Parking in Reykjavik: Complete Guide for Rental Car Drivers

Planning a road trip through Iceland? Then yes, you're almost guaranteed to pass through Reykjavík at some point. And, you’re going to need somewhere to park. You might think that parking in Reykjavik is simple, right? Not quite.

This guide will explain everything you need to know in detail. We’ll show you exactly where to park, how much it costs, and which zones are worth it. Driving is the best way to explore Iceland.

That freedom? You’ve earned it. Just don’t blow it on a parking fine. If you're renting your car in Iceland with Cars Iceland, this is the guide you actually need. Here are the basics before diving into our parking guide:

• Cheapest paid zone - P4
• Most central - P1 (max stay: 3 hours)
• Paid hours - Varies by zone (see table below)
• How to pay - Apps (Parka / SíminnPay / Verna / EasyPark) or parking meters

Is Parking Easy in Reykjavik for Visitors?

Parking in Reykjavik, Iceland, is rarely straightforward for first-time visitors. The rules can feel designed to trip up anyone unfamiliar. Zones may look similar but operate differently, and signage is often buried in snow, worn out, or written in Icelandic with minimal explanation.

Always check the signage to confirm the correct zone, hours of operation, and maximum stay allowed. While symbols and warnings are familiar, understanding local signage will save you from confusion. Learn terms like:

• STANS - STOP
• LOKAÐ - CLOSED

Parking Zones in Reykjavik Explained

Reykjavik uses a color‑coded parking zone system. Choosing the wrong zone is one of the fastest ways to get fined, especially if you assume all street parking works the same way. Here’s how each zone actually works and when it makes sense to use it.

Red and Pink Zone (P1)

P1 (red and pink) covers the most central and busiest parts of Reykjavik. If you’re parking right in downtown, around Laugavegur, Skólavörðustígur, Austurstræti, Austurvöllur, or Rainbow Street, this is the zone you’re dealing with.

P1 is the most central and most expensive paid zone, and it has a maximum stay limit. It’s best suited for short stops, quick errands, or grabbing a meal. ‘Residents only’ does not apply to the entire pink area. It refers to specific bays marked with resident permit signage or light red paint. 

If you park in one of those permit-only spaces without a valid permit, you can be fined. Always read the pole sign before leaving your car. Anything longer than a short stop? P1 usually isn’t worth the stress or the cost.

Blue Zone (P2)

The blue zone (P2) extends into quieter but still central areas of the city. It includes parts of Vesturbær near the Old Harbor, streets around the Catholic Cathedral, and areas close to Hallgrímskirkja.

Parking here is less chaotic than P1 but still competitive during busy hours. Prices are lower, and there is generally more flexibility, making it a good choice for short sightseeing stops or a relaxed lunch break.

Some nearby streets transition out of paid zones, but that depends entirely on signage. Never assume.

Green Zone (P3)

The green zone (P3) is split into two main areas. One runs along the shoreline between Harpa and the Sun Voyager. The other sits around Tjörnin, the lake near the city center.

These areas are close to major landmarks but slightly removed from the busiest tourist streets. Parking here is more affordable than P1 and better suited for longer visits.

If you’re planning a half‑day in the city, P3 is often the most balanced option. Enforcement is active, so payment is not optional.

Yellow Zone (P4)

The yellow zone (P4), sometimes shown as orange on maps, covers the outer residential edges of the city. It’s the cheapest paid parking zone and the most practical option for longer stays.

P4 works well for overnight parking, early Ring Road departures, or anywhere you don’t need immediate downtown access. It’s quieter, less competitive, and far less stressful than central zones.

You’ll find P4 near areas like Laugardalur and residential neighborhoods outside the core tourist area.

Parking Zones Summary

Zone	Price	Paid Hours	Max Stay
P1	630 ISK/hour	Weekdays 09:00-21:00Weekends 10:00-21:00	Max 3 hours
P2	230 ISK/hour	Weekdays 09:00-21:00Weekends 10:00-21:00	No general limit
P3	230 ISK/hour (first 2h), then 70 ISK/hour	Weekdays 09:00-18:00	No general limit
P4	230 ISK/hour	Weekdays 08:00-16:00	No general limit

Max stay clarification (important for overnight parking):

• P1: Maximum stay is 3 hours
• P2 to P4: Usually no general time limit, but some streets may have specific restrictions shown on additional signage

Always check the pole sign for paid hours and any max‑stay panel.

Map of Parking Zones in Reykjavik

This map shows you exactly where each parking zone begins and ends. It’s not just helpful. It’s essential. The colors aren’t always clear on street signs, and zone borders can shift within a single block.

Don’t guess. Use the map to check which zone you're in before paying, especially if you’re switching between short stops and longer stays. If you're planning to walk around without mobile data, download the map offline.

