New Year’s Eve in Iceland is a truly magical experience, filled with unique local traditions, spectacular fireworks and a festive atmosphere across the country. If you’re planning to celebrate New Year’s in Iceland on a budget, renting a cheap and reliable car from Firefly Iceland Car Rental makes it easy to explore in winter.
Here’s everything you need to know about how Icelanders celebrate, where to watch the fireworks in Reykjavík and how to stay safe on the roads in December.
How Icelanders Celebrate New Year’s Eve
Traditional Icelandic New Year’s Eve Customs
Icelanders usually start the evening with a family dinner around 6-7 PM. After that, many head to community bonfires (Áramótabrennur) around 8 PM, a warm and festive part of the Icelandic New Year tradition.
At 10:30 PM, most of the country watches the annual comedy show on TV, a humorous look back at the year. Once it ends, the celebrations begin: fireworks, gatherings and parties until well past midnight.
Best Places to Ring in the New Year in Reykjavik
Reykjavík’s New Year fireworks are famous. Since they’re sold by Iceland’s volunteer search and rescue teams, the entire city lights up from every direction.
Top viewing spots include:
- Hallgrímskirkja Church
- Harpa Concert Hall area
- Perlan
Tip from Firefly: Buying fireworks supports Iceland’s search and rescue teams.
Reykjavik’s Downtown Celebrations
Reykjavík city center becomes the heart of the celebration. Before midnight, you’ll find concerts, street performances and locals watching the comedy show.
After the fireworks, bars and clubs stay open late, offering plenty of ways to continue the night. Many visitors also choose a Northern Lights tour, a popular New Year’s activity should be booked in advance.
Daytime Activities on New Year’s Eve
Even with short daylight hours, there’s lots to do before evening celebrations begin:
- Ice cave tours
- Relaxing in geothermal pools
- The Golden Circle
- South Coast waterfalls and viewpoints
These are great family-friendly options for making the most of your winter day.
December Weather in Iceland
December brings true Icelandic winter:
- Temperatures between –1°C and 4°C (30–39°F)
- Strong winds
- Snow, icy roads
- Only 4-5 hours of daylight
- Very quick weather changes
Tip from Firefly: Always check road.is and vedur.is before driving.
Why Rent a 4×4 Car for New Year’s in Iceland
Winter driving can be challenging, especially around New Year when snow and ice are common. A 4×4 is the safest choice for exploring during the day and getting around Reykjavík in the winter conditions.
Why a 4×4 is Recommended?
A 4×4 gives you extra safety and stability during Iceland’s winter conditions.
- Safer on icy and snowy roads
- More stable in strong winds
- Better control outside Reykjavík
- Ideal for winter routes like the Golden Circle or South Coast
Why Choose Firefly Iceland Car Rental?
Firefly makes winter travel easier with cheap, reliable 4×4 cars.
- Cheap 4×4 vehicles
- Winter tires included
- Well-maintained and winter-ready
- Easy pick-up at Keflavík Airport
A Firefly 4×4 keeps your trip safe, comfortable and affordable during Iceland’s winter holidays.
Popular Winter Routes
With a winter-ready 4×4, you can safely explore:
- The Reykjanes Peninsula
- Þingvellir National Park
- Seltjarnarnes Peninsula
These routes offer dramatic winter scenery but can be slippery, drive slowly, plan ahead and enjoy the landscape.
Celebrate New Year’s Eve the Icelandic Way
After the midnight fireworks, you can continue the night in Reykjavík’s lively city center or head back to your accommodation to relax. Either way, New Year´s Eve in Iceland is unforgettable.
Whether you’re watching fireworks from Hallgrímskirkja, exploring ice caves or enjoying geothermal pools like the Blue Lagoon, there’s something for everyone.
And for a safe, cheap winter trip: Don’t forget to rent your 4×4 with Firefly Iceland Car Rental.
Gleðilegt nýtt ár – Happy New Year from Firefly Iceland!
