Iceland Plans Tougher Residence Permit Rules in Line With Neighbours

2026-01-25 - 21:07

The Icelandic government has unveiled plans to tighten the rules for granting residence permits, bringing them closer into line with policies used in neighbouring countries. Proposals to amend the Residence Permit Act have been published on the government’s consultation portal, allowing the public to submit feedback. If approved, the changes would raise the basic requirements for applicants and remove rules that apply only in Iceland. What's the Story? Icelandic government proposes changes to the Residence Permit Act Plans published on the government’s consultation portal Aim to align residence permit rules with neighbouring countries Residence permit and citizenship applications doubled between 2020 and 2024 Proposal includes higher basic requirements and removal of Iceland-specific rules Two new permit categories planned, including for victims of serious labour violations Icelandic passport As stated by the Ministry of Justice, the number of applications for residence permits and citizenship has risen sharply in recent years, roughly doubling between 2020 and 2024. Officials say this trend has highlighted differences between Iceland’s system and those elsewhere in the region. According to the statement accompanying the proposals, the current requirements have already led to an increase in applications in certain residence permit categories where conditions in this country are more generous than in Iceland’s neighbouring countries. The report says these conditions have placed pressure on social infrastructure without providing clear benefits to Icelandic society As part of the reforms, the government plans to introduce two new categories of residence permit. One would provide temporary protection for individuals who have suffered serious abuses in the labour market. The other would apply to students coming to Iceland through official development cooperation programmes. Ministers say the changes are also intended to improve support for victims of human trafficking and severe labour exploitation, while strengthening efforts to tackle organised crime linked to migration abuses. Meanwhile, the first comment on the consultation portal described the proposed changes as an example of racism. “These changes are racist and should be rejected outright,” the user says.