Governance model and responsible actors
The Ministry of Social Affairs and Housing is responsible for social issues of migrants and refugees, while legal issues are the responsibility of the Ministry of Justice.
There are two administration levels in Iceland, national government and municipal authorities. The municipalities are responsible for preschools, primary schools, and social services, including child protection and financial aid.
The Act on Immigration Issues (Althingi, nr. 116/2012), adopted by Iceland’s Parliament (Althingi) in 2012, is the main legal framework for promoting integration of immigrants into Icelandic society. The Directorate of Labour, under the Ministry of Social Affairs and Housing, is responsible for implementing the law, as well as providing counselling to migrants, issuing work permits, and supporting municipalities with the reception of refugees. With headquarters in Reykjavík, the directorate of labour runs ten service centres across Iceland, including the Multicultural Information Centre. The provisions of the Foreign Nationals Act No. 80/2016 apply to the authorisation of foreign nationals to enter Iceland, their stay in Iceland, and their right to international protection. The Act is administered by the Minister of Justice, and is enforced by the Directorate of Immigration, the Immigration and Asylum Appeals Board, the police, the District Commissioners, Registries Iceland, and others (Government of Iceland, 2016). In 2022, the responsible body for refugees and asylum seekers transferred from the Ministry of Justice to the Ministry of Social Affairs and Housing. Applicants for international protection now receive services from the Directorate of Labour while their application is being processed.
In 2022, the responsible body for refugees and asylum seekers transferred from the Ministry of Justice to the Ministry of Social Affairs and Housing. Applicants for international protection now receive services from the Directorate of Labour while their application is being processed.
A reception centre opened in the centre of Reykjavík in 2022, where applicants for international protection can access Directorate services, including housing, health services, and financial assistance. Upon approved application, the responsibility is transferred from the Directorate of Labour to the host municipality. The reception centre will be moved to the international borders at Keflavík in 2026, to fulfil Iceland´s obligations towards Schengen (Interview 1).
Municipalities across the country have signed agreements on the so-called coordinated reception of refugees (Government of Iceland, 2022). Currently, 13 municipalities are participating in this initiative. The agreements are made with the Ministry of Social Affairs and Labour and the Directorate of Labour. Municipalities themselves decide how many refugees they will receive under the agreement and receive reimbursements from the Icelandic state during the first three years of residence per refugee (Government of Iceland, n.d.).
The Directorate of Labour is responsible for pairing refugees and participating municipalities, according to individual circumstances, employment opportunities, etc. The drawback of this system is that by the time refugees are granted asylum and consequently are paired with a host municipality, they oftentimes have already settled in a different municipality during the period of the application processing period, with their children already enrolled in local school or other ties established (Interview 2).
Current national integration policies: goals and objectives
The Immigrant Affairs Act established formal bodies such as the Immigration Council and Refugee Committee to advise on policies and funding. The Act also mandates a four-year Action Plan on Immigration Issues, which the Minister of Social Affairs and Labour must present, following consultations with other ministries and organisations. The current Action Plan (2022–2025) was approved by Althingi on 16 June 2022 (Althingi, 2022). A new Action Plan 2026–2029 is scheduled for Althingi in March 2026 (Ministry of Social Affairs and Housing, 2025). The Development Fund for Immigrant Issues, established by the Ministry of Social Affairs and Labour in 2007, gives annual grants to research and development projects aiming to facilitate the integration of immigrants (Ministry of Social Affairs and Labour, 2024b).
A new policy on immigration matters 2025–2038 has been drafted, and over 550 people were consulted. Over half of these were migrants in Iceland (Interview 1). Consequently, the Green Paper (Status Assessment and Strategic Options) was published in November 2023, the White Paper (draft policy for open consultation) came out in May 2024 and lastly, a draft proposal for a Parliamentary Resolution on Matters of Immigrants was issued in September 2024. The new proposed policy is directly related to the Education Policy for 2020–2030, the Regional Development Programme 2022–2036, the Parliamentary Resolution on a Strategic Plan for Local Government for 2024–2038 and the action plan for the years 2024–2028, the proposed urban policy, and the Action Plan for the Icelandic Language 2023–2026. Furthermore, the National Plan on Women, Peace and Security 2025–2030 incorporates the needs of women and girls who arrive in Iceland as refugees or applicants of international protection (Ministry of Foreign Affairs, 2025). The draft policy has three specific objectives: (1) Participation and Diversity, (2) Information, Access, and Services, and (3) Communication and Language, 10 key topics and 17 key targets and indicators. The key topics include: simplifying and improving assessment of previous education and work experience of migrants, ensuring the involvement of immigrants in decision-making, and reducing poverty of immigrants. Indicators for integration include migrants’ voting turnout, their representation in the media, and content produced by migrants for the national broadcaster (Ministry of Social Affairs and Labour, 2024a). A new coalition government took office on Althingi in December 2024. The new draft policy has been delayed due to the changes in government. The new administration has not issued any statement regarding the project’s continuation (Interview 1).
