Iceland

In Iceland glaciers and volcanoes are next-door neighbors and you can almost hear the Norse gods debating in the winds that sweep across the tundra. If you’re a digital nomad, don’t be fooled into thinking this otherworldly island is just a backdrop for Instagram-worthy selfies. It’s also an increasingly modern office space that melds lightning-fast Wi-Fi into its tapestry of natural wonders. Imagine working on your next big project with a view of the Northern Lights dancing through your window, fueled by the magic in the air—and excellent coffee.

Reykjavik, the capital, is your gateway to both nature’s majesty and a cosmopolitan work environment. Imagine juggling Zoom calls and spreadsheets in a café that feels caught between two worlds: a Viking museum within a stone’s throw to your left and a state-of-the-art data center to your right. It’s a realm that equally respects tradition and technology, with locals in woolly sweaters who are as savvy about data encryption as they are about ancient sagas.

Certainly, there are quirks. The Icelandic language may mystify you, and the cost of living might give your wallet a shock. Then there’s the eternal daylight of summer, a feature that could either supercharge your productivity or confuse your circadian rhythm. But these are mere footnotes in an overwhelmingly compelling narrative.

So why not swap your dull office environment for the grandeur of geysers, waterfalls, and fjords? In Iceland, your workspace is limited only by your imagination. You’ll find both inspiration and the amenities for productivity under one Northern sky. It’s remote work, in the most dramatically remote of settings. Your ultimate office at the edge of the world yet filled with all the modern comforts your digital lifestyle demands. your ultimate office at the edge of the world.

I. The basics

Iceland is, by most standards, a rather expensive place to call your temporary home. The price tags on everything from a loaf of bread to a modest apartment can induce a slight gulp. But before you dismiss this northern haven as a budget-buster, it’s worth considering the quality of life, the unparalleled access to nature, and the modern amenities that come along with those higher costs. Here, you’re not just paying for goods and services; you’re investing in a unique, serene, and highly productive lifestyle, set against a backdrop of some of the most awe-inspiring scenery on Earth.

1. Housing: Rent in Reykjavik can range from $1,200 to $2,500 a month for a one-bedroom apartment, depending on the location and amenities.
2. Groceries: Food in Iceland is notoriously expensive. A loaf of bread can cost around $3-$4, and a gallon of milk may be upwards of $8.
3. Dining Out: A meal at a mid-range restaurant can easily set you back $40-$60 per person, not including drinks.
4. Transportation: Gasoline prices hover around $7-$8 per gallon. Public transportation is available but not very extensive; a monthly pass costs around $100.
5. Utilities: Expect to pay $150-$200 per month for utilities like electricity, water, and heating. Internet costs another $60-$80 a month.
6. Health Insurance: Private health insurance can vary but expect to pay at least $150 per month.
7. Leisure Activities: A gym membership is around $50-$80 per month, and a cinema ticket can cost up to $15.
8. Coffee: This is critical for many digital nomads; a cup can range from $4-$8.

Connectivity and Infrastructure

In Iceland, you won’t be gasping for bandwidth. The country boasts one of the most robust internet infrastructures globally, partly thanks to its role as a data center hub for Europe and North America. In Reykjavik and other major towns, you’ll find a plethora of cafes, libraries, and co-working spaces that offer high-speed Wi-Fi—usually in the ballpark of 150 Mbps. Even in smaller towns and some surprisingly remote locations, you can expect decent 4G mobile coverage. It’s as if the country’s elves and trolls decided to go digital and demanded good connectivity as a civil right.

Electricity supply is incredibly stable, thanks in part to the country’s abundant geothermal energy. You’ll find USB charging stations in public buses and a growing network of charging stations for electric vehicles. It’s modern convenience subtly woven into an ancient tapestry of lava fields and folklore.

Healthcare

When it comes to healthcare, Iceland doesn’t mess around. The country has a world-class healthcare system, albeit focused mainly in Reykjavik and other sizable towns. For residents, healthcare is largely publicly funded, but as a digital nomad or a short-term visitor, you’d be looking at steep fees for services rendered. A simple consultation could set you back several hundred dollars, and that’s before any treatments or tests. It’s crucial to have comprehensive travel insurance that covers healthcare expenses, and it’s advisable to make sure this includes air ambulance coverage—because in a country with such challenging terrains, you might find yourself needing aerial transport to the nearest medical facility.

Pharmacies are well-equipped but equally expensive. Over-the-counter medications can cost significantly more than what you might be used to back home. On the bright side, Icelandic healthcare is known for its high standard of care, so you can be assured of excellent treatment if needed.

