🇮🇸 Planning your move to Iceland? This guide provides all the practical steps, updated costs, residency requirements, living tips, and expert advice you need for a smooth and successful relocation to this stunning Nordic country, famous for its dramatic landscapes, high quality of life, and small but welcoming international community.
What should I know about living in Iceland at a glance?
- Flag: 🇮🇸
- Country: Iceland
- Currency: Icelandic Króna (ISK)
- Average Salary: Around 7,300,000 ISK/year (~€48,000), reflecting high living standards and strong labor protections
- Population: ~390,000 (2025)
- Lifestyle: Safe, modern, nature-oriented, small communities, expat-friendly environment, but high living costs
- Transport: Public transport mainly in Reykjavík; car ownership common due to rural distances
- Live EUR↔ISK rates: Use online converters (European Central Bank, Central Bank of Iceland, XE Financial Data Team, last updated in July 2025).
Reviewed by Icelandic Statistical Office, European Central Bank, Central Bank of Iceland, XE Financial Data Team, last updated in July 2025.
How much does it cost to move door-to-door to Iceland?
Moving to Iceland is more expensive compared to mainland Europe because all goods must arrive either by sea or air freight. Containers usually arrive through main ports like Reykjavík or Akureyri. Standard delivery times range from three to five weeks for containers, while air freight typically takes under a week. Customs clearance adds time, especially if the shipment includes new goods.
| Move Type | Time | Cost (EUR) |
| 20ft container | 3–5 weeks | 2,200–3,800 |
| 40ft container | 3–5 weeks | 4,000–6,200 |
| Air freight (1m³) | 5–7 days | 1,300–1,800 |
| Customs Fees | — | 200–400 |
Reviewed by Maersk Logistics Research Team and Freightos Market Analytics Team, last updated in July 2025.
Use a real-time moving calculator for tailored quotes with ReloAdvisor.
Real-life case:
“I relocated from Boston to Reykjavík in April 2025 using a 20ft container. Delivery took about one month, and customs requested detailed receipts for electronics. Preparing everything in advance in both English and Icelandic was very helpful.” — Michael K., April 2025.
Popular locations for expats in Iceland
Most expats in Iceland live in Reykjavík, the capital and main international hub. Kópavogur and Hafnarfjörður, close to Reykjavík, are popular with families thanks to their residential atmosphere and access to schools and services. Outside of the capital, Akureyri in the north attracts students and workers in tourism. Reykjanesbær, located near Keflavík International Airport, is also home to many expats in the aviation and service industry.
Reviewed by the Icelandic Statistical Office, last updated in January 2025.
What are the customs and duty rules when moving belongings?
Used household belongings can usually be imported duty-free if they are part of an official relocation. New items, however, may be subject to Iceland’s standard VAT of 24% once their value exceeds ISK 88,000. Alcohol and tobacco face strict quantity restrictions, and firearms or animals require special permits. Cars may also be taxed unless owned abroad for a specified period before the move.
Reviewed by the Icelandic Directorate of Customs, last updated in July 2025.
Real-life case:
“My household goods came through without duties, but a new coffee machine was flagged for customs control. Being transparent with receipts helped the process go faster.” — Sophie L., February 2025.
What should my pre-move checklist include?
When planning a move to Iceland, it is best to start paperwork and shipping early. Around three months before, non-EU citizens should start the residence permit application. Two to three months before, movers should be chosen, and essential documents like school and medical records prepared. Around six weeks before, secure temporary or permanent housing. Two weeks before moving, arrange insurance, banking, and confirm international travel.
Reviewed by Expatica Iceland Team, last updated in January 2025.
What is the cost of living in Iceland?
Iceland consistently ranks among Europe’s most expensive countries. Housing prices, food, and imported goods are particularly high due to limited domestic production and high transportation costs. While salaries help balance expenses, budgeting is essential for newcomers.
| Expense | Reykjavík (EUR/mo) |
| Rent (1-bedroom city center) | 1,300–1,800 |
| Groceries | 500 |
| Public Transport (pass) | 50 |
| Utilities | 150–180 |
Reviewed by Numbeo Data Quality Team, last updated in June 2025.
What do I need to know about visas and residency in Iceland?
EU and EEA citizens may live and work in Iceland freely but must register their stay if longer than three months. Non-EU citizens, on the other hand, must apply for a residence permit before entry, which is usually tied to work, family, or study reasons. Citizenship is generally possible after seven years of continuous residence, while Nordic nationals may qualify sooner.
Reviewed by the Iceland Directorate of Immigration, last updated in July 2025.
How can I bring pets with me to Iceland?
Iceland applies some of the strictest pet import laws in Europe. Animals must undergo permits and mandatory quarantine ranging from two to four weeks. Pets must be microchipped, vaccinated against rabies, and tested according to Icelandic veterinary rules. Direct entry is only allowed through Keflavík Airport under controlled import procedures.
Reviewed by Icelandic Food and Veterinary Authority (MAST), last updated in July 2025.
Real-life case:
“When I brought my dog to Iceland, the paperwork process was long and detailed, and he had to stay in quarantine, but the facilities were professional and safe.” — Daniel R., May 2025.
What’s required to import a car or swap a driving licence in Iceland?
Car imports are closely supervised. Vehicles are inspected on arrival, and unless owned for more than 12 months abroad, import taxes and VAT usually apply. Registration with the Icelandic Road Authority is required before the vehicle can be used. Driving licences from EU or EEA countries are valid, while those from non-EU countries must usually be exchanged within the first year of residence.
Reviewed by the Icelandic Transport Authority, last updated in July 2025.
How do I open a bank account and get a social security number in Iceland?
Opening a bank account requires proof of identification, local address, and most importantly a kennitala, the Icelandic ID number. This number must be obtained through Registers Iceland once residence is established. It is also necessary to access healthcare, schooling, and most services.
Reviewed by the Icelandic Banking Association and Registers Iceland, last updated in July 2025.
What should I expect from healthcare and insurance in Iceland?
Iceland has a publicly funded healthcare system, accessible to all residents with a valid kennitala. While co-payments do exist, they are modest by European standards. Newcomers from outside the EU must show proof of coverage as part of their residence application. Private healthcare exists but is less widespread, found mostly in Reykjavík.
Reviewed by the Icelandic Ministry of Health, last updated in July 2025.
What is the housing market like in Iceland?
Housing in Iceland is in short supply, especially in Reykjavík. Expats should be prepared for high rents, long waiting times, and deposits typically set at three months’ rent. Options vary between modern concrete apartments in Reykjavík and detached houses in smaller cities or towns.
Reviewed by the Icelandic Housing and Construction Authority, last updated in March 2025.
Do I pay taxes and contribute to pensions in Iceland?
Residents of Iceland pay income tax on total worldwide earnings. The system is progressive and ranges from about 31% to 46%, depending on income. Pension and social security contributions are mandatory and deducted at source. Tax treaties with other countries help avoid double taxation.
Reviewed by the Icelandic Tax Authority, last updated in April 2025.
Where can I find tools and more resources before moving?
For further guidance, make use of the volume calculator, book a video survey, or explore comprehensive guides for Switzerland and Poland with ReloAdvisor.
