|

Parking in Iceland: The Simple Guide to Paying, Parking and Avoiding Fines

Parking in Iceland has changed a lot over the years, and if you’re planning a trip, it’s something you’ll want to understand before you get here. 

I remember my first trip to Iceland, over 10 years ago, when paid parking was non-existent. After years of living here, I’ve seen just how much it’s changed.

What used to be free and fairly relaxed is now more structured, with many popular sites charging for parking.

In this guide, I’ll walk you through parking in Iceland, from Reykjavík’s zone system to parking at major attractions. I’ll also show you how to pay, plus share a few simple tips to make the whole process easier… and help you avoid a fine.

Let’s get into it!

Parking in Reykjavík

Landscape View of Reykjavík | Iceland with a View

There are a couple of different parking options in the capital from street parking to parking garages. Here’s a simple breakdown of what you can expect and what it all means.

Reykjavík Parking Zones Explained

When you choose street parking in Reykjavík, it’s important to know that the city is divided up into a few parking zones. 

It might sound more complicated than it is, but stay with me. 

Each zone is color-coded on the Reykjavík Parking Zone Map, which makes it easy to figure out where you are and how much you’ll be paying.

P1 Reykjavík

This is the red parking zone located in downtown Reykjavík, AND… it’s the most expensive. 

Cost: 660 ISK( $5.30) / hour 

Hours: 9 A.M. – 9 P.M. on weekdays & 10 A.M – 9 P.M weekends.

This zone has a maximum parking time of three hours, so pay close attention to that. 

Free parking in Reykjavík in P1: Free after 9 P.M.

P2 Reykjavík

The blue zone is a bit cheaper than the red zone and sits just outside the city center. It’s a popular choice because there are a lot of sites and fun things to do within walking distance, like popping into a restaurant or coffee shop in Reykjavík.

Cost: 240 ISK ($1.95) / hour, and there is no limit for how long you can park here.

Hours: 9 A.M. to 9 P.M. weekdays, & 10 A.M.  to 9 P.M. weekends..

P3 Reykjavík

Further out, you’ll find the green parking zone, mostly in the residential areas.

Cost: 240 ISK ($1.95) / hour for the first two hours, and after that, it costs 7 ISK ($0.57).

Hours:  9 A.M. to 9 P.M. weekdays.

P4 Reykjavík

The cheapest parking zones are orange zones and are even further away from the city center.

Cost: 240 ISK ($1.95) / hour.

Hours:  8 A.M. to 4 P.M. weekdays.

Reykjavík Parking Zones Map

It’s always easier to get a visual of what these zones look like so you can plan where to park in Reykjavík. Think of it as a quick visual guide to Iceland’s parking prices, with the city center usually sitting at the higher end.

Map of Zones for Parking In Iceland | Iceland with a View
Source: borgarvefsja.reykjavik.is

💥 My Iceland Travel Map is a digital map with all the parking spots already pinned for you. It’s incredibly convenient not to waste time trying to figure out if you have to pay for parking or where the parking lots are.

Overnight Parking in Reykjavík

Did you know that a lot of the hotels in Reykjavík, especially those downtown, don’t have their own parking?! Crazy, right?

So what is one to do? 🤔

For secure overnight parking, there are multi-level downtown car parks you can use.

Your hotel can advise you on which ones, but here are a few worth mentioning: Kolaportið, Vesturgata, Vitatorg, Stjörnuport, City Hall, and Traðarkot.

Please remember that some of these close overnight, which means you won’t be able to access your car if you need it. 

Pro tip: Parking garages are usually cheaper than street parking in Reykjavík, but unlike street zones, they charge 24/7, no matter which zone they’re in.

Now that you know how parking works in Reykjavík, let’s check how it works in the rest of the country.

Paid Parking In Iceland Now Goes Beyond Reykjavík

Picture of Parking Booths for Parking in Iceland | Iceland with a View

Before Iceland’s tourist boom, paid parking was largely limited to Reykjavík. Out at the sites and attractions around the rest of the country, parking was free. You didn’t really have to think twice about it!

That’s no longer the case. The number of sites charging for parking has grown significantly in recent years.

As of May 2026, 45 locations in Iceland now charge for parking in Iceland.

Yes, 45! 

If you visited every single one, you’d be looking at about $332 USD just to park your car. Eek. 

And it’s not just the big-name attractions like stops on The Golden Circle that charge, either. 

Even smaller spots, like a waterfall tucked away off the main road, or a quiet beach all the way in North Iceland where you can spot seals, have begun charging as well. 