Safety

Iceland is often lauded as one of the safest countries in the world, and for good reason. Violent crime is as rare as a warm winter’s day. But don’t let this lull you into complacency. The greatest risks you’ll face in Iceland are likely to come from Mother Nature herself. The weather can turn from sunny to stormy faster than you can say “Eyjafjallajökull,” and those stunning landscapes can be as treacherous as they are beautiful. Hypothermia, disorientation, and even avalanches pose real risks to the unwary traveler. Always check weather forecasts and heed local advice when planning your outdoor adventures.

Geothermal hot spots are another point of interest but approach them with caution. They’re not all safe for bathing, and the steam emitted can be scalding. Warning signs are usually posted in multiple languages, including the universal language of common sense: if you see steam and bubbles, think twice.

If you plan on exploring remote areas, always let someone know your itinerary. The Icelandic Association for Search and Rescue operates an excellent app called “112 Iceland” that you can use to check in your location, making it easier for rescue teams to find you in case of an emergency. Iceland is as safe as it gets when it comes to human-related risks, but nature here demands respect. Pay attention to the rules, both written and unwritten, and you’ll have nothing to fear.

II. Living in Iceland as a digital nomad

Climate

Navigating the Icelandic climate is a bit like attending an unpredictable yet intriguing play that switches genres every act. If you’re someone who enjoys a variety of meteorological experiences, then you’re in for a treat. Summers are generally mild, with temperatures ranging from 50°F to 60°F (10°C to 15°C), but they can occasionally climb up to a balmy 70°F (21°C). Ah, the Midnight Sun—those precious months where the sun never fully sets and the island is bathed in a surreal, golden glow for up to 24 hours a day.

Winter, on the other hand, is a season that embraces its chillier identity, with temperatures averaging between 14°F and 32°F (-10°C to 0°C). The daylight hours dwindle down to a sparse four to five hours, but nature compensates with the spellbinding spectacle of the Northern Lights. Thanks to the warm currents of the North Atlantic, Iceland is less frigid than its name implies or its latitude would suggest. However, “less frigid” in the Arctic Circle still means you’ll need a wardrobe that can adapt from mild to icy conditions at the drop of a hat—or the fall of a snowflake.

Layering is your best friend, and so is keeping an eye on the ever-changing weather forecasts. One moment you might be basking in sunshine, and the next you could be caught in a poetic yet soggy rainstorm. If ever there was a place that proves there’s no such thing as bad weather, only inappropriate clothing, it’s Iceland.

Nature

When it comes to nature, Iceland offers a veritable smorgasbord of jaw-dropping landscapes that can make even the most seasoned traveler feel like an awestruck child. Whether it’s the towering fjords, the whispering lava fields, or the sprawling glaciers that seem to stretch into eternity, each element of the Icelandic countryside seems specially designed to inspire awe. And let’s not forget the natural hot springs—Mother Nature’s own Jacuzzis—scattered across the island. It’s not just a feast for the eyes either; the clean air, the purity of the water, and the sheer tranquility of the landscapes can rejuvenate even the weariest of souls. For digital nomads, it’s akin to having a National Geographic documentary as your backdrop. You’ll find plenty of trails for hiking, roads for cycling, and rivers for kayaking—all within easy reach of civilization.

Lifestyle

Icelanders have a lifestyle that blends outdoor adventure with a love for artistic endeavors and community bonding. There’s a strong emphasis on family, wellness, and enjoying the simple things in life—like a good book during the long winter nights (Iceland publishes more books per capita than any other country) or a leisurely soak in a communal hot spring. When it comes to cuisine, expect a lot of seafood and lamb, often paired with root vegetables. For the adventurous palate, there’s fermented shark and pickled ram’s testicles. More conventional fare includes delicious pastries and dairy products, notably Skyr, a yogurt-like dairy delicacy.

As for nightlife, Reykjavik is the epicenter. During the week, the city is a calm, laid-back community, but come the weekend, it transforms into a party hub. The bars and clubs are fewer in number than you’d find in a larger city but brimming with life and often open until the early morning hours. Icelanders know how to celebrate the present moment, whether it’s under the endless sun or the mystical Northern Lights. It’s a lifestyle that’s deeply connected to both nature and community, offering a balanced backdrop for any digital nomad looking to work hard and play hard in one of the world’s most mesmerizing settings.

