Iceland Country Profile

Passport
For more details visit Iceland Passport Ranking
  • Passport Grade
    A
  • Passport Ranking
    26/198
  • Passport Score
    176.3/198
  • Visa-free Countries
    152
  • Visa-required Countries
    46
  • Access to the World's GDP
    75%
  • Access to the World's Surface Area
    60%
  • Access to the World's Population
    46%
  • Access to the Unesco Sites
    80%
Citizenship and Naturalization
Birthright citizenship (Jus Soli)
  • Birthright citizenship (Jus Soli)
    No
    No provisions
Naturalization - Standard Conditions
  • Minimum residency period
    7 years
  • Physical presence requirement
    On average, 9 months a year
  • Language test
    Yes, Icelandic
  • Need to renounce original citizenship?
    No
  • Can minor children naturalize?
    Yes, minor unmarried children naturalize along with a parent, if they are domiciled in Iceland
  • Can naturalized parents pass citizenship to a child born abroad?
  • Can you lose naturalization due to prolonged absence/ naturalization elsewhere?
Naturalization - Your Spouse is a Citizen
  • Living IN the country: Residency/marriage requirement
    4 years / 4 years
    Must be both married and reside in the country for 4 years (5 years in case of common-law partnerships).
  • Living ABROAD: Marriage requirement
    Not allowed
  • Language test
    Yes, Icelandic
  • Need to renounce original citizenship?
    No
Naturalization - Other Beneficial Provisions
  • Your child is a citizen
    No provisions
  • Citizens of specific countries
    4 years
    4 years for citizens of Denmark, Norway, Sweden, and Finland.
"–": The provision has not been analysed.
Visas and Residencies
Visas and Residencies
Taxation
For more details visit Cost of Living
  • Taxation Type
    Residence-based
A tax resident of a country with a RESIDENCE-BASED tax system pays taxes on their WORLDWIDE income. However, if you lose tax residency status there (e.g., by moving out), the country will generally stop taxing you.
Schiff Sovereign's Take on Iceland
Iceland is a country of only 360,000 people, clinging tightly to a small rock in the North Atlantic, seemingly located at the end of the earth. 

Yet, it is surprisingly well connected. Reykjavík is only a six-hour flight away from New York, so you’re relatively close to the United States. And you’re even closer to London, Stockholm, Paris and Dublin. 

Also, one of the most unique travel experiences on earth can readily be accessed in Iceland… 

Reminiscences of Simon Black, the founder of Sovereign Man:

***

I took a helicopter tour with an old Army helicopter pilot. He was a real cowboy, flying into these volcanoes and following the lava flows down.

It was gorgeous. The landscape is so diverse.

But the best part is that at the time, they were filming Winterfell from Game of Thrones. My pilot buzzed the set when these guys were outside filming a fight scene. 

It was awesome. (Although I can imagine that the cast and crew were not a happy bunch.)

***

If you want to enjoy everything the country has to offer for a longer period of time, spending several months on the ground, you can apply for the country’s Digital Nomad Visa. Just don't forget about the island’s (almost) arctic climate and gloomy winter days with almost no daylight.

Iceland is a young island, geologically speaking. It is located on a number of active volcanoes that erupt vigorously from time to time, covering parts of Europe in dust and a haze when they do.

The presence of so many active volcanoes means that there are great opportunities for geothermal power there.

And indeed, Iceland has been using the gift of geothermal potential in full. Today its citizens enjoy some of the cheapest electricity rates in the world.

That's also the reason why so many crypto miners set up shop in Iceland. Reportedly, 8% of all Bitcoin has been mined there.

However, electricity is just about the only inexpensive thing when it comes to living in Iceland. 

Boasting a successful economy (despite being rather remote), and having to import just about everything apart from electricity, Iceland is a very expensive place to live.

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
Iceland Overview
  • Region
    Europe
  • Capital City
    Reykjavík
  • Largest City
    Reykjavík
  • Currency
    Icelandic króna
  • Languages
    Icelandic, English
  • Population
    381.4 thousand (177th)
  • Life Expectancy
    83.6 years (7th)
  • GDP (Nominal)
    $27.7 billion (109th)
  • GDP/Capita
    $72,638 (12th)
Useful Data
For more details visit Cost of Living
  • Cost of Living
    Extreme (7/7)
  • Climate
    Average (3/5)
  • Safety
    The Safest (1/7)
  • Pollution
    Very clean (1/5)
  • English Proficiency
    High (2/5)

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.

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