Living and working in Iceland Grímsey 85 Raufarhöfn 85 Kópasker Reykjafjörður Þórshöfn Bolungarvík Suðureyri 61 Hnífsdalur 76 65 Flateyri Ísafjörður Siglufjörður Lundarskóli 64 Bakkafjörður 91 Súðavík Krossnes 624 76 Ólafsfjörður Húsavík 635 61 Sólgarðar 85 Gjögur Hrísey 82 745 Dalvík Grenivík 622 Reykjanes 643 Litli-Árskógssandur 83 60 Þingeyri Hofsós Hauganes 745 Húsabakki Árskógsskóli Heiðarbær Selárlaug Hjalteyri Hafralækjarskóli Vopnafjörður Skagaströnd 82 61 619 Laugarhóll/Klúka 85 744 Laugar Bíldudalur Þelamörk Svalbarðseyri Tálknafjörður 63 Hólmavík Sauðárkrókur Hólar 615 1 87 74 76 Stórutjarnir Drangsnes 60 Reykjahlíð 1 Reykjafjörður 711 Blönduós Akureyri Patreksfjörður Illugastaðir 612 Borgarfjörður Djúpidalur eystri 1 75 Birkimelur Kristnes 614 Laugaland Skútustaðir 94 Varmahlíð Hrafnagil 62 Húnavellir 607 711 Reykhólar 68 1 Króksfjarðarnes Steinsstaðir Eiðar Hvammstangi 72 F88 60 Fellabær Seyðisfjörður Laugabakki 93 1 Egilsstaðir Laugar Reykir Neskaupstaður F72 Borðeyri 92 590 Hallormsstaður 92 F98 F82 Eskifjörður Stykkishólmur Búðardalur F28 Reyðarfjörður 96 58 F78 Fáskrúðsfjörður Rif F37 Hellissandur Ólafsvík 1 Grundarfjörður Stöðvarfjörður F28 54 60 574 F72 Lýsuhóll Lauga- Breiðdalsvík gerðis- skóli Djúpivogur Varmaland Húsafell Reykholt 54 Klepp- járns- reykir 50 1 Borgarnes Hvanneyri 53 Hreppslaug Brautartunga 52 50 F28 F35 F37 Heiðarborg Hlaðir Nesjahverfi Akranes 51 Geysir Hlíðarlaug 1 Höfn Grundarhverfi 48 1 30 Laugarvatn 37 36 36 Reykjavík Reykholt Þjórsárdalur Seltjarnarnes Mosfellsbær Kópavogur Garðabær Flúðir Garður Álftanes Ljósifoss Laugarás Hafnafjörður 31 45 Sandgerði Árnes Keflavík 41 Hvera- Hraun 32 Skaftafell 1 gerði Brautarholt 26 Vogar Svínafell 44 Njarðvík 30 Hafnir 39 43 Selfoss 1 Laugaland Bláa Lónið 38 34 Eyrar- 42 Þorlákshöfn bakki Stokkseyri Rauða- Hella Grindavík lækur 25 F22 Kirkjubæjarklaustur Hvolsvöllur 204 Seljavellir Skógar Vestmannaeyjar Vík 0 10 20 30 km Welcome to Iceland Moving to a new country takes courage. It also This brochure deals with creates exciting opportunities and new beginnings. the following topics: Taking the time to learn what to expect - and what is expected of you - will help you make the most of your Introduction to Iceland ..................................................... 4 opportunities. This brochure is intended to help you Working in Iceland ............................................................. 8 over the many hurdles faced when moving to a new Taxes and workers rights .................................................. 14 country. This brochure answers the questions most Housing and cost of living ............................................... 21 frequently asked by those moving to Iceland. It focuses Registering as a legal resident in Iceland .................... 24 Unemployment benefits and social security .............. 30 on employment and working life and aims at giving Education in Iceland .......................................................... 34 the basic facts as well as guiding you to the sources of Icelandic for foreigners ..................................................... 37 accurate information. Important contact information ...................................... 39 3 Introduction to Iceland – general information $ Geography History Iceland is located in the North Atlantic, and is the second largest According to ancient written sources, the Norwegian chieftain island in Europe, with an area of 103,000 square kilometres. Ingólfur Arnarson was the first permanent settler in Iceland in About 75% of the land is more than 200 meters above sealevel 874. Over the next centuries, people of Nordic and Gaelic origin with most of the land being high plateaus and mountains. Gla- settled in Iceland. Iceland went under the Norwegian king in ciers cover 11,200 square kilometres while suitable agricultural 1262 and later the Danish king. Iceland became an independent land only covers 1,400 square kilometres. Only the coastline is democracy on June 17, 1944 and has a written constitution and a inhabited, and there are no inhabitants in the central highlands. parliamentary form of government. The people of Iceland cele- brate the 17th of June as their Independence Day. Climate For ages Iceland was among the poorest countries in Europe and Contrary to popular belief, Iceland has rather mild, coastal weath- the population never exceeded 70.000 people. In the 20th cen- er. The average summer temperature in the capital Reykjavik, is tury the industrial revolution finally found its way to Iceland with 10.6°C/51°F in July. The highest recorded temperature in the the industrialisation of the fishing fleet. In less than a century the capital area is 24.7°C/77°F. The average winter temperature in Icelandic society has changed dramatically, now being one of the Reykjavik is about 0°C/32°F in January. A branch of the Gulf richest countries in the world with a population of around 316.000 Stream flows along the southern and the western coast greatly people. moderating the climate. This brings mild air from the Atlantic Today Iceland is a highly developed country. In 2007 Iceland