Plan ahead for parking in Reykjavik to save time and avoid hassle during your trip. The city has a clear zone system with different rates and time limits, and knowing how it works helps you avoid stress while exploring.
Renting a car in Iceland to go on self-drive tours is one of the best ways to explore the country at your own pace. But once you arrive, parking in Reykjavik can catch visitors off-guard.
Most Reykjavik accommodations do not include private parking, so you will likely need to use street parking or public car parks. Knowing how the city's parking zones work, where to find affordable lots, and how to pay will save you both time and money.
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To give you expert insights on parking in Reykjavik, we spoke with Matthías Bernhöj Daðason, Head of Reykjavik Parking Service (Bílastæðasjóður Reykjavíkur), the city's official parking authority. He shares practical advice throughout the guide and points out the most common mistakes visitors make.
Keep reading to learn everything you need to know about parking in Reykjavik, so you can spend less time worrying about logistics and more time enjoying your trip.
Key Takeaways About Parking in Reykjavik
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Understand the parking zones: Reykjavik's parking system is divided into four color-coded zones (P1, P2, P3, P4), each with different rates and time restrictions. Be sure to check the rates and hours to avoid fines.
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Know the parking hours and maximum limits: Each parking zone has specific hours and maximum parking durations. Be mindful of these to avoid fines, especially in the more expensive central areas with strict time limits.
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Use mobile apps to pay for parking: You can use apps like Parka or EasyPark to pay for parking directly from your phone. These apps also help track your time and let you extend your session if needed. Just remember to disconnect the rental car license plate once you head back home.
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Alternative to parking: Guided multi-day tours avoid the hassle of parking altogether, as you won't need a rental car. This way, you can explore Iceland without worrying about finding parking spots.
Reykjavik Parking Zones
Parking in central Reykjavik is divided into four zones with different rates. Parking fees are typically applied between 9 AM and 9 PM on weekdays and Saturdays and between 10 AM and 9 PM on Sundays, with some exceptions (see below).
During certain national holidays, parking within the zones is free. On these days, you will not be charged when attempting to pay for a parking space, whether you're using a regular parking meter or the Parka mobile app.
The four color-coded zones are as follows:
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P1 (Red and Pink): The most central and expensive parking area, costing 4.64 USD (630 ISK)/hour. Parking fees apply from 9 AM to 9 PM on weekdays and 10 AM to 9 PM on weekends. The maximum parking duration is 3 hours.
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P2 (Blue): Parking costs 1.70 USD (230 ISK)/hour. Fees apply from 9 AM to 9 PM on weekdays and 10 AM to 9 PM on weekends.
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P3 (Green): The rate is 1.70 USD (230 ISK)/hour for the first two hours, then 0.52 USD (70 ISK)/hour after that. Fees apply from 9 AM to 6 PM on weekdays.
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P4 (Orange): Parking costs 1.70 USD (230 ISK)/hour, but fees only apply on weekdays between 8 AM and 4 PM.
Car Parks in Reykjavik
You'll find several multi-story car parks in downtown Reykjavik. These parking garages are generally less expensive than the parking zones but charge 24 hours, every day of the week.
Matthías Bernhöj Daðason, Head of Reykjavik Parking Service (the city's official parking authority), shared with us the smartest approach for visitors driving in the capital. His advice is to skip the guesswork of street parking entirely.
"The simplest and most reliable strategy is to use one of the municipal parking houses in the city center. They're usually more affordable than street parking, and everything is clearly set up, so you avoid the guesswork around zones, time limits, and rules."
He adds that they're "monitored during opening hours, so it just makes the whole experience much more straightforward for visitors."
The rates between car parks can vary, so make sure you know what you're paying before you leave your car there. The municipal car parks in Reykjavik are normally cheaper than the other parking garages in the city.
It's also important to be mindful of the opening times of parking garages, as some may be closed overnight, meaning you can get your car stuck there if you're not careful. This can spell disaster if you need to catch an overnight flight.
Municipal car parks, open from 7 AM to midnight:
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Stjornuport Parking Garage - Great for Laugavegur Street and Hlemmur Square.
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Kolaport Parking Garage - By Harpa Concert Hall and Arnarholl Hill.
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Tradarkot Parking Garage - On Hverfisgata Street, by the National Theatre of Iceland.
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Bergstadir Parking Garage - By Skolavordustigur Rainbow Street.
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City Hall Parking Garage - In Reykjavik City Hall, next to Tjornin Pond.
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Vesturgata Parking Garage - Near Ingolfstorg Square.
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Vitatorg Parking Garage - Close to Sun Voyager Sculpture.
Other car parks, open 24/7:
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Hafnartorg Parking Garage - Great for downtown Reykjavik and the Old Harbor.
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Harpa Concert Hall Parking - Underneath Harpa Concert Hall.
Hotel Parking in Downtown Reykjavik
If you're staying at hotels in downtown Reykjavik, be aware that hotel parking can be limited, and some hotels may not have designated parking spaces.
If your hotel does not have parking included, we recommend using one of the many car parks downtown.
Hotels outside the city center usually have more spaces to work with, so talk to your hotel about parking if you plan on using a car during your trip to Iceland.
Parking for People with Disabilities in Reykjavik
Parking spaces designated for people with disabilities are plentiful in Reykjavik, marked with the international wheelchair symbol. To use these parking spaces, you need to have a disability parking card placed in the front window of your vehicle.
Using a disability parking card from outside Iceland is fine, but you must print out and display an international notice next to your parking card. You can find more information on the International Transport Forum's website.
Remember not to park in any space marked with a name or a license number. Some car parks allow vehicles with a disability parking card to park free of charge, but always check the signs in the car park for more information.
For more advice on getting around the country with limited mobility, from accessible tours and attractions to wheelchair-friendly accommodation, see our complete guide to accessible travel in Iceland.
How to Pay for Parking in Iceland
There are several ways to pay for parking in Iceland. The traditional method is parking machines found throughout the city, usually on every corner of a street within one of the parking zones. These machines accept coins and credit cards, so follow the instructions listed.
The payment methods can differ slightly when using a parking garage, but there will be a similar machine where you can pay by card. Some parking garages charge on entry, while others also allow you to pay upon leaving the garage.
The most convenient way to pay for parking is using a dedicated mobile app. The significant advantage here is paying for and extending your parking remotely.
EasyPark is an excellent app that allows you to manage parking times easily and uses GPS technology to always know when you're located within a parking zone. Another mobile app option for parking is Parka, which is functionally very similar and is often used in Iceland.
If you'd rather not download anything, Matthías Bernhöj Daðason of Bílastæðasjóður points visitors to Reykjavik city's official website for parking, where you can pay online directly. He also flags a detail many drivers of electric cars miss.
"If you're parked at an on-street charger and actively charging, you actually don't pay the parking fee; you only pay for the electricity."
He pointed out that despite being a small detail, it can make a significant difference, as travelers with a hybrid or electric car who are unaware of it may overpay or miss out on a unique advantage.
Parking Fines in Iceland
There are two types of parking fines in Iceland. An extra parking tariff applies when you've paid for parking only partially or not at all, while a parking violation charge applies when a vehicle is parked illegally.
The standard extra parking tariff is 33 USD (4,500 ISK), but if paid in full within three business days of the citation, there is a cash discount of 8 USD (1,100 ISK).
If the charge is not paid within 14 days after the citation date, the cost increases from 33 USD (4,500 ISK) to 50 USD (6,750 ISK). Charges that remain unpaid after 28 days following the date of citation increase to 66 USD (9,000 ISK).
The parking violation charge is 74 USD (10,000 ISK) and is imposed on a car when stopped or parked under a prohibition sign, on a sidewalk, on a pedestrian street, too close to a pedestrian crossing, or in other situations where parking is not allowed.
One trigger catches international visitors off guard more than most. According to Matthías Bernhöj Daðason, it comes down to the direction your car faces.
"A classic one is parking in the opposite direction of traffic. In many places, people don't think twice about it, but in Reykjavík, it's enforced quite strictly," he explains.
"If your car is facing the wrong way, that alone is enough to trigger a fine."
If the parking violation charge is paid in full within three business days of the citation, there is a cash discount of 8 USD (1,100 ISK). If the charge is not paid within 14 days after the citation date, the cost increases to 111 USD (15,000 ISK).
Charges that remain unpaid after 28 days following the date of citation increase to 147 USD (20,000 ISK). These charges double when illegally parking in a parking space for people with disabilities.
How to Pay a Parking Fine in Iceland
Paying a parking fine in Iceland is simple. Your ticket lists the amount you owe along with clear instructions on how to pay. The easiest option is usually to pay online through the link provided. If you would rather pay in person, you can do so at any local bank, and several service desks and tourist information points around the city accept payment as well.
Travelers in rental cars should note that an unpaid ticket is usually settled by the rental company, which then adds the amount, along with a small handling fee, to your final invoice.
The fees ramp up quite quickly, so the faster you pay your fine, the better. If you believe you have been wrongly issued a parking citation, you can read more about how to appeal the charge here.
Parking fines are easy to avoid if you pay attention to the traffic signs and pay for parking on time. To avoid other common mistakes during your trip, see our updated list of things not to do in Iceland.
Parking Outside of Reykjavik
Outside the capital, certain locations in Iceland will also require you to pay for parking. The northern town of Akureyri has parking meters for certain areas in the town center. EasyPark and Parka's mobile apps can be used if you're staying in Akureyri.
In rural areas, some parking lots near popular natural attractions are privately owned and will require you to pay for parking, such as Seljalandsfoss Waterfall and Kerid Crater. Using the Parka app is the most popular way to pay for these parking spots.
The rates for these parking lots are typically not very high and are often used to maintain the facilities and trails near the attractions.
When driving around Iceland, it may be tempting to park your car by the side of the road to take pictures. This is not allowed, so only park your car in designated parking lots and view points, often just around the corner from your picturesque view.
Maximize Your Reykjavik Experience
Navigating parking in Reykjavik can be a bit tricky, but with the right information, you can easily avoid fines and enjoy your stay in Iceland's vibrant capital. You can also avoid dealing with parking by opting for guided day tours from Reykjavik.
If you decide on driving, we recommend preparing for your trip by reading our complete guide to driving in Iceland, familiarizing yourself with Icelandic road signs, and learning safe driving practices before you arrive.
For more helpful tips on your trip to Iceland, check out our guide to downtown Reykjavik or explore top vacation packages. By planning ahead, you can make the most of your time in Reykjavik and beyond without worrying about parking.
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That's all you need to know when it comes to parking in Iceland. What is your experience when parking in Iceland? Do you have other questions about parking in Iceland? Let us know in the comments below!
Hi, I’m Arnar Tómas, a storyteller with a background in journalism and content creation. I’ve worked with top Icelandic media and travel organizations, and I’m into fantasy football, pro wrestling, and travel.
