How to set up banking in Iceland as a foreigner
Opening a bank account in Iceland as an expat: difficulty level, required documents, digital banking options, and international transfer tips.
Iceland has a unique banking culture that catches many expats off guard.
Banking Overview in Iceland
| Feature | Details |
|---|---|
| Currency | Icelandic króna (ISK) kr |
| Bank Account for Foreigners | Yes |
| Access Difficulty | Medium |
| Remote Opening | No |
| Wise Available | No |
| N26 Available | No |
Opening a Bank Account in Iceland
Foreigners can open bank accounts in Iceland. The process difficulty is rated as medium, which means you should expect some bureaucracy and possibly language barriers.
Required Documents
- Valid passport or national ID
- Proof of address / residence registration
- Residence permit (if applicable)
- Tax identification number (if available)
- Initial deposit (amount varies by bank)
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Digital Banking Options
Wise (TransferWise)
Wise has limited availability in Iceland. While you may be able to send money to Iceland, full local account features may not be available. Check their website for the latest on Iceland-specific services.
N26
N26 is not currently available in Iceland. You may need to consider local digital bank alternatives or traditional banks.
International Transfers
When transferring money to or from Iceland, consider these factors:
- Exchange rate: The currency is ISK. Always compare the offered rate with the mid-market rate.
- Transfer fees: Transfer fees vary — compare providers like Wise for the best rates.
- Transfer speed: Bank-to-bank (SWIFT) transfers take 2-5 business days. Digital services often complete within 1-2 days.
- Regular transfers: If sending money home regularly, set up a recurring transfer to lock in better rates.
Salary and Everyday Banking
The average salary in Iceland is approximately €5,708 per month. Your employer will typically require a local bank account for salary deposits. Most banks offer:
- Debit card (Visa or Mastercard)
- Online banking portal and mobile app
- Direct debit setup for rent and utilities
- ATM withdrawals (check fee policies)
Tips for Expats
- Ask about expat-friendly packages: Some banks offer special accounts for foreign residents with English-language support and lower fees.
- Set up online banking immediately: Most routine transactions can be handled online or via app, saving you queues and branch visits.
- Learn key banking terms: A few words in the local language go a long way at the bank counter and when reading statements.
- Keep your home bank account: Maintain an account in your home country for at least the first year, in case you need to transfer funds back.
- Get a local phone number first: Most banks require a local mobile number for SMS verification. Set this up before visiting the branch.
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Frequently Asked Questions
Are there any fees for maintaining a bank account in Iceland?
Many banks in Iceland charge monthly maintenance fees ranging from kr2 to kr15. Some offer free accounts if you maintain a minimum balance or receive a regular salary.
How long does it take to open a bank account in Iceland?
Opening a bank account in Iceland typically takes 1-3 weeks depending on documentation readiness and the bank chosen. Digital banks may be faster.
How do ATM withdrawals work in Iceland?
ATMs are widely available in Iceland. Your bank's ATM network is usually free; out-of-network ATMs may charge kr1-5 per withdrawal. International cards may incur additional fees.
What are the best banks for expats in Iceland?
For expats in Iceland, options depend on your needs. ID number helpful. Landsbankinn and Arion accessible. We recommend comparing traditional banks with digital alternatives based on your transaction patterns and whether you need international transfers.
How do international money transfers work from Iceland?
You can transfer money from Iceland via SWIFT bank transfers (2-5 days, higher fees) or digital services . Compare rates between your bank and specialist transfer services to save on fees.