Iceland’s capital, Reykjavík, is the ideal base for exploring the Land of Fire and Ice, close to the international airport and the Blue Lagoon, and within easy reach of the Golden Circle, the South Coast, and the Snæfellsnes peninsula.
If you’re self-driving a rental vehicle and spending time in the capital, you’ll need to know all about the parking regulations, charging periods, and traffic rules.
Just like other cities, there are zones where you’ll need to pay to park, but these only apply to a relatively small part of the city center.
That means it’s much easier to park your rental vehicle in Reykjavík than you might expect, making it simple to come and go from your accommodation there.
Here’s everything you need to know!
Reykjavík has four parking zones (P1, P2, P3, and P4) with varying rates and chargeable hours.
As you can see from the map, the parking zones cover the “downtown” area, where most of the city’s hotels, museums, restaurants, bars, and cafés are located.
The parking zones also include Reykjavík’s historical heart around the Old Harbor, where you’ll find many of the capital’s colorful ironclad homes.
If your accommodation is in these areas, check if free parking or discount deals are offered for your stay, as many hotels and guesthouses have allocated parking.
Parking Zone 1
This is the area marked in red and pink on the map, which covers many of the most popular places in the capital, including the Rainbow Street!
Zone 1 covers Laugavegur, Skólavörðustígur, Austurstræti, Austurvöllur, and the streets immediately surrounding these busy thoroughfares.
Some sections of the streets in Zone 1 are pedestrianized as well.
Zone 1 also includes the small parking area next to the Sun Voyager and several streets where parking is restricted to resident permit holders (these are the pink zones).
The current charge for parking in Zone 1 is 630 ISK per hour, with a maximum stay of three hours.
These charges apply from 0900 to 2100 on weekdays and 1000 to 2100 on weekends.
Parking tickets for Zone 1 are also valid in all other zones, allowing you to move around the city and reuse the tickets in other locations until their expiry.
Parking Zone 2
This is the area marked in blue on the map, which is mostly more residential in character.
In particular, Zone 2 includes the “old town” streets of Vesturbær leading into the city from the Old Harbor, and the quiet roads around the Catholic Cathedral.
Zone 2 also includes some of the streets close to Hallgrímskirkja, the landmark church that dominates the capital’s skyline. There are lots of “free to park” streets nearby.
The current charge is 230 ISK per hour, with no limit on duration.
These charges apply from 0900 to 2100 on weekdays and 1000 to 2100 on weekends.
Tickets for Zone 2 are also applicable for parking in Zones 3 and 4.
Parking Zone 3
These are the two areas marked in green on the map.
One covers the streets around the shoreline highway between the capital’s opera hall, Harpa, and the iconic Sun Voyager, while the other is close to the city’s beautiful lake, Tjörnin.
So, if you plan to drive to these spectacular locations, don't forget to pay for parking before sightseeing!
The current charge is 230 ISK per hour for the first two hours, then 70 ISK per hour. These charges apply from 0900 to 1800 on weekdays only.
Parking Zone 4
These are the small areas marked in orange on the map, covering the government office buildings around Borgartún and streets behind Hallgrímskirkja.
The current charge here is 230 ISK per hour. These charges apply from 0800 to 1600 on weekdays only.
Bear in mind that these rates and zones are always subject to change.
Check the local signs or the Reykjavík City website for the most up-to-date information.
Pay close attention to the information on the meters where you’re looking to park - these will confirm which zone you’re in.
Penalties for not paying for parking can be several times the cost of the initial charge.
Usually, these are charged to the vehicle rental company, which may add further administration costs to your bill, even after you have left the country.
Also, keep in mind that parking regulations may be altered during construction work or localized road closures.
There’s no charge for parking on these dates:
● Christmas Day
● Boxing Day
● New Year's Day
● Holy Thursday
● Good Friday
● Easter Sunday
● Easter Monday
● First day of summer (the first Thursday after April 18th)
● May 1st
● Ascension Day (40 days after Easter Sunday)
● Whit Sunday & Whit Monday (late May)
● June 17th
● Commerce Day (the first Monday in August).
Paying for Parking
Payments can be made with cards or cash at payment machines and parking meters, or by registering your rental vehicle with easy-to-use mobile apps like Parka and EasyPark.
