Parking in Reykjavík: The Ultimate Guide in 2026

There are a few things to keep in mind when parking in Reykjavík, this article is the ultimate guide to parking in Reykjavík and what to keep in mind when finding the best spot for your vehicle.

If you’re planning on parking in Reykjavik, understanding the rules before you arrive can save you both time and money. Whether you're wondering where to park, how to pay for parking in Reykjavik, or which parking zones are the best places to park, this guide covers everything you need to know.

While many travelers only spend a short time in Reykjavík, most attractions, restaurants, and hotels are located in or near the city center where paid street parking applies. Iceland is not a cheap destination, and parking fines can add unnecessary costs to your trip.

Let’s break it down clearly so you can park confidently.

Parking in Reykjavik: Key Takeaways

• Paid street parking mainly applies in the city center.
• There are four parking zones (P1–P4) with different prices and time limits.
• You can pay at parking meters or via mobile apps.
• Parking garages charge 24/7.
• Electric vehicles no longer receive free city parking.
• Fines increase quickly if not paid within 3 days.

How much does it cost to park in Reykjavík?

The price for parking in Reykjavík ranges from 240-660 ISK per hour, depending on the zone you plan on parking in.

The price for the parking zones in Reykjavík is as follows:

Zone	Color	Price (ISK)	Approx. USD	Approx. EUR	Time Restrictions
P1	Red	660 ISK/hr	~$5.30	~€4.57	9:00–21:00 (Sat–Sun 10:00–21:00), max 3 hrs
P2	Blue	240 ISK/hr	~$1.93	~€1.66	9:00–21:00 (Sat–Sun 10:00–21:00)
P3	Green	240 ISK/hr first 2 hrs, then 70 ISK/hr	~$1.93	~€1.66	Weekdays 9:00–18:00
P4	Orange	220 ISK/hr	~$1.77	~€1.52	Weekdays 8:00–16:00

Exchange rates may vary slightly.

Reykjavik Parking Zones (P1, P2, P3, P4)

The city center is divided into four clearly marked parking zones. Look for the blue “P” sign — it includes a number (1–4) that tells you which zone you’re in.

• P1 (Red) – Most central and most expensive.
• P2 (Blue) – Slightly outside the core.
• P3 (Green) – More affordable for longer stays.
• P4 (Orange) – Further from the center, weekday fees only.

Parking garages in downtown Reykjavík operate 24/7 and have separate pricing.

This will not apply to parking garages that are also located in the city center as they require payment 24/7 all days of the week.

If you’re unsure where to park in Reykjavik, P3 and P4 are often considered the best places to park for budget-conscious travelers.

Where to Park in Reykjavík Besides Street Parking?

If you prefer not to deal with street parking meters or time limits, there are excellent alternatives.

Parking Garages & Parking Lots

Several centrally located garages offer convenient access to downtown attractions. Popular options include garages near:

• Harpa Concert Hall
• Hallgrímskirkja

Parking garages:

• Operate 24/7
• Charge hourly rates
• Are ideal during winter or bad weather
• Remove the stress of monitoring time limits

Underground parking lots are clearly marked and easy to access, though some older garages may have narrow entrances.

Hotel Parking in Reykjavik: What to Expect

Many central hotels do not offer free parking. Some provide:

• Limited on-site paid spaces
• Discounted garage partnerships
• Resident permits (rare)

Always confirm with your accommodation in advance if parking is included.

Green Parking

“Green Parking” refers to privately managed parking lots operated by GreenParking.

These are not part of the city’s P1–P4 system and:

• May use license plate recognition
• Have separate pricing
• Often charge 24/7
• Can be more expensive

You’ll usually see clear signage when entering one of these areas. If staying nearby, check with your accommodation for guidance.

How to Pay for Parking in Reykjavík

Paying for street parking in Reykjavik is simple. You can pay directly at parking meters. These machines accept most major credit cards, cash, coins, and mobile payments via your smartphone wallet. You should have no issue paying for parking.

Ticket machines are located along streets within paid zones. They accept:

• Credit & debit cards (most common)
• Contactless payments and smartphone wallets
• Some accept coins (cash rarely used)

You must enter your license plate number — no paper ticket is required on your dashboard.

Alternatively, the parking fee can also be paid using Parking Apps (most convenient option)

To easily pay for parking in Reykjavik, download:

• Parka
• EasyPark

With these apps, you can:

• Start/stop sessions remotely
• Extend time without returning to your car
• Pay securely by card

For visitors, apps are usually the most convenient payment method.

Where to Find Free Parking in Reykjavík

Free parking in Reykjavík is available:

• Outside marked zones
• Evenings after charging hours
• Sundays (for street parking)

Always double-check signage to confirm.

Parking During Public Holidays

Street parking is typically free on official public holidays, but:

• Parking garages still charge
• Private operators (like Green Parking) may charge

Always verify posted signs.

Parking for Eco-Friendly cars

Previously, electric vehicles received 90 minutes of free parking in the city center. However, this benefit ended in 2023.

