Iceland Eases Work Permit Rules for International Students

Iceland has announced updated regulations that permit international students holding valid residence permits to work without obtaining a separate work permit. The changes follow amendments to the Icelandic Act on Foreign Nationals and the Foreign Nationals' Right to Work Act, which were approved by Parliament on June 18, 2026, according to the Directorate of Immigration.

Under the new rules, students may work up to 60 percent of full-time employment during the academic year, with the limit applying to total hours across all employers, including multiple jobs. Students are allowed to exceed this cap during official academic breaks, while completing internships or workplace training, and after graduating from an Icelandic university if they remain in the country to seek employment.

Foreign nationals who have completed doctoral degrees in Iceland can now renew a specialist residence permit for up to 12 months to look for work related to their qualifications. They do not need a work permit to obtain this residence permit.

The regulations also introduce stricter monitoring of students' employment and academic progress. International students must provide employment details when renewing their residence permits, and immigration authorities may request records at any time and contact employers or public institutions to verify compliance. Students who exceed the permitted working hours could have their right to work reviewed or revoked.

Additionally, students must complete at least 75 percent of a full-time academic course load each academic year to demonstrate satisfactory progress. This requirement, previously assessed only at the first residence permit renewal, will now be evaluated at every renewal.