Culture

Iceland’s cultural tapestry is as rich and textured as its landscapes, woven with threads of history, folklore, and modern flair. The land of fire and ice was settled by Norse Vikings in the late 9th century, and the stories of their exploits, along with tales of gods and heroes, are captured in the famous Icelandic sagas. These literary treasures have had such an impact that they form the backbone of Icelandic identity, influencing everything from politics to pop culture. The island has a deep-rooted love for literature and arts; Reykjavik was named a UNESCO City of Literature in 2011, and Iceland boasts more writers, books published, and books read per capita than any other country.

Don’t miss the National Museum in Reykjavik for a comprehensive look at Icelandic history or the Árbær Open Air Museum to experience life as it was in earlier times. For a break from the past, indulge in the contemporary arts scene that spans everything from edgy music festivals to avant-garde visual arts. Music, especially, is a prominent part of life here—just think of Björk or Sigur Rós, Iceland’s famous musical exports. The Harpa Concert Hall, home of the Iceland Symphony Orchestra is an architectural gem where music, design and nature’s splendor meet.

Language

The official language is Icelandic, a North Germanic language that, while beautiful, can be a bit of a tongue-twister for the uninitiated. Imagine trying to ask for directions to Eyjafjallajökull—you’ll get the idea. But fret not, digital nomad! Icelanders are exceedingly proficient in English, especially the younger generations. You’ll find that menus, road signs, and other important information are usually available in both Icelandic and English.

That said, learning a few basic phrases in Icelandic will win you hearty smiles and maybe even a free story or two about local folklore. Icelanders are fiercely proud of their language and culture, and showing interest can go a long way. The country’s small population and close-knit communities contribute to a kind of camaraderie that is warm and welcoming. Whether you’re striking up a conversation at a Reykjavik café or asking for hiking tips in a rural outpost, you’ll find that communication—like so many other aspects of life in Iceland—is generally smooth, easy, and friendly.

III. Cities to consider

Iceland may not be sprawling with metropolises, but what it lacks in urban quantity, it more than makes up for in quality, character, and charm. Here are some cities and towns to consider when planting your digital nomad flag in this captivating country.

Reykjavik

The capital city and the heart of Icelandic culture, Reykjavik is the most obvious choice for digital nomads. It’s where you’ll find the best Wi-Fi, the most co-working spaces, and a vibrant arts and music scene. You’ll be within arm’s reach of museums, galleries, shops, and restaurants offering a taste of both traditional and international cuisine. Plus, despite being a capital city, Reykjavik has a small-town vibe that makes it easy to get around.

Akureyri

Often dubbed the “Capital of North Iceland,” Akureyri is nestled at the end of Iceland’s longest fjord. It offers an array of outdoor activities and is known for its botanical garden—the northernmost of its kind in the world. It’s a smaller community, but there’s still good internet connectivity, and the city serves as a hub for exploring the wonders of North Iceland.

Húsavík

Famous for its whale-watching expeditions, Húsavík is a charming town in North Iceland that has been increasingly attracting tourists. If you fancy setting up your laptop to the backdrop of breaching whales and stunning sea views, this might be the town for you. Just be prepared for a more limited array of amenities compared to larger cities.

Selfoss

Located in South Iceland, Selfoss is an agricultural town that serves as a gateway to some of Iceland’s most famous natural attractions like the Golden Circle and the South Coast. It’s more peaceful than Reykjavik but still offers decent amenities, including shops and restaurants. It’s a good base if you prefer smaller towns but want to be within easy reach of both nature and urban conveniences.

Ísafjörður

Tucked away in the Westfjords, Ísafjörður is perfect if you’re looking for remoteness without complete isolation. Known for its stunning beauty and outdoor activities like kayaking, hiking, and bird-watching, it’s ideal for those who want to integrate nature into their daily routine. Internet connectivity is solid, but keep in mind that the town is quite isolated, especially during winter.

Each of these cities and towns offers a unique blend of what makes Iceland so enchanting: a mix of modernity and tradition, set against a backdrop of natural wonders. Pick one that aligns with your lifestyle needs, and you’re well on your way to an unforgettable stint as a digital nomad in the land of fire and ice.

IV. Off the beaten track

For those digital nomads who consider themselves explorers at heart, craving landscapes untamed and towns untrammeled, Iceland offers some extraordinary options. Venturing off the beaten track here is like stepping into a real-world fantasy realm—one where the Wi-Fi still works, most of the time.

Seyðisfjörður

This small, artistic town in East Iceland is reached by driving over a mountain pass that could give even the most experienced drivers pause. Once you arrive, you’re greeted by a fjord surrounded by snow-capped mountains, waterfalls, and colorful wooden houses. The community is famously artistic, hosting a weekly “Blue Church” concert series and an annual arts festival. It’s an ideal setting for creative types looking for inspiration.

