Remote work could shift Icelanders from the capital to rural areas
Wednesday 30th September 2026 on 15:45 in
Iceland
More flexible remote working could encourage people to move from Iceland’s capital region to rural areas, according to research reported by mbl.is. The study found that around one in five capital-area residents could imagine living elsewhere if their job were not tied to a location.
About 55% of employed people in Iceland do at least some work that is not location-based. Nearly a quarter said they would like to work remotely for between 26% and 75% of their working hours, while 10% do so now.
The researchers estimated that, with more scope for location-independent work, the population outside the capital region could grow by as much as 20%, while the capital region’s population could fall by 12%. More than 80% of respondents were satisfied with where they lived, but most of those who wanted to move appeared to prefer rural areas or the countryside.
The research was carried out late last year using a random sample from across Iceland. It asked about employment, working arrangements and preferred place of residence if location-independent work were available. The findings were presented at a conference on regional affairs at the University of Akureyri last week.
The study was conducted by Vífill Karlsson and Gréta Bergrún Jóhannesdóttir, researchers at the Research Center for Regional and Municipal Studies at Bifröst University, for the Association of Municipalities in West Iceland.
Preferences varied by region: 87% of respondents in Northeast Iceland said they wanted to stay where they lived, compared with three-quarters of those in the Westfjords. Gréta Bergrún told Morgunblaðið that people may often be thinking of moving within their own region.
The research focused in particular on West Iceland, where 57% of residents already do at least some location-independent work. The researchers said there was considerable potential to increase that share. Many people in the region also travel long distances to work; a large number live in Akranes and commute daily to the capital region.
Gréta Bergrún said employers needed to offer more flexibility for work that is not tied to a location. She said this could improve staff wellbeing, reduce stress and ease traffic congestion in the capital region. The study also found that civil servants were notably better informed than other workers about their employer’s policy on flexibility at work.