Health insurance in Iceland for expats

Iceland has a two-tier healthcare system that serves its population of just under 400,000 people.¹

The public healthcare system is based around insurance contributions from every Icelandic citizen, and all legal residents that have been in the country for at least six months. These monthly contributions subsidise around 85% of the cost of public healthcare services, with the remainder covered by co-payment.²

Iceland also has a selection of private healthcare facilities, accessible either through out-of-pocket payments or through private health insurance cover. These facilities can provide a range of specialist and elective treatments, as well as delivering faster access to care and greater personalisation.

The standard of healthcare in Iceland is very good. In 2024 CEOWorld’s Health Care Index ranked Iceland third in the world for the sub-category of ‘medical infrastructure and professionals’. They went on to rank Iceland 36^th overall, globally.³ 

The public healthcare system has a range of hospitals and clinics, although many of these are situated in and around the capital Reykjavik – understandable given that the Capital Region makes up around 65% of Iceland’s population.⁴ Access to more advanced care may therefore be harder to find in more rural areas. Waiting times for non-urgent procedures in public facilities can also be lengthy.⁵

The trade-off for good-quality healthcare in Iceland – whether public or private – is that it can be expensive. All residents are required to pay considerable monthly fees for public healthcare access, plus additional co-payments. Prescription costs can be high, with maximum prices regulated and updated monthly by the Icelandic Medicines Agency.⁶

If you’re an expat living and working in Iceland, then you’re legally required to register for the Icelandic Health Insurance system that funds public healthcare. With this registration in place, you’ll be entitled to the same access to care as Icelandic citizens.

Digital nomads aren’t entitled to public healthcare in the same way. As part of your visa application process, you’ll need to prove that you have private health insurance for the duration of your stay in Iceland, with coverage at a minimum of ISK 2 million (approx. £11,800; $15,900; €13,900).⁷

What kind of documentation do I need to access healthcare in Iceland?

Firstly, you’ll need your Icelandic ID number, which you can get from a local tax office. When completing your application, you'll also need to provide proof of income and residency. Once your application has been approved, you’ll receive a health insurance card, which you should keep with you so that you can access public healthcare as and when you need it.

Public healthcare costs are largely covered by insurance-based contributions. If you’re working in Iceland, then these will be automatically deducted from your salary. If you aren’t employed or if you’re retired for example, then you’ll need to make these contributions yourself. The maximum contribution per month is ISK 25,100 for an adult (approx. £150; $200; €175), and ISK 16,700 for a child or pensioner (approx. £100; $135; €115).⁸

These monthly fees cover approximately 85% of the costs of public healthcare in Iceland. The remainder must be covered by patients in the form of co-payments. Typical costs include: 

• doctor’s appointment during working hours – in this case a scheduled consultation at a primary healthcare centre seeking general advice, a follow-up or regarding minor health issues: ISK 500 (approx. £3.00; $4.00; €3.50).
• doctor’s visit during working hours – in this case a more a more comprehensive or urgent consultation: ISK 3400 (approx. £20; $27; €24).
• laboratory analysis: ISK 3591 (approx. £21; $29; €25).
• pregnancy test: ISK 904 (approx. £5.30; $7.20; €6.30).

These co-payments are subject to a maximum monthly cap of ISK 35,824 (approx. £210; $285; €250). Lower rates and maximum caps apply for pensioners and those with disabilities.⁹

Having private medical cover in Iceland is not mandatory, unless you’ll be staying in the country for less than six months. But the improved quality and access to care makes it a worthwhile investment.

What are the benefits of private health insurance in Iceland?

Having private medical insurance in place in Iceland means you can benefit from:

• Shorter waiting times: Going private can reduce the time you have to wait to see a specialist or get the treatment you need.
• High-quality care: Private facilities tend to offer more comfortable facilities and a more dedicated standard of care.
• Dental cover: Dentistry is only covered to a limited extent by the public system, so private cover can make sure your dental treatment bills don’t become unaffordable.
• Pescription cover: The cost of prescriptions in Iceland can be high. A good private insurance policy can help you take care of these costs.
• Peace of mind: Paying out-of-pocket can quickly lead to large medical expenses – private e cover can absorb those costs and remove the financial stress from your care.

Would I need dental insurance in Iceland?

It’s a good idea to make sure you have private dental cover in place in Iceland. There are some basic dental services covered by the public healthcare systems, including check-ups and essential treatments, but these are subject to the same co-payment system as other public health services.

The quality of dentistry in Iceland is generally regarded to be good¹⁰ but if you’re using private dental services regularly, costs can quickly reach very high levels. Private healthcare cover that includes dental care therefore represents the best combination of quality care and value for money available. 

The main emergency number for Iceland is 112, which can be used to call an ambulance or to connect to the police and fire services. If you’re intending to spend a lot of time in rural and remote areas, it’s also worth noting the Search and Rescue number, which is 570-5900.

If you need emergency care in Reykjavik that does not require an ambulance, then you can call the emergency room at the Landspitali University Hospital directly at 525-1700.