Parking in Reykjavík - Where Can I Park and Is It Free?

Key Highlights

Parking in Reykjavik is straightforward once you understand the system, but many visitors are confused by the city's parking zones and payment rules.

Most travelers exploring Iceland by car will spend some time in Reykjavik, whether visiting museums, restaurants, or using the city as a starting point for day trips. While driving around Iceland is generally simple, parking in the capital can catch visitors off guard if they are unfamiliar with the local rules.

This guide explains how parking in Reykjavik works, where you can find free parking, how much parking costs, which apps to use, and how to avoid parking fines when visiting the city.

If you want to understand parking rules across the entire country, you can also read our complete Iceland parking guide.

Quick overview of parking in Reykjavik

• Reykjavik uses four parking zones called P1, P2, P3 and P4
• P1 is the most expensive zone in the city center
• Parking is usually free outside the marked zones
• The Parka app is the easiest way to pay for parking
• Parking rules are actively enforced in downtown Reykjavik

If you find yourself driving in Iceland, you may be looking for parking options in Reykjavík. Read on to discover how and where to park around Iceland.

Renting a car is the best way to get around Iceland and see some of the world’s most spectacular sights. One thing that people might be unsure about before arriving on the island is the parking provisions in the capital. In fact, many of our clients are tripped up on this because they’re unsure of the regulations. It’s best to be as informed as possible to avoid hefty fines upon your return home! So if you’re planning to spend some time in the capital checking out Reykjavik’s best things to do, make sure you’re prepared when it comes to parking! You can also take some time to brush up on other driving laws in Iceland.

Where to find free parking in Reykjavik

Free parking is still available in Reykjavik, but it is mostly located outside the central parking zones.

Many visitors park in residential streets just outside the downtown area and walk into the city center. These areas can often be reached within 10 to 15 minutes on foot.

Common areas where visitors find free parking include:

• Parts of Vesturbær west of downtown
• Residential streets east of Hallgrímskirkja
• Areas around Hlemmur outside the P1 zone
• Neighborhoods near Reykjavik swimming pools

Always check nearby parking signs before leaving your car. If there is no sign indicating payment or restrictions, parking is generally free.

Reykjavik parking zones explained

Reykjavik uses a zone-based parking system in the city center. Each zone has different prices and operating hours.

• P1 – Central downtown area and main shopping streets
• P2 – Areas surrounding the city center
• P3 – Residential areas near downtown
• P4 – Outer residential areas with limited charging hours

How much parking costs in Reykjavik

Parking prices depend on the zone you are in. The closer you park to the city center, the higher the cost.

• P1 – approximately 600 ISK per hour
• P2 – approximately 220 ISK per hour
• P3 – approximately 90 ISK per hour
• P4 – around 220 ISK per hour during weekday charging hours

Parking is typically free before 09:00, after 18:00, and on Sundays. Always confirm the hours on the nearest parking sign.

Best places to park in Reykjavik

If you are visiting downtown Reykjavik, there are several convenient parking options.

Street parking

Street parking is the most common option in the city center. Most streets fall within the paid parking zones, while residential streets slightly farther away are often free.

Parking garages

Parking garages are often easier and cheaper than searching for street parking. They also remove the need to monitor parking time limits.

Popular parking garages include:

• Harpa Concert Hall parking garage
• Traðarkot parking garage
• Kolaport parking garage
• Ráðhús parking garage near City Hall

You can check live availability through Reykjavik's parking garage website:

Bilastaedasjodur parking garages

How to pay for parking in Reykjavik

The easiest way to pay for parking is through a mobile app.

Parka app

The most widely used parking app in Iceland is Parka. It allows drivers to start and stop parking sessions directly from their phone.

To use Parka:

• Register your vehicle license plate
• Select the correct parking zone
• Start your parking session
• Stop the session when you leave

EasyPark

EasyPark is another parking app accepted in some parts of Reykjavik, particularly parking garages.

Parking meters

Some older parking meters still exist in Reykjavik. These require coins or credit cards and are mostly located on side streets.

Parking near major Reykjavik attractions

Parking near Hallgrímskirkja

Parking is available on surrounding streets, usually within the P2 or P3 zones.

Parking near Harpa Concert Hall

The underground parking garage at Harpa is one of the easiest places to park in central Reykjavik.

Parking near Laugavegur

Laugavegur sits within the P1 zone, which has the highest parking rates. Parking in nearby P2 or P3 zones and walking may be cheaper.

Parking fines in Reykjavik

Parking rules are actively enforced in Reykjavik.