Vestmannaeyjar (Westman Islands)

Accessible by ferry or a short flight, this archipelago off Iceland’s South Coast is home to just over 4,000 people and an even larger number of puffins. The islands are a geological wonder, with new landforms created by ongoing volcanic activity. Internet is reliable, making it a unique option for those who truly want to escape the crowds.

Snæfellsnes Peninsula

Often called “Iceland in Miniature,” the Snæfellsnes Peninsula offers a bit of everything: glaciers, volcanic craters, lava fields, and charming fishing villages. While not a city or town, the peninsula has several small communities and offers a slower pace of life. It’s a great place to hunker down and focus on your projects while enjoying Iceland’s natural diversity during your breaks.

Höfn

Situated in the southeast, near the stunning Vatnajökull Glacier National Park, Höfn offers natural beauty and a slower pace of life. It’s a seafood lover’s paradise, particularly known for its langoustines. The town is also a gateway to the glacial lagoon Jökulsárlón, one of Iceland’s most iconic natural attractions.

Flatey Village

Nestled on Iceland’s Flatey Island, the quaint Flatey village offers digital nomads a tranquil yet connected workspace. Despite its isolated charm, the village provides reliable high-speed internet, allowing for a seamless blend of modern work and natural serenity. Between work sessions, residents can explore hiking trails, engage in bird-watching, or visit the island’s charming old library. Accessible by ferry, it’s an ideal haven for those craving a work-life balance where digital connectivity meets pristine landscapes.

Whether you’re looking for artistic inspiration in a vibrant small town, or yearning for the utter tranquility that comes from being surrounded by nothing but nature, venturing off Iceland’s beaten track can provide a unique, rewarding experience. Just remember, the further you go, the more self-reliant you’ll need to be. But then again, for many digital nomads, that’s part of the appeal.

V. Visas and legal requirements for digital nomads in Iceland

Types of visas available for remote workers 

1. Remote Work Visa

The Remote Work Visa in Iceland is designed for digital nomads from countries outside the EEA/EFTA. It permits a stay of 90 to 180 days for the purpose of remote work. The income requirement is a minimum of around ISK 1,000,000 per month (approximately $8,000 USD) for individuals, and ISK 1,300,000 (approximately $10,400 USD) if applying with a spouse or partner. Family members, including spouses, partners, and children under 18, can also qualify for this visa. Importantly, this visa does not permit you to work for local Icelandic companies or entitle you to an Icelandic ID number.

2. Schengen Visa

For citizens of countries that are not a part of the Schengen Zone, a Schengen Visa might be your initial go-to for a short-term stay (up to 90 days). However, this type of visa doesn’t permit employment in Iceland.

3. Residence Visa

For a stay longer than six months, you would typically require a residence visa. However, these often entail more stringent requirements, including proof of local employment or family ties.

Application process and necessary documentation

Detailed information regarding the Remote Work Visa can be found on the Directorate of Immigration website here. In summary the process goes as follows:

1. Form Submission: Paper applications only; mail to Directorate of Immigration or drop off in-person.
2. Application Fee: ISK 12,200 (around $98 USD); pay by bank transfer and include the receipt in your application.
3. Required Documents:
   • Payment receipt
   • Recent passport photo (35×45 mm)
   • Passport copy valid for at least 90 days beyond intended stay
   • Health insurance proof
   • Employment or self-employment confirmation
   • Proof of required income (around $8,000 USD for individuals, $10,400 USD for couples)
4. For Spouses/Partners:
   • Payment receipt
   • Passport photo and copy
   • Health insurance
   • Marriage certificate or cohabitation proof
5. For Children:
   • Payment receipt
   • Passport photo and copy
   • Health insurance
   • Birth certificate
   • Custody documents or consent from the other parent
6. Post-Approval: Upon approval, contact the Directorate of Immigration after arriving in Iceland to have your visa issued.

As always make sure to check with the Embassy or immigration for the latest updates on visa regulations and application process.

VI. Tips for a smooth landing in Iceland 

So you’ve managed to secure your remote work visa and are all set to bask in the land of glaciers, volcanoes, and the midnight sun. Now, how do you ensure that your arrival and subsequent settling in are as smooth as Icelandic yogurt? Here’s a quick guide to aid you in your transition.

Finding accommodation

1. Short-term Housing: Initially, it’s advisable to book a guesthouse or Airbnb for the first few weeks. This gives you the chance to explore various neighborhoods before committing to a long-term lease.
2. Long-term Options: Once you’re familiar with the lay of the land, websites like HousingAnywhere and local real estate agents can assist in finding a more permanent dwelling.
3. Contracts and Deposits: Always read your rental agreement carefully and be prepared to pay a security deposit, usually equivalent to one or two months’ rent.

