This fear is rooted in strong emotions, but it can be eased by looking at the facts.
The situation today: free movement is already in place
Through the EEA, citizens of all EU member states already have the right to live and work here. Polish, Lithuanian, and Portuguese workers have been part of our communities for years, working in software development, fish processing, construction, tourism, and healthcare. Our economy relies on this labour flexibility — without it, many sectors would face severe worker shortages. EU membership would change nothing about this right of free movement, because it's already in place through the EEA.
Asylum and the Dublin Regulation
We already participate in the Dublin Regulation — the system that determines which European country is responsible for processing an asylum claim. We signed on through a bilateral agreement tied to our Schengen membership and use it (sometimes controversially) to determine responsibility for asylum cases based on the country of first arrival. Our geographic position as an island in the North Atlantic means that in practice, very few asylum seekers arrive here as their first destination in Europe.
What about mandatory quotas?
The EU's New Pact on Migration and Asylum, which took effect in 2026, introduces a solidarity mechanism designed to ease the burden on Mediterranean countries that receive the most refugees. Each member state's share is calculated by a formula based on population and GDP. But countries choose how they contribute: by physically relocating asylum seekers, by paying a financial contribution (€20,000 per person), or by providing operational support such as personnel or equipment. No country is forced to accept people if it prefers to contribute differently.
Based on current assumptions — population and GDP — Iceland's reception quota would be on the order of 40 people. We already take in more asylum seekers than that through the Dublin Regulation, so in all likelihood this quota would add nothing to what we already face.
A voice at the table
What EU membership would actually change is not who can come here, but whether we have a voice in shaping the rules. Right now, we apply the Dublin Regulation but had no vote when it was written. We participate in Schengen but don't sit at the table when Schengen policy evolves. Inside the EU, we'd have a say in designing migration and asylum policy — including the ability to advocate for approaches that suit our circumstances.
In short: Our geography, climate, labour market, and small population mean that the wave of migration most affecting Mediterranean countries doesn't affect us in the same way. The more relevant question is whether we want to help shape Europe's response to these challenges, or continue to sit on the EEA sidelines on this as on so many other matters.
Sources and further reading:
- EU Regulation 604/2013 — the Dublin III Regulation. Determines which member state is responsible for processing an asylum claim within Europe.
- EU New Pact on Migration and Asylum, adopted 2024 and took effect 2026. On the solidarity mechanism and the formula for member state contributions.
- Eurostat: asylum application statistics — data on asylum applications and granting of international protection in Europe (2023–2024).
- Directorate of Immigration: annual report 2024 — asylum seeker statistics and implementation of the Dublin Regulation in Iceland.
- Government of Iceland: Schengen cooperation — on Iceland's participation in shared European borders.
- EFTA: Free Movement of Persons in the EEA — on the right of EEA citizens to live and work across the area.