What continent is Iceland on? The short answer is Europe. Iceland is a Nordic island country in the North Atlantic Ocean, located between mainland Europe and North America. However, its geographical position makes it a little more interesting than most countries.

Iceland sits on the boundary between the North American and Eurasian tectonic plates, meaning the island is geologically connected to both sides of the Atlantic. This unusual location is responsible for many of Iceland’s famous natural attractions, including volcanoes, lava fields, geothermal hot springs, and dramatic landscapes.

So, is Iceland in Europe or North America? And can you actually walk between two tectonic plates?

In this guide, we’ll explain where Iceland is located, which continent it belongs to, and the best places to experience its unique geography during your Iceland road trip.

the 
Thingvellir National Park is a best place to see the geographical feature

What Continent is Iceland in?

Iceland is part of Europe, both politically and culturally. It is one of the five Nordic countries, alongside Denmark, Norway, Sweden, and Finland.

Although Iceland is geographically located between Europe and North America, it is internationally recognized as a European country.

The Mid-Atlantic Ridge is a mid-ocean ridge located along the floor of the Atlantic Ocean, and part of the longest mountain range in the world.

Here are some quick facts about Iceland’s location:

QuestionAnswer
What continent is Iceland on?Europe
Is Iceland in Europe or North America?Europe, although it sits on tectonic plates associated with both
Where is Iceland locatedNorth Atlantic Ocean
Is Iceland part of Scandinavia?Iceland is Nordic, but not geographically part of Scandinavia
Is Iceland in the Schengen Area?Yes
What is Iceland’s capital?Reykjavík
Is Iceland in the European Union?No
Which tectonic plates meet in Iceland?North American and Eurasian plates

Iceland’s location on the boundary between two tectonic plates helps explain its unique volcanic landscapes, geothermal areas, and natural wonders.

iceland is part of Europe not America

Where is Iceland Located on the World Map?

Iceland is located in the North Atlantic Ocean, between Greenland and Norway, just south of the Arctic Circle.

The country is approximately:

  • 290 km (180 miles) southeast of Greenland
  • 970 km (600 miles) west of Norway
  • 800 km (500 miles) northwest of Scotland

Despite its remote location, Iceland is easily accessible by air from both Europe and North America.

Most international visitors arrive at Keflavík International Airport (KEF), approximately 50 km (31 miles) southwest of Reykjavík.

From the airport, you can rent a car and explore Iceland’s volcanic landscapes, waterfalls, black sand beaches, and geothermal attractions.

If you’re planning a road trip, choosing a cheap car rental in Iceland can help you explore more of the country without spending too much of your travel budget on transportation.

Why is Iceland Between Two Tectonic Plates?

One of the most interesting facts about Iceland’s geography is that it sits directly on the Mid-Atlantic Ridge, an underwater mountain range that separates the North American and Eurasian tectonic plates.

Most of this ridge lies deep beneath the Atlantic Ocean. However, in Iceland, parts of the plate boundary rise above sea level.

Are Iceland’s Tectonic Plates Moving Apart?

Yes! The North American and Eurasian tectonic plates are gradually moving away from each other at an average rate of approximately 2 cm (0.8 inches) per year.

As the plates separate, magma can rise through cracks in the Earth’s crust, creating new volcanic rock.

This geological activity helps explain why Iceland has so many:

  • Active volcanic systems
  • Lava fields and volcanic craters
  • Geothermal hot springs
  • Geysers and steaming vents
  • Earthquakes and geological fissures

Iceland also sits above a mantle plume, an area of unusually hot material rising from deep within the Earth. Together with the Mid-Atlantic Ridge, this contributes to the country’s intense volcanic activity.

Although the tectonic boundary crosses Iceland, this doesn’t mean Iceland is officially divided between two continents. Geologically, Iceland straddles the plate boundary, but geographically and politically, it is classified as part of Europe.

Thingvellir National Park is the UNESCO World Heritage Site

Is Iceland Part of Europe or North America?

Iceland belongs to Europe, even though part of the island sits on the North American tectonic plate.

Its European identity comes from its history, culture, political relationships, and geographical classification.

Iceland’s European History

Iceland was settled primarily by Norse people during the Viking Age, beginning in the late ninth century.

Over the following centuries, Iceland developed strong cultural and political connections with other Nordic countries.

