafjallajökull correctly. Icelanders find this hilarious but appreciate the effort.

Frequently Asked Questions

Can I move to Iceland without a job?

Technically yes, practically no. Tourist visas last 90 days but you can't work. Realistically, you need:

  • EU/EEA citizenship allowing job search
  • Substantial savings (we're talking $30k+)
  • Plan to marry an Icelander

How much money should I have saved?

Before moving to Iceland? Minimum $8,000-$10,000 USD for:

  • 3 months rent + deposits ($5k-$7k)
  • Basic furniture ($1k-$2k)
  • Living expenses while job hunting ($2k+/month)

Is healthcare free for immigrants?

Not immediately. After 6 months of legal residence, you qualify for national insurance. Until then:

  • Private insurance is mandatory
  • Basic doctor visit: $100-$150
  • Emergency care: Covered regardless of status

Can I bring my pet?

Yes, but prepare for headache:

  1. Microchip implantation
  2. Rabies vaccination
  3. EU health certificate
  4. Icelandic import permit

Start 6+ months early. My friend's cat spent 4 months in quarantine because paperwork was late.

The Real Cost of Icelandic Dreams

Let's get brutally honest about moving to Iceland. The Instagram filters disappear when:

  • Your $400 monthly heating bill arrives
  • You realize "affordable" towns have 3-hour bus commutes
  • Fresh produce means $8 strawberries in February

Why It's Worth It Anyway

Three years in, I still have moments where I stop and think: "I live here." Like when:

  • My kids build snowmen under the Northern Lights
  • I swim in geothermal pools during blizzards
  • Weekend road trips reveal landscapes that look alien

The process of moving to Iceland feels like wrestling a glacier sometimes. But coming home to a place where:

  • Politicians bike to work
  • Clean energy powers everything
  • Wilderness starts where sidewalks end

...makes the sticker shock and paperwork fade. Mostly.

Final advice: Don't romanticize it. Iceland chews up and spits out unprepared dreamers. But for those who research, budget, and embrace the weirdness? It becomes home faster than you'd think.

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