Planning an Iceland road trip and wondering whether your driving license will be accepted?

For many international visitors, the answer is yes. You can usually drive and rent a car in Iceland with a valid foreign driving license, provided that your license meets the necessary requirements.

However, the rules can vary depending on where your license was issued and the language and alphabet used on it. Some travelers may also need an International Driving Permit (IDP) or an official translation.

In this guide, we explain the driving license requirements in Iceland, when you may need an International Driving Permit, and what travelers from countries including the USA, Canada, UK, Australia, China, Japan and India should know before renting a car.

renting a car in Iceland with foreign licence

Can You Drive in Iceland With a Foreign Driving License?

Yes, many visitors can drive in Iceland using their foreign driving license.

Whether your license can be used depends on factors including where it was issued and whether the information on it can be understood by Icelandic authorities and the rental company.

If your license uses a non-Latin alphabet, you may need an International Driving Permit or official translation in addition to your original license.

Remember that an International Driving Permit does not replace your regular driving license. If one is required, you should carry both documents.

What Do You Need to Rent a Car in Iceland?

Before renting a car in Iceland, you need to meet the requirements of your chosen rental company.

These can include:

  • A valid driving license
  • Meeting the minimum rental age
  • Having held your driving license for the required period
  • A valid payment card
  • Any additional identification requested by the rental company
  • An International Driving Permit or translation if required

Rental requirements can also vary between vehicle groups. For example, some larger 4×4 vehicles may have a higher minimum driver age than small rental cars.

Always check the terms and conditions for your specific rental vehicle before booking.

Can You Rent a Car in Iceland With an EU and EEA Driving License?

If you have a valid driving license issued within the European Economic Area (EEA), you can generally use it when driving in Iceland.

Iceland isn’t a member of the European Union, but it is part of the EEA.

Your license must also cover the type of vehicle you intend to drive. For most visitors renting a standard passenger car, this will normally be a category B license.

Can You Drive in Iceland With a UK Driving License?

Yes. Visitors with a valid UK driving license can generally use it to drive and rent a car in Iceland.

Before traveling, check that your licence is still valid and covers the type of vehicle you plan to rent.

If your license is close to its expiry date, check it before leaving the UK rather than discovering a problem when you arrive at the rental desk.

Skogafoss Iceland

Can Americans Drive in Iceland With a US License?

Yes, travelers from the United States can generally drive in Iceland with a valid US driving license.

US licenses contain information in English and use the Latin alphabet, so an International Driving Permit is generally not required simply because your license was issued in the USA.

Your license should be valid and clearly show the information needed to identify you and your driving entitlement.

Remember that rental companies can have additional requirements, including minimum age and how long you must have held your licence.

Can Canadians Drive in Iceland With a Canadian License?

Yes. Visitors from Canada can generally use a valid Canadian driving license in Iceland.

This also applies to licenses issued in French-speaking areas such as Quebec. French uses the Latin alphabet, so the language itself doesn’t mean that you automatically need an International Driving Permit.

Check that your license is valid for the entire duration of your trip and meets your rental company’s requirements.

Can Australians and New Zealanders Drive in Iceland?

Yes. A valid driving license from Australia or New Zealand can generally be used when visiting Iceland.

As these licenses are normally written in English and use the Latin alphabet, travelers usually don’t need an International Driving Permit solely because their license was issued outside Europe.

You should still bring your original physical driving license and check the requirements of your rental company before traveling.

Can You Drive in Iceland With an Indian Driving License?

Visitors with an Indian driving license should check the format and language of their license before traveling.

If the required information is clearly shown using the Latin alphabet, it may be accepted. If your license cannot be easily understood in Iceland, you may need an International Driving Permit or an appropriate translation.

Because Indian driving licenses can vary in format, it’s a good idea to check directly with your car rental company before your trip.

best rental car south Iceland travel guide

Can You Drive in Iceland With a Chinese or Japanese Driving License?

Licenses that aren’t presented in a Latin alphabet may require additional documentation when driving in Iceland.

If your driving license can’t be understood from the original document, you should arrange an International Driving Permit or an official translation, as applicable, before traveling.

Always bring your original driving license as well. An IDP or translation is supporting documentation and doesn’t replace the original license.

If you’re traveling from China or Japan, confirm the documentation required with your rental company before arriving in Iceland.

What About Driving Licenses Using Cyrillic, Arabic or Other Alphabets?

The same consideration applies to licences using alphabets such as Cyrillic or Arabic.

If the details on your license aren’t presented in a format that can be readily understood in Iceland, additional documentation may be required.

Depending on your license and country of issue, this could mean obtaining an International Driving Permit or an official translation before your trip.

