Parking in Reykjavík: Complete Guide for Rental Car Drivers

By Johanna Georgsdóttir Verified Expert

Self-driving gives you the most flexibility to see what you want on your own time, but it can also bring unique challenges, such as parking in Reykjavík. It may be a city with a small-town vibe, but parking is often at a premium. With parking restrictions, fees, and space limitations, parking can turn into a real headache if you aren’t prepared. 

The good news is that it’s not impossible. Once you are aware of the ins and outs of parking in downtown Reykjavík and the surrounding areas, you can park with confidence during your self-drive itinerary. Here’s everything you need to know about parking in Reykjavík, Iceland.

Is Parking in Reykjavik Free or Paid? What Visitors Need to Know

The first and biggest question many visitors have about parking in Reykjavík is whether it’s free or if you have to pay. The short answer to that question is, it depends. While there is certainly some free parking in Reykjavík if you know where to look, many of the prime locations have a parking fee, with a few exceptions. Knowing the rules will help you avoid hefty parking fines and eliminate parking headaches.

Parking Zones in Reykjavík Explained

The first thing to understand about parking in Reykjavík is how the zones work. These zones are designed to simplify paying for parking, so it’s clear how much you will pay, depending on where you park your vehicle. In general, there are four color-coded parking zones in the heart of the city. Parking outside these areas is generally free unless otherwise marked, such as parking garages.

Here’s everything you need to know about the parking zones and how much parking is in each zone. Please note that the color-coded map is an estimate. Please rely on local signage to ensure you are paying for the correct zone.

P1 Zone: City Center and Short Stays

The P1 zone, which is marked in red, is closest to the city center and is designed for short stays. This is one of the only zones that has a maximum parking time of three hours, so pay close attention to how long you have been parked. 

P2 Zone: Central Areas Near Shopping and Attractions

The blue area on the map marks P2. This parking zone is still centrally located and is close to shopping and various tourist attractions, making it an appealing area for visitors to park. There is no time limit for parking here, and it’s a great place to park if you’ll be focusing on shops, restaurants, and activities in the city center.

P3 Zone: Longer Parking Options Outside the Core

If you’re willing to park a little further out and either walk or use the scooters to get around, the green zone, or P3, is a great option. This zone costs the same as P2 for the first two hours, but if you’ll be staying longer, the parking gets cheaper for the remaining hours of your stay. You’ll trade distance for cheaper parking.

P4 Zone: Weekday Parking in Residential Areas

Finally, the smaller orange zone, or P4, charges a fee for weekday parking in certain residential areas close to the city center. This parking zone has different hours from the others, so watch the clock carefully when parking in this zone.

How Much Does Parking in Reykjavík Cost Today?

Now that you’re aware of the parking zones in Reykjavík and where they are located, it’s important to know how much you can expect to pay in each one. As of 2026, you can expect the following fees based on the parking zone you choose:

• P1: The cost of P1 is 630 ISK per hour ($5 USD/4 EUR) for up to three hours. Parking is charged from 9 am to 9 pm on weekdays and 10 am to 9 pm on weekends.
• P2: The cost of P2 is 230 ISK per hour ($2 USD/1.5 EUR). This fee is charged from 9 am to 9 pm on weekdays and 10 am to 9 pm on weekends.
• P3: P3 parking costs 230 ISK ($2 USD/1.5 EUR) per hour for the first two hours and then 70 ISK ($0.06 USD/0.5 EURO) per hour thereafter. This fee is valid from 9 am to 6 pm on weekdays.
• P4: P4 costs 230 ISK per hour ($2 USD/1.5 EUR) on weekdays from 8 am to 4 pm. 

How to Pay for Parking in Reykjavík with a Rental Car

When renting a car from Reykjavik Cars, you will need to know how to pay for parking in the city to avoid getting hit with parking fines that will be far more costly than just paying for parking in the first place. There are usually several ways to pay for parking in Reykjavík.

Paying at Ticket Machines and Meters

Street parking in Reykjavík often has ticket machines that are placed along the sidewalks throughout the area. These convenient machines allow you to enter your license plate number and choose an amount of time to pay for parking. These machines don’t take cash. You will need to use a debit or credit card to pay for your parking fees.

