New Year's Eve in Iceland

New Year's Eve in Iceland

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What is New Year's Eve in Iceland like? What is New Year's Eve in Reykjavik like? What makes New Year's in Iceland special? Where are the best parties in Reykjavik on New Year's Eve? Learn all this and more in our complete guide to New Year's Eve in Iceland.

Iceland’s New Year’s Eve celebrations are unlike anywhere else, with an electrifying atmosphere that draws visitors from all over the world. As the clock strikes midnight, fireworks light up the night sky, and locals gather in the streets to celebrate the start of a new year. It’s a time when Icelanders come together to enjoy the festivities, creating a vibrant energy that fills the air across the country.

Reykjavik hosts the largest public celebration in Iceland, so if you plan to stay in the capital, it’s a good idea to book your Reykjavik accommodation early. Renting a car can also be useful if you’d like to view the fireworks from higher vantage points around the city. To make planning your trip easier, you can also choose from a variety of Christmas and New Year’s vacation packages.

While New Year’s Eve is a night of partying, it’s also a time for family gatherings. Many Icelanders enjoy a special dinner at home, which means many restaurants will be closed. If you’re planning to eat out, be sure to reserve a table at one that stays open with good notice. Guide to Iceland customers can also use their VIP Club discounts at select restaurants for better value during the holidays.

Read on for tips on the best spots to watch the fireworks, where to party, and what makes New Year's Eve in Iceland truly special.



New Year’s Eve in Iceland: Highlights at a Glance

  • Festive Evenings: Icelanders begin celebrating with early dinners, followed by bonfires and fireworks before gathering to watch the satirical TV show Áramótaskaupið at 10:30 PM.
  • Midnight Fireworks Extravaganza: After the show, the sky lights up across the country with large firework displays, especially in Reykjavik near Hallgrimskirkja Church, Perlan, and along the waterfront.
  • Support & Safety: Fireworks are often bought to support Icelandic Search and Rescue Teams; visitors are encouraged to wear safety glasses due to the heavy fireworks usage across the region.
  • Ongoing Celebrations: House parties and vibrant nightlife continue into the early hours, with bars open late and many joining downtown festivities.
  • Rural & City Vibes: Similar traditions occur in the countryside, though with fewer nightlife options. Reykjavik offers more dining and party venues—reservations and parking planning are very important.
  • New Year's Day Calm: The city quiets down, making it a great day for nature tours, spa visits, or cozying up in a countryside cottage.
  • Winter Adventures: Extend the celebration with guided or self-drive tours featuring northern lights, ice caves, waterfalls, and more winter wonders.

Fun Fact: “Happy New Year” in Icelandic is Gleðilegt nýtt ár!


What do Icelanders Do on New Year's Eve?

Bird's-eye-view of New Year's fireworks celebrations in the public square in front of Hallgrimskirkja

Photo credit Arctic-Images/Getty Images

On New Year's Eve in Iceland, the celebrations begin early. Icelanders typically gather with family or friends for dinner around 6 or 7 PM. Afterward, around 8 PM, locals head to their nearest bonfire, where they meet up with friends and enjoy some fireworks.

Once the bonfire festivities are over, the streets quiet down as people return home to watch the annual comedy TV show "Aramotaskaup," which recaps the year's events. It starts at 10:30 PM, and you'll be able to hear when it ends just before midnight.

Once the annual comedy show ends, the streets come alive again as people gather to set off more fireworks. At midnight, the sky all over the capital region is completely lit up, and you may even hear church bells ringing to welcome the New Year!

The celebrations continue into the early hours, with most people heading to house parties around 1 AM. While bars and clubs are open late, house parties are the preferred choice for many.

This routine takes place pretty much everywhere in Iceland, whether in Reykjavik or tiny villages around the countryside. Reykjavik is, of course, the largest settlement in Iceland and where people are spread out the most. Both Akureyri and Isafjordur have the most people gathering in one location.



New Year's Eve in Reykjavik

Reykjavík fireworks on New Year's Eve, picture by Jonathan Hood

Picture by Jonathan Hood

If you're planning to spend your New Year's Eve in Reykjavik, you can expect the following. First of all, be prepared to see a LOT of fireworks. Imagine how many you may see, then multiply that by a thousand.

Icelanders spend a large amount of money on fireworks each year (hundreds of millions of Icelandic kronur), partly because they're obsessed with the colorful display on New Year's Eve. However, they also do so to support the Icelandic Search and Rescue Teams that heavily rely on income from fireworks and Christmas tree sales each year.

New Year's Eve in Iceland

The Icelandic Search and Rescue Teams are run by volunteers, and they often work in dangerous environments and all kinds of weather to help locals and visitors alike in danger. While most firework sales are in support of the Search and Rescue teams, not all of them are. As such, make sure you buy your fireworks from one of them, such as Flugbjorgunarsveitin or Landsbjorg.

Iceland comes alive with fireworks on New Years Eve

People start shooting a couple of fireworks a couple of days before New Year's Eve and continue until the 6th of January. However, most of them are shot around midnight on New Year's Eve.

Although people often go to their nearest street corner to shoot the fireworks, there are a couple of popular locations where people gather to watch the impressive display. One of the most recommended places for shooting or watching fireworks is by Hallgrimskirkja Church.The area in front of the church, surrounding the Leifur Eriksson statue, is very popular.

Anywhere high up with a view over the city is a good location, so the area around Perlan at Oskjuhlid Hill is another popular location. Down by the seaside is also a good spot. Consider going to Aegissida Street, where a bonfire is lit earlier in the evening, or to the Sun Voyager Sculpture and Harpa Concert Hall. Another option is to see the fireworks mirrored in the Tjornin Lake in Reykjavik.

Finally, there's a variety of tours available for New Year's Eve. For example, you can join in on this New Year's Eve Firework Cruise or this New Year's Eve Celebration at Sea, both of which last for 1.5 to 2 hours around midnight, and then drop you off back in town to join in on the downtown parties.

Views of Reykjavík's fireworks on New Year's Eve from Tjörnin

Whichever location you decide upon, be sure to bring a bottle of champagne, your best clothes (covered with layers of wool, and some warm shoes), and find a party to join! It's also advised to wear safety glasses, as anyone is allowed to shoot fireworks that night (you may see toddlers holding flares or sparklers), and as fireworks come at you from all directions, accidents can occur.



Going on a boat ride is a magical way to celebrate New Years in Reykjavik

Photo from Spectacular 2-Hour New Year's Eve Boat Cruise & Celebration at Sea from Reykjavik

After shooting fireworks at midnight, people usually go to local house parties, but you'll still see plenty of people partying downtown. Bars are open very late (or very early, depending on how you look at it), so you'll have no issue having a good time. Just remember that if you're part of the Guide to Iceland VIP Club, you can get special discounts and offers at many of the best bars in Reykjavik!



Bonfires in Reykjavik on New Year's Eve

During New Year's Eve, you can visit several bonfires in Reykjavik, but there are many more in the whole of Iceland. Most of them start at around 8 or 8:30 PM and are finished by 9:30 or 10 PM, as that's when people go home to watch the annual TV comedy satire show.

One of the largest ones in Reykjavik, and the most centrally located, is the one by the seaside on Aegissida Street in the West part of town. It's a 20-minute walk from the Tjornin Pond in downtown Reykjavik, but you can also reach it by Straeto bus nr. 11.

There are often organized firework displays by the Icelandic Search and Rescue Teams accompanying the bonfires, and sometimes some singing takes place. As this is early in the night and the sky hasn't filled up with smoke from the fireworks yet, you may get a chance to see the northern lights if the sky is clear and there's not much light pollution.

As everybody is filled with a festive spirit at the turn of the year, people often dress up in fun outfits for New Year's Eve and put on funny hats or fabulous glitter makeup. Just make sure to wrap up warm as well!



Iceland's New Year's Comedy Show: Áramótaskaup

Before midnight on New Year's Eve, people have a nice dinner, flock to bonfires around town, and then watch a satirical comedy show on TV at 10:30 PM. Nearly every single Icelander watches this, and it has become a common conversation topic at New Year's Eve parties. Was it good? Was it bad? Was it better than last year's show? What was your favorite sketch?

The TV program is called Aramotaskaup, or Skaupið for short. That translates to the New Year's Spoof, or simply The Spoof. It has been running since Iceland's main TV channel started in 1966 and has become an integral part of the nation's celebration of another year's passing.

This 50-minute long TV program has multiple short sketches that make fun of the main events happening in the year that passed. Icelanders like to poke fun at themselves, and no one is spared in this yearly comedy show, especially not the Icelandic politicians, artists, or the president.

Above, you can watch a sketch in English, which makes fun of the way Iceland presents itself to other nations and how tourists can often perceive Iceland in a rose-tinted way. This sketch is from 2014, at the start of an increased tourism boom in the country. Many other sketches can be found online, but they are all in Icelandic.

Each year, we eagerly await it, as there is always a lot to be made fun of. If you'd like to participate, Skaupið is always shown on the main public TV channel in Iceland, called RÚV. You can watch it live with English subtitles.

New Year's Eve in Iceland's Countryside

As mentioned earlier, New Year's Eve follows the same routine if you decide to spend it in another town in Iceland besides Reykjavik. However, you'll have fewer options for bars to attend after midnight. The above footage is from the town of Keflavik, just to give you an idea!

The early part of the evening is generally spent with the family, and after midnight, people meet up with friends and party. If you are staying in a small town or somewhere in the countryside, then be sure to enquire with the locals about the customs in that area. There may be a planned New Year's Ball or a concert somewhere that you can attend.

Parking in Reykjavik During New Years

Parking in Reykjavik during New Year's Eve can be challenging due to increased traffic and street closures for celebrations. While parking fees are not charged on New Year's Day and other public holidays, this does not apply to New Year's Eve. As a result, it's essential to check local signage to determine if payment is required.

To avoid congestion, it's a good idea to consider parking outside the city center and walking to your destination. If you manage to get an open spot at one of the more central parking zones, the red and pink-colored ones, then take it. Otherwise, aim for the blue, green, and orange parking zones.

Dining in Reykjavik on New Year's Eve

Securing a dining spot in Reykjavik on New Year's Eve requires advance planning. Many locals dine at home, leading to some restaurants closing for the evening. However, several establishments remain open and offer special menus to celebrate the occasion.

Notable restaurants that are open during the holidays, such as Litli Barinn and Kol, provide festive and unforgettable dining experiences. As a result, it's in your best interests to make reservations well in advance, as these venues can fill up quickly.



Visiting Iceland on New Year's Day

On New Year's Day, Reykjavik adopts a tranquil atmosphere as residents recover from the previous night's celebrations. Many shops and businesses remain closed, and the streets are notably quiet.

This is an excellent opportunity to explore Iceland's natural attractions if you haven't already! Consider embarking on scenic Golden Circle tours or visit the Blue Lagoon for a relaxing geothermal spa experience. If you prefer to stay within the city, there's still plenty to do and see.



But if you want to escape the mad partying and find quiet solitude with your closest loved ones, then you can rent a cozy cottage somewhere surrounded by stunning landscapes. It's the perfect way to unwind in a warm hot tub while watching the stars. You may even find a spot with a crackling fireplace to get cozy in front of!

Celebrating New Year's Eve in Iceland is also the perfect time to go on a winter adventure. Be sure to check out the variety of winter packages and winter self-drives on offer. They'll let you explore beautiful frozen waterfalls or try thrilling activities like ice-caving tours!

Top New Year's Vacation Packages

  1. 3-Day Northern Lights & Ice Cave Tour to the Golden Circle, South Coast & Glacier Lagoon — On this 3-day tour, you'll see Iceland's top sights along the Golden Circle and South Coast and have a great chance to experience the mystical northern lights.
  2. Amazing 5-Day Northern Lights Winter Vacation Package in Iceland with Ice Caving & the Blue Lagoon — Relax in the Blue Lagoon, explore the unforgettable ice caves, and hunt for northern lights on this memorable tour.
  3. 2-Day South Coast Winter Trip to Jokulsarlon Glacier Lagoon Crystal Ice Cave — Journey out to the Jokulsarlon Glacier Lagoon and see this wondrous blue ice cave.

Top New Year's Self-Driving Tours

  1. 7-Day Northern Lights Self-Drive Tour Through the Golden Circle and South Iceland — This self-drive tour is perfect for those who wish to see as many of Iceland's top attractions and sites as possible within a week.
  2. One-Week Northern Lights Self-Drive Tour of South & West Iceland with Ice Caving — Take the wheel and explore Iceland's natural wonders at your own pace with this weeklong self-driving tour.
  3. Magical 6-Day Northern Lights Self-Drive Tour in the South Coast of Iceland with Ice Caving — Increase your odds of seeing the northern lights and go ice caving along the way.

It's also worth mentioning that in December and January, when the sky is not filled with fireworks, it's the best time of year to see the beautiful northern lights dancing in the sky. You can hunt for them yourself with a rental car, and there are a variety of guided northern lights tours available, depending on your preferences.

With so many beautiful winter sights to see and festive New Year's activities to partake in, there's always something to do this time of year. From dining at Reykjavik restaurants to exploring the beauty of Iceland's landscapes, New Year's in the land of ice and fire is unlike anything you'll ever experience.

And finally, Happy New Year or "Gleðilegt nýtt ár"!

How will you celebrate the New Year this year? Will you spend it in Iceland? Have you visited Iceland before? What are your favorite memories from your visit? Share your thoughts and questions in the comment section below!

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