Iceland Names 1 Category Of Foreigners Who Can Earn Money Without Work Permit

• Iceland's Directorate of Immigration confirmed that international students holding a valid residence permit can work without obtaining a separate work permit
• The rule allows students to work up to 60% of full-time employment, with exceptions that could allow them to work even more hours under certain conditions
• Doctoral degree holders completing their studies in Iceland also qualify for a specialist residence permit that requires no work permit to obtain

Iceland has confirmed that international students are the one category of foreigners who can earn money in the country without needing a separate work permit.

The Iceland Directorate of Immigration announced the changes after Parliament passed amendments to the Icelandic Act on Foreign Nationals and the Foreign Nationals' Right to Work Act on June 18, 2026.

The rules apply to foreign nationals holding valid student residence permits and set clear boundaries on how much they can work.

How Much Students Can Work Without a Permit

Under the updated rules, international students may work up to 60% of full-time employment during the academic year without a work permit.

This limit covers their total working hours across all employers, meaning students who hold more than one job must ensure their combined hours do not exceed that threshold.

There are, however, three situations in which students are permitted to work beyond the 60% limit.

These include working during official academic breaks as set out in the institution's calendar, completing a formal internship or workplace training programme, and having already earned a university degree in Iceland while remaining in the country to look for work.

Foreign nationals who have completed a doctoral degree in Iceland benefit from an additional provision.

They can renew a specialist residence permit for up to 12 months specifically to seek employment based on their expertise, and no work permit is required to obtain that permit.

What Students Must Do to Stay Compliant

The Directorate of Immigration made clear that students are obligated to report their employment details each time they renew their student residence permit.

This is to confirm they have not exceeded the permitted working hours during the previous period.

Authorities also retain the power to request employment records at any point during the validity of a residence permit and may contact employers or other public bodies directly to verify compliance.

Students who are found to have worked beyond the legal limit could have their right to work reviewed or cancelled.

On the academic side, students must now demonstrate satisfactory progress at every permit renewal, defined as completing at least 75% of a full-time course load in an academic year. This requirement previously applied only at the first renewal.

The updated rules also reduce how long graduates can extend their stay in Iceland after completing a degree.

The post-study job-seeking period has been shortened from three years to 18 months for holders of Bachelor's, Master's, and Doctoral degrees.

Iceland lists conditions for citizenship

Meanwhile, Legit.ng previously reported that a Iceland's Directorate of Immigration outlines six conditions that all citizenship applicants must satisfy before their application can be approved Applicants must pass an Icelandic language test, though exemptions exist for elderly residents, children, and those with certain medical conditions.