If you’re not sure how long you will be parked, you may want to choose a higher amount of time than you expect. The good news is that your payment can carry over to other zones if you move your car. P1 fees are valid in all parking areas, for instance. The other zones cover that zone plus all lower zones (i.e., P2 also covers P3 and P4, etc.).

Paying for Parking Using Mobile Apps

Another way to pay for parking in downtown Reykjavík is to download the Parka mobile app. This mobile app makes it easy to pay your parking fees without finding a ticket machine nearby or returning to the area to extend your parking time. Simply enter the car license plate number, input your payment information, and check into your space. Don’t forget to check out when you leave. 

Also, keep in mind that the app may automatically check you out when the payment hours end in the evening. However, it’s important to check, just in case. If it does check you out and you will still be parked when the fee hours begin again, don’t forget to check back in to avoid a parking ticket.

Multi-Story Car Parks in Reykjavík: Locations, Prices and Tips

Street parking isn’t your only option for parking in Reykjavík. There are several multi-story car parks in the city to provide more parking options. While some of these parking garages are designed for residents and people who work in the city, there are several that are meant for tourists and others who will be spending shorter times in the city. 

It’s important to know which ones you can use, along with where they are, how much they charge, and more.

Best Car Parks Near Downtown Reykjavík

There are seven multi-storey car parks that are open to short-term parking for visitors. Four of those are located close to the middle of everything near Ingólfstorg Square. These are the best options if you plan to spend your time in the city center, but keep in mind that they can fill up quickly, especially during the summer months.

The best car parks near downtown Reykjavík are the following:

• Vesturgata
• City Hall
• Kolaport
• Traðarkot
• Vitatorg
• Stjörnuport
• Hafnartorg and Harpa

The first six on the list are owned by the city of Reykjavík, while the last is privately owned and will likely have a different fee table from the others. Be sure to check the machines inside the garage for payment requirements and details, particularly since some of these garages are connected.

The following details the parking fees in each of the car parks:

Opening Hours and Overnight Parking Rules

When parking in a parking garage in Reykjavík, you will pull into the garage and park. Payment is completed either through the payment machine inside the garage or via a parking app. The details will be available on signage in the garage. Be sure to pay your fee before exiting the garage, as payments aren’t accepted at the exits.

All city-owned parking garages are open daily from 7 am until midnight. If you are parking overnight, be aware that you will not be able to exit the parking garage until 7 am. If you have an earlier flight, consider parking elsewhere. The privately owned parking garages are generally open 24 hours. 

Free Parking in Reykjavík: Where and When It’s Possible

Is there free parking in Reykjavík? The short answer is yes. You can certainly find free parking in the city if you aren’t particular about where you want to park. Outside the color-coded parking zones, parking is free, but be mindful of any signage that may limit the duration or list any other restrictions.

Parking at Hallgrimskirkja and some spots at the Old Harbour may also be free, but again, check for signs. The further from the city center, the more likely you are to find free places to park. The good news is Reykjavík is very walkable.

In addition to free parking outside the color-coded zones, there are other times when parking is free in the city. All parking zones have free overnight parking in Reykjavík, but remember that you can’t park and spend the night in your vehicle. In addition, P4 is free on weekends. 

Parking is also free on certain public holidays, including the following:

• New Year's Day
• Holy Thursday
• Good Friday
• Easter Sunday
• Easter Monday
• 1st day of summer (late April)
• May 1
• Ascension Day
• Whit Sunday
• Whit Monday
• June 17
• Commerce Day
• Christmas Day
• Boxing Day

Parking for Electric and Hybrid Rental Cars

Parking for vehicles using fossil fuels is generally easier because you don’t need a spot equipped with a charger. However, if you’re renting an electric or hybrid vehicle with Reykjavik Cars, you will need to pay close attention to where you can park. The good news is that Iceland is well-equipped with charging stations and has a high percentage of electric vehicles on the road.

There are some places on the roads and in surface parking lots in Reykjavík that offer EV charging stations, so keep your eye out for them. However, you are more likely to find these charging stations inside the parking garages, primarily Vesturgata, Kolaport, City Hall, and Harpa. Hotels or accommodations with their own parking areas may also have EV chargers.

Parking Campervans and Larger Vehicles in Reykjavik

One of the biggest challenges you may face when parking in Reykjavík is where you can park a campervan or a larger vehicle. It’s important to note that you are not allowed to park wherever you please and spend the night. However, if you are staying in a hotel or other accommodations and need overnight parking in Reykjavík, you can find suitable options for all vehicle types.

