Can you drive with a foreign driver’s licence in Iceland?

Many travellers to Iceland opt to rent a car, and it makes sense given the country’s scenic spots and remote locations. While public transport and tours are available, having your own vehicle offers flexibility. Iceland’s roads are generally good, even those with gravel, and traffic is lighter compared to other European countries. Renting a car allows you to explore at your own pace, visiting places that interest you most, and adjusting your itinerary as needed based on the weather.

However, one key question many travellers have is whether they can drive in Iceland with a foreign driver’s license. Here's what you need to know.

Basic Requirements for Renting a Car

When renting a car in Iceland, you’ll need a valid credit card, photo ID, and your driver’s licence. Rental agencies typically require drivers to be at least 20 or 21 years old, with some exceptions for more expensive vehicles where the minimum age 23. There may also be a supplement for young drivers. Drivers must agree to terms and conditions, including avoiding off-road driving and paying any speeding fines. Additionally, rental agencies generally expect drivers to have held their licence for at least a year, so ensure your licence is in good standing.

Foreign Driver’s Licence Acceptance

Iceland recognizes driver’s licences issued in certain countries, but the requirements vary depending on where you’re from. Here’s an overview of what you need to know:

European Union and EEA Countries

If you hold a driver’s licence from an EU or EEA country, you’re good to go in Iceland. Your licence will be recognized, and you can drive the same vehicles as you would in your home country. This includes motorcycles, cars, and vehicles with more than 8 passengers if you hold the appropriate category.

United Kingdom

After Brexit, UK licences are still accepted in Iceland. British drivers can use their UK licence to rent a car in Iceland as long as it is valid. Remember to check the expiry date of your photo card before travelling.

United States and Canada

Drivers from the USA and Canada can use their valid driver’s licences in Iceland, provided they are written in Latin script (English). If the licence lacks essential details like a licence number, photograph, or expiry date, you may need an International Driving Permit (IDP). Licences from Quebec, written in French, are also accepted.

Australia and New Zealand

Similarly, drivers from Australia and New Zealand can use their English-language licences in Iceland. There is no need for an IDP unless the licence lacks key information.

Other Countries (e.g., India, Japan, China, Russia)

For countries like India, Japan, China, and Russia, the rules vary. If your licence isn’t in Latin script, you’ll need an IDP. Japan and China require a translation along with the original licence. Russian and other Cyrillic script licences require an IDP, which serves as an official translation.

The International Driving Permit (IDP)

An IDP serves as a translation of your driver’s licence and is required if your licence is in a non-Latin script. It’s essential to apply for an IDP before leaving home, as it can’t be obtained in Iceland. An IDP is valid for one year, as long as your regular licence is also valid.

Rules of the Road in Iceland

When driving in Iceland, be aware of some key road safety rules. Drive on the right, wear seatbelts at all times, and use dipped headlights even during the day. The legal blood alcohol limit is 0.05%, though it’s safer to avoid alcohol entirely. Speed limits are generally 90 kph outside built-up areas and 50 kph in urban areas. Always adhere to these limits and be cautious on gravel roads.

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