In 2024, Althingi approved amendments in the Foreign Nationals Act 80/2016 which concern applicants of international protection and refugees. The amendments pertain to access to the asylum procedure and the legal effects of international protection. These include reducing the validity of residence permits from four years to three years for permits given on the basis of international protection and on the basis of international protection through family reunification with a refugee. The validity of residence permits based on subsidiary protection was reduced from four years to two. Furthermore, residence permits on humanitarian grounds must now be renewed annually instead of after two years. Among other changes are the inclusion of adopted children on the list of those entitled to receive protection through family reunification, and provisional residence permits can no longer be granted if the application for international protection has been rejected (Directorate of Immigration, 2024).
Protection seekers from Ukraine
Iceland is not bound by the European Temporary Protection Directive (TPD), but the Minister of Justice activated a similar process under Article 44 of the Foreign Nationals Act No 80/2016. The reception of refugees in Iceland covered the same groups as determined by the EU. The protection period was initially for maximum of three years but has been extended to maximum five years, or until March 2027 (Ministry of Justice, 2024b).
Individuals granted collective protection receive a residence permit for humanitarian reasons, granted for one year at a time, for up to five years. It entails an Icelandic identity number, access to housing, maintenance, social services, healthcare services, and access to the labour market. A humanitarian permit entails the right to work in Iceland without a work permit. These are the same social and economic rights and support as apply to other refugees (Directorate of Immigration, n.d.; Island.is, n.d.).
Integration or establishment programmes
Unlike the other Nordic countries, there is no official integration programme for newly arrived immigrants or refugees in Iceland. The Ministry of Social Affairs assigned the Directorate of Labour to create teaching material in community education for adult immigrants in Iceland. The material, Landneminn, takes 50 hours to teach and is freely available online in nine languages for self-paced remote studying (Landneminn, n.d.). Various institutions and actors such as the Police, insurance companies, and labour organisations were keen to be involved with the material, but the key hindrance to the programme is accessibility, i.e., finding suitable classrooms, transport to and from classes, and teachers (Interview 2).
The project Education, Reception, Culture (MEMM) was introduced in 2024 to establish a standardised approach nationwide for the reception and education of children with diverse linguistic and cultural backgrounds in preschools, primary schools, secondary schools, and after-school programmes. MEMM also aims to develop and ensure strong advisory services, educational materials and tools, as well as support for addressing more complex situations (Government of Iceland, 2024a).
The project Diversity enriches (Fjölbreytin auðgar) is a course on the benefits of diversity to combat all forms of discrimination, prejudice and racism, intended for employees of the state and municipalities, particularly frontline staff in public service institutions (Mímir, n.d.).
Language training
Educational centres receive financial support from the Icelandic state to carry out language courses in Icelandic, but individuals are not entitled to official language support (Interview 1). Those who receive financial assistance from their municipality, those with a refugee status, and jobseekers are entitled to reimbursement for two courses in Icelandic (Multicultural Information Centre, n.d.-c). Other types of migrants are expected to pay for their language courses (OECD, 2021b). For migrants employed in Iceland, most labour unions offer reimbursements for course fees. The new policy draft for 2025–2038 puts a heavy emphasis on improved access to language training. The platform for the coalition government signed in December 2024 states actions targeting access to language training for immigrants (Government of Iceland, 2024b).
The new draft policy targets a group of immigrants currently underserved in the system – individuals with very limited or no work experience, who often face significant linguistic and social disadvantages (Interview 2).
