Iceland will begin charging full tuition fees to most students from outside the European Economic Area at public universities from the 2027–28 academic year. The change makes Iceland the last Nordic country to introduce such fees. 

The law ends state funding for most non-EEA students, while exempting students from the Faroe Islands, Greenland and Switzerland. Non-EEA residents who already hold permanent residence permits in Iceland are also exempt. Universities will set their own fees, which have not yet been determined. 

The government’s main argument is financial. The bill says the rising number of non-EEA students has increased the cost of teaching and student services. The share of Iceland’s non-EEA student population grew from 3.89% to 7.44% over seven years, while applications to the University of Iceland rose from under 1,200 in 2021 to nearly 2,600 in 2025. 

The legislation also argues that public universities have been disadvantaged because, unlike private institutions, they could not charge these students tuition. The change will bring Iceland into line with the rest of the Nordic region and follows recommendations included in a 2023 OECD report. 

One likely consequence is a significant drop in applications from outside the EEA. Similar policies elsewhere in the Nordic region caused sharp declines in applications, at least initially. Scholarships and exemptions could later affect demand. 

The tuition change comes alongside tighter rules for international students, including a shorter post-graduation job-search permit and stricter conditions for family reunification and permit renewals. Fees must be set before enrolment opens in December 2026.