Iceland was under Danish rule for centuries, became a sovereign kingdom in 1918, and established itself as an independent republic in 1944.

Today, Iceland remains closely connected to Europe through trade, travel, and international agreements.

Is Iceland in the European Union?

No. Iceland is not a member of the European Union (EU).

However, Iceland is part of the European Economic Area (EEA) and the Schengen Area.

This means Iceland participates in much of Europe’s single market and Schengen travel arrangements without being an EU member.

Iceland also uses its own currency, the Icelandic króna (ISK), rather than the euro.

If you’re planning a trip, read our guide to what currency Iceland uses.

the mount kirkjufell

Best Places to See Iceland’s Unique Geography

One of the best things about visiting Iceland is that you don’t need to be a geologist to appreciate its incredible landscapes.

From visible tectonic fissures to bubbling geothermal areas, there are plenty of places where you can experience the natural forces that shaped the country.

Here are some of the best geographical attractions to visit in Iceland.

1. Þingvellir National Park – Walk Though a Tectonic Rift

Location: Southwest Iceland, Golden Circle

Distance from Reykjavík: Approximately 45–50 km

Best for: Tectonic plates, history, photography, and snorkeling

Þingvellir National Park is one of the best places in Iceland to observe the geological boundary between the North American and Eurasian tectonic plates.

The park sits within a rift valley where the plates are gradually pulling apart.

Visitors can walk through the impressive Almannagjá Gorge, surrounded by dramatic rock walls formed by tectonic movement.

Although it’s often described as walking between two continents, the rift is actually a broad geological zone rather than one narrow crack separating the plates.

One of the park’s most famous attractions is Silfra Fissure, where visitors can snorkel or scuba dive in exceptionally clear glacial water.

Read our guide to snorkeling in Iceland to learn more.

Þingvellir is also a UNESCO World Heritage Site and one of Iceland’s most historically important locations.

The Icelandic parliament, Alþingi, was established here in 930 AD, making the park an important destination for both history and geology.

Firefly travel tip: Þingvellir is an excellent first stop on a Golden Circle road trip. It’s accessible by paved roads, so a small rental car can be suitable when road and weather conditions allow.

2. Iceland’s Volcanoes and the Mid-Atlantic Ridge

Best for: Volcanic landscapes, craters, lava fields, and geological history

Iceland is one of the world’s most volcanically active countries, with approximately 30 active volcanic systems.

Its position on the Mid-Atlantic Ridge, combined with the Icelandic mantle plume, creates ideal conditions for volcanic activity.

Some of Iceland’s best-known volcanoes include:

  • Hekla: One of Iceland’s most active and historically famous volcanoes.
  • Katla: A powerful volcanic system located beneath Mýrdalsjökull glacier.
  • Eyjafjallajökull: Famous for its 2010 eruption, which disrupted European air travel.
  • Snæfellsjökull: A glacier-covered volcano on the Snæfellsnes Peninsula, featured in Jules Verne’s Journey to the Center of the Earth.
  • Fagradalsfjall: Part of the volcanic landscape on the Reykjanes Peninsula, where eruptions occurred in 2021, 2022, and 2023.

If you’re interested in volcanoes, explore our Iceland volcano map to discover more volcanic attractions around the country.

Firefly travel tip: Volcanic areas can be dangerous, particularly during and after eruptions. Never approach active eruption sites without checking official safety information and access restrictions.

3. Geysir Geothermal Area – See Iceland’s Geothermal Power

Location: Haukadalur Valley, Southwest Iceland

Best for: Geysers, hot springs, and geothermal activity

Iceland’s unique geological location creates an abundance of geothermal energy.

One of the best places to experience this is the Geysir Geothermal Area, a popular attraction along the Golden Circle.

Here, you’ll find the famous Great Geysir and Strokkur geyser.

While Great Geysir rarely erupts today, Strokkur typically erupts every 5–10 minutes, sending hot water high into the air.

Visitors can also see steaming vents, bubbling pools, and colorful geothermal ground.

Other popular geothermal destinations include:

  • Seltún Geothermal Area: Located on the Reykjanes Peninsula, known for its steaming vents and colorful mineral deposits.
  • Laugarvatn: A lakeside destination with geothermal bathing facilities.
  • Landmannalaugar: Famous for its colorful rhyolite mountains and natural geothermal bathing area, accessible mainly during summer when Highland roads are open.

