How to Open a Bank Account in Iceland

4 min readDec 8, 2022

Written by Congqi Su

Iceland is a beautiful Island country in Europe. Iceland had a strong growing bank sector in the early 2000s; however, the business was hit hard by the 2008 financial crisis. Through austerity, devaluation, and change of government, Iceland recovered from the deep recession and became one of Europe’s strongest economies again. It’s not hard to create a bank account in Iceland, even if you are new to Iceland. Unfortunately, tourist cannot open a bank account in Iceland.

Major Banks in Iceland:

Central Bank

· Central Bank of Iceland

Commercial Banks

· Landsbankinn

· Íslandsbanki

· Arion banki

· MP banki

According to TheBanks.eu Website

What do you need to open a bank account in Iceland?

· An Icelandic ID-number

To become a customer of an Icelandic bank, you first need an Icelandic identification number — kennitala. Icelanders are automatically assigned a kenitala, citizens from the EEA/EFTA states can apply for the ID number at the Icelandic National Registry. Other citizens can visit the Directorate of Immigration website to apply and for more information. To apply for your kennitala, you will need your registered address in Iceland and your passport.

· ID

You can apply for an electronic ID if you have an Icelandic ID number. You can then use the electronic ID to open a bank account online. The process is simple, and you can see any debit or savings accounts immediately. You will need an Icelandic SIM card to use the electronic ID,

o If you can’t or do not want to use electronic ID: you can visit or make an appointment at a nearby branch of the bank to be customer and apply for a bank account.

§ Remember to bring your passport.

§ Customers from any country outside the EEA/EFTA also need to bring a residence permit.

o In Iceland, account set up is immediate. But customers need to wait up to five working days for debit cards to be sent to your home.

Information According to N26, islandsbanki Website and landsbankinn Website

Don’t Worry About Your Age

There is no minimum age requirement to open a bank account in Iceland. No matter if you are an adult or children, ID is the thing you need to open an account. But to apply for a debit card, children must be at least nine years old.

Credit Cards in Iceland

Icelandic banks offer credit cards, and each of the credit cards charges an annual fee which is according to the features and benefits of the card.

Are foreign students allowed to open such accounts in Iceland?

People wishing to open a bank account in Iceland must have both an Icelandic Id, which means foreign students from outside the EU/EFA need to apply for Residence Permits for students at first. Foreign students will need the passport and the registered residence in Iceland to apply for your kennitala. Foreign students from outside the EU must apply for the kennitala through the Immigration Directorate. Once you got the kennitala and your ID, you can open a bank account in minutes.

According to Directorate of Immigration of Iceland

Are tourists allowed to open accounts in Iceland?

Unfortunately, tourists are not allowed to open bank accounts in Iceland. You can’t open a bank account in Iceland unless you have Kennitala.

This article was written by Congqi Su, a graduate student at NYU

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