Working in Iceland After Graduation: The Job-Seeking Permit

Fee figures: catalogue of 6 October 2026.

What you can do after graduating depends on your citizenship. EEA and EFTA citizens can stay and work if they meet the general conditions. Graduates from other countries can renew their student permit to look for a job, but only if they finished a degree at an Icelandic university. The rules changed on 8 July 2026, so older articles may be out of date.

EEA and EFTA citizens

You need no work permit. Registers Iceland says that if you are no longer a student, you can stay as long as you meet the conditions for another residence category, such as employee, self-employed person, person with sufficient funds or family member. After five years in Iceland you may be entitled to a permanent right of residence, if you meet the requirements. EEA and EFTA students may work during their studies.

Non-EEA graduates: the job-seeking permit

A holder of a student permit who completes a Bachelor's, Master's or Doctoral degree at an Icelandic university can be issued a special residence permit for employment seeking. Diplomas are not included. The Directorate of Immigration says the permit is a bridge between a student permit and a permit for work requiring expert knowledge.

How to apply: fill in the application to renew a student permit, and attach a certified copy of your Icelandic graduation certificate. Where applicable, it also asks for a certified copy of an undergraduate certificate from a university abroad.
How long: up to 18 months after graduation. Before the July 2026 change it was up to three years.
Fee: the fee for renewing a student permit is ISK 70,000.
Timing: apply before your current permit expires. Applications are not accepted when more than two months remain on it.
Means of support: you must still show secure means of support, ISK 259,951 a month for one person.

During this period you may work more than 60% of full-time employment, the limit that applies to students, because the rules allow it for graduates seeking work in their field. Doctoral graduates can instead renew a specialist residence permit for up to 12 months, without a work permit.

The next step: a work-based permit

The aim is a residence permit based on work. For work requiring expert knowledge, the rules say:

you must have a work permit for a specific job with a specific employer
your expertise must be essential to the employer and rest on university-level education or recognised technical, industrial or artistic training
the employment contract must state your title, employer, pension fund payments and salary, which must follow the relevant collective agreement and be comparable to other specialists in the industry
the fee for the application is ISK 80,000

Since 8 July 2026 the Directorate of Immigration also processes work permits, which the Directorate of Labour handled before. Your employer and you must both sign the application. Ask the Directorate before you accept an offer which documents it needs.

Time as a student and permanent residence

A student permit counts toward permanent residence only in limited cases. You must previously have held a permit that can lead to permanent residence for at least two years, and a student permit for at least two years, so that you have lived in Iceland legally for at least four years. One condition is that you have not spent more than 90 days abroad in total in any year of the permit. Ask the Directorate how your own years would be counted.

Where to look next

Official sources

Always check current information on the official website of the university before you apply.