Iceland also has plenty of geothermal spas, including the Blue Lagoon and Sky Lagoon.

If you’re interested in more natural bathing experiences, check out our guide to free hot springs in Iceland.

4. Iceland’s Lava Fields – Landscapes Created by Volcanoes

Best for: Volcanic scenery, photography, and road trips

Iceland’s lava fields are among the most striking reminders of the country’s volcanic history.

Some were formed hundreds or thousands of years ago, while others are much more recent.

Popular lava fields include:

Eldhraun Lava Field

Located in South Iceland, Eldhraun was formed during the enormous Laki eruption of 1783–1784.

Today, much of the lava field is covered in thick green moss, creating an unusual landscape that looks almost like another planet.

Berserkjahraun Lava Field

Located on the Snæfellsnes Peninsula, Berserkjahraun features rugged lava formations surrounded by mountains and coastal scenery.

It’s an interesting stop for visitors exploring West Iceland.

Reykjanes Lava Fields

The Reykjanes Peninsula is home to extensive lava fields, volcanic craters, and geothermal areas.

Recent volcanic eruptions have also created new lava formations in parts of the peninsula.

Important: Always stay on marked paths when exploring lava fields. Icelandic moss is extremely fragile, and volcanic terrain can contain unstable ground and hidden cracks.

the summer view of the Geysir in Iceland

How to Explore Iceland’s Geography by Rental Car

Renting a car is one of the most practical ways to explore Iceland’s geological attractions.

Many of the country’s most famous sights are spread across different regions, making a self-drive road trip a great option for visitors who want flexibility.

With your own rental car, you can visit Þingvellir National Park, explore the Golden Circle, drive along the South Coast, and discover volcanic landscapes at your preferred pace.

Driving in Iceland

Why Choose Firefly for a Cheap Car Rental in Iceland?

Exploring Iceland doesn’t have to mean spending a fortune on transportation.

At Firefly Iceland, we focus on offering affordable, reliable rental vehicles for travelers who want to spend more of their budget experiencing Iceland.

Our rental fleet consists of older-model vehicles that are well maintained and offered at lower rental prices than newer models.

This means you can enjoy the practicality of having your own car without paying extra for the latest vehicle model.

When you book with Firefly Iceland, you can benefit from:

  • Affordable rental rates: Our older, well-maintained vehicles help us keep rental prices competitive.
  • A choice of rental cars: From compact cars for paved-road trips to suitable 4×4 vehicles for more demanding routes.
  • Convenient airport pickup: Collect your rental car near Keflavík International Airport.
  • Local knowledge: Our team can help you understand your rental options and prepare for your Iceland road trip.

Whether you’re planning a short Golden Circle adventure or a longer Ring Road journey, choosing a cheap car rental can leave more room in your travel budget for activities, accommodation, and food.

Browse our available rental vehicles and find a car that suits your Iceland travel plans.

Where Do You Pick Up Your Firefly Rental Car?

If you’re flying into Iceland, you can collect your Firefly rental car near Keflavík International Airport (KEF).

After arriving at the airport, take the free car rental shuttle from the airport bus pickup area to the Firefly rental location at Flugvellir 11, 230 Keflavík.

Use shuttle stop number 3, which is shared with Hertz, Dollar, and Thrifty.

Firefly’s rental location is open from 05:30 to 17:30.

Once you’ve collected your vehicle, you can begin exploring Iceland’s volcanic landscapes.

For a shorter trip, check out our 5-day Iceland self-drive itinerary.

Firefly car rental iceland offers the rental car at extreme low rate

Do You Need a 4×4 to Explore Iceland’s Tectonic Plates?

Not necessarily.

Many of Iceland’s most popular geological attractions are accessible using paved roads, especially during summer.

For example, you can visit Þingvellir National Park and the main Golden Circle attractions in a regular 2WD rental car when conditions are suitable.

However, a 4×4 can be a better choice during winter or when traveling to areas with more challenging road conditions.

If you’re planning to explore Iceland’s Highlands, you must use a suitable 4×4 vehicle on F-roads, and these roads are generally open only during summer.

Not every 4×4 rental vehicle is permitted on F-roads, so check your rental agreement before planning your route.

