Beer is easy to find in Iceland once you know the system, but it isn't sold the same way it is at home. This guide covers where you can actually buy it, what the local craft beer scene looks like, and, because most readers here are planning a self-drive trip, how to enjoy it without complicating your driving plans.
Can you buy and drink beer in Iceland?
Yes. Beer is legal, widely available in bars, restaurants and state-run liquor stores, and Icelanders have developed a genuine enthusiasm for craft beer over the past three decades. The one thing that catches visitors out is that regular supermarkets and petrol stations don't sell full-strength beer, that's reserved for licensed venues and the state alcohol retailer, Vínbúðin. If you're driving that day, the simplest and safest plan is to save the tasting for when the car is parked for the night.
Why was beer banned in Iceland until 1989?
Beer over a light strength was banned in Iceland from 1915 to 1989, a holdover from the wider prohibition movement of the early 20th century. Spirits and wine were legalised again decades before beer was, which is why Iceland ended up in the odd position of allowing hard liquor while still banning beer for most of the 20th century.
When the ban was lifted on 1 March 1989, none of the predicted problems materialised, Icelanders didn't start drinking more overall, they simply added beer to what was already legal. That date is still marked every year as Bjórdagurinn, or Beer Day, and it's treated with genuine local pride rather than as a marketing gimmick.
Where can you actually buy beer as a visitor?
Where you buy beer in Iceland depends on the strength of the beer and the time of day. Full-strength beer is limited to licensed bars, restaurants and Vínbúðin stores, while supermarkets and petrol stations only stock lighter beer.
| Where | What's sold | Good to know |
|---|---|---|
| Vínbúðin (state liquor stores) | Full-strength beer, wine, spirits | Limited opening hours and locations outside Reykjavík; closed on Sundays in many towns, plan ahead if you're heading into rural areas |
| Bars, restaurants, breweries | Full-strength beer, often on tap | Widest and freshest selection, especially in Reykjavík; many breweries pour beers you won't find bottled |
| Supermarkets & petrol stations | Light/low-alcohol beer only | Convenient but not the "real" version of a beer's usual strength |
| Keflavík Airport duty-free | Full-strength beer, wine, spirits | Worth browsing before you collect your rental car if you want to bring beer along for an evening at your accommodation |
Because Vínbúðin hours and locations vary by town and can change, it's worth checking the current opening times before you rely on picking something up en route, particularly outside the capital.
What does the Icelandic craft beer scene actually look like?
Iceland's craft beer scene is small but genuinely lively, with somewhere in the region of 20–30 breweries around the country today, up from just two standard-lager producers when beer was legalised in 1989. Reykjavík has the highest concentration of places to try it, but breweries and taprooms are increasingly found outside the capital too.
Places worth knowing about in Reykjavík include:
- Bastard, RVK Brewing Company and Bryggjan Brugghús, which brew their own beer on-site alongside a rotating guest selection.
- Brewdog, Micro Bar, Skúli Fógeti, Reykjavík Brewery and Hlemmur Square, all known for regularly changing taplists covering everything from pale lagers to stouts and sours.
If you're road-tripping the Ring Road, breweries and taprooms do exist outside Reykjavík, but the selection is smaller and less consistent than in the capital, so treat any specific stop as worth checking in advance rather than assuming it will be open or pouring what you expect.
Beer festivals and Beer Day
Iceland holds beer festivals a few times a year where breweries pour new and small-batch beers for ticket holders, alongside their regular lineup. Dates and locations vary year to year, so check current listings if you want to time a visit around one.
The one fixed date on the calendar is 1 March, Beer Day (Bjórdagurinn), marking the anniversary of beer becoming legal again in 1989. Bars around Reykjavík get busy, and it's one of the more genuinely local celebrations you can stumble into as a visitor rather than something staged for tourists.
Driving and drinking: what self-drive travellers should plan around
Iceland takes drink-driving seriously, and the legal blood alcohol limit is stricter than many travellers are used to at home, low enough that "a couple of beers and I'll be fine" is not a safe assumption. The practical approach most self-drive visitors take is simple: treat any day you're driving as a zero-alcohol day, and save brewery visits and bar-hopping for evenings when the car is parked for the night.
A few things make this easier to plan around:
- Base yourself somewhere for the evening before you drink. If you want to try Reykjavík's craft beer bars, do it on a night when you're staying in the city rather than squeezing it in between driving legs. Our parking guide for Reykjavík is useful for working out where to leave the car overnight near the bar district.
- Check current legal limits and rules before you drive, since these are set and enforced nationally and are worth confirming directly, umferdin.is is the official source for Icelandic road and traffic rules.
- Winter adds another layer of caution. Icelandic roads in winter already demand full attention in daylight-limited, weather-dependent conditions, our winter driving guide covers what to expect, and alcohol has no place in that mix.
- If you land and want a beer before you drive, that's the moment to be most careful, many travellers pick up a rental car directly at arrivals. Blue Car Rental's online check-in and key-box pickup (for customers who add the Liability Waiver and complete online check-in) at Keflavík Airport are designed to get you to your car quickly, but it's still worth waiting until the driving is done for the day before opening anything from duty-free.
Mistakes to avoid
A few recurring mix-ups catch visitors out:
- Expecting full-strength beer at a supermarket or petrol station. It won't be there, only light beer is stocked outside licensed venues and Vínbúðin.
- Assuming Vínbúðin is open like a regular shop. Hours are limited and vary by town, and many locations close on Sundays, check ahead if you're relying on picking something up outside Reykjavík.
- Treating a brewery tour as a reason to keep driving that day. Tasting flights add up quickly; plan brewery visits for when you're finished driving, not in the middle of a route.
- Paying only in cash. Iceland is a highly card-based society, including at Vínbúðin and most bars, our guide to currency in Iceland covers what to expect if you're used to carrying cash.
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