And just a heads up: if you’re thinking to yourself…how serious can it be? I’ll just sneak in for a quick stop and snap a few pics. Well, Iceland takes parking seriously, and there are systems in place to make sure you pay – yep, even for a two-minute stop. (You’ll see exactly how in a sec!)

As a rule of thumb, assume it costs something. The safest approach at any attraction is to check for payment signage before you walk away from your car. If there’s a barrier, a camera, or a Parka sign, there’s almost certainly a fee.

These days, you’re going to want to bake parking fees into your Iceland road trip budget, the same way you would for gas or snacks on the road.

But once you know what to expect, parking in Iceland is quite straightforward. Let’s get into how to do it!

How to Pay for Parking in Iceland

You’ve got a few easy options when it comes to payment.

Pay Via Iceland Parking Apps

This is the most popular way to pay for parking in Iceland.

Just download the app, follow the instructions, and you’re good to go! I’ll tell you exactly how to use them in a little bit… but these are so quick and convenient, and it’s my favorite way to pay for parking. 

Even if you feel a little technologically impaired, I promise, it’s not difficult!

At Car Parks

Most of the time, at the parking garages, the garage registers your license plate when you enter. 

When you leave you can either pay at the kiosk or you can use your EasyPark app.

Parking Meters

Ah, the good old parking meter. These take coins or credit cards. Because you enter in your license plate number, there’s no need to print out a ticket to put on your dashboard. 

You do, however, have the option to print one, and I would, just to remind yourself of when your time is up!

Payment Terminals

There’ll be a payment terminal located in most parking areas. In this case, all you need is to provide your license plate number and then pay. 

You can use your card or contactless payment. They also accept cash but you must have the exact amount.

💥 If you plan on driving in Iceland (which I highly recommend if you want the freedom to explore properly), I always recommend renting from Blue Car Rental. 

Most of the time renting a car can feel like a bit of a mission, but Blue Car makes the whole process simple. There’s an online check-in, a key box pick up and with their locations at the airport and Reykjavík, you’ll be on the road in no time!

Use this  👉 VIP LINK for 5% off your total rental price. NO CODE NEEDED.

Iceland Parking Apps

Picture of Reykjavík's Church in Iceland | Iceland with a View

My two favorite parking apps are EasyPark and Parka, and I use one or the other depending on whether I’m in Reykjavík or out sightseeing.

EasyPark

This app uses your location to show nearby parking zones, and you can pay right from your phone. EasyP…easy! 😉

How Does EasyPark Work?

  1. Open the app, you’ll see a map of where you are and the parking zones nearby.
  1. At the bottom, tap “Select Parking Area” (these are the zones I discussed earlier).
  1. Once you’ve confirmed your zone, the app loads your parking session.
  1. You can use the spinning wheel on the screen to set your parking time, you’ll see your license plate number (you can pre-save it), the amount of time selected, and when your parking session will end. The total cost updates automatically.
  1. You can pay with your card via the app.
  1. When you’re ready, tap that you confirm and your parking session will start.

But what if you’re running late? Well, what’s nice is that you can extend your time remotely.

Here’s a little tutorial for you!

You can use the EasyPark app all around Iceland like Snæfellsnes, Akureyri, Keflavík and more. It also gives you access to parking garages and parking lots. 

Parka App

EasyPark is the most common app for street parking in Reykjavík, but for other major sites and towns in Iceland, I like to use Parka. So, I’d definitely download both if I were you! 

How Does the Parka App Work?

It’s quite similar to the EasyPark app. 

  1. Add your licence plate number.
  1. Enter the date and time.
  1. Enter in the payment details.

Once that’s done, just drive into the parking garage or service area. Cameras will read your license plate and automatically check you in.

In some locations, cameras will detect when you leave. But it’s best to manually end your session to be safe.  

You’ll get a notification confirming the charge straight to your Parka account.

They also have a Pay by Plate option on the app. This is where if you’re using a rental or someone else’s vehicle, you can even set an expiry date so you don’t have to worry about removing it later.

Apps will make your life a lot easier when you visit Iceland, here are my top picks. 👇

➡️ READ: The 13 Best Apps for Iceland You Can’t Travel Without!

How to Pay an Iceland Parking Fine

Picture of Jeannie on her Land Rover Parking in Iceland | Iceland with a View

If, heaven forbid, you get the dreaded parking ticket, please, please don’t ignore it! You’ll only end up with higher fines, and it’s just not worth it. 

