On 31 January 2020, the UK left the EU, with a Withdrawal Agreement in place. Under the terms of the Withdrawal Agreement, there will be a transition period, during which much will remain the same.
The transition period is due to last until 31 December 2020, but it may be extended if the EU and the UK agree to this. During the transition period, the UK will be treated as if it were still a member of the EU and EEA. The rules on free movement will continue to apply, and the rights of British citizens and their family members in Iceland will remain unchanged during this period.
Iceland and the other EEA/EFTA States have signed a Separation Agreement with the UK that, among other things, safeguards the rights of British citizens and their family members living in Iceland and similarly protects the rights of EEA/EFTA citizens living in the UK. The Separation Agreement largely mirrors the Withdrawal Agreement reached between the EU and the UK. The purpose of the Separation Agreement is to ensure that British citizens who are living in an EEA/EFTA country at the end of the transition period can continue to do so and will continue to enjoy broadly the same rights as they do now.
The Directorate of Immigration has published an Information page for British citizens with questions and answers on how Brexit will affect British citizens living in Iceland. We are still working on the details of entry and stay in Iceland for British citizens and their family members; the page will therefore be updated regularly.
The UK Government has also published guidance on living in Iceland.