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Foreign tourism service providers operating in Iceland

On this page, you will find information regarding tourist service providers operating in Iceland but established abroad, i.e., those who bring tourist parties to Iceland without opening branches in the country. Also what rules apply to employees of tourist service entities based outside Iceland and operating licences for the carriage of passengers in Iceland. The information was a joint project of the Icelandic Tourist Board, The Directorate of Labour and Iceland Transport Authority. The information can be can also be opened and downloaded in pdf version.

Foreign tourism service providers operating in Iceland

Tourist service entities established in the EEA and the EU

Tourist service providers established in EEA/EU Member States which bring foreign tourist parties to Iceland may provide them with their services in Iceland without restriction. They are not required to apply for licences from the Icelandic Tourist Board and therefore do not fall under Chapter III of the Iceland Tourist Board Act, No. 96/2018, on licence requirements, as long as they meet the conditions for their activities that are laid down in them out in their states of establishment.

Tourist service entities established outside the EEA and the EU

Tourist service entities established outside the EEA and the EU, whether they are natural or legal persons, who bring foreign tourist parties to Iceland may not operate in Iceland without work permits. Such entities are subject to the Foreign Nationals’ Right to Work Act, and matters relating to them are administered by the Directorate of Labour.

Safety plans

Tourist service providers that bring tourist parties to Iceland shall be obliged to prepare written safety plan for each type of trip. Safety plan shall always be available, in writing, in Icelandic and English. Tourist parties, whether domestic or foreign, may not be carried without a safety schedule being drawn up.

More about safety plans

Further info

Employees of tourist service entities based outside Iceland

Employees posted by companies established in EEA/EU Member States

These companies are obligated to register their operations and their employees they post to Iceland with the Directorate of Labour via the website www.posting.is This applies both to employees who are European citizens and to those who are citizens of states outside the EEA. In the case of the latter category, employment in Iceland shall be restricted to 90 days during the calendar year, and the employee shall demonstrate their right of residence in the posting state. The Directorate of Labour issues a formal authorisation for the person concerned to enter Iceland, which may be presented at the border. Self-employed citizens of EEA states are also subject to the requirement to register with The Directorate of Labour via the website www.posting.is 

Individuals who are citizens of states outside the EEA/EU

Other individuals who are citizens of states outside the EEA are obliged to apply for, and be granted, temporary work permits covering all jobs in Iceland except those that are exempt from the work permit requirement under either Article 22 of Act No. 97/2002 (long-term exemptions) or Article 23 of the same act (short-term exemptions). The jobs listed in the exemption of Article 23 regarding short-term work are exhaustive, and other jobs do not fall under it except in the case of drivers of passenger vehicles, and only those who accompany vehicles to and from the country, and group leaders who accompany groups of tourists to and from the country.

Contractors

It is important to note that individuals who are citizens of states outside the EEA may not work in Iceland as contractors unless they are covered by the long-term exemptions listed in Article 22 or their work is covered by exemptions applying to short-term employment. Individuals who are citizens of EEA Member States who engage in contracting work on a short-term basis in Iceland but are normally established in another European state must register their operations with the Directorate of Labour. It is not possible to apply for temporary work permits for self-employment, per Article 6 of the Act.

Guidance regarding work permits may be found  here and questions may be submitted to atvinnuleyfi@vmst.is

Information on posted workers and foreign service providers may be found at www.posting.is and questions may be submitted to info@posting.is 

Operating licences for the carriage of passengers in Iceland

Persons who hold permits issued by a state within the EEA may carry passengers on a professional basis in Iceland if they hold a community licence from their state of establishment. This applies solely to coaches and buses (vehicles designed for 9 or more passengers) and is in accordance with Regulation (EC) No. 1073/2009 of the European Parliament and of the Council.

Entities who engage in the carriage of passengers on a professional basis using vehicles designed for 8 or fewer passengers are obliged to apply for operating licences from the Iceland Transport Authority in accordance with valid laws and regulations and submit the relevant documentation from their states of establishment. 

Further information on the conditions for the issue of operating licenceses

One of the conditions for the issue of a licence is that the legal domicile of the person in charge is registered in the EEA; consequently, entities based outside the EEA may not be issued with such licences in Iceland. Entities unable to obtain licences for the carriage of passengers for this reason may engage entities which hold operating licences to undertake the carriage. 

List of licence holders

Drivers must always be in possession of the appropriate driving licences authorizing them to carry passengers on a professional basis; such licences include the numerical code 95.

Applicants who intend to use hired vehicles must be in possession of valid licensing examination certificates and display the appropriate licence ticket on the front windscreen. If the applicant intends to use a vehicle carrying a foreign registration number, the vehicle must pass a licensing examination at an inspection station in  Iceland after the Iceland Transport Authority has confirmed that the application process is complete.

Further information on operating licences

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