CompanionIceland

Companion Iceland · Weekly

This Week in the News

The news you miss when you are not in the conversation.

Why this page exists

If you work with Icelanders, you hear things. Someone mentions a fee that went up, a rule that changed, a strike that starts on Monday. Most foreigners here do not have that. They work in international companies, read the news in a language they are still learning, and find out about a change only when it has already cost them money or time.

This page is a weekly scan of what happened in Iceland that touches your permit, your money, your work, your health and your home. Not everything in the news. Only the things a resident would make a different decision about.

Published Mondays. Sources are official Icelandic institutions. Where a news outlet is the only signal, it is labelled as such. If nothing resident-relevant happened, we say so rather than fill the page.

Edition eight · 14 September to 20 September 2026

Last verified 21 September 2026 · ruv.is

The week after the budget, parliament settles into its autumn routine. The big stories this week were about what Iceland is not doing (the EU question stays quiet) and how votes would count. Nothing in this edition changes a rule, a fee or a deadline today.

Item 1

Iceland's EU membership application stays in place, for now

What changed
On 14 September the Prime Minister said the government has no plan to formally withdraw Iceland’s membership application to the European Union. She answered in the first question time of the parliamentary winter, after the referendum on 29 August where voters rejected resuming EU membership talks. She said the situation is the same as it was before the referendum.
What this means for you
The referendum result stands: Iceland is not resuming EU negotiations, and the old application is not being formally pulled back either. For your daily life, nothing changes. Residency rules, work rights and services are not affected by this statement.
Official source
RÚV news report “Engin áform um að draga umsóknina formlega tilbaka”, 14 September 2026 (news outlet reporting the Prime Minister’s answers, not an official government statement).

Item 2

A proposal to change how votes in Alþingi are balanced

What changed
A working group appointed by the Minister of Justice proposes increasing the number of equalisation seats (jöfnunarsæti, “balancing seats”) from 9 to 27, and moving four seats from the northern constituencies to the area around Reykjavík. The group was asked to find a way to make each vote weigh the same across the country without changing the constitution.
What this means for you
This is a proposal, not a law. Changing the voting system touches every future election, so it is likely to be debated for a long time. If you follow Icelandic politics, or read our voting page to understand how elections work here, note that the current system still applies.
Official source
RÚV news report “Leggja til stórfjölgun jöfnunarsæta”, 16 September 2026 (news outlet, not an official government statement).

Item 3

Food and health inspection moves from municipalities to the state on 1 January

What changed
On 20 September RÚV reported that inspection of food, hygiene and pollution control, which today is done by municipal health inspection (heilbrigðiseftirlit, “health inspection”), moves to the state on 1 January 2027. The transition is bumpy: a group of southern municipalities has already given notice to its inspectors, and the state bodies taking over have not finished hiring.
What this means for you
If you run or work in a restaurant, food shop or guesthouse, the inspector who visits you may change next year, and answers during the handover may be slower. The rules themselves are not changing in this step, only who checks them.
Official source
RÚV news report “Uppsagnir, óvissa og fátt um svör frá ríkinu”, 20 September 2026 (news outlet, not an official government statement).

Coming up: the Central Bank’s next interest rate decision in October, and the budget debate in Alþingi. We watch for anything that changes a fee, a deadline or a right for foreign residents.

Edition seven · 7 September to 13 September 2026

Last verified 14 September 2026 · stjornarradid.is, althingi.is

The autumn political season begins. The 2027 budget bill has been introduced, Alþingi has opened its 158th session, and the debate over taxes, fees and spending has started. Nothing is final yet, but the proposals will shape prices, benefits and public services next year.

Item 1

The 2027 budget bill is introduced in Alþingi

What changed
On 7 September 2026 the Minister of Finance presented the 2027 budget bill (fjárlagafrumvarp, “draft budget law”). It was formally introduced in Alþingi at the opening of parliament on 8 September. For the first time in almost a decade the Treasury is projected to balance, with a small surplus.
What this means for you
This is a proposal, not a final law. Over the next weeks Alþingi will debate taxes, fees, benefits and spending. If you receive benefits, pay vehicle taxes, or work in tourism or construction, watch for changes that could affect your costs or income. Most measures would take effect in 2027, not immediately.
Official source
Official budget pages and announcement at stjornarradid.is · article “Langvinnur hallarekstur stöðvaður”, 7 September 2026.

Item 2

Alþingi opens its 158th legislative session

What changed
The autumn session of Alþingi opened on 8 September 2026 with the traditional ceremony. The 158th legislative session runs through 2026–2027.
What this means for you
New bills, including the budget, can now move through parliament. Laws that touch permits, taxes, housing, work and benefits can be introduced or amended in the coming weeks. Most bills take months to pass, so a proposal today is not a rule tomorrow.
Official source
Parliamentary announcements at althingi.is, including “Ávarp forseta Alþingis við setningu 158. löggjafarþings”, 8 September 2026.

Item 3

Vehicle kilometre tax is set to rise, and a new infrastructure fee is planned for tourist sites

What changed
The budget proposal includes a higher vehicle kilometre tax (kílómetragjald, “charge per kilometre driven”) and a new infrastructure fee on tourist sites (innviðagjald á ferðamannastaði), reported by RÚV on 7 September.
What this means for you
If you own or run a car in Iceland, driving costs may go up. If you work in tourism, the fee could affect pricing or operations. The exact rates and start date are part of the budget bill and can change during the parliamentary process.
Official source
RÚV news report “Kílómetragjald hækkað og innviðagjald lagt á ferðamannastaði”, 7 September 2026 (news outlet, not an official government statement).

Coming up: the budget bill goes through readings in Alþingi, and the government’s legislative agenda is published. We will watch for any proposal that changes a deadline, a fee or a right for foreign residents.

Edition six · 31 August to 6 September 2026

Last verified 7 September 2026 · government.is, island.is, althingi.is

Two things mark the start of September: the EU referendum result is certified, and Alþingi comes back from summer recess. Daily life does not change overnight, but the decisions made in the next weeks can.

Item 1

The 29 August EU referendum result is now certified

What changed
The national referendum held on Saturday 29 August 2026 has been counted and the certified result published by the election authorities. The question was whether Iceland should resume accession negotiations with the European Union.
What this means for you
Whatever the result, your permit, your work rights and your healthcare do not change this week. A “yes” would allow the government to reopen talks with the EU, but any membership would still take years and need further decisions. A “no” keeps today’s arrangement: Iceland stays outside the EU but inside the EEA and Schengen. Foreign residents could not vote in this national referendum, but you keep your right to vote in municipal elections.
Official source
Official result and referendum pages at government.is · public notice at island.is. Checked 7 September 2026.

Item 2

Alþingi returns from summer recess

What changed
The autumn session of Alþingi, the Icelandic parliament, begins in September. This is when most new bills, budget proposals, and wage-related measures are introduced after the summer break.
What this means for you
Over the next weeks, laws and budgets that touch permits, taxes, benefits, housing, and work can move quickly. We will watch the agenda and report anything that changes a deadline, a fee, or a right for foreign residents.
Official source
Parliamentary calendar and session information at althingi.is. Checked 7 September 2026.

Coming up: the autumn budget proposal, wage talks, and any changes to permits, taxes, or benefits that follow. If you spot something resident-relevant, write to hello@yourcompanion.is.

Edition five · 24 to 30 August 2026

Last verified 31 August 2026 · government.is, island.is, skatturinn.is

One thing dominated this week: the referendum on Saturday 29 August. One smaller thing also ended: the tax assessment display period closes tonight.

Item 1

Iceland voted on 29 August on resuming EU accession talks

What changed
The national referendum was held on Saturday 29 August 2026. The question put to voters was whether Iceland should resume accession negotiations with the European Union. The count and the certified result are published by the election authorities; check the official referendum pages rather than social media screenshots of partial counts.
What this means for you
Whatever the result, nothing about your daily life changes on Monday. A “yes” would let the government reopen talks with the EU, but membership would still take years and need further decisions. A “no” keeps today’s arrangement: Iceland stays outside the EU but inside the EEA and Schengen. Your permit, your work rights and your healthcare do not change because of this vote. If you are a foreign resident, you could not vote in this referendum; you keep your right to vote in municipal elections.
Official source
Official referendum pages at government.is · public notice at island.is. Checked 31 August 2026.

Item 2

Tax assessment display period for 2025 income closes on 31 August

What changed
The assessment register for individuals (álagningarskrá, “list of assessed taxes”) for the 2025 income year has been on display from 17 August. The display period ends on 31 August 2026.
What this means for you
If you have not opened your result on the Skatturinn website yet, do it today. It shows whether you get money back or owe more. If something is missing or wrong, act inside the display period rather than after it closes. If the result is correct, there is nothing to do.
Official source
Announcement and deadlines at skatturinn.is. Display period 17 to 31 August 2026.

Coming up: the certified referendum result, Alþingi returning from summer recess in September, and the autumn round of wage talks and budget proposals. We will cover whatever changes a decision for residents.

Edition four · 17 to 23 August 2026

Last verified 24 August 2026 · cb.is (Seðlabanki Íslands), skatturinn.is, government.is, island.is

Alþingi is still in summer recess. Two things changed at home: the interest rate went up again, and the personal tax assessment for 2025 income is now on display. The biggest date on the calendar this week, though, is the EU referendum on 29 August.

