Parking in Iceland: Car Rental Reykjavik Guide

When exploring Iceland by rental car, knowing the rules around parking can make your trip smoother, more enjoyable, and help you avoid unnecessary fines. Whether you're navigating the busy city streets of Reykjavík or pulling into a scenic spot near a waterfall. This guide will help you understand where, when, and how to park legally, safely, and respectfully.

Parking is a key part of self-driving in Iceland, and with a bit of preparation, it’s easy to manage no matter where your adventure takes you.

Parking in Reykjavik: What You Need to Know

Parking in Reykjavik is straightforward once you understand the city’s zoning and payment systems. Reykjavik is divided into four parking zones:

• P1 – Most central and most expensive, covering the busiest shopping and dining areas
• P2–P3 – Slightly outside the core, less expensive and more likely to have available space
• P4 – Further out in residential or business zones, often free outside business hours

When to Pay:

• Monday to Friday: 9:00–18:00
• Saturday: 10:00–16:00 (in P1–P3)
• Sundays and public holidays: Free in most areas

Payment is easy. You can use coin or card-operated street-side machines, but most locals and travelers prefer mobile apps like Parka and EasyPark, which allow you to start, extend, or end parking sessions directly from your phone. These apps recognize license plates, so no need to place a paper ticket on your dashboard.

Be mindful of no-parking zones, loading areas, bus stops, or residential-only spaces marked with signage. These are actively monitored and enforced.

For more tips on navigating the city by car, visit our Reykjavik car rental guide.

What If I Get a Parking Ticket in Reykjavik?

Parking tickets in Iceland are relatively common for visitors unfamiliar with local rules. If you find a yellow slip under your windshield wiper, don’t panic. The ticket will include a fine amount and payment instructions.

You can typically pay the ticket online via the included link or by visiting a local bank. Some fines can also be settled through service desks or info points around the city. If the ticket goes unpaid, your car rental company may pay it for you and add an administrative fee to your final invoice. At Blue Car Rental, we recommend taking care of the ticket as soon as possible to avoid extra charges.

Parking at Tourist Attractions and National Parks

Outside the city, Iceland’s popular tourist destinations generally offer designated parking areas. Many of these now include payment systems, either meters, apps, or QR codes:

• Thingvellir National Park – Paid parking with automated machines
• Seljalandsfoss & Skógafoss – Paid parking, use cards or online pay stations
• Geysir & Gullfoss – Free parking, though some areas are monitored
• Jökulsárlón & Diamond Beach – Free but high-traffic, so arrive early to find space

These fees are often small but important, helping maintain trails, restrooms, and visitor safety. Always park in designated lots or marked roadside pullouts. Avoid driving onto unmarked grass or mossy ground. This damages fragile ecosystems and can result in fines.

For destination ideas that include great parking access, check out the 10 best places to visit in Iceland.

Do Not Park on the Side of the Road (Unless It’s an Emergency)

One of the biggest safety concerns in Iceland is when drivers pull over on narrow roads to take photos. It may seem harmless, but never stop on the shoulder unless it’s a true emergency.

Icelandic roads often have blind curves, limited shoulders, or fast-moving traffic. If you must stop:

• Only use official rest stops or roadside pullouts
• Turn on your hazard lights for visibility
• Never park on soft terrain like moss or lava fields

Respect the land and fellow travelers by parking safely and responsibly.

Blue Car Rental: Your Partner for Stress-Free Travel

At Blue Car Rental, we’re committed to helping travelers explore Iceland safely and confidently. We offer:

• Convenient pickup at Reykjavik City Office and Keflavik Airport
• A broad fleet of 2WD and 4x4 vehicles to suit all seasons and routes
• Full cover insurance, 24/7 roadside assistance, and a customer-first approach
• Time-saving perks like online check-in and key box delivery so you can skip the counter and hit the road faster

Need help picking the right car? Check out this guide to 2WD vs 4x4 in Iceland.

Final Tips and Resources for Parking in Iceland

Before you hit the road, there are a few final things to keep in mind to make your parking experience across Iceland easy and stress-free. First, take advantage of parking apps like Parka or EasyPark, they’re free, available in English, and take the hassle out of finding and paying for parking. These apps are especially useful in Reykjavik and around major tourist sites.

Always lock your vehicle and avoid leaving any valuables inside, particularly in busy downtown areas. Respect all street signage, avoid blocking driveways or emergency access routes, and steer clear of marked no-parking zones. In cities, some residential areas require permits and are off-limits to visitors.

While Iceland’s epic landscapes may tempt you to stop on a whim, make sure your breaks are in safe, legal spots. Plan ahead by identifying rest stops and service stations—especially important when traveling with kids or during long days on the road. For more on this topic, don’t miss our helpful post on bathroom tips while traveling.

For official parking resources, visit: City of Reykjavik Parking Map

With a little planning, and a reliable rental from Blue Car Rental, parking in Iceland. Whether in Reykjavik or out in the wild is simple, safe, and stress-free.

Happy driving and park smart!