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Cars parked along a road in Reykjavik.

Where to Park in Downtown Reykjavík?

  • Átak
  • 19.04.2024

One of the best ways to explore Iceland is by car. Icelandic roads, especially in cities and on the Ring Road, are well-maintained and offer the chance to explore the attractions of the country at your own pace. Whether you’re going on a self-drive tour or will be renting a car for only part of your journey, we’ve put together a guide to parking in Reykjavík. Keep reading to know more. 

Parking Zones in Reykjavík

Knowing where to park in Reykjavík can come in handy when you’re exploring what the city has to offer. With lots of designated parking zones, it can be confusing for first-time visitors to know how parking in Iceland works, and when you can park for free. 

On-Street Parking Zones in Reykjavík 

Reykjavík has a total of four parking zones. They're all marked with the sign ‘P’ and have a number from 1 to 4 indicating the hourly rate. 

  • P1 - Red and pink zone: 600 ISK (4 US $)* per hour (maximum 3-hour stay)
  • P2 - Blue zone: 200 ISK (1.50 US $)* per hour
  • P3 - Green zone: 200 ISK (1.50 US $)* per hour for the first 2 hours, then 55 ISK (0.4 US $) per hour after that 
  • P4 - Orange zone: 200 ISK(1.50 US $)* per hour but only on weekdays (Mon to Fri, 08:00 to 16:00)

For zones P1 and P2, you’ll have to pay parking fees anytime between 9 am to 9 pm Monday to Saturday, and from 10 am to 9 pm on Sundays. For zone P3, you only have to pay parking fees between 9 am to 6 pm on weekdays. Zone P4 fees apply from 8 am to 4 pm on weekdays. Outside of these hours, parking in Reykjavík is free.

Multi Storey Car Parks in Reykjavík 

Reykjavík has a number of multi-storey car parks that can come in handy if you’re struggling to find a spot, or are looking for somewhere to park your car overnight. Typically, they’re open from 7 am to midnight, which means you won’t be able to collect your car outside of these hours. Multi-storey car parks in Reykjavík tend to charge 240 ISK (1.80 US $)* for the first hour and 120 ISK (0.80 US $)* from then on. 

If you’re looking for a multi-storey car park in Reykjavík, these are some of the recommended ones. 

  1. Kolaportið parking building on Kalkofnsvegur 1
  2. Vesturgata multistorey on the corner of Vesturgata and Mjóstræti
  3. City Hall on Tjarnargata 11
  4. Traðarkot on Hverfisgata 20
  5. Stjörnuport on Laugavegur 94
  6. Vitatorg on the corner of Skúlagata and Vitastígur

City Hall and Vesturgata tend to get full quickly, but you should be able to find a spot in the others easily.

A  woman parking a small white Hyundai i10 smart car in a car park by the Ring Road in Laufskalavarda, South Iceland.

Free Parking in Reykjavík 

In Reykjavík, parking is free on public holidays so it might be a good idea to time your visit around them, especially if you’re going on a self-drive tour. These are some of the public holidays in Iceland:

  • New Year’s Day
  • 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 of August (also known as Holiday of the Merchants)
  • Christmas Day
  • Boxing Day

As part of its initiative on climate change and sustainability, Reykjavík has introduced free parking in all zones for small electric cars for up to 90 minutes. Parking is also free for standard cars in all four zones outside of their set hours. However, for multi-storey car parks, you’ll have to pay for 24/7 parking.

Paying for Parking in Reykjavík

Parking zones in downtown Reykjavík have a ticket machine where you can pay for parking. Just enter your licence plate number and choose the number of hours, and you’ll be able to pay either with a card or coins. If there’s a parking metre instead, you can only pay with bigger denominations of Icelandic coins (10, 50, and 100 ISK) so it’s good to keep them handy. Some places also accept app payments from Parka and Easy Park.

If you’re using a parking zone, you may not always get a ticket so don’t worry about it. In multistoreys, however, you’ll be given a ticket at entry and you need to insert it into the machine when leaving. 

Paying Parking Fines

In Iceland, parking fines are imposed in two cases: when you haven’t paid parking charges for the full duration or at all, and for illegally parked vehicles. The standard fine is 3,400 ISK (25 US $)*, but this can vary based on when it’s been paid. If you haven’t paid it immediately, the fee will increase.

If you get a parking ticket in Iceland, you can take it to a bank to pay the fine. You can also pay online on the Reykjavík Parking Administration site by entering the details.

A woman looking out into the Icelandic landscape from a car window

Exploring Iceland by car is an experience like no other. But to enjoy a stress-free trip, you need to know how parking in Iceland (especially Reykjavík) works so you can find a spot when needed and don’t get a parking ticket. Now that you’re armed with this information, browse our rental cars to find the right option for your journey. 

(*All prices are approx. as of March 2024)