You may apply before having lived in Iceland for 7 years if:
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you are married to an Icelandic citizen who has had citizenship for at least 4 years and you have been legally residing in Iceland for the past 4 years since your marriage
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you cohabit with an Icelandic citizen and your legal residence has been in Iceland for the preceding 5 years from the registration of your cohabitation
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you are a child of someone who has been an Icelandic citizen for 5 years and you have been legally residing in Iceland for the past 2 years
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you are a Nordic citizen and you have been legally residing in Iceland for at least 4 years
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you are a refugee or have a residence permit for humanitarian reasons and you have been legally residing in Iceland for at least 5 years after being granted refugee status or a humanitarian residence permit
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you are a stateless person and have been legally residing in Iceland for at least 5 years
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you are a former Icelandic citizen who lost Icelandic citizenship because you were granted a foreign citizenship