When looking for a place to park a campervan or larger vehicle, be mindful of the available space. Parking in Reykjavík, particularly near the city center, comes at a premium, and some of the roads are narrow. It may be best to seek parking closer to the edge of town and walk, use a scooter, or take the bus into the city center.

Parking Fines in Reykjavik and How to Avoid Them

No one likes unexpected surprises that make a vacation cost even more money. If you’re unaware of the parking rules in Iceland, you may find yourself paying a parking fine. Because these fines are sometimes issued electronically to the car owner, you may end up paying even more for the car rental agency fees. It’s best to be aware of how to avoid these parking fines to begin with.

Common Parking Mistakes Tourists Make

Here are some of the most common mistakes tourists make and how you can avoid making them yourself:

Misunderstanding the Parking Zones

Pay close attention to the signs where you are parking your vehicle. These signs will indicate which parking zone you are in, so you can pay accordingly. Download the Parka app or look for the ticket machines to make your payment. Remember, these machines don’t take cash. Everything is done via credit or debit card.

Forgetting to Add Time

If you pay at one of the ticket machines instead of the app, pay close attention to how much time you have left. You will need to return to your vehicle before time expires to either leave or extend the time. Parking tickets are issued quickly.

Parking in Restricted Areas

Be mindful of where you can park. Don’t park where there is a no parking sign, the space is designated as a disabled space and you don’t have a tag, or in a spot marked for resident use only. Parking in the wrong spot can be costly.

Parking in the Wrong Direction

If you‘re driving down a two-way street and notice an available space on the other side, find a safe place to turn around and park properly. Pulling into the space facing the wrong direction comes with hefty fines in Reykjavík, and yes, they do enforce it.

Not Checking Back In

Overnight parking in Reykjavík is free in all zones, but you’ll need to be sure to check your vehicle back in if you won’t be leaving before the fee period begins. Many times, the app will check you out at the end of the day, and if you don’t check back in, you can face parking fines.

What Happens If You Get a Fine with a Rental Car

Most parking tickets in Reykjavík are issued electronically to the owner of the vehicle. As a tourist, you aren’t likely to find a paper ticket on your windshield. Instead, we will notify you that you have received a ticket and provide instructions for paying it. Paying it quickly is important because it can save you money in the long run.

If you receive notification of a parking ticket, you can go to a local bank with the information provided and make a payment there. You can also pay on the Reykjavik Parking Service website by entering the license plate number and the date of the infraction. Paying it within three business days gives you a cash discount of 1100 ISK ($9 USD/7.5 EUR). Waiting too long increases the fine as detailed below:

Typical Parking Violation Charges

Practical Parking Tips from a Local Car Rental Company

As you begin your journey in Iceland, whether you’re spending most of your time in Reykjavík, driving the Ring Road, or anything in between, here are a few practical tips to help make the parking situation less stressful:

• Take a picture of your license plate. Having a picture on your phone makes it easier to remember the plate number for paying at a ticket machine.

• Review the color-coded parking zones. Knowing how much you will pay and what restrictions are in place can help you choose the best area to park.

• Pay as soon as you park. Don’t wait to pay for your parking. Fines are issued quickly. Pay as soon as you park, and set a reminder in your phone to top off when needed.

• Pay only at official meters and apps. While Iceland is relatively safe, there are still scammers. QR codes can be faked. It’s usually best to pay at an official machine or through an official app.

• Pay your tickets quickly. If you get a parking ticket, it’s best to pay it within 3 days. If you don’t pay it yourself, Reykjavik Cars and other rental agencies will charge a service fee on top of the fine. It’s cheaper to just take care of it yourself.

Final Advice for Driving and Parking in Reykjavík

Renting a car in Reykjavík doesn’t have to create stress when it comes to driving and parking. Like anywhere else in the world, the city has parking rules that must be followed to ensure safety and avoid chaos. When you are aware of how much you will pay for parking, when and where to park in Reykjavík, and how to avoid parking fines, you can rest assured that your trip will go smoothly without the stress of higher costs.

If you’re ready to start planning your ideal Iceland trip, check out the rental cars at Reykjavik Cars and find the one that best fits your needs.