Fines may be issued for:

• Parking without payment in a paid zone
• Parking in disabled spaces without a permit
• Parking in restricted areas

Typical parking fine costs

• Within 3 days: roughly 4,000 to 20,000 ISK
• Within 14 days: roughly 6,000 to 30,000 ISK
• After 28 days: up to around 40,000 ISK

Parking fines and rental cars

If a parking fine is issued to a rental vehicle, it is registered to the car. If unpaid, the rental company receives the fine and passes the charge to the renter along with an administrative fee.

You can read more in the Reykjavik Rent a Car FAQ.

Do you need a car in Reykjavik

The city center is compact and walkable, so a car is not essential for exploring Reykjavik itself.

However, most visitors rent a car so they can explore the Golden Circle, South Coast, or other areas of Iceland beyond the capital.

If you are planning to explore outside the city, you can browse available vehicles here:

Car hire in Reykjavik

• There are colored parking zones in Reykjavík, which differ in price.
• Multi-storey car parks tend to be cheaper than on-street alternatives.
• Parking fines can be pretty hefty if you don’t adhere to the rules.
• Parking fines are payable at local banks.

How Much Does Parking in Reykjavík Cost?

Street parking in Reykjavík is always free before 9 am and after 6 pm, as well as all day on Sundays. Charges apply on weekdays from 9 am to 6 pm, so it is worth doing some research ahead of your journey. Costs will depend on the colored zone you’re in, so this could vary depending on where you’re headed in the capital.

Reykjavík Parking Zones

There are 4 parking zones in Reykjavík, and each has different charges and rates when it comes to parking. Generally, it is only within these zones in downtown Reykjavík 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 zones in Reykjavík are charged at an hourly rate as follows:

• Red & Pink – Area P1; these are the most expensive areas to park, charging 600 ISK (€4.04)
• Blue – Area P2; these areas of parking charge 220 ISK (€1.48) 
• Green – Area P3; these regions of the capital charge 90 ISK (€0.60) 
• Orange – Area P4; only valid during weekday charging, 220 ISK (€1.48)

Where Else Can I Park in Reykjavík?

It's not just street parking and parking lots that are available in Reykjavík. One of the best places to park in Reykjavík is in multi-storey car parks, which are usually much cheaper than the parking zones.

If you want to be sure of a parking space, then there is a great website that provides live parking updates called Bílastæðasjóður. The website can be translated into your native tongue, and you can easily navigate by choosing your location and seeing the number of spaces available in green. See an example below:

The Parkopedia site also has an excellent map to help you find a parking space in Reykjavík.

How to Pay For Parking in Reykjavík

The easiest way to pay for parking in the capital city is to use an app. There are two main apps, one called Parka and the other called Easypark.  

Without an app, there will be machines in areas where you must pay for parking. 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 on side streets in downtown Reykjavík. 

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.

Parking During Public Holidays 

Like many countries in Europe, parking during public holidays is relaxed in Iceland. The public holidays that allow free parking are outlined below; however, always be sure to check the signs before you park:

• 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

Can You Sleep in Your Car in Iceland?

Whilst it is not illegal to sleep in your car, it is currently illegal to camp overnight in your car, trailer, motorhome, or campervan outside of designated campsite areas. Unless you have written permission from the landowner, you will find yourself confronted with a hefty fine. We would recommend using your car during the day and then seeking a hotel or rental accommodation for overnight. If you do wish to park up and sleep under the Icelandic night sky, be sure to find a campsite that will suit your needs so that you can ‘car camp’.

Parking Fines in Iceland

If you do not follow the laws and guidelines for parking in Reykjavík, 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 handicapped space without a permit, or parking in an area where parking isn't actually permitted.

Parking Ticket Charges

If you pay within the first 3 days of being issued a ticket, you will get a discount, and your fine (depending on the violation) will range between 4000 ISK (€30) and 20,000 ISK (€150).

If you pay within 2 weeks of the ticket being issued, you can expect to pay between 6000 ISK (€40) and 30,000 ISK (€220).

Waiting to pay your fine after 29 days will incur a late fee, and you can expect to have to pay somewhere between 9000 ISK (€65) and 40,000 ISK (€300).

How to Pay Parking Fines in Iceland

If you do get issued a parking ticket in Iceland, 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 a fine received in a hire car, the rental car company will be issued the ticket. They will then track you down, and you will need to reimburse them. Note that Reykjavík Rent a Car also charges a 5,000 ISK (€34) handling fee on top of your parking fine, so it’s in your best interest to deal with your charges before you leave Iceland.

If you have any questions about tickets and fines in Iceland ahead of your trip, please contact us.