Check the requirements before leaving home, as this is much easier than trying to solve a documentation problem after arriving in Iceland.

Do You Need an International Driving Permit in Iceland?

Not every visitor needs an International Driving Permit (IDP) for Iceland.

If you have a valid license that meets Iceland’s requirements and its information can be clearly understood, you may be able to drive without one.

An IDP may be necessary when your original license uses a different alphabet or doesn’t meet the relevant documentation requirements.

An International Driving Permit acts as a standardized translation of your driving license. It is not a replacement for your original license, so you should carry both when driving.

If you’re unsure whether you need one, check with your rental company before traveling.

Renting a Car in Iceland With a Foreign Driving License

Having a driving licence that’s legally accepted in Iceland doesn’t automatically mean you meet every requirement for renting a particular car.

Car rental companies can set requirements concerning:

  • Minimum driver age
  • How long you have held your licence
  • Vehicle category
  • Payment method
  • Additional drivers
  • Required identification

This is particularly important if you’re planning to rent a 4×4 in Iceland, as some vehicle categories can have different driver requirements.

Check the rental conditions before booking so you know exactly what documents to bring when you collect your car.

Kirkjufellsfoss Iceland

What if You’re Brining Your Own Car to Iceland?

Some travelers arrive in Iceland by ferry with their own vehicle rather than renting a car.

Different documentation, insurance and temporary import requirements can apply in this situation. Check the current requirements for your vehicle, insurance and length of stay before boarding the ferry.

These requirements are separate from the rules for travelers renting an Icelandic vehicle.

What if You’re Staying in Iceland Long-Term?

The rules are different if you’re moving to Iceland rather than visiting for a short holiday.

Depending on where your license was issued, you may eventually need to exchange your foreign driving license for an Icelandic one.

Drivers with licenses from EEA countries, the UK, Switzerland or Japan may be able to exchange their license without retaking a driving test, subject to the applicable requirements.

Drivers with licenses from many countries outside these areas may need to complete both theoretical and practical driving tests when applying for an Icelandic license.

If you’re becoming a resident, check the latest rules with the Icelandic authorities rather than relying on requirements intended for tourists

Driving in Iceland

Important Driving Rules in Iceland

Once you’ve confirmed that your license is valid, there are several important Iceland driving rules for tourists to know.

Drive on the Right

In Iceland, vehicles drive on the right-hand side of the road and overtake on the left.

This is particularly important to remember if you’re visiting from a country such as the UK, Ireland, Australia or New Zealand.

Everyone Must Wear a Seat Belt

Drivers and passengers must use seat belts. Children must also use an appropriate child restraint based on the applicable requirements.

Keep Your Lights On

Vehicle lights must be used while driving in Iceland, including during daylight hours.

Don’t assume your car’s automatic daytime running lights have also switched on the rear lights. Check your lights before setting off.

Follow the Posted Speed Limit

Always follow road signs. Common maximum speed limits in Iceland include:

  • 30–50 km/h in many urban areas
  • 80 km/h on gravel roads outside urban areas
  • 90 km/h on paved roads outside urban areas

These are general limits, and lower limits may be posted. Always drive according to the signs and the situation.

Don’t Drink and Drive

Iceland has strict drink-driving laws. The safest approach when driving is simple: don’t drink alcohol before getting behind the wheel.

Don’t Use a Handheld Phone While Driving

Don’t use a handheld mobile phone while driving. If you need to use your phone, stop somewhere safe before doing so.

Never Drive Off-Road

Off-road driving is illegal in Iceland. Always stay on marked roads and tracks. Driving away from designated routes can damage Iceland’s fragile landscape and may result in penalties.

Know the Emergency Number

If you need emergency assistance in Iceland, call 112

FAQ: Foreign Driving Licenses and Car Rental in Iceland

Ready to Drive in Iceland?

For many international travelers, renting a car in Iceland with a foreign driving license is straightforward. Visitors from countries such as the USA, Canada, UK, Australia, New Zealand and EEA countries can generally use their valid home license, while travelers with licenses using other alphabets may need additional documentation.

The most important thing is to check your license before traveling and confirm the requirements for your specific rental vehicle.

Once the paperwork is sorted, renting a car gives you the freedom to build your own Iceland itinerary, stop at the places that interest you and explore more of the country.

Looking for an affordable way to start your road trip? Book your rental car with Firefly Iceland and get ready to explore Iceland by car.

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Group A Reservations are made by car category only. We cannot guarantee a specific car model. or similar

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You must be 20 years of age to drive this vehicle.

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Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

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Group: O2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
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You must be 23 years of age to drive this vehicle.

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