Iceland Passes New Visa Act Modernizing Schengen Short‑Stay Visa Rules

Key point  

• Iceland enacted a new Visa Act on May 12, 2026, updating the country’s rules for Schengen short‑stay visas.  

Iceland Visa Policy Update 

Iceland approved a new Visa Act that fully aligns national visa procedures with Schengen rules and modernizes how the country issues, processes and reviews short‑stay visas. The law strengthens border‑security measures, updates visa‑processing requirements and replaces older visa provisions in the Foreign Nationals Act. 

The Act also creates a new Visa Appeals Board and introduces fixed Schengen‑aligned fees for all visa categories. 

Visa Requirements 

The Act codifies Schengen‑standard conditions for issuing a visa, including: 

• Valid passport 
• Proof of travel purpose 
• Sufficient financial means 
• Return‑travel authorization 
• Medical insurance 
• No SIS alerts 
• No public security concerns 

These requirements apply to all short‑stay visa applicants. 

Standardized Visa Fees  

Iceland will now charge fixed fees for visa applications submitted abroad: 

• €45 — children ages 6–12 
• €90 — applicants 13+ 
• €30 — visa extension 
• €90 — airport transit visa 
• 12,200 ISK — short‑stay residence permit* 
• €300 — appeal fee 

Fees will be updated monthly based on the euro exchange rate. 

*Iceland lists this fee in Icelandic krónur because it is a national short‑stay residence permit fee, not a harmonized Schengen visa fee. Schengen visa fees must appear in euros, while Iceland sets domestic administrative fees in its local currency.

New 180‑Day Short‑Stay Residence Permit 

A new permit is available for stays over 90 days that do not fit existing categories. Key rules: 

• Valid for up to 180 days and may only be granted once within any 12‑month period 
• Cannot lead to permanent residence or legal domicile 
• May be revoked for violations (e.g., unauthorized work) 

New Visa Appeals Board 

A new independent board will review: 

• Visa refusals 
• Visa cancellations 
• Visa revocations 

Applicants have 30 days to appeal; decisions must be issued within 30 working days. 

Expanded Data‑Sharing for Border Security 

Authorities may now cross‑check data with: 

• Police 
• Immigration authorities 
• Tax authorities 
• Municipal social services 

The Act also establishes Iceland’s national component of the Visa Information System (VIS). 

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