Iceland Relaxes Work Permit Rules for International Students

Iceland has recently made changes to its work permit rules for international students, allowing them to work without needing a separate permit. This update, which took effect on June 18, 2026, follows amendments to the Icelandic Act on Foreign Nationals and the Foreign Nationals’ Right to Work Act, approved by the country's Parliament.

According to the Directorate of Immigration, these changes enable international students to work up to 60% of a full-time job during the academic year, encompassing all employers and multiple job positions. However, students are permitted to work beyond this limit during academic breaks, internships, or post-graduation employment searches.

Furthermore, doctoral graduates from Icelandic universities who wish to remain in the country for employment purposes can renew their specialist residence permits for up to 12 months without requiring a work permit. No separate work permit is needed for this renewal. The regulations also include stricter oversight of students' employment and academic performance.

International students are required to disclose their employment information when renewing their residence permits, and immigration authorities have the authority to request employment records at any time to ensure compliance. Students found to have worked beyond the permitted hours could face a review or revocation of their work rights.

Additionally, students must maintain at least a 75% academic course load during each academic year to demonstrate satisfactory progress. Previously, this requirement was only applicable during the initial residence permit renewal, but it is now enforced at every renewal. This update aims to provide more flexibility for international students while ensuring they meet their academic obligations and comply with employment regulations.