Work Permits in Iceland - Useful Information

There have been a lot of inquiries lately on other forum threads from people who have expressed interest in living and working in Iceland. 

As of October 2009, the unemployment rate is 7.2%, although for foreign residents, the rate is believed to be much higher -- some speculate that it's in the 15-20% range. 

It is much easier for members of the European Economic Area (EEA) to obtain work permits in Iceland than non EEA residents.

According to the Icelandic Ministry of Social Affairs:

Increased preference given to citizens of countries within the EEA:

With this legislation, the preference given to citizens of countries within the EEA is further emphasized.  With the EEA Agreement, Icelandic authorities committed themselves to giving citizens of EEA countries preference over citizens of other countries to work in Iceland.  Employers are encouraged to look for workers within the EEA.

Granting of work permits to citizens from countries outside the EEA:

Previously standing legislation regarding foreign nationals’ right to work will continue to apply in the case of citizens from countries outside the EEA.  Before a work permit is granted to citizens of countries outside the EEA, Icelandic authorities must determine if the job has been advertised within the EEA, and if a citizen of a country party to the EEA Agreement is interested in the job, that individual is given preference.  This is applicable whether a new work permit is at issue, extension of a work permit or a new application when changing employers.