Item 1

The Central Bank raised the key interest rate to 8.00% on 19 August

What changed
The Monetary Policy Committee of the Central Bank of Iceland (Seðlabanki Íslands) raised the Bank’s interest rates by 0.25 percentage points on 19 August 2026. The key rate, the rate on seven-day term deposits, is now 8.00%. Four of the five committee members voted for the rise; one voted to keep rates unchanged.
What this means for you
Loans get more expensive. If you have a non-indexed loan (óverðtryggt lán, “loan not linked to prices”) with a variable rate, your monthly payment can rise. If your fixed period ends soon, find the end date in your loan documents now and ask your bank what the new payment would be. If you were planning to borrow, the cost of borrowing is higher than it was in the spring. If you have savings, deposit rates usually follow the key rate upward, so it is worth comparing what your bank pays.
Official source
Statement of the Monetary Policy Committee at cb.is (Central Bank of Iceland). Published 19 August 2026.

Item 2

Tax assessment for 2025 income is on display until 31 August

What changed
On 17 August 2026 Skatturinn, the tax authority, published the assessment register for individuals (álagningarskrá, “list of assessed taxes”) for the 2025 income year. It is on display from 17 August to 31 August 2026.
What this means for you
Your own result is in your account on the Skatturinn website. Open it and check it, even if you did nothing wrong. It tells you whether you paid too much tax and will get money back, or paid too little and owe more. If something looks wrong, for example a job, a benefit or a deduction that is missing, act inside the display period rather than waiting. Do not ignore a letter about this: an unpaid amount does not disappear, and it can be collected later.
Official source
Announcement and current deadlines at skatturinn.is. Published 17 August 2026.

Iceland and the European Union

Iceland is not an EU member. It belongs to the EEA and Schengen through separate agreements. On 29 August 2026 Iceland will hold a referendum on whether to resume EU accession negotiations. The membership application submitted in 2009 was never formally withdrawn; talks were only put on hold in 2013.

Item 3

On 29 August Iceland votes on whether to resume EU accession talks

What changed
A national referendum will be held on Saturday 29 August 2026. The question is whether Iceland should resume accession negotiations with the European Union. The membership application submitted in 2009 was never formally withdrawn; negotiations were put on hold in 2013. The referendum was authorised by a parliamentary resolution adopted by Alþingi on 27 May 2026.
What this means for you
If you are an Icelandic citizen aged 18 or over, you can vote. If you are a foreign resident, you cannot vote, but the result matters for your long-term situation. A “yes” would allow the government to reopen talks; EU membership would still take years and require further decisions. A “no” keeps the current arrangement: Iceland stays outside the EU but inside the EEA and Schengen. Nothing changes on 30 August.
Official source
Official referendum pages at government.is · public notice at island.is. Checked 24 August 2026.

Coming up: the EU referendum result, Alþingi returning from summer recess in September, and the next Central Bank rate decision in the autumn. We will cover whatever changes a decision for residents.

Edition two · 3 to 9 August 2026

Last verified 10 August 2026 · statice.is, sedlabanki.is, island.is (Útlendingastofnun), vinnumalastofnun.is, hms.is

Alþingi is still in summer recess, so no new laws this week. What moved was money, permits and the start of the school year. Three items matter for people living here.

Item 1

Prices are still rising, and the interest rate decision is on 19 August

What changed
Statistics Iceland's latest consumer price index shows yearly inflation still above five percent. The Central Bank's Monetary Policy Committee meets on 19 August 2026 to decide the policy rate. Analysts in Iceland expect no cut, and some expect a rise.
What this means for you
If you have an indexed mortgage (verðtryggt lán, “price-linked loan”), high inflation keeps adding to what you owe, even when your monthly payment looks calm. If you have a non-indexed loan (óverðtryggt lán) with a fixed period ending soon, check the end date now, not in the autumn. If you rent, many contracts are also linked to the index, so your rent can rise without your landlord doing anything. Read your contract and find the clause that says how the rent changes.
Official source
Consumer price index at statice.is · rate decision calendar at sedlabanki.is. Decision due 19 August 2026.

Item 2

Work permits are now handled by Útlendingastofnun, not Vinnumálastofnun

What changed
Since 8 July 2026, applications for work permits are processed by the Directorate of Immigration (Útlendingastofnun) instead of the Directorate of Labour (Vinnumálastofnun). The guidance pages are still being merged, so older instructions and older third-party advice can send you to the wrong office. The same changes also tightened the rules for student permits: study progress of at least 75 percent of a full course load is checked at every renewal, and student work is capped at 60 percent of full-time across all employers.
What this means for you
If you or your employer are preparing a work permit application, use the current Útlendingastofnun instructions and ignore any guide written before July. If you are a student here, keep your credits up and keep your total working hours inside the limit, because both are now checked each time you renew.
Official source
Announcement at island.is (Directorate of Immigration) · current forms at utl.is. In force since 8 July 2026.

