Parking in Reykjavik

*This post was updated 21st March 2022

Street parking in Reykjavik is always free before 9am after 6pm and all day on Sundays. The only exception is if you are in a multi-storey car park. Charges do apply on weekdays from 9am until 6pm and from 10am until 4pm on Saturdays.

Renting a car is the best way to get around Iceland and see all the sights during your trip to the country. Public transport can be limited and make it difficult to reach certain regions, and renting a car means you are not restricted by transport schedules. With free parking available, it is important to know where you can and can’t park in the capital during your visit. We have put together a guide about where you can park in Reykjavik during your stay and what you will have to pay.

What are the Parking Zones?

There are 4 parking zones in the capital and each have different charges and rates when it comes to parking. Generally, it is only within these zones in downtown Reykjavik that you must pay for parking, most other places should be free. If you don’t see a “P” parking sign or information about charges clearly displayed, then you shouldn’t have to pay for parking. The different rates for parking in Reykjavik are charged at an hourly rate as follows;

  • Red & Pink – Area P1; these are the most expensive areas to park, charging 250 ISK (1.8 EUR)
  • Blue – Area P2; these areas of parking charge 125 ISK (0.9 EUR) 
  • Green – Area P3; these regions of the capital charge 90 ISK (0.6 EUR) 
  • Orange – Area P4; only valid during weekdays charging 125 ISK (0.9 EUR)

What Payment Methods are Accepted?

You can generally pay for parking with both cash and credit cards in most places, but there are still some old fashioned machines around. These older parking meters will only accept coins and are generally located down side streets in downtown Reykjavik. You can still use a pay and display machine to get a valid ticket for parking if you only have a credit card, but it could be difficult to find a machine if you don’t know where you are. For this reason, it is a good idea to keep some coins with you in case you come across an old parking meter in the city.

Where Else Can I Park?

It's not only just street parking and parking lots that are available in Reykjavik, there are other parking options in the capital. One of the best places to park in Reykjavik is in multi-storey car parks, which are usually much cheaper than the parking zone charges.

If you want to be sure of a parking space, then there is a great website that provides live parking updates - The website is currently only available in Icelandic (though the website can be translated) but you can easily navigate by choosing your location and seeing the number of spaces available in green. See an example below:

Free Parking for Eco-Friendly Cars

You might’ve heard about free parking for eco-friendly cars in Reykjavik and there are exemptions for the smallest cars, which includes rental cars too. If your car qualifies then you will be able to make use of free parking in all zones. You should be able to identify whether you have free parking as there should be a clock shaped sticker in your window. This is marked by the Reykjavik crest, but will only give you 90 minutes of free parking, after which point you will have to pay.

Can I get a parking fine in Reykjavik?

If you do not follow the laws and guidelines for parking in Reykjavik, you could find yourself facing a fine, as the rules are strongly enforced. The main things you can encounter a fine for are not having any time left on your meter, parking in a disabled or handicap space, or parking in an area where parking isn't actually permitted. If you pay within the first 3 days of being issued the ticket you will get a discount, and your fine (depending on the violation) will range between 4000ISK (30EUR) and 20,000ISK (150EUR). 

If you pay within 2 weeks of the ticket being issued, you can expect to pay between 6000ISK (40EUR) and 30,000ISK (220EUR). Waiting to pay your fine after 29 days will incur a late fee, and you can expect to have to pay somewhere between 9000ISK (65EUR) and 40,000ISK (300EUR).

If you do get issued a parking ticket, you'll want to pay it as soon as possible, and you can do so by going to the nearest bank where they will let you pay the fine. If you leave Iceland without paying the fine, your rental car company will be issued the ticket and they will track you down and you will need to reimburse them.