Driving Rules

Laws, fines and practical guidance for driving in Iceland

Speed limits

Highway 90 km/h, gravel 80 km/h, urban 30–50 km/h. Speeding is the most common fine.

Headlights always on

Low beams 24/7, year-round — even on a bright summer day. It's the law.

Seatbelts

Mandatory for all passengers, front and rear. From 20,000 ISK.

Drink driving

Limit 0.02% (0.2‰) — the lowest in Europe. Fines from 100,000 ISK plus possible prison.

Phone while driving

Illegal to hold a phone while driving. Hands-free is OK. Fine 40,000 ISK.

Off-road driving

Illegal — fines run into hundreds of thousands of ISK. Moss grows 1mm/year and tire tracks destroy it.

Sheep and animals on road

Animals have right of way. Stop and wait. You are liable if you hit an animal.

Single-lane bridges

The car closest to the bridge has right of way. Slow, look, cross one at a time.

Roundabouts

Cars inside the circle have right of way. Use turn signals, though not required.

Child seats

Children under 135 cm need a child seat or booster. Rental companies rent them.

Road tolls

Two places charge a toll: Vaðlaheiðargöng tunnel by Akureyri (2,216 ISK for a car, 2026) and the new Ring Road section at Hornafjörður (1,500 ISK, from 1 Sept 2026). Charging is automatic — the plate is photographed and the bill follows.

Fines

Offense	Fine
Phone without hands-free	40,000 ISK
Minimum traffic fine	20,000 ISK
Speeding	From 20,000 ISK, rising with the offence
DUI	From 100,000 ISK + prison
No seatbelt	From 20,000 ISK
No headlights	From 20,000 ISK
Off-road driving	Fine + possible licence suspension

Fines can be paid on the spot or at a bank after you return home. Unpaid fines can result in prison.

Winter driving

Studded tires are allowed from Nov 1 to Apr 14; winter tires are required when conditions demand them.
Black ice is invisible and slippery. Avoid braking on bridges.
Whiteout can happen in seconds — turn on lights and drive slowly.
Add 30–50% to driving times in winter conditions.
Keep spare tires, chains, and a shovel in the car.
If stuck: stay in the car, keep heat on, wait for help.

Roundabouts explained

Iceland has many roundabouts, especially in Reykjavík. The core rule: cars inside the circle have right of way over cars entering. The right lane is for the first exit, the left lane is for other exits.

Slow at entry — yield to traffic

Choose the correct lane for your exit

Signal when exiting

Off-road driving is a serious offense under Icelandic law. Iceland's nature is fragile and tracks last for decades. Fines run into hundreds of thousands of ISK and your licence can be suspended.

Sheep on the road

In summer, sheep are often on roads. They have right of way — stop and wait. If you hit a sheep, call 112 and report it.

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