Setting up local bank accounts and financial considerations

1. Bank Choices: Iceland has a handful of major banks like Arion Bank, Íslandsbanki, and Landsbankinn. Visit their local branches to understand the account options available to you.
2. Required Documents: Typically, you’ll need your passport, proof of address, and sometimes employment details to open an account.
3. Exchange Rates and Transfers: Be mindful of exchange rates when transferring money and consider using services like TransferWise to minimize fees.

Navigating local transportation

1. Public Transport: Reykjavik has a fairly efficient public transport system, with the Strætó bus service being the most commonly used. You can buy tickets through their app.
2. Car Rentals: For venturing beyond the capital, renting a car is often the best way to explore the country.
3. Biking and Walking: In good weather, biking and walking are excellent ways to get around smaller towns.

Adapting to local customs and cultural nuances

1. Punctuality: Icelanders value punctuality. Being even slightly late could be considered disrespectful.
2. Tipping: Tipping is not customary in Iceland, as service charges are included in the bill.
3. Language: While most Icelanders speak excellent English, learning a few basic phrases in Icelandic can go a long way in making a good impression.
4. Public Behavior: Icelanders are generally reserved and appreciate personal space. Public displays of affection or loud conversations can be considered inappropriate.

VII. In summary

Pros

1. Natural beauty: Iceland offers an unparalleled canvas of natural wonders, from glaciers to volcanoes and beyond.
2. High-quality internet: Excellent connectivity in urban areas ensures that you can work remotely without a hitch.
3. Safety: Iceland is one of the safest countries globally, featuring low crime rates and top-notch healthcare services.
4. Family-friendly: The remote work visa also accommodates family members, and the country is well-known for its quality of life.
5. Inspiring environment: The tranquil and unique natural lighting conditions can offer a burst of creativity and focus, especially during the extended daylight of summer months.
6. Global community: As a popular tourist destination, Iceland has a diverse and international atmosphere, particularly in Reykjavik.
7. Adventure opportunities: When you’re not working, Iceland offers a plethora of adventure activities like hiking, geothermal swimming, and cave exploration.

Cons

1. Cost of living: The high cost of living in Iceland, from groceries to housing, can be a significant burden on your budget.
2. Weather: The weather can be harsh and unpredictable, particularly during the winter months with limited daylight.
3. Isolation: The remote location and low population could feel isolating if you’re someone who thrives on social interaction and a busy environment.
4. Limited local networking: The restrictions of the work visa don’t allow you to work with local companies, limiting your local business network.
5. Language barrier: While English is widely spoken, the native language is Icelandic, which could be a hurdle in some situations.
6. Seasonal challenges: The constant daylight in summer can disturb sleep patterns, while winter brings its own set of challenges with limited daylight.
7. Limited public transport: If you’re planning to explore beyond Reykjavik, be prepared for limited public transportation options, making car rental almost a necessity.

Iceland for digital nomad’s is as close to a fairy-tale setting for your laptop as you’re likely to get—think of it as your office with glaciers and geysers for company. The internet? Quicker than a local’s retort that “it’s not that cold.” Safety is a non-issue unless you count the spontaneous desire to dive into a geothermal pool in sub-zero temperatures. The healthcare is so reassuring that you’d feel safer than a puffin on a cliff edge.

But let’s be honest, it’s not all sunshine and northern lights. Iceland isn’t kind to your purse strings. Imagine sipping on a cup of coffee and realizing it just cost you the equivalent of a decent bottle of wine. Ouch. Then there’s the weather, a hodgepodge of meteorological mood swings that could turn your leisurely drive into a ‘hold-on-for-your-life’ roller coaster ride. Oh, and let’s not forget about the isolation. If solitude starts to feel like you’re a lone character in an Ingmar Bergman film, then this place can get to you.

Even so, the downsides come with a quirky sort of charm. Where else would you find such delightfully cryptic language that leaves you guessing whether you’re looking at a street sign or a Scrabble board gone haywire? And yes, public transport is sparse, but why would you want to share those surreal landscapes with a bus full of tourists?

Iceland presents a unique blend of paradoxes: it’s both isolated and well-connected, expensive yet invaluable, with weather that’s as much a deterrent as it is an attraction. For those who can navigate its complexities and costs, Iceland offers an unparalleled, awe-inspiring setting for both work and life. It’s a destination where each day is potentially as magnificent as the last, making for a work-life experience that’s in a category all its own.