Item 3

School and daycare start again this month

What changed
Compulsory school (grunnskóli, “primary and lower secondary school”) and municipal daycare places start again in August. Places, school buses and after-school care (frístund) are all tied to the address registered for your child in Þjóðskrá, the national registry.
What this means for you
If you moved over the summer and did not change your registered address (lögheimili), your child can be assigned to the wrong school and you can lose your after-school place. Change the address with Þjóðskrá first, then tell the municipality. Support for school meals, leisure grants and daycare fees is also decided by the municipality you are registered in.
Official source
Address registration at island.is · school and leisure services are published by your own municipality.

Coming up: registered unemployment figures (Vinnumálastofnun, 10 August), the housing price index (HMS, 17 August), the Central Bank rate decision (19 August) and the rental price index (HMS, 18 August). We will cover whatever changes a decision for residents.

Edition three · 10 to 16 August 2026

Last verified 17 August 2026 · island.is (Vinnumálastofnun), stjornarradid.is, sedlabanki.is

Alþingi is still in summer recess, so no new laws this week. Two official releases matter: the July labour market figures and the preparations for the total solar eclipse on 12 August.

Item 1

Unemployment in July stayed at 4.0%

What changed
The Directorate of Labour (Vinnumálastofnun) published the July 2026 labour market figures on 11 August. Registered unemployment was 4.0%, unchanged from June 2026, but higher than the 3.4% in July 2025. The number of unemployed people averaged 8,423 during the month, and long-term unemployment (more than 12 months) was 1,565 people at the end of July.
What this means for you
The job market is not getting worse, but it is not getting much easier either. If you are looking for work, plan for a slower search and make sure your CV and references are ready before you apply. If your residence permit is tied to a specific job, be careful about any gap between jobs, because losing a permit-tied position can affect your right to stay.
Official source
Monthly report at island.is (Directorate of Labour). Published 11 August 2026.

Item 2

Total solar eclipse on 12 August

What changed
A total solar eclipse crossed Iceland on the afternoon of 12 August 2026, moving from the Westfjords across West Iceland and the Reykjanes peninsula. The government issued a public warning on 11 August about travel pressure, limited services in remote viewing areas, temporary road access limits and the need for certified eclipse glasses, especially for children.
What this means for you
If you live in or planned to travel through the Westfjords, West Iceland or the Reykjanes area on 12 August, you needed extra time and fuel, and you may have faced closed or controlled roads. For future reference, events like this show why it is worth checking official travel alerts before you set out, even on familiar routes. Never look at the sun during an eclipse without proper eye protection.
Official source
Government announcement at stjornarradid.is · information portal at island.is/almyrkvi. Published 11 August 2026.

Coming up: the Central Bank rate decision on 19 August, the HMS rental price index on 18 August and the HMS housing price index for July. We will cover whatever changes a decision for residents.

Edition one · 27 July to 2 August 2026

Last verified 4 August 2026 · stjornarradid.is, island.is, heilsugaeslan.is, vinnumalastofnun.is

A thin week. Alþingi is in summer recess, so no new bills. Two items qualified.

Item 1

Health centre visit fees changed on 1 August

What changed
A revised regulation on patient co-payments (komugjöld) for primary healthcare took effect on 1 August 2026. The standard charge for a health centre appointment rose, and the out-of-hours charge rose with it. Exemption categories, children, pensioners and disability pensioners, were not changed.
What this means for you
If you use heilsugæslan regularly, your out-of-pocket cost per visit is now higher than it was in July. The annual cost-ceiling system still applies, so the change matters most to people who visit occasionally and never reach the ceiling. Check the current fee list before you assume last year's number.
Official source
Regulation notice via stjornarradid.is · current fee list at heilsugaeslan.is. Effective 1 August 2026.

Item 2

Summer processing times at Útlendingastofnun

What changed
The Directorate of Immigration continued to run on reduced summer staffing through the period, with published processing times for several permit categories longer than the spring figures.
What this means for you
If your residence permit renewal falls in late summer or early autumn, submit it as early as the rules allow. A permit that expires while a renewal is still being processed can interrupt your right to work, your access to services and your travel. Do not plan travel around an expected decision date.
Official source
Processing times published at utl.is · permit guidance at island.is.

What we check each week

Every Monday we scan the government portal (Stjórnarráðið), Alþingi, Skatturinn, Útlendingastofnun and Vinnumálastofnun. When something significant is signalled elsewhere, Samgöngustofa, Heilsugæslan, or the larger unions, we follow it back to the official notice before it goes on this page.

Editor's note: this page summarises official announcements in plain English. It is not legal advice, and a summary is never a substitute for the source. Where a date or figure matters to you, open the official link and confirm it.

For current events, gatherings and things to do around the country, our sister site Fylgja Iceland keeps the local notes.

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