Transition metal impurities are known to adversely affect the efficiency of electronic and optoelectronic devices by introducing midgap defect levels that can act as efficient Shockley-Read-Hall centers. Iron impurities in GaN do not follow this pattern: their defect level is close to the conduction band and hence far from midgap. Using hybrid functional first-principles calculations, we uncover the electronic properties of Fe and we demonstrate that its high efficiency as a nonradiative center is due to a recombination cycle involving excited states. Unintentional incorporation of iron impurities at modest concentrations (10(15) cm(-3)) leads to nanosecond nonradiative recombination lifetimes, which can be detrimental for the efficiency of electronic and optoelectronic devices.