Iceland has relaxed its work permit rules for international students, allowing those with valid residence permits to work without obtaining a separate work permit. The changes follow amendments to the Icelandic Act on Foreign Nationals and the Foreign Nationals’ Right to Work Act, approved by Parliament on June 18, 2026.
Under the revised rules, international students can work up to 60% of full-time working hours during the academic year. The limit applies to combined working hours across all employers. Students can work beyond this limit during official academic breaks, internships, workplace training programs, and after graduating from an Icelandic university while staying in the country to seek employment.
The new regulations also allow foreign nationals who complete doctoral degrees in Iceland to renew a specialist residence permit for up to 12 months to find employment related to their qualifications without obtaining a separate work permit.
However, the updated rules introduce stricter monitoring of employment and academic progress. Students must provide employment details when renewing their residence permits, while immigration authorities can verify working hours with employers. Additionally, international students must complete at least 75% of a full-time academic course load each academic year. Those exceeding permitted working hours or failing to meet academic requirements could face a review or withdrawal of their work rights.
