When celebrating New Year’s Eve in Iceland, get prepared for an almost magical experience—full of unique traditions and breathtaking fireworks. Planning a trip to Iceland and wanting to celebrate New Year’s on a budget? Firefly Iceland Car Rental is just the perfect idea. All right, let’s find out how Icelanders celebrate, where’s the best to go to ring in the New Year, and some other tips for driving in winter.

How Icelanders Celebrate New Year’s Eve

Traditional Icelandic New Year’s Eve Customs

Icelanders traditionally start their celebrations with a big family dinner served around 6-7 PM. This is a time to enjoy the local dishes and spend time with loved ones.

Around 8 p.m., most residents join the bonfires happening in various locales, warming up and connecting with others. At 10:30 p.m., there is a whole-community viewing of the yearly comedy production, an added dose of humor to top off the night. Afterward, it’s off to the main attraction: fireworks and partying until dawn.

new years celebrations in iceland

Best Places to Ring in the New Year in Reykjavik

Where to go Watching the Fireworks displays?

The fireworks in Reykjavik are spectacular and can be seen from several key spots. Hallgrímskirkja Church is one of the most popular places to watch the fireworks. Another great spot is Öskjuhlíð Hill Perlan, which offers a panoramic view of the city. The fireworks are distributed by search and rescue teams, hence buying them is a win-win case.

The New Year’s celebrations in Iceland

Reykjavik’s Downtown Celebrations events

Downtown Reykjavik constitutes the venue for all New Year’s Eve activities. Start your evening by going to the annual comedy show that is staged by the locals to make merry with humor and satire. There is also an array of other entertainment like concerts and street theatrics.

For those who want adventure, there is no better way of closing the night than by going on a guided tour or on a Northern Lights tour. It’s a common activity so make sure you get a table in advance as restaurants fill up quickly.

The festive feel in the heart of the city carries on for a night one won’t forget—dining and partying After the firework show, the party continues at the downtown nightclub scene in Reykjavik. There are many bars and clubs at disposal each with a way of celebration making sure you get to know the local flavor, join these vibrant crowds.

the view of winter Iceland Reykjavik

Activities during New Year’s Eve Day in Iceland

During the day, do not forget to experience beautiful natural attractions in Iceland. The most popular are ice caves and geothermal pools. These are available, and one can take these tours for proper guidance.

Family-Friendly Activities

There are so many daytime activities that one will enjoy while on a stay here. Take a visit to the local famous landmarks and scenic spots like the Blue Lagoon or the Golden Circle to take maximum advantage of the day before the night celebrations kick in.

the Geyser area of Iceland in the Golden circle

December Weather in Iceland

December sees a pretty severe Icelandic winter with very cold temperatures, icy conditions, and very short hours of daylight. The average temperature varies between −1 and 4 degrees Celsius (30 to 39 degrees Fahrenheit), with strong, chilling winds, making it feel much cooler.

The weather shifts quite quickly—often within minutes. Clear sky can become a snowstorm just in that short time. The roads often get covered in snow, turning slippery, and the vision gets hampered; more so during snowstorms.

There is very little daylight—about 4-5 hours a day—so it’s important to take this into account when planning day trips. However, one can only be well prepared for the winter and expect good weather and a good trip.

Guide to Iceland in December

Tips for Winter Driving in Iceland

Winter driving in Iceland can be challenging due to icy roads, heavy snow, and unpredictable weather. It’s crucial you make sure that your rental car is capable of handling all such conditions. Firefly Iceland Car Rental provides reliable 4×4 vehicles to easily venture into the slippery roads by providing improved traction and support.

Hiring a 4×4 car at Firefly will surely get you safe and comfortable transport, even though your budget is very humble. These 4×4 vehicles are properly serviced and suited for facing winter Iceland’s demanding road conditions, so they’ll help you save from your travel expenses while keeping you safe.

Popular Winter Routes and Destinations

Discover the popular winter routes such as the Golden Circle or the South Coast. Most vehicles are able to drive these routes, which travel through some of Iceland’s most scenic landscapes. A 4×4 car would be in a better position to drive through snow- and ice-covered roads with traction and control. Prior planning of the route will guarantee you a smooth and pleasing ride while exploring the beauty of Icelandic winters.

consider different trypes of car to rent in Iceland depends on your travel season

Complete Your New Year’s Eve Celebration in Iceland

After this fireworks display, you may feel the desire to go back home and continue to watch the rest of the party on TV. Or if you have remaining energy to spend, Reykjavik has many late-night dining experiences and fun. Just take care to drive safely and enjoy the remainder of your evening.

New Year’s in Iceland is an experience you’ll never forget. Whether you are watching the fireworks from Hallgrímskirkja Church or checking out ice caves and geothermal pools, something will capture your interest.

And don’t forget to rent a 4×4 with Firefly Iceland Car Rental. You will then be able to go out on a budget and in all safety. Happy New Year!

Best cheap 4WD rental car option in Iceland

DUSTER

Dacia Duster or similar | Manual | 4×4 | 2020-2021 (CFMX)

Group E2 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 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
TIGUAN

VW Tiguan or similar | Automatic | 4×4 | 2020-2021 Model (IFAX)

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
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN) -2022-2024 New Model

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 New Model

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 New Model

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 New Model

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