How Iceland celebrates Christmas, and what that means for a December self-drive trip

Magnús Jóhann Björnsson
04 Dec. 2019

Christmas in Iceland is a quiet, family-centred holiday built around Yule traditions that predate the modern shopping season most visitors know from home. For anyone planning a self-drive trip, the practical side matters just as much as the folklore: short daylight hours, winter road conditions, and a few days when shops and services scale back. This guide covers both, the traditions themselves and what they mean for a car rental in Iceland during the Christmas holiday.

Short answer: Icelanders celebrate Christmas, or Yule, on 24 December, with festivities starting at 6pm when church bells ring on national radio. The season runs from Advent (four Sundays before Christmas) through 6 January, framed by the 13 Yule Lads. For drivers, this means very limited daylight, winter road conditions that call for a 4x4 or at least full winter tyres, and reduced opening hours around 24–26 December and New Year.

When is Christmas in Iceland celebrated?

Iceland celebrates Christmas Eve, not Christmas morning, as the main event. At 6pm on 24 December, church bells ring out and are broadcast on Radio 1, which nearly the entire country tunes into. From that moment, it's Christmas, families sit down to a formal dinner, and the working day (what little of it happens on the 24th) is effectively over by early afternoon.

This is worth knowing if you're arriving or renting a car around that date: most businesses, including many shops and restaurants, close early on 24 December and stay closed on 25 December, reopening gradually on 26 December (known locally as Second Christmas Day, similar to Boxing Day).

What are Iceland's Christmas traditions?

Icelandic Christmas traditions blend Lutheran Advent customs with distinctly Icelandic folklore, and most of them are things visitors can actually see and take part in.

Advent wreaths and candles. The Yuletide formally begins four Sundays before the 24th. Most homes keep an Advent wreath with four candles, lighting one more each Sunday until all four are burning on Christmas Eve. The custom comes from the Western church and is common Lutheran practice, though Icelanders on the whole aren't a particularly religious nation, for most, it's simply part of the season's rhythm rather than a religious observance.

Advent lights in the window. Many homes also display an Advent light: a small lamp with seven electric candles, a design often traced to the seven-branched candlestick of the Old Testament. This tradition arrived from Sweden in the 1960s; interestingly, the electric version was invented there in the 1930s and was already a hugely popular Swedish gift by the 1950s.

The 13 Yule Lads. Iceland's best-known Christmas figures are the Yule Lads, or jólasveinar, 13 mischievous characters who visit one by one, starting on the night of 12 December. Children leave a shoe in the window, and each Yule Lad leaves a small treat (or, if they've misbehaved, a rotten potato) overnight. The last Yule Lad arrives on 24 December, then they leave in reverse order, one per night, until the final one departs on 6 January, the day that officially marks the end of Christmas in Iceland.

If you want to take part, put a shoe in your hotel window during December and you might find a small treat the next morning. It's worth noting this custom doesn't really extend to rental cars, a shoe left on the dashboard is unlikely to attract a Yule Lad's attention.

Iceland's Christmas holiday period at a glance

Opening hours can vary by year and by business, so it's sensible to confirm anything time-sensitive, a restaurant booking, a museum visit, a few days ahead rather than assuming normal hours apply.

Driving in Iceland during the Christmas period

Driving over Christmas in Iceland is manageable for most travellers, but it should be planned around winter conditions rather than around the holiday itself. Daylight in late December is short, often only a few hours around midday in the south, and even less further north, so routes need to be planned with that in mind rather than assuming a full day of light.

Winter weather can change quickly: wind, snow and icy patches are all possible on the Ring Road and are common on mountain passes and in the highlands. F-roads into the interior are closed for winter and won't be an option regardless of vehicle. For day-to-day routes, a 4x4 is generally the safer choice in December, though a well-equipped 2WD can suit some shorter, low-altitude routes, our guide to choosing between 4x4 and 2WD and the seven questions worth asking before booking a 4x4 go through this in more detail. For the conditions themselves, our winter driving guide covers what changes on Icelandic roads once snow and ice are part of the picture.

Before setting out on any given day, check umferdin.is (Vegagerðin, the Icelandic Road Administration) for current conditions and closures, and safetravel.is for weather warnings, both are more reliable in winter than assumptions based on the forecast alone. If a road looks doubtful, the calm choice is simply not to take it that day.

Picking up a rental car around Christmas

Flights around the Christmas and New Year period often land at unusual hours, very early morning or late at night, as airlines adjust schedules around the holidays. This is one area where online check-in and key-box pickup (for customers who add the Liability Waiver and complete online check-in) at Keflavik Airport genuinely help, since it means your paperwork is sorted in advance and you're not relying on a staffed desk being open at 3am on 26 December.

It's also worth checking your insurance coverage before a winter trip. Every rental includes CDW, SCDW, Gravel Protection, Theft Protection and Third-Party Liability as standard; the Liability Waiver additionally covers water damage, including legal river crossings, underbody, tyre, wind-door, sand and ash damage. It does not cover illegal crossings or off-road driving, which is illegal in Iceland regardless of season. If you're ever unsure about a river crossing, the sensible move is to turn around, check umferdin.is and safetravel.is, or consider a guided operator experienced with that specific route, not to attempt a crossing yourself.

Is Iceland worth visiting for Christmas?

Yes, with the caveat that it's a genuinely quiet family holiday rather than a tourist-facing event, don't expect large public celebrations on the 24th or 25th themselves. Reykjavik's Christmas lights, markets and Yule Lad appearances run through most of December, and New Year's Eve is a lively night with widely watched bonfires and fireworks. But the two or three days around Christmas itself are noticeably slower: many restaurants close, and locals are at home with family, not out and about.

December also tends to sit outside Iceland's peak summer season, which can mean different pricing and availability than midsummer, two related guides go into what to expect: the low-season months guide and our overview of car hire costs. As with any winter booking, confirm current rates rather than assuming a fixed figure, since pricing varies with season and vehicle class.

A few mistakes to avoid

Assuming shops and petrol stations run normal hours on 24–26 December is a common one, fuel up and shop the day before if you can. Underestimating how little daylight there is in late December is another; plan driving legs for the middle of the day, not the evening. And treating a 2WD as sufficient for every December route without checking conditions first is worth avoiding, 4x4 rental guidance is there for exactly this decision.