Settlement process
Upon arrival in Iceland, applicants for international protection and refugees from Ukraine are directed to the reception centre in central Reykjavík, which offers initial support and services to applicants for international protection, including displaced persons from Ukraine. The Directorate of Labour provides temporary housing during the processing of the application and for up to eight weeks after an application has been approved. The Directorate of Labour is responsible for matching municipalities with people who have received international protection in Iceland. The matched municipality has eight weeks to prepare housing for the refugee after the refugee has accepted to participate in the coordinated programme. Once the refugee has moved the legal residence to a municipality, the responsibility for social assistance is transferred from the Directorate of Labour to the municipality. The participation of municipalities in the coordinated reception of refugees programme is voluntary; the municipalities decide for themselves how many refugees they accept under the agreement with the Ministry of Social Affairs and Housing (Directorate of Labour, 2025).
Migrants and refugees have full freedom of movement, and outside of the coordinated reception programme, there is no quota system for the distribution of refugees among the different municipalities. Refugees paired with a municipality are not obliged to accept the offer. However, those who choose not to relocate to the municipality offering accommodation are responsible for securing their own long-term housing. Refugees are legally entitled to certain services, and the level of need depends on individual circumstances. However, reimbursement is only given to municipalities participating in the coordinated reception programme.
Social assistance and financial support
Applicants for international protection, including Ukrainian citizens, receive basic services from the Directorate of Labour while the Directorate of Immigration processes the application, and up to eight weeks after approval. This includes housing in a residence programme, currently offered at 17 locations in three municipalities. The Directorate of Labour also offers financial assistance for food (EUR 56 per week for the first four weeks and EUR 75 per week thereafter for an individual, and up to EUR 196 per household depending on size). The conditions for the food payments are that the individual does not live in housing with full board included, that the individual attends the interviews and meetings they have been invited to attend, and that the individual complies with the housing rules of their residence. The basic services also provide bus tickets, healthcare services, medicines and psychological services, and maternity and infant care. The Directorate of Labour is also responsible for the application for school enrolment of children aged 6–18 (Directorate of Labour, n.d.).
Refugees are entitled to the same services as other residents in the municipality where they hold a legal residence, including financial assistance and housing for those in need. The services can vary between municipalities, and each municipality sets its own rules on financial assistance. Most municipalities require a minimum legal residence in the municipality for three consecutive months before financial assistance can be applied. The set amount of financial assistance differs between municipalities. For example, in Reykjavík municipality the monthly amount for an individual is up to EUR 1745 and EUR 2790 for a couple, and additional support is provided per child with a legal domicile with those granted the financial assistance. This additional support is provided to meet costs of daycare, school meals, and other services offered by the municipality and is paid to the Department of Education & Youth (Council of Reykjavík, 2021). In the neighbouring municipality Kópavogur, the financial support for an individual is up to EUR 1820 and EUR 2910 for a couple per month. In addition to covering the cost of daycare and school meals per child, Kópavogur also provides EUR 211 per month per child during holidays to meet the costs of organised summer activities (Kópavogur Council, 2025). In Reykjanesbær municipality, the amount is up to EUR 1378 for an individual, or up to EUR 2205 for a couple (Reykjanesbær Council, 2022).
Financial aid from the municipality can affect decisions regarding applications for permanent residency, because the requirements for a renewed residence permit, a permanent residence permit, and applications for Icelandic citizenship include secure and independent means of financial support. This condition does not apply to holders of residence permits on grounds of international protection or for humanitarian reasons (Directorate of Immigration, n.d; Multicultural Information Centre, n.d.-a).
The Directorate of Labour is responsible for applications and payment of unemployment benefits and parental leave benefits, and general job-seeking assistance for both migrants and refugees. Other relevant benefits to migrants permanently registered in Iceland include housing benefits allocated by the Housing and Construction Authority and child benefits allocated by the Icelandic Tax authorities.
Healthcare and schooling
Anyone who has a legal residency in Iceland for six consecutive months is covered by the Icelandic health insurance on the same basis as other residents. Individuals who have been granted international protection or a residence permit on humanitarian grounds do not have to meet the condition of having legally lived in Iceland for six consecutive months (Multicultural Information Centre, n.d.-b).
Primary and lower secondary education is compulsory for all children aged 6 to 16 living in the country.