to- which in contact with colder arctic air results in a climate that is gether with Norway ranked first on the United Nations´ Human marked by frequent changes in weather and often strong wind. Develpment Index. Iceland is also number one in Europe when Furthermore this leads to more rainfall in the southern and west- comparing the competitiveness of countries according to IMD´s ern part than in the northern part of the island. World Competitiveness Yearbook and the world´s sixth in terms of During summer the nights are bright throughout Iceland and in gross domestic product (GDP) per capita. June the sun in the North never fully goes down. Icelanders have the second highest life expectancy in the world. When a person is born he or she can expect to live for 81,8 years. 4 5 Government Icelandic is not necessarily required. Learning the Icelandic lan- According to Iceland’s constitution, the government is divided guage gives you though a great advantage and enhances your into 3 branches; the legislative, the judicial, and the executive chances to find a more specialised and better paid job. branches. Althingi, where laws are made and amended, is the Information on where you can learn Icelandic follows later in this legislative branch. Executive branches, such as the ministries, di- brochure. rectorates and various other government agencies, carry out laws. Judicial power lies with the Supreme Court and the district courts. Religion The president is elected by direct popular vote for a term of 4 Freedom of religion is guaranteed in Iceland by the Constitution. years, with no term limit. The president’s role is mostly ceremo- There is a State church, the Evangelical Lutheran Church, to which nial. Most executive power rests with the government. Althingi is over 85% of the population belongs. the legislative body of 63 members from 6 districts, elected for a Congregational activity is not strong and church attendance is term of 4 years by popular vote. Anyone who is eligible to vote low. Still the church plays a significant role in all major occasions can stand for parliament. A cabinet of ministers stays in power in Icelander’s lives. until the next general election or a new government is formed. There are currently eleven ministers and one prime minister. The Driving in Iceland ministers usually sit in Althingi. People from the EEA countries who hold a valid, standardized Iceland has a universal suffrage, which means that every Icelandic European driver’s license are not required to exchange their citizen over eighteen can vote in the parliament election. Foreign license. Europeans without this type of standardized license must nationals who have had legal residence in Iceland for five years exchange theirs for an Icelandic license. In Iceland drivers are can vote in local government elections. Danish, Finnish, Norwe- obliged by law to use headlights at all times day and night. gian and Swedish citizens are though granted the right to vote Passengers in the front and back seats of automobiles are required after three years of residence. Only Icelandic citizens have the by law to use safety belts. Be aware that outside the capital area right to vote in national elections. driving conditions may be difficult. Large sections of highways are not paved and have a loose gravel surface. Language For more information regarding driving in Iceland contact any Icelandic is one of the Nordic languages, it resembles the Norse tourist information centre in Iceland. Or visit the site www.us.is/ language as it was spoken centuries ago. Icelandic is the official page/english which holds information on driving in Iceland in language and is used almost exclusively in all areas of daily life in several languages. Iceland. A large majority of Icelanders also speak English as a sec- ond language as well as Danish or another Scandinavian language. Currency and banks Usually a fair knowledge of these languages is a precondition for The unit of currency used in Iceland is the Krona, abbreviated ISK, many unskilled and technical jobs in Iceland and knowledge in the world’s smallest currency. At the time of writing this brochure 6 (13 May, 2008) 1 € = 122 ISK. Be aware that the Krona can fluctu- ate substantially. You can check the rate of the ISK at www.sedla- banki.is. All banks exchange the most common currencies and it is a good idea to exchange your currency as there are very few shops in Iceland that accept foreign currency. If the banks can not exchange your currency it is likely that Forex can. Forex is located in the tourist information centre in Bankastræti 2, Reykjavik and in Turninn Smáratorg 3 Kópavogi. Forex exchange rate is though usually less favourable than the banks. Most shops and businesses accept all major credit cards. Debit and credit cards are com- monly used in Iceland even for very small transactions. After you find a job you will need a bank account as most employers de- posit the pay checks directly. Most banks are open weekdays from 09:00-16:00 but some have branches with longer opening hours. To find a branch near you see: www.spar.is, www.glitnir.is, www.