Before collecting your vehicle, visit the App Store to download those apps, and then link your rental vehicle to them as soon as you know the license number.
This will help you make swift and seamless parking payments wherever these are required.
Pro tip: take a picture of your vehicle’s registration number on your phone so you always have it to hand, just in case the meter is far from your parking space.
There are small transaction charges when using these apps (86 ISK for Parka, for example), so paying directly when possible can save you a small sum.
Verna and Síminn Pay are alternative apps you can use for parking in the capital, if you’re familiar with these platforms.
And remember to de-link your rental vehicle from these apps at the end of your time in Iceland, just to avoid any possible crossover with future users.
Reykjavík’s Parking Garages
There are several short-term parking garages located around the capital that provide secure off-street parking, saving you time looking for a space elsewhere.
These parking garages utilize cameras and automatic license plate recognition technology to identify vehicles and allow access to monitored parking areas.
They’re simple and safe to use - just drive in and park, and settle up with a card payment or via a mobile app when you want to leave.
Here are the locations for Reykjavík’s six short-term parking garages.
Stjörnuport Parking Garage (Laugavegur 94)
Centrally located in the middle of Laugavegur, parking at Stjörnuport costs 190 ISK for the first hour and 130 ISK per hour after that.
There are four spaces for people with reduced mobility and six charging spaces for electric vehicles.
Traðarkot Parking Garage (Hverfisgata 20)
One street away from the main drag on Laugavegur, Traðarkot is another ideal spot for parking in the city center.
The first hour costs 270 ISK, with each additional hour charged at 140 ISK.
Vitatorg Parking Garage (Lindargata)
Close to the Sun Voyager sculpture on Sæbraut, the Vitatorg Parking garage costs 190 ISK for the first hour and 130 ISK per hour after that.
There are ten spaces for people with reduced mobility and 12 charging spaces for electric vehicles.
Kolaport Parking Garage (Kalkofnsvegur 1)
With its entrance facing Harpa, the capital’s gleaming opera hall, the Kolaport Parking Garage is an excellent choice for city center parking.
The first hour costs 270 ISK, with each additional hour charged at 140 ISK.
Vesturgata Parking Garage (Vesturgata 7)
One of the most centrally located and busiest parking garages, Vesturgata is right in the historic center of the capital, close to its oldest streets.
The first hour costs 270 ISK, with each additional hour charged at 140 ISK.
There is one space for people with reduced mobility and four charging spaces for electric vehicles.
City Hall Parking Garage (Tjarnargata 11)
Situated below the capital’s City Hall and next to the bird-filled lake, Tjörnin, this popular parking garage costs 270 ISK for the first hour, and 140 ISK per hour after that.
There are two spaces for people with reduced mobility and 12 charging spaces for electric vehicles.
Keep in mind that the parking spaces and turns inside these garages can be relatively narrow, and your rental vehicle might be larger than you’re used to at home.
Take it slow as you make your way around!
In all cases, if the barrier doesn’t open when you approach, that means the parking garage is full.
If you’re paying for parking with an app, take care to check you’ve selected the correct location.
Parking garages will charge for the time spent in their location, which may exceed the charging periods for street parking.
Be aware of the closing hours for these parking garages, especially if you need to leave early in the morning for outbound flights or to meet organized tours.
All of the capital’s secure short-term parking garages are closed from midnight to 0700.
Short-term visitors can use the EasyPark app to access the parking garages during these closed periods, entering through the pedestrian doors with a PIN.
However, you may not be able to depart in your vehicle while the parking garage is closed and unmanned. You can also call for assistance on +354 411 3403.
If you have any queries about using the capital’s parking garages, you can send an email to bilahus@reykjavik.is.
Mobility Issues
If you have reduced mobility, you may be eligible for a parking card, allowing you to park in more accessible spaces in parking garages or outdoor spots around the city.
Stay Alert!
While financial fraud is relatively rare in Iceland, there have been attempts to direct visitors to fake parking payment platforms.
Make sure to use Parka and EasyPark, which you can download from the official App Store on your phone, and ignore any suggested links from other sources.
Phishing Texts: Disregard any unexpected text messages demanding payment for a parking ticket, as you will risk being linked to a fraudulent website designed to steal your financial details.
