Living in Iceland as a French National: Cities, Settling In, Safety, Natural Hazards and Cost of Living

Iceland offers the free movement of the European Economic Area and the Schengen area, in a country where general safety conditions are described as good by France Diplomatie. The French Treasury (Direction générale du Trésor) describes a dynamic and very open economy, based on tourism, fishing and aluminium, with data centres developing thanks to renewable energy.

• Unique nature: volcanoes, glaciers and hot springs, with a public safety network (the safetravel.is website) to prepare journeys at altitude.
• A normal vigilance level: France Diplomatie rates the whole territory at normal vigilance.
• A universal health system: run by the national fund Sjúkratryggingar Íslands; the page on the healthcare system in Iceland details how it works.
• Online public services: the island.is portal brings together procedures, with an English version.

The points to watch should be known from the preparation stage: the currency, the Icelandic króna, high prices, dark winters, changeable weather and a waiting period before entitlement to local health insurance opens (see healthcare reimbursement in Iceland).

Reykjavik, the capital and main employment hub, is home to the French embassy (Túngata 22) and the Landspítali university hospital. Akureyri, in the north, is the second-largest urban area and has a French consular agency; the agencies in Ísafjörður (north-west) and Egilsstaðir (east) complete the consular network, with the Egilsstaðir one vacant pending a new contact (France Diplomatie). The health centres in central Reykjavik are sometimes full, which makes it worth checking the availability of a contracted doctor before choosing a neighbourhood (CLEISS, the French liaison centre for international social security).

The south of the island and the Reykjanes peninsula concentrate eruptions, and the central highlands require particular care: France Diplomatie advises against going there alone. These benchmarks help in choosing a place of residence; a trial stay of a few weeks, winter included, lets you test journeys, the weather and access to care.

Iceland is an expensive country: the French Treasury notes that inflation is the economy’s weak point, driven in particular by housing prices, and that the central bank’s key rate is high. The real cost of an expatriation project depends on the neighbourhood, the size of the home and the lifestyle; the “Economic indicators” block on this page tracks inflation and the exchange rate continuously.

• Housing: rents and purchase prices vary widely between the Reykjavik area and the rest of the country; Statistics Iceland publishes the reference statistics, to be consulted before any decision.
• Tax: withholding tax on salaries is progressive depending on the monthly bracket, with rates revised every year (Icelandic tax authority).
• Health: a monthly patient share capped at ISK 37,794 for the general public (island.is); see the healthcare system in Iceland.
• Currency: the Icelandic króna (ISK), with an exchange-rate risk for a budget in euros.

The guide on budgeting for health abroad helps you build medical costs into the overall budget.

France Diplomatie specifies that a national identity card or a passport valid for the whole length of the stay is accepted, and that, as Iceland is in the Schengen area, French nationals move freely for stays of less than three months. Identity cards issued to adults between 1 January 2004 and 31 December 2013 remain valid five years after the date printed on the back, but a valid passport is recommended.

• Beyond three months: anyone wishing to settle registers with the national register (Þjóðskrá), which keeps the register of residents (France Diplomatie). The embassy’s “Settling in Iceland” guide details the procedure.
• Identification number: the personal number (kennitala) is used for banking, tax and health procedures; the documents to provide should be checked with the national register.
• Health insurance: entitlement requires six months of legal residence counted from registration with the national register (CLEISS), with possible exceptions for citizens of the European Economic Area, to be confirmed with Sjúkratryggingar.
• Customs: the rules on animals, animal products, alcohol and tobacco are published in English by the tax and customs administration (France Diplomatie).

Registration on the register of French nationals living abroad, with the embassy, completes the settling-in for anyone staying more than six months.

France Diplomatie’s useful contacts page mentions neither a French school nor a French lycée in Iceland; the French embassy in Reykjavik advises on schooling solutions in French and on distance learning. Families find Icelandic public schools and, in the capital region, international schools; the choice depends on the children’s age, the length of stay and the planned return to France.

On the health side, children under 18 benefit from a reduced and capped patient share: ISK 25,198 per month from age 2 to 18, and free under 2 (island.is), with free rehabilitation care on prescription (island.is); see also expat family insurance.

France Diplomatie describes urban crime (burglaries, assaults), petty theft and pickpockets at heavily visited sites, and recommends vigilance in bars, especially at weekends, because of aggressive alcohol-related behaviour. It advises avoiding signs of wealth, not carrying large sums and leaving nothing visible in cars.

• Weather: floods, storms, avalanches in winter and landslides; roads close quickly, and air disruption affects Keflavik airport in particular.
• Volcanoes: more than a hundred active volcanoes; eruptions occur mainly in the south and the Reykjanes peninsula, sometimes at short notice.
• Earthquakes: regular earthquakes, sometimes with no warning.
• Roads and glaciers: harsh weather conditions and risk of crevasses; glacier hiking and visits to ice caves must be led by an Icelandic guide, with the caves best visited from November to March.
• Highlands: it is advised not to go there alone; the safetravel.is website is the official source to consult before a journey, together with the Icelandic civil protection authority, the meteorological institute and road.is for road conditions.
• Emergencies: 112 directs you to the police, the fire service and civil protection.

Iceland has long, dark winters and bright summers; as no readings were taken from an official source, no temperature figure is given here, and the Icelandic meteorological institute publishes the normals. France Diplomatie recommends vitamin D supplements for long winter stays, because of the low sunshine, and reminds you to swim only in supervised areas, checking the currents.

The official language is Icelandic; English is very widespread, but Icelandic makes employment, paperwork and social life easier. For an overview of health cover, see expat health insurance; Expavy helps you compare the options according to your status and budget.