Parking in Reykjavík: Zones, Fines and Free Options
Reykjavík's parking zone system catches thousands of visitors off guard every year. Here's how the P1-P3 zone system works, how to pay, where to park free, and how to avoid fines.
Step-by-step guide to converting your foreign driver's license to an Icelandic license — requirements, process, costs, and timelines.
If you are moving to Iceland with a driver's license from another country, the conversion process depends significantly on where your license was issued. Iceland's approach distinguishes primarily between EU/EEA license holders (a simpler process) and holders of licenses from outside the EU/EEA (a more demanding process that typically involves testing). The authority responsible for all driver's license matters in Iceland is Samgöngustofa (the Icelandic Transport Authority), with offices in Reykjavík and regional centres.
If your driver's license was issued by an EU or EEA member state — covering all EU countries, Norway, Liechtenstein, and the wider EEA — Iceland recognises it as equivalent to an Icelandic license. You can:
The conversion process for EU/EEA holders can be initiated entirely online through Samgöngustofa's digital portal (island.is). No driving test or theory test is required.
If your license was issued outside the EU/EEA — including the United States, Canada, Australia, South Africa, India, China, Brazil, and most other countries — the standard path to an Icelandic license involves:
A written theory examination covering Icelandic road rules, signs, and regulations. Crucially, Iceland offers the theory test in three languages: Icelandic, English, and Polish. For most international newcomers, the English-language test is the practical choice. The test is administered at Samgöngustofa offices and covers the same material as the Icelandic edition.
To prepare for the theory test, the primary resource is Ökunám.is — Iceland's official driver education platform. It offers practice tests and all the theory material needed, with English-language content available. Most people who dedicate two to four weeks of study to the platform pass the theory test on their first attempt.
After passing the theory test, non-EU/EEA applicants must complete a practical driving test with a Samgöngustofa examiner. The test evaluates your ability to drive safely according to Icelandic road rules, including correct handling of intersections, speed limit observance, and safe motorway and rural road driving.
If you have extensive driving experience from your home country, the practical test is typically manageable, though Icelandic-specific rules (such as the 1-metre rule for cyclists, handling of single-lane bridges, and correct use of roundabouts by Icelandic convention) require specific preparation.
Iceland has bilateral driver's license recognition agreements with a small number of non-EU countries that allow holders to convert without taking the full test sequence. The scope of these agreements varies — some allow full conversion without tests; others waive only the practical test if the theory test is passed. As of 2025, the United Kingdom has a partial recognition arrangement following Brexit. The full list of reciprocal agreement countries changes occasionally; confirm current status directly with Samgöngustofa before beginning the process, as acting on outdated information can result in wasted fees and time.
Regardless of which path applies, gather these documents:
The main Samgöngustofa office in Reykjavík is located at Borgartún 7, 105 Reykjavík. Appointments are strongly recommended and can be booked via samgongustofa.is. Walk-in service is possible but wait times can be significant during busy periods. Regional offices exist in Akureyri, Selfoss, and other service centres for those based outside the capital.
Many stages of the application process are now available through the national digital services portal at island.is, which uses the Íslykill/Auðkenni electronic identification system. Non-citizens can often access this with a passport-based digital ID.
New residents arriving in Iceland with a valid foreign license may drive on that license for up to one year from their date of registration as a resident. This gives a reasonable window to complete the conversion process without urgency, but it is wise to begin the process promptly — particularly for non-EU/EEA holders who need to book theory test dates (which can have waiting times during busy periods).
An International Driving Permit (IDP) issued by your home country's automobile association (such as RAC, AAA, NZAA) is a useful supplementary document during this period, as it provides an internationally standardised translation of your license that Icelandic authorities and police can readily understand. However, the IDP is not a substitute for a valid underlying license — it is only valid when carried alongside the original license it translates.
Iceland uses the standard EU license category system. Category B (standard car, up to 3,500 kg) covers the vast majority of passenger vehicles including large SUVs. If you also hold licences for motorcycles (AM, A1, A2, A), larger vehicles (C, CE), or buses (D, DE), these categories can also be converted — the process is the same but you may need to verify specific category reciprocity for non-EU licenses.
Reykjavík's parking zone system catches thousands of visitors off guard every year. Here's how the P1-P3 zone system works, how to pay, where to park free, and how to avoid fines.
Sem nýkominn íbúi er bíll nauðsynlegur á Íslandi – en ferlið hefur nokkrar óvæntar hliðar. Hér er allt sem nýbúar þurfa að vita um að verða hreyfanlegir.