Hiring in Iceland with an EOR: Why Companies Look at This Market
Iceland is a small country with a very developed economy and high living standards. It has a strong services sector, solid infrastructure, and a labour market that relies heavily on skilled, well-educated workers. Many roles sit in tourism, tech, creative work, and professional services.
The country is also one of the richest in the world when measured by output per person. Recent estimates show Iceland’s GDP per capita forecast at around 78,800 US dollars in 2025, which keeps it near the top of global rankings for income levels. Also Iceland’s unemployment rate was around 4.2-4.5 % in late 2025, with a strong employment rate and high labour force participation, reflecting a tight labour market despite small ups and downs.
English is widely spoken, especially in business. This makes it easier for foreign companies to work with Icelandic staff without large language barriers. At the same time, local labour rules, collective agreements, and social contributions can be hard to follow if you do not know the system well.
Using an Employer of Record Iceland solution gives companies a way to hire in the country without opening a local entity. The EOR becomes the legal employer on paper. They take care of contracts and payroll, plus the everyday compliance tasks. The foreign company keeps control over daily work and performance.
This model helps reduce setup time and lowers risk for small or mid-sized teams. It can also be a test step before opening a full office. In this guide, we look at the main Iceland EOR companies, both local and global, and give a clear view of how EOR in Iceland works in practice.
Top 10 Iceland Employer of Record Local and Global Providers
Below is an overview of key Employer of Record Iceland providers that support foreign hiring in the country. The list is organised in alphabetical order, so you can scan and compare them easily.
Aspirock
Company Description:
Aspirock is an Iceland Employer of Record and HR services firm focused on local employment support. The company helps international businesses that want to hire staff in Iceland but do not want to open a local company. It combines payroll help with HR guidance.
Key Specialty Area:
Local Iceland HR and payroll
Service Cost:
Quote-based pricing
Top Advantages:
- Strong knowledge of Iceland rules
- Steady local payroll delivery
- Helpful guidance for employers
- Clear onboarding support steps
Scope of Services:
- Employer of Record services Iceland
- Monthly payroll and payslips
- Employment contract drafting help
- HR documentation and records
Our Verdict
Good fit for employers wanting in-depth local support.
Horizons
Company Description:
Horizons is a global EOR platform that includes Iceland in its country list. It helps companies hire local workers through a single system that centralises contracts and payroll. Iceland is one of many markets where they support remote or on-site roles.
Key Specialty Area:
Global EOR and expansion
Service Cost:
Starting from $199/month per employee
Top Advantages:
- Wide global country coverage
- Central platform for teams
- Clear compliance-focused process
- Helpful support for HR teams
Scope of Services:
- EOR Iceland and other markets
- Payroll calculation and payments
- Contract templates and updates
- Ongoing HR support services
Our Verdict
Strong choice for teams hiring in Iceland plus other countries.
*As pricing is subject to change, we are listing prices as they stand in February 2026
Multiplier
Company Description:
Multiplier is a global tech-led EOR provider that covers Iceland along with many other regions. It offers a digital platform that lets employers send offers, issue contracts, and run payroll for Icelandic workers from one interface while the company keeps control of daily work tasks.
Key Specialty Area:
Technology-focused global EOR
Service Cost:
Starting from $400/month per employee
Top Advantages:
- Modern self-service EOR platform
- Structured hiring and onboarding flow
- Clear payroll setup for Iceland
- Good visibility into compliance status
Scope of Services:
- Employer of Record in Iceland and globally
- Monthly payroll and tax handling
- Contract creation and e-sign workflows
- HR data and reporting tools
Our Verdict
Best suited to tech-driven teams that value a digital-first tool.
*As pricing is subject to change, we are listing prices as they stand in February 2026
NNRoad
Company Description:
NNRoad is a global HR and payroll provider that offers EOR in Iceland as part of its multi-country network. The company supports employers who want to hire Iceland-based staff through local registration handled by NNRoad rather than by the client.
Key Specialty Area:
Global HR and payroll outsourcing
Service Cost:
Custom quotes based on headcount
Top Advantages:
- Experience with cross-border hiring
- Solid payroll and compliance routines
- Helpful support for growing teams
- Consistent service across markets
Scope of Services:
- EOR services in Iceland and abroad
- Payroll and contribution handling
- Employment contracts and updates
- HR administration and record keeping
Our Verdict
Suitable for companies building small Iceland teams within a broader global footprint.
Payday
Company Description:
Payday is an Iceland payroll and HR firm with services tailored to local employers and foreign businesses. It supports clients that need Iceland EOR help, especially those that want accurate payroll work combined with local HR insight and employee communication.
Key Specialty Area:
Local payroll and HR support
Service Cost:
Tailored packages
Top Advantages:
- In-depth Iceland payroll expertise
- Practical handling of social charges
- Direct contact with local HR staff
- Clear documentation for employers
Scope of Services:
- Iceland Employer of Record services
- Payroll processing and reporting
- Employment contract preparation
- Staff records and HR support
Our Verdict
Strong local partner for payroll-led Iceland operations.
Peak PEO
Company Description:
Peak PEO is an Iceland-based provider that offers PEO and EOR support for foreign firms. It helps companies that want a local presence for staff without creating their own entity, and it supports long-term employment relationships with structured HR processes.
Key Specialty Area:
Local PEO and EOR services
Service Cost:
Quote-based per client
Top Advantages:
- Clear focus on Iceland market
- Help with everyday HR matters
- Stable payroll and reporting work
- Guidance on local labour practice
Scope of Services:
- Employer of Record Iceland
- Payroll administration and filings
- Support for onboarding steps
- HR advisory and document support
Our Verdict
Good match for companies planning small to mid-sized Iceland teams.
