Iceland

Iceland

Iceland, officially the Republic of Iceland, is a Nordic island country in the North Atlantic Ocean, located between Europe and North America. It lies south of the Arctic Circle and is known for its dramatic landscapes, volcanoes, glaciers, geysers, and geothermal activity.

Iceland covers an area of approximately 103,000 square kilometres and has a population of around 390,000 people. Despite its location, Iceland benefits from a relatively mild climate due to the Gulf Stream.

Key Country Information

  • Capital City: Reykjavík
  • Head of State (President): Halla Tómasdóttir
  • Head of Government (Prime Minister): Bjarni Benediktsson
  • Official Language: Icelandic
  • Currency: Icelandic Króna (ISK)
  • International Dialing Code: +354

Population and Economy

As of 2024–2025, Iceland’s population is estimated at approximately 390,000. The country has a high-income economy supported by renewable energy and sustainable resource management.

Key economic sectors include tourism, fisheries, renewable energy (geothermal and hydroelectric power), aluminum production, and services. Iceland consistently ranks high in quality of life, safety, and environmental sustainability.

European Union and Schengen Status

Iceland is not a member of the European Union but is closely integrated with European systems.

  • EU Member State since: ❌ Not a member
  • Euro Area Member since: ❌ Uses Icelandic Króna (ISK)
  • Schengen Area Member since: ✅ 2001

Iceland is part of the European Economic Area (EEA), allowing free movement of people, goods, services, and capital with EU countries.

Living and Working in Iceland

Iceland attracts foreign workers due to its strong labor protections, high wages, and excellent work-life balance.

EU/EEA citizens may live and work in Iceland without a work permit but must register their stay. Non-EU citizens generally require a residence permit and work permit, usually linked to a specific job offer.

Summary

Iceland is a Nordic island nation with a strong economy, renewable energy leadership, and high living standards. Although it is not part of the EU or Eurozone, Iceland is a member of the Schengen Area and EEA, making it closely connected to Europe while maintaining its independence.