Foreign-born population – 2024 | 20.7% of the population | Main countries of birth: |
0.1 million, 47% women | Evolution since 2014: +117% | Poland (28%), Denmark (5%), Ukraine (5%) |
International Migration Outlook 2025
In 2024, 1 200 new immigrants obtained a residence permit longer than 12 months in Iceland (excluding EU citizens), ‑13% compared to 2023. This figure comprises 9% labour migrants, 31.1% family members (including accompanying family), 2.2% who came for education reasons and 57.7% other migrants. Around 700 short-term permits were issued to international students and 400 to temporary and seasonal labour migrants (excluding intra-EU migration).
Poland, Ukraine and Romania were the top three nationalities of newcomers in 2023. Among the top 15 countries of origin, Vanuatu registered the strongest increase (300) and Ukraine the largest decrease (‑600) in flows to Iceland compared to the previous year.
In 2024, the number of first asylum applicants decreased by ‑55%, to reach around 1 900. The majority of applicants came from Ukraine (1 200), Venezuela (200) and the West Bank and Gaza Strip (90). The largest increase since 2023 concerned nationals of Venezuela (400) and the largest decrease nationals of Ukraine (‑700). Of the 1 620 decisions taken in 2024, 12% were positive.
Emigration of Icelandic citizens to OECD countries increased by 4% in 2023, to 2 300. Approximately 40% of this group migrated to Denmark, 20% to Sweden and 9% to Poland.
Over the past year Iceland has implemented several changes to its migration and integration policies, reflecting its commitment to addressing labour market needs while supporting displaced populations.
In 2024, Iceland continued to experience a steady influx of foreign workers, particularly in sectors such as tourism, construction, and healthcare. To address labour shortages, the Directorate of Labour collaborated with employers to streamline recruitment processes for non-EEA nationals, ensuring that labour market needs were met while maintaining fair working conditions.
A couple of years ago, Iceland implemented changes to its residence permit application procedures, introducing an online portal to streamline the submission process for applicants. The digital platform allows for more efficient processing of applications, reducing waiting times and improving communication between applicants and immigration authorities. Meanwhile, in July 2024, the Icelandic Parliament passed amendments to the Foreign Nationals Act, affecting the renewal process for residence permits based on subsidiary protection. Under the new provisions, such permits may only be renewed if the conditions that led to the granting of protection still exist, aligning Iceland’s policies with broader European standards.
Also in February 2025, Iceland started the extension of its temporary collective protection for individuals fleeing the conflict in Ukraine until 2 March 2026. Beneficiaries received notifications via SMS regarding the collection of new residence permit cards. This automatic extension reflects Iceland’s ongoing commitment to supporting displaced individuals from Ukraine.
The previous government worked on a long-term immigration strategy accompanied by a four‑year National Action Plan that would have entered into force in January 2025 if passed by the Parliament. In the integration field, the strategy aimed to foster an inclusive society and integration into all facets of Icelandic life. Specific actions included: among others efforts to expand and diversify Icelandic language instruction and simplify the assessment and recognition of foreign education and work experience and measures to align immigration policies with labour market needs and attract qualified workers. The policy was developed through extensive consultations with stakeholders, including immigrants, government agencies, and civil society organisations. At the time of drafting this note, the new government has not issued how the work on the Strategy will be continued. They have though issued that a new Action Plan on matters of immigrants will be put before Parliament this fall along with changes in the legislation on matters of immigrants.
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