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Iceland · work sponsored · Leads to settlement

Temporary Work Permit due to Labour Shortage (Iceland)

By · Last reviewed:

Guidance updated 10 September 2026. Full-review date shown above.

Source check: all 1 official citation reconfirmed 13 September 2026

An employer-supported route for exceptional labour shortages. The work permit is temporary and employer-specific; the associated labour-shortage residence permission can qualify as a basis for permanent residence.

Requires sponsorshipLeads to permanent residencyThe first shortage work permit may last up to one year, or the shorter seasonal project period; renewals may be for up to two years. Check the separate residence-permit expiry and continuing conditions.
Processing time
The Directorate of Immigration handles the applications. Check its current stage-specific processing guidance; the July prioritisation rules do not guarantee an individual decision date.
Government fees
Check the current official residence and work application charges before filing; employer recruitment and other document costs are separate.
Typical duration
The first shortage work permit may last up to one year, or the shorter seasonal project period; renewals may be for up to two years. Check the separate residence-permit expiry and continuing conditions.
Sponsorship required
Yes
Leads to permanent residency
Yes
Reviewed Directorate of Immigration, Iceland ↗

In short

An employer-supported route for exceptional labour shortages. The work permit is temporary and employer-specific; the associated labour-shortage residence permission can qualify as a basis for permanent residence. Guidance updated 10 September 2026. Costs, application stages and eligibility conditions are set out with their sources below.

Cite this: https://visaatlas.org/visas/iceland/labour-shortage-work-permit#answer

What is the Temporary Work Permit due to Labour Shortage (Iceland) in Iceland?

Temporary Work Permit due to Labour Shortage (Iceland) is a sponsor-led Iceland route. Indicative government fees are Check the current official residence and work application charges before filing; employer recruitment and other document costs are separate; indicative processing time is The Directorate of Immigration handles the applications. Check its current stage-specific processing guidance; the July prioritisation rules do not guarantee an individual decision date; typical duration is The first shortage work permit may last up to one year, or the shorter seasonal project period; renewals may be for up to two years. Check the separate residence-permit expiry and continuing conditions. This route can lead to permanent residence.

Primary guidance checked with Directorate of Immigration, Iceland on 10 September 2026.

Overview

The employer must justify hiring from outside the EEA/EFTA and Faroe Islands after searching for workers already entitled to work in Iceland. This is an exceptional response to temporary labour-market shortages, but that does not exclude the associated residence permit from PR: the official permanent-residence requirements expressly include residence due to shortage of labour. Since 8 July 2026 the Directorate of Immigration decides work permits as well as residence permits. Labour-market recruitment assistance remains distinct from the permit decision.

Recent changes to this route

Additional sources

Eligibility

Typical criteria

Common blockers

Typical evidence

Application pathway

  1. Check the route fit

    Confirm the shortage basis and required recruitment effort with the employer.

  2. Build the evidence pack

    Prepare contract, recruitment evidence and any professional licensing documents.

  3. Submit through the official channel

    Submit the required work and residence applications to Immigration; do not start work before the required approvals.

  4. After approval

    For continued work with the same employer while an extension is pending, the official shortage guidance requires filing four weeks before expiry. A new employer needs a new work permit before work starts.

After approval: prepare for your next step

For Temporary Work Permit due to Labour Shortage (Iceland), use the actual decision and the issuing authority’s instructions to establish what has been granted. A successful application, permission to enter, permission to work and a residence document are not interchangeable.

  1. 1. Check the decision. Confirm the name, passport, status granted, start date and any next action. Resolve an error with the authority before relying on the document for travel or employment.
  2. 2. Establish the travel step. Read any entry window, activation, collection or in-country registration instruction. For an extension or change of status, do not assume leaving the country is required or safe while a further step remains pending.
  3. 3. Confirm what you may do. Agree the lawful start date and onboarding with the employer or sponsor. Check whether the permission names an employer, role or activity before changing the arrangement.
  4. 4. Organise the household. Check each accompanying person’s permission separately, then arrange healthcare, accommodation, access to money and the relevant local registrations. A tax number or bank account does not by itself prove a right to work.
  5. 5. Keep the ongoing conditions visible. Record the actual expiry, renewal process, permitted absences and any duty to report changes. An initial grant does not automatically establish permanent residence or citizenship.
Official Temporary Work Permit due to Labour Shortage (Iceland) instructionsBuild my moving plan for this routeMoving to Iceland

Plan the practical side of your stay

Once you have checked the official route, you can prepare for day-to-day life in Iceland. These optional services are separate from the application and do not establish visa eligibility.

Official application links

Where to actually go next

Government links only

These are the official pages to use for this route. Open them before preparing documents: the forms, fees, appointment systems, and sponsor steps can change without warning.

  1. Official guidanceApplicant + sponsor
    Use official Temporary Work Permit due to Labour Shortage (Iceland) route page ↗

    Use this official page to confirm requirements and follow the government filing route for Temporary Work Permit due to Labour Shortage (Iceland).

    Directorate of Immigration, Iceland · verified

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Frequently asked questions

Does my employer have to try recruiting locally first?+

Yes. The shortage route requires a search for workers already entitled to work in Iceland, including the EEA/EFTA and Faroe Islands. Recruitment requirements also apply at renewal; follow the current instructions for your case.

Can this permit lead to permanent residence?+

The associated residence permit due to shortage of labour is explicitly listed as a possible basis for PR. A temporary work permit is not PR itself: you must hold qualifying residence permission and meet the applicable residence period and other PR conditions.

Need tailored advice?

We do not provide legal advice. For an application that depends on your exact circumstances, consult a regulator-listed immigration advisor.

Find a regulated advisor in Iceland

How we verified this

We check every figure on this page against the primary government source, record the date it was last checked, and re-check it on a regular schedule. Rules change, so always confirm time-sensitive details with the official source before you rely on them. Visa Atlas is an information-only publication and does not give legal advice.

Primary source: Directorate of Immigration, Iceland

Last checked: 10 September 2026

See the full evidence trail and methodology

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