Look up your destination, match the color, and decide if it’s worth it. Red and pink? Quick stop. Green or yellow? Better for longer stays or overnight parking in Reykjavik.

Where to Park Based on Your Plan

• I’m visiting downtown for 2-3 hours - P1/P2 or a garage
• Half day sightseeing - P3
• Overnight / cheapest - P4 or a garage

Best parking for Harpa

Kolaport garage or nearby P1 zone. Garages are easier here due to traffic and construction.

Best parking for Hallgrímskirkja

P2 zone around Eiríksgata. Spots are limited, so arrive early.

Best parking for Old Harbor

P2 near Vesturgata or the Vesturgata garage. Easy access to food stalls and museums.

Best parking for Rainbow Street

Use Traðarkot garage or P1 zone nearby. Street spots fill up fast during lunch hours.

Best parking for Tjörnin Lake

P3 zone on nearby streets. A good pick for walking or photography.

Best parking for Sun Voyager

P3 or Kolaport garage. Watch your time limits if you’re stopping for photos and a meal.

Best parking for Laugavegur shopping

Traðarkot garage or P1. If you're planning to stay longer than 3 hours, switch to a garage.

Parking Garages in Reykjavik

If street parking feels like too much guesswork, Reykjavik’s city-run parking garages are the safer option. These multi-storey garages offer secure, off-street parking close to downtown landmarks and major zones.

• Hours: 07:00-24:00
• Rates apply 24/7.

Late-night vehicle access rules can vary by facility. Always check the garage signage or app instructions before leaving your car overnight.

City-Operated Parking Garages

Stjörnuport Parking Garage

• Laugavegur 94
• Standard downtown garage close to shopping and restaurants.
• Rate: 190 ISK first hour, then 130 ISK/hour
• EV chargers and accessible spaces: Yes

Vitatorg Parking Garage

• Skúlagata 24
• North of the city center, near embassies and the coast.
• Rate: 190 ISK first hour, then 130 ISK/hour
• EV chargers and accessible spaces: Yes

Kolaport Parking Garage

• Kalkofnsvegur 1
• Opposite Harpa Concert Hall, ideal for concerts and Old Harbor access.
• Rate: 270 ISK first hour, then 140 ISK/hour
• EV chargers and accessible spaces: Yes

Vesturgata Parking Garage

• Vesturgata 7
• Located in the historic old town near the Old Harbor.
• Rate: 270 ISK first hour, then 140 ISK/hour
• EV chargers and accessible spaces: Yes

Traðarkot Parking Garage

• Hverfisgata 20
• One of the most central and frequently used garages, near Laugavegur.
• Rate: 270 ISK first hour, then 140 ISK/hour
• EV chargers and accessible spaces: Yes

Bergstaðir Parking Garage

• Bergstaðastræti 1
• Quiet garage tucked behind Hallgrímskirkja. 
• Rate: 13 000 ISK per month for the outdoor level and 20 000 ISK for the indoor level
• EV chargers and accessible spaces: Yes

Ráðhúskjallari (City Hall) Parking Garage

• Tjarnargata 11
• Under Reykjavik City Hall, next to Tjörnin lake.
• Rate: 270 ISK first hour, then 140 ISK/hour
• EV chargers and accessible spaces: Yes

Keep in mind that late-night vehicle access rules can vary by facility. Ensure you check the garage signage/app instructions before leaving your car overnight.

Free Parking in Reykjavik

Free Outside Paid Hours

Most zones in Reykjavik offer free parking outside of paid hours, but the hours vary by zone, and you must always check the pole sign.

For example:

• P4 is free after 16:00 on weekdays
• P3 is free after 18:00 on weekdays
• P1 and P2 often stay paid until 21:00, including weekends

The closer you are to the city center, the longer paid hours typically run. Don’t assume it's free just because it's evening.

Free on Public Holidays

Reykjavik suspends paid parking enforcement on certain public holidays. These are good opportunities to park in central zones without fees.

Free parking days include:

• January 1 - New Year’s Day
• Holy Thursday
• Good Friday
• Easter Sunday & Easter Monday
• First Day of Summer (first Thursday after April 18)
• May 1 - International Workers’ Day
• Ascension Day
• Whit Sunday & Whit Monday
• June 17 - Iceland’s National Day
• First Monday in August - Commerce Day
• December 25 - Christmas Day
• December 26 - Boxing Day

Residential Streets with Free Parking

Some residential streets just outside the paid zones offer free parking, but this changes by street, and it's not always obvious.

The best method is:

• Open the official Reykjavik parking map
• Look just outside the borders of P3 or P4
• Confirm the pole sign on the street

This strategy works especially well in neighborhoods on the edges of Hlíðar, Laugardalur, or near Tjörnin. But again, always verify locally.

How to Pay for Parking in Reykjavik

There are two main ways to pay for parking in Reