If you’re planning a trip to Iceland, Reykjavik is no doubt on your itinerary. The capital city boasts many of the country’s attractions, alongside great eateries, bars and shops. There is so much to do and see in this vibrant part of Iceland, it comes as no surprise that it attracts many tourists each year. 

One of the most popular ways to travel around Iceland is by car. There are so many places to explore on the island, a road trip is undoubtedly the best way to see it all. With this in mind, it’s important to know all about parking here, especially when visiting the busier parts of the country. 

Luckily for you, we have all the information so that you can go to Reykjavik whilst knowing everything you need to about parking here. Keep reading to find out more about parking costs, where to park, fines, and free spaces in the city. 

Parking Zones in Reykjavik

When visiting Reykjavik by car, you will come across four different parking zones, all of which have distinct charges. You can easily spot these by looking for the P parking sign. On these signs, or nearby you will find other information such as rates and how long you can stay in that zone.

The different tariffs are split into P1, P2, P3 and P4. As you move closer to the centre of Reykjavik, the parking prices automatically go up. Below shows a breakdown of each of the zones, the times and the charges to expect.  

P1 (Red and Pink)

P1 parking can be easily identified by the colours red and pink around the zones. This is the most expensive part of Reykjavik to park, as the P1 spots are closest to the city centre. You can expect to pay around 250 ISK (1.50 GBP) per hour when parking in any of these places. When visiting Reykjavik during the week the parking tariffs are 09:00 to 18:00. On Saturdays they operate from 10:00 to 16:00 and you can park in any of the zones free of charge on a Sunday. 

P2 (Blue)

P2 parking can be found in the blue zones around Reykjavik. These are slightly further from the city centre, yet still offer convenient proximity. Expect to pay around 200 ISK (1.20 GBP) per hour when using these spots. The same tariff times apply in P2 parking zones to those in P1, outside of these hours you can stop here free of charge. 

P3 (Green) 

When searching for parking in Reykjavik you will also come across green zones, these are categorised as P3. Again, these spaces get further from the city centre, which automatically brings the prices down. You will pay approximately 90 ISK (0.55 GBP) per hour when stopping in a green parking spot. The hours for staying here are the same as the P1 and P2 zones. 

P4 (Orange)

The difference between orange parking zones is that they are only available during the week and should not be used on a weekend. When using P4 parking expect to pay around 125 ISK (1.50 GBP) per hour. You can stay here between the hours of 08:00 to 16:00 Monday to Friday. 

How to Pay for Parking in Reykjavik

Much like many other European countries, you can usually pay for parking in cash or credit card in Iceland. However, when travelling to downtown Reykjavik, you may come across some old-fashioned parking machines that will only accept coins. It’s best to keep some change in your pocket or rental vehicle, in case you find yourself needing to use one of these. 

You will also find that when parking in downtown Reykjavik, the metres aren’t located near the spaces, so don’t be fooled into thinking that they are free! Often, the metres can be found on the street where you have parked and are tall black boxes marked with the letter P. 

Some of the parking areas in Reykjavik also allow you to pay by app, making it a convenient alternative to searching for somewhere to pay. It’s also worth noting that you will have to enter your vehicle’s registration number when paying for parking, so if you’re using a rental car it is worth making a note of this on your phone. 

You must read all the signs wherever you choose to park in Reykjavik. As different prices and times apply, you could also end up with a fine if you don’t stick to the tariffs set in that zone. 

Other Parking Places in Reykjavik

If you don’t fancy using any of the allocated parking zones, there are other spots available. You can find many of these in downtown Reykjavik, but make sure you keep an eye out for the signs near the spaces. A general rule of thumb is that if it doesn’t have a picture of a tow truck near it, you’re safe to park there!

You will also find some multi-storey car parks in Reykjavik, these tend to be cheaper than the parking zones above. If you decide to stay in a multi-storey, you will find that they are generally open between 07:00 and 24:00, after which time your car will be locked in until the following morning. The charges for parking here average around 240 ISK (1.45 GBP) for the first hour and 120 ISK (0.70 GBP) for every hour after that. 

There are some great multi-storey car parks littered around the city, with some of the busier ones being City Hall and Vesturgata. Below shows a list of other places where you can park near Reykjavik. 

  • Stojornuport at Laugavegur 94
  • Kolaport, Jakobsvegur
  • Raohusio, Tjarnargata
  • Vitatorg at Skulagata 
  • Traorkot on Hverfisgata 20

These are all popular places to stop around the city, so it’s best to check ahead for spaces. You can do this by scanning the Reykjavik Parking Fund site where you will find live availability for spots. 

Free Parking in Reykjavik

We’re aware that when visiting Iceland you’ll want to put your money into travelling the island, seeing the sights, eating at restaurants and indulging in all the shopping. With this in mind, to help save your wallets, we have also pinned down some free parking places in Reykjavik. 

One way to get around paying hefty parking fees is by driving smaller, eco-friendly vehicles. Iceland recently brought in free parking for all small cars (including rentals), for up to 90 minutes in all of the zones. This is a great way to lower your costs when visiting this stunning country, as well as help the planet! It’s best to check with your car rental company as to whether or not your vehicle qualifies for free parking around Iceland. 

Parking in Reykjavik on Public Holidays

If you find yourself visiting Reykjavik during a public holiday, you will be happy to hear that parking is usually free during this time. You can expect to park for free in Reykjavik on the following holidays: 

  • Christmas Day
  • Boxing Day
  • New Year’s Eve
  • Maundy Thursday
  • Good Friday
  • Easter Monday
  • 1st day of Summer 
  • Labour Day, May 1st
  • Ascension Day
  • Whit Monday
  • Independence Day, June 17th
  • Commerce Day, 1st Monday in August

You will also find that many of the parking zones are free during bank holidays if they haven’t been closed off. However, it is always best to check the signs surrounding the zones just to be sure, or you might find yourself with a fine!

Disabled Parking in Reykjavik

Disabled spots are marked with a wheelchair symbol and you should avoid parking in these unless you have a permit. Those who do stop in these areas will find themselves with a considerable parking fine, which increases when not paid in a certain amount of days. 

There are plenty of disabled parking spaces in Reykjavik, making it easy for all to get around and explore the stunning area. You will find many of these spots in the city centre, marked with a wheelchair symbol. 

You must display your disabled badge when using any of the designated spaces. Parking in the zones in Reykjavik is also free for disabled badge holders. However, it’s important to note that this does not enable you to park in prohibited areas. 

Iceland has also put the European Model Parking Card in place, this means those visiting from other countries can use their disabled badge here. You do however need to print out another notice to go alongside your permit, find out more information here.   

Are you Allowed to Sleep in your Car in Iceland? 

Due to the popularity of road trips in Iceland, many visitors also like to camp whilst on their journey. With this in mind, tourists ponder over the rules of sleeping in their car whilst visiting this magnificent country.

The rules are a little hazy around sleeping in your car in Iceland. This is because whilst it isn’t illegal to stay in your car here, it is illegal to sleep overnight in any vehicle that isn’t in a designated camping area. Those who decide to stop in their car overnight on the side of the road, on another person’s land, or anywhere that isn’t recognised as a campsite will be met with a large fine. 

There are some incredible camping grounds around Iceland, frequented by motorhomes, campervans and caravans. These provide the ideal way to explore the country’s great outdoors from morning to night. However, if you happen to be visiting the island by car, it is recommended that you drive through Iceland during the day and make the most of some of the country’s great hotels, B&B’s and rental accommodations at night. 

Parking Fines in Reykjavik

When parking anywhere in Iceland, you must read the signs to avoid any charges whilst visiting. Those who choose to park in undesignated spots, or don’t follow the rules and regulations, may find themselves having to pay a large sum of money on their trip. 

For those who do not pay for parking in places where it is requested, or go over the allocated time, expect to be fined around 4500 ISK (27 GBP). These prices continue to increase the longer you leave the fine unpaid, which can result in a cost of up to 9000 ISK (54 GBP). 

Another way you might encounter a parking fine is if you park in areas where it is strictly prohibited. These include stopping on pavements or being too close to a zebra crossing. The charges for these average around 10000 ISK (60 GBP). Anyone also caught parking in an allocated disabled bay without displaying a badge will be fined 20000 ISK (120 GBP). It’s essential that you know these rules and follow them when visiting Iceland. After all, your money is better spent on seeing all that this beautiful place has to offer than paying parking fines! 


We hope that after reading all the information about parking in Reykjavik, you can now visit with all this in mind. This city is a stunning part of the country, brimming with beautiful scenery, a bustling atmosphere and lots to see and do. We want you to make the most out of your time when visiting here and all of our recommendations above will help you do just that. 

If you’re planning to go to Iceland for a road trip, you’re likely in need of a vehicle. Fara Car Rental has an excellent range of cars to choose from. Whether you’re seeking to explore the lively capital or head off the beaten track, you will find something for every type of traveller with Fara.