Foreign-born population – 2025 | 21.5% of the population | Main countries of birth: Poland (27%), Ukraine (5%), Lithuania (5%) |
Size: 0.1 million, 47% women | Evolution since 2015: +117% |
International Migration Outlook 2026
50th Edition
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 2024. Among the top 15 countries of origin, Greece registered the strongest increase (66) and Poland the largest decrease (‑1 000) in flows to Iceland compared to the previous year.
In 2025, the number of first asylum applicants decreased by ‑9.9%, to reach around 1 600. The majority of applicants came from Ukraine (1 100), the West Bank and Gaza Strip (200) and Venezuela (100). The largest decrease concerns nationals of Venezuela (‑1 400). Of the 390 decisions taken in 2025, 36% were positive.
Emigration of Icelandic citizens to OECD countries remained stable in 2024, at 2 200. Approximately 41% of this group migrated to Denmark, 20% to Sweden and 12% to Norway.
Iceland introduced administrative adjustments to residence permit processing. On 21 December 2025, Parliament adopted legislation increasing application fees for residence permits and citizenship which came to effect on 1 January 2026. Simultaneously abolishing the fee for expedited processing service for temporary work permits. These changes applied across permit categories and were implemented by the Directorate of Immigration from January 2026.
Amendments to the Foreign Nationals Act No. 80/2016, adopted by Parliament on 16 February 2026, entered into force on 6 March 2026. The amendments included the abolition of the so-called 18‑month rule (previously applicants for international protection could be granted a temporary residence permit if the final decision on their application had not been reached within 18 months of the initial submission of their application) and the discontinuation of renewals of residence permits granted on that basis. Moreover, the amendments introduced provisions allowing for the revocation of international protection in cases involving serious criminal offences and a new provision allowing for the granting of a temporary residence permit based on tolerated stay.
On 12 May 2026, Iceland approved a new Visa Act that fully aligns national visa procedures with Schengen rules and modernises how the country issues, processes and reviews short-stay visas. The law strengthens border security measures and updates visa processing requirements.
On 9 June 2026, the parliament passed an Act No. 48/2026 on specialised detention centre for third-country nationals who are subjected to a return procedure and are detained for the purpose of carrying out their return.
On 11 June 2026, the parliament passed an Act amending the Foreign Nationals Act No. 80/2016 and the Police Act No. 90/1996 in connection with Iceland’s implementation of relevant regulations of the EU Pact on Migration and Asylum.
On 30 June 2026 the parliament passed an Act amending the Foreign Nationals’ Right to Work Act No. 97/2002. The act consolidates the processing of temporary work permits with the processing of the accompanying residence permit and the two permits will now be processed simultaneously with the Directorate of Immigration.
The government put forward an Action Plan on Immigrant Issues in the parliament in spring 2026. The Action Plan is obligatory according to Article 7 of the Act on Matters of Immigrants No. 116/2012.
Concerning persons displaced from Ukraine Iceland applies Article 44 of the Foreign Nationals Act No. 80/2016, which allows for the granting of a residence permit on the basis of temporary protection in situations of mass displacement. The national scheme operates independently of the EU Temporary Protection Directive. Although Iceland is not bound by the EU Temporary Protection Directive, Icelandic authorities seek to align the application of the national temporary protection scheme with relevant EU decision and guidelines, as well as with comparable schemes in Denmark and the other Schengen-associated states (SACs). Following the EU Council decision of June 2025, Iceland extended the validity of temporary protection until March 2027.
For further information: www.stjornarradid.is | www.utl.is | www.vinnumalastofnun.is | www.hagstofa.is