Skuad
Company Description:
Skuad is a global EOR platform that includes Iceland in its catalogue. It enables companies to onboard Iceland-based workers as employees while Skuad acts as legal employer. The client manages projects and performance through their usual internal managers.
Key Specialty Area:
Global remote employment platform
Service Cost:
Starting from $199/month per employee
Top Advantages:
- Easy digital onboarding system
- Clear view of costs per hire
- Compliance monitoring for Iceland
- Support team used to remote work
Scope of Services:
- EOR services Iceland and global
- Payroll and statutory contribution work
- Contract generation and renewal
- HR helpdesk for staff questions
Our Verdict
Ideal for remote-first teams that need Iceland talent within a global roster.
*As pricing is subject to change, we are listing prices as they stand in February 2026
Swapp Agency
Company Description:
Swapp Agency is an Iceland HR and talent provider that helps foreign companies access local professionals. While known mainly for staffing and recruitment, it can also support Employer of Record needs through local structures and tailored HR services.
Key Specialty Area:
Local talent and staffing support
Service Cost:
Depends on role and service mix
Top Advantages:
- Strong link to local candidates
- Practical understanding of Iceland market
- Flexible approach to client needs
- Supportive HR communication style
Scope of Services:
- Employer of Record services
- Recruitment and candidate sourcing
- Onboarding and local HR support
- Coordination of payroll with partners
Our Verdict
Good choice when recruitment and EOR support need to sit close together.
TeqHire.com
Company Description:
TeqHire.com is an Iceland-focused recruitment and HR company that helps foreign firms find technical and professional staff. For employers that do not want to open an Iceland entity, the company can connect hiring support with local employment and HR handling.
Key Specialty Area:
Tech and specialist recruitment in Iceland
Service Cost:
Role-based pricing
Top Advantages:
- Focus on technical and digital roles
- Close contact with Iceland talent pools
- Ability to combine hiring and HR
- Support through full employee cycle
Scope of Services:
- Support for Iceland EOR structures
- Candidate search and selection work
- Onboarding coordination with employers
- HR support for placed employees
Our Verdict
Strong option if you need specialist hiring plus local employment help.
WeHireGlobally
Company Description:
WeHireGlobally is a worldwide EOR provider that lists Iceland among its covered countries. It works with companies that want a single provider across many locations, including Nordic markets, and offers centralised reporting plus local compliance handling.
Key Specialty Area:
Global multi-country EOR coverage
Service Cost:
Tailored EOR packages
Top Advantages:
- Wide geographic reach for teams
- Single relationship for many markets
- Documented approach to compliance
- Support suited to scaling companies
Scope of Services:
- EOR in Iceland and worldwide
- Payroll processing and filings
- Contract preparation and updates
- HR support and basic guidance
Our Verdict
Best for employers adding Iceland into a larger global expansion plan.
If you plan to explore Iceland alongside nearby markets, it can help to compare costs, rules, and hiring timelines with other Nordic and European countries. Looking at options such as EOR Norway, EOR services Denmark, Sweden Employer of Record, and Finland Employer of Record will give you a clearer view of where Iceland fits in your wider hiring map.
What to Know About EOR Iceland: FAQs
How practical is the EOR model in Iceland for small or early-stage teams?
For small or early-stage teams, the EOR model in Iceland is usually very practical. Setting up a local company can involve registration steps, banking, and ongoing filings. An EOR removes most of this work. The provider hires the worker on your behalf, then handles payroll and local obligations. This lets you test the market and grow at a slow pace without large fixed setup costs.
What compliance challenges are unique to hiring employees in Iceland through an EOR?
Iceland follows its own labour code, uses specific collective agreements, and has clear rules about vacation, sick leave, and working time. Social contributions also need careful handling. When you hire through an EOR, they map the right agreement to each role and make sure the correct rights apply. This lowers the risk of underpaying benefits or missing required protections for staff.
How does EOR hiring in Iceland compare to other Nordic countries like Sweden or Denmark?
All Nordic markets share strong worker protections and organised labour structures, but each country uses its own rules and agreements. Iceland has a smaller population and relies heavily on services and tourism, which can affect role types and pay levels. When companies compare Iceland with EOR services Denmark or Sweden Employer of Record, they often find that processes feel similar, yet salary ranges and local expectations differ.
Can EOR providers in Iceland support remote or hybrid employment arrangements?
Yes. Many EOR providers in Iceland support staff who work fully remote, partly remote, or from a local office. The important point is that the worker stays registered as an employee in Iceland with the correct tax and social contribution setup. The EOR checks that the place of work, working pattern, and equipment rules fit local law and that the contract reflects the real arrangement.
What industries most commonly use EOR services in Iceland?
EOR services in Iceland are common in technology, digital services, tourism-related work, creative industries, and professional services. These areas often rely on project-based growth and cross-border work, so employers prefer flexible hiring. Foreign companies use EOR when they want to hire a handful of people for support, development, or operations, but do not want to wait for a full entity registration before starting.
Yaryna is our lead writer with over 8 years of experience in crafting clear, compelling, and insightful content. Specializing in global employment and EOR solutions, she simplifies complex concepts to help businesses expand their remote teams with confidence. With a strong background working alongside diverse product and software teams, Yaryna brings a tech-savvy perspective to her writing, delivering both in-depth analysis and valuable insights.
