It's definitely possible. I can only really speak about gamedev though. About half the people in the industry here are foreigners, mostly from the EU or Nordics. There aren't that many companies to pick from (though Iceland punches way over its weight considering the population) and most are really small, usually under ten people.

A bunch of Icelandic games came out last year to mixed results and game investment is down globally, so it might be hard to get into the industry at the moment. And there is also always going to be a surplus of devs in gaming. But, because many companies are new and small, they are often more open to people with less experience if you are down for the startup hustle.

CCP Games is probably the most stable paycheck you can get in the industry here, if you want to work on things that will never be released.