Iceland shortage-of-labour work permit in 2026

A shortage-of-labour permit is not a general work visa for any open vacancy. Official guidance describes it as an exceptional response to temporary labour-market shortages.

The employer must first seek assistance to find a worker in Iceland and within the EEA, EFTA states or the Faroe Islands. The employer must also provide detailed reasons why hiring a worker from outside those labour markets is necessary and important to the business.

Duration

A first temporary shortage work permit for a specific job can be granted for up to one year. It can be renewed for up to two years at a time when the shortage and other conditions continue to be satisfied.

The associated residence permit is normally limited to the period of the work permit, except for some clearly defined temporary projects.

Employer change and job loss

The permission is tied to the employer. A worker cannot begin with a new employer until a new work permit has been granted.

If a shortage-based employment relationship ends and the residence permit is withdrawn, the worker may be granted a six-month residence permit to look for another job. This is distinct from the longer job-search protection available to some expert-permit holders.

A shortage-based residence permit can form a basis for permanent residence if the separate settlement requirements are met.

Related: expert work, collaboration/service contracts, permanent residence, Iceland hub, and methodology.

Official and supporting sources

Related routes in Iceland