Always check Iceland’s road conditions and weather forecast before setting off.

driving in iceland april

Frequently Asked Questions About Iceland’s Continent and Geography

  • What continent does Iceland belong to?

    Iceland belongs to Europe. Although it is located between Europe and North America and sits on two major tectonic plates, Iceland is geographically, politically, and culturally classified as a European country.

  • Is Iceland in Europe or North America?

    Iceland is in Europe. However, the island sits across the North American and Eurasian tectonic plates, which is why people sometimes associate Iceland with both continents.

  • Is Iceland on two continents?

    Geologically, Iceland straddles the boundary between the North American and Eurasian tectonic plates. However, tectonic plates and continents are not exactly the same thing. Iceland is generally classified as part of Europe, not as a country officially divided between two continents.

  • Can you walk between two continents in Iceland?

    You can walk through the tectonic rift valley at Þingvellir National Park. Almannagjá Gorge is one of the best-known places to observe the geological effects of the plates moving apart. However, the plate boundary is a wide zone rather than a single line.

  • Is Iceland part of Scandinavia?

    Iceland is a Nordic country, but it is not geographically part of Scandinavia. Scandinavia generally refers to Norway, Sweden, and Denmark. Iceland shares historical, linguistic, and cultural connections with these countries.

  • Is Iceland closer to Europe or North America?

    Iceland lies between Europe and North America. It is closer to Greenland than mainland Europe, but Greenland is geographically part of North America. Iceland’s nearest mainland European areas include Norway and Scotland.

  • Why does Iceland have so many volcanoes?

    Iceland sits on the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates move apart. It also lies above a mantle plume. These geological conditions allow magma to rise toward the surface, creating volcanic systems and geothermal activity.

  • What is the best place to see Iceland’s tectonic plates?

    Þingvellir National Park is the most popular and accessible place to see the effects of Iceland’s tectonic plate boundary. Visitors can walk through Almannagjá Gorge or join a guided snorkeling tour in Silfra Fissure.

  • Can you drive to Iceland’s geological attractions?

    Yes. Many famous geological attractions, including Þingvellir National Park, Geysir, and several lava fields, can be reached by rental car. Some Highland destinations require a suitable 4×4 and are only accessible during the summer road-opening season.

  • Is renting a car in Iceland expensive?

    Car rental prices in Iceland depend on the season, vehicle type, and booking dates. Choosing an affordable provider such as Firefly Iceland can help reduce costs. Firefly offers older-model, well-maintained rental cars at competitive prices, making it a practical option for budget-conscious travelers.

Conclusion: Iceland is in Europe, but its Geography is Unique

So, what continent is Iceland on? Iceland is part of Europe, even though it sits on the boundary between the North American and Eurasian tectonic plates.

This unusual geological position is what makes Iceland such a fascinating place to visit. From the tectonic rift at Þingvellir National Park to active volcanic systems, steaming geothermal areas, and ancient lava fields, there are incredible landscapes to discover across the country.

And one of the best ways to see them is by rental car.

At Firefly Iceland, we believe exploring Iceland should be affordable. That’s why we offer older-model, well-maintained rental vehicles at budget-friendly prices, giving you a practical way to discover the country’s natural wonders.

Ready to explore Iceland? Book your rental car with Firefly Iceland and start planning your road trip through the Land of Fire and Ice.

The cheapest rental car options in our fleet

VW-GOLF-WAGON

VW Golf Wagon or similar | Automatic (CWAN) | 2022-2024

Group: T2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

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

Additional Features
  • Front Wheel Drive
  • 130 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN)

Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 116 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
VITARA

Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

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

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

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

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
TIGUAN-GREY

VW Tiguan or similar|Automatic|4×4 (IFAR) | 2022-2024

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

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Automatic
  • Airconditioning

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

Additional Features
  • 4 Wheel Drive
  • 176 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
SORENTO

Kia Sorento or similar | Automatic | 4×4 (SFAN) | 2022-2024

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

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

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

Additional Features
  • 4 Wheel Drive
  • 164 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
PAJERO

Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

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

  • 5 Passengers
  • 5 Large
  • 5 Doors
  • Automatic
  • Airconditioning

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

Additional Features
  • 4 Wheel Drive
  • 213 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking