How to Iceland: Parking Guide & Fines Explained!
Are you thinking about renting a car when visiting Iceland? Well if that is the case we definitely recommend that you check out this blog post about parking options in Reykjavík and how to navigate the parking scene in Iceland. When do you need to pay for parking and where are they located? How to avoid getting parking fines and what areas are the cheapest to park your car at? We will take a look into all of this right here!
How to Iceland: Parking Guide & Fines Explained!
Heeey guys! Alex here from Wake Up Reykjavík and welcome to How to Iceland!
We’re all about helping you travel smarter in Iceland with fun, local tips and tricks.
Gudny (yes, the one and only) recently dropped a great and informative YouTube video about this exact topic that we are going to talk about here in this blog, so if you’re more of a visual learner, check out our YouTube channel for even more Iceland greatness.
Now today’s topic might not sound super thrilling at first but trust me, if you’re renting a car in Iceland, you’ll want to know this information. We’re talking about Parking in Iceland.
Sounds basic, right? Sure. But get it wrong, and you could end up with a fine the size of an Icelandic troll or worse, your rental car being towed away, damn that would be a shame. We all know that nobody wants that to happen to them and ruining their dream trip. So let’s break it down for you, Iceland style.
Parking in Reykjavík: The 5 Zones
In Reykjavík (and many Icelandic towns), parking is divided into zones creatively called P1 to P5. Here’s the cheat sheet you need:
- 🟥 P1 (Red/Pink): Downtown Reykjavík, the most expensive. Max stay: 3 hours.
- 🟦 P2 (Blue): Still central, still pricey, but unlimited time.
- 🟩 P3 (Green): More residential, much cheaper.
- 🟨 P4 and P5: Further out, cheapest option. Often free on evenings, weekends & holidays.
Pro tip: On Christmas, Easter, and national holidays, parking is usually free everywhere. Nice little gift from Iceland to you!
How to Pay for Parking
Three easy ways:
- Parking Meters: The OG option. They take coins, cards, or mobile pay. If you enter your license plate, you don’t even need a ticket on the dash.
- Apps (Parka & EasyPark): Our top recommendation. Download before your trip, extend time from anywhere, and check if you even need to pay in your area.
- Parking Garages: Perfect for longer stays. Safe, dry, and some even charge automatically when you drive in/out. Just don’t forget: many lock at night, and you don’t want your car to be trapped till morning!
- Traðarkot - Kolaport - Vesturgata and Bergstaðir are centrally located parking garages.
Hot tip: Snap a photo of your license plate when you pick up your rental. You’ll need it for every payment.
Camper Vans & Countryside Parking
Exploring Iceland in a camper van? Amazing, but a few golden rules:
- No wild camping. You must stay in official campsites.
- Park only in marked lots. Never on moss, never off-road. (Moss takes decades to recover!)
- Always park in the same direction as traffic and that also applies to parking in downtown Reykjavík.
- Respect private land and if it looks like someone’s driveway, it probably is.
- Popular sights = gravel lots + clear signs. Use them, pay when required.
City tip: Reykjavík’s ECO campsite in Laugardalur is the go-to spot for campervans.
What Happens if You Get Fined?
Here’s the sneaky part: Reykjavík no longer leaves paper tickets on your windshield due to environmental reasons to save the use of paper.
- Locals get fines straight to their bank accounts (lucky us ).
- Visitors? You’ll need to check your plate number online since you are not the registered owners of the car that you are using: Reykjavík Parking Website
Fine payment rules:
- Pay within 3 days = you get a discount on your fine!
- Pay within 2 weeks = pay the full amount for the fine.
- After 28 days = extra fee due to late payment (ouch).
Fines usually range from 4,500 ISK (€31) up to 40,000 ISK (€300) depending on what kind of violation you are fined for. If you skip out, the rental car company will take it into their own hands and charge you an extra handling fee.
Final Thoughts
Parking in Iceland isn’t rocket science but as long as you just know the rules, download an app for parking, and always respect the nature. That way, you’ll spend your trip chasing waterfalls and northern lights and not parking tickets.
We at Wake Up Reykjavík still recommend joining scheduled day tours whenever possible with local guides and we offer a lot of different day tours here on our website. That way you dont need to worry about parking your car and paying for the parking tickets. But if you do drive, now you’re ready to park like a pro.
See you in Reykjavík soon!