There are three types of violations.

  1. If you haven’t paid your full parking time, or at all, you’ll receive a parking meter citation.
  1. A parking violation where you’ve parked in a spot that you’re NEVER allowed to park in. 
  1. Handicapped parking spaces are always clearly marked, so if you go ahead and park there anyway,  you’ll get a handicapped space violation. This one really gets me, because there’s really no excuse for it. Don’t be that person!

Here’s how you can pay for a parking ticket in Iceland:

Pay at a Local bank: Simply take your ticket to the bank and pay there.

Pay online: Scan the QR code or pay online at bilastaedasjodur.Reykjavík.is  

Car rental company: If you haven’t paid your fine, or forgot to, the parking authority will send the fine to your car rental company, and the amount will be charged to your credit card. You can expect it to be more because there are additional fees involved here.

Of course, the best thing you can do is avoid a parking fine. To do this:

Assume that the tourist attractions charge.

Double-check whether there’s a parking fee before you leave your vehicle. If you check my 👉  Iceland Travel Map, it shows you exactly where paid parking is across the country so you’re not caught off guard!

Keep your receipts until all the charges clear. 

Bottom line, if you get a ticket, pay it right away. You’ll usually get a discount if you pay within three days of getting the ticket. You will incur even further fines the longer you wait.

Campsite Parking in Iceland

Picture of a Happy Camper Van Parked in Iceland | Iceland with a View

Icelandic nature is unlike anywhere else, and if you’re planning to camp, it’s really important to understand the rules before you go.

Just because you’re in a remote, open landscape doesn’t mean you can park or camp wherever you like. Iceland has clearly designated campsites, and wild camping or parking outside of these areas isn’t allowed.

To make things easier, companies like Happy Campers have a helpful campsite map so you can quickly see where you’re allowed to stay and what facilities are available. 

This map is color-coded and breaks down everything you need to know, from year-round sites to summer-only locations, plus available amenities. 

Iceland Camping Card

A great option if you’re camping around Iceland is the Iceland camping card. This allows you to access a lot of campsites across the country at an affordable price and is valid for 28 nights.

You have the option of a physical or electronic card. 

Pro tip: If you plan on camping in Iceland, double-check the dates to see if campgrounds are open, especially outside of the summer months.

Some of my favourite travel memories in Iceland have come from camper van trips, there’s something special about waking up right in the landscape. 

Happy Campers made that really easy for us, with well-equipped vans that have everything you need for a comfortable trip (including the very underrated ability to cook your own meals on the road… a lifesaver when you’re travelling with kids!).

Use the CODE: IWV10 for 10% off your total rental price when you book with Happy Campers.

FAQs

Check out a few quick answers to make parking in Iceland less confusing while you’re here.

How Much is Parking in Reykjavík?

Iceland parking charges in the capital are usually between 240 – 660 ISK per hour depending on when and where you’re parking. 

When & Where is There Free Parking in Reykjavík?

Parking in Reykjavík is free on public holidays and during these times in the different parking zones:

P1 & P2: Free after 9 P.M.

P3: Free after 6 P.M. on weekdays and free on Saturdays and Sundays.

P4: After 16:00 on weekdays and free on Saturdays and Sundays.

What Are the Pros of Paid Parking in Iceland?

I know it can seem like an inconvenience, and yes, an extra expense. But there are pros of paid parking. 

Paying for parking in Iceland often means better facilities like toilets and basic amenities at the sites you’d like to visit. 

It also helps maintain the areas you’re visiting. The fees go toward things like waste collection, upkeep of roads and parking areas, and protecting the natural environment so it doesn’t get overwhelmed by visitor numbers.

So while it’s not always fun to pay, it does play a role in keeping these places accessible and preserved.

Parking in Iceland: Map

Picture of Jeannie Admiring the View of Iceland with her Jimmy Car Parked | Iceland with a View

Parking in Iceland might feel a bit different at first, but once you understand how it works, it quickly becomes just another simple part of your trip.

And if you want to make things even easier while you’re on the road, I’ve put together something that helps a lot with this.

My 👉 Iceland Travel Map includes all the practical stops you’ll need while driving around Iceland, things like gas stations, restaurants, and grocery stores.

Not only that, but ALL the paid parking lots are marked on my map too!  

It’s one of those tools that just takes the guesswork out of everything so you can focus on having a great time.

Happy Planning!

Jeannie Riley Blog Sign Off Signature

Similar Posts