EV owners must now follow the same payment rules as other vehicles. Charging stations are available throughout downtown, sometimes marked in green paint (which may be hidden under snow in winter).

Parking Your Car Rental in Reykjavík

If you’ve rented a vehicle, parking rules apply exactly the same way.

Rental companies will:

• Forward any unpaid parking fines
• Add administrative handling fees
• Always ensure you properly register your license plate when paying.

Parking a Campervan or Motorhome in Reykjavík

Visiting Reykjavík in a camper or a motorhome? The main campsite in Laugardalur Campsite is the best legal overnight option. It’s about a 30-minute walk to downtown and offers:

• Showers & laundry
• Cooking facilities
• Bike rentals, so you can bike into town if you like
• Access to the swimming pool nearby

Parking a campervan or a motorhome in Reykjavík can be more challenging, as large vehicles may struggle in narrow city streets or tight parking garages. The parking garage under Harpa Concert Hall is one of the more accessible options for motorhomes and campers. It is easy to enter and just a short walk to the city center.

When visiting downtown Reykjavík with one of our rooftop tent vehicles, the size of the vehicle is less of an issue, making it a great choice for parking and manoeuvring in the city center.

Overnight Parking in Reykjavík

Sleeping in vehicles outside designated campsites is restricted within city limits. Violations may result in fines. Always use official campsites for overnight stays.

How to Park Legally & Avoid Fines in Iceland

Common mistakes when parking in Iceland include:

• Parking against traffic direction
• Not paying within charging hours
• Entering incorrect license plate numbers
• Exceeding maximum time in P1

In Iceland, you must park in the direction of traffic flow, as shown in the photo below. Parking against the traffic direction is illegal and may result in a fine. If you are driving in the right-hand lane and wish to park on the left side of a two-way road, you must turn the vehicle around to park legally.

To learn more about local regulations, see our guide on the essential driving rules in Iceland.

Parking Fines in Iceland

The issued amount for unpaid parking is 4.500 ISK, however, if you pay it straight away then you will only have to pay 3.400 ISK. The amount will then raise if it goes unpaid. After 14 days it will go up to 6.750 ISK and then after 28 days, still unpaid it goes up to 9.000 ISK.

For unpaid parking:

• 4,500 ISK (~$33 / €30)
• Reduced to 3,400 ISK (~$25 / €23) if paid within 3 days
• Increases to 6,750 ISK after 14 days
• Increases to 9,000 ISK after 28 days

Parking violations (illegal parking) may result in fines around 10,000 ISK (~$73 / €67).

Paying within 3 days provides a significant discount.

How to Pay for Parking Tickets in Iceland?

Paying for a parking ticket in Iceland is very straightforward. You can pay fines:

• Online via the Reykjavík Parking Fund website.
• Through your rental car company (additional admin fee may apply)

Online payment is typically the fastest option.

How to Dispute a Parking Ticket in Iceland?

If you do not agree with a ticket received during your trip to Iceland, you can dispute the ticket by submitting any documents you may have to the email address bilastaedasjodur@bilastaedasjodur.is. The dispute must be made within 14 days of receiving the ticket.

Make sure to include:

• Ticket number
• License plate
• Proof of payment (if applicable)

H2: Parking Outside of the Capital

Outside the capital area, parking rules are often simpler, and frequently free, except in town centers and popular tourist sites.

 

Parking in Akureyri

There are two parking zones in the center of Akureyri: P1 and P2. The charging hours for both zones are the same, operating Monday to Friday from 10:00 to 16:00.

(We want to keep the current image of Akureyri parking map, but it would be good to change the alt text from “AkureyriParking" to “Map of Akureyri parking zones”.)

Red dots indicate pay stations.

Zone	Price
P1 - Yellow	218 ISK/hr (~$1.60 / €1.45)
P1 - Orange (2-hour maximum limits)	218 ISK/hr (~$1.60 / €1.45)
P2 - Light Blue	109 ISK/hr (~$0.80 / €0.70)
P2 - Dark Blue (2-hour maximum limits)	109 ISK/hr (~$0.80 / €0.70)

Charging hours: Monday–Friday, 10:00–16:00

How to Pay for Parking Tickets in Akureyri?

Fines can be paid in Akureyri:

• At local banks
• Via Icelandic online banking
• Using ticket reference details provided

National Parks

At major national parks such as Þingvellir National Park, parking is managed via license plate recognition.

What you need to do:

• Enter your plate number at a payment machine or online
• Pay a flat daily fee (typically 750–1,000 ISK depending on vehicle type)

Failure to register your vehicle may result in a fine sent to the rental company.

Ready for a Smooth Journey in Iceland?

Now that you understand parking in Reykjavik, the different parking zones, how to pay for parking, and how to avoid fines, you’re ready to explore Iceland stress-free. If you would like to know more about driving here, check out our guide to tunnel and road tolls in Iceland and common road signs.

By renting a car in Iceland, you get the freedom to experience the country beyond the capital, from waterfalls to volcanoes, on your own schedule. Plan ahead, park smart, and enjoy your Icelandic adventure.