QR Code Stickers: Avoid any interactions with stickers featuring QR codes attached to payment machines, as these may lead you to potentially fraudulent payment portals.
Check the Signs: Pay close attention to the official parking signage and make sure you only use the web addresses or app links posted there.
If in doubt, visit the parking provider's official website to confirm the payment process.
Think twice before clicking on any links to unknown websites.
Parking payment scams will attempt to redirect you to websites that look official, but which will expose you to the risk of fraud or compromising your financial information.
If you suspect you’ve entered your card details into a fraudulent site, contact your bank immediately and cancel your card to prevent further exposure to unauthorized transactions.
Report any suspicious texts, messages, or QR codes to the relevant authorities as soon as you can.
You can visit https://reykjavik.is/en/parking/obligation-to-pay for more information.
Parking the “Right Way”
Parking etiquette in Reykjavík is much like parking anywhere else in the world, but it’s worth making a note of these essential rules.
For instance, remember to always park in the direction of travel. You may be fined if you park on the “other side” of the street. Never cross oncoming traffic to park.
Always park within marked bays and leave sufficient space for other vehicles where possible. Avoid parking too close to pedestrian crossings.
Ensure you are not blocking driveways or parked next to fire hydrants or dropped kerbs, as these can cause issues for people using prams or mobility scooters.
Check the signage where you’re parking to confirm the zone is correct, the hours of operation, and the maximum stay allowable.
Road signs are written in Icelandic, but the symbols and warnings will be familiar.
If you’re going to drive in Iceland, it makes sense to understand the text used on local signs, wherever possible.
As an example, STANS means STOP, and LOKAÐ means CLOSED.
Resident permit zones apply in some areas - local signage may overrule other sources, so it’s a good idea to check if these are in operation.
What happens if you get a parking fine?
If you are fined for any parking violations, you will receive a notification from the City of Reykjavík or Lögreglan (the Icelandic police) or an email from your rental company.
You can be fined for any of the following parking violations:
● Not paying for parking
● Parking longer than you have paid for
● Using spaces for people with disabilities
● Parking in restricted areas such as bus stops
● Parking on streets without marked parking bays
● Parking in the wrong direction
● Parking off-road
For example, fines start from 4500 ISK for non-payment or failure to pay enough for the required period.
There is a small discount (1100 ISK) for payment within three days, but if the fine is not paid within 14 days, the charge will increase by 50% to 6750 ISK.
If the fine remains unpaid for 28 days, it will double to 9000 ISK.
Additionally, you can be fined 10000 ISK for offences such as parking on a pavement and 20000 ISK for parking in disabled spaces, with the same percentage increases for late payments.
If the parking violation is reported to your rental company, administrative charges will be added to the cost as well.
If a parking penalty charge has been issued in error, you can challenge the charge, so long as you have proof of payment.
You can pay the fine online at the Reykjavík City website or at any Icelandic bank (weekdays only).
Refusing to pay for parking violations can lead to significant fines and potential involvement with the Icelandic police.
Walking, Buses and Scooters
If you can walk well, why not park for free, just a little further away?
It doesn’t take long to find a parking bay in the non-chargeable streets outside the four paid parking zones.
Reykjavík is one of the most beautiful capital cities to wander, offering fabulous views to the walker.
Avoiding P1 or any of the other chargeable zones will save you some money and allow you the opportunity to see more of the city’s pretty streets.
Another option is the city’s bus network, Straeto, which serves the capital city with nearly thirty bus routes.
An interactive app offers route plans and shows the exact location of its buses as they crisscross the capital city, so you can stay under cover until the bus is just around the corner.
Single bus tickets last 75 minutes, giving you ample time to catch connecting buses if needed.
You can now pay by contactless methods (debit cards or smartphone), buy tickets in advance online or use the Klappið app. Cash is also accepted, but no change will be offered.
Easy to rent and ride, HOPP and Zolo scooters offer another way to get around the city
You can also make use of the abundant supply of e-scooters from HOPP and Zolo to whisk you from anywhere in the city center to wherever you’ve parked your car!
Parking in Reykjavík is simpler, cheaper, and less restricted than in most other cities, so as long as you keep these simple rules in mind, you’ll be fine