Iceland: a draft bill tightens residence rules

The Ministry of Justice has published on the government's consultation portal a draft bill amending the legislation on residence permits for foreign nationals. It mainly targets people coming from countries outside the European Economic Area, with the aim of bringing Icelandic law closer to that of the other Nordic countries.

Among the announced measures: 6 ans of residence required instead of 4 before applying for a permanent residence permit; a modified age requirement for spouses, combined with 2 ans of cohabitation; revised conditions for family reunification; a new permit for victims of labour market violations; and the abolition of residence permits for au pairs coming from outside the European Economic Area.

The text targets nationals of countries outside the European Economic Area. For a person considering settling in Iceland, the move from 4 to 6 ans before the permanent permit would significantly lengthen the time needed to obtain a stable status.

The source states that permits already granted would not be invalidated and that the right of European Economic Area citizens to live and work in Iceland remains unchanged. The draft bill is based on the recommendations of a working group appointed in 2025 by the Minister of Justice.

The source gives neither a timetable for review nor an entry-into-force date. This is a draft published for consultation, and its content may still change before any vote.

Nor does it detail the new age requirement for spouses, the changes made to family reunification, or how the years already spent in Iceland would be counted toward the future threshold of 6 ans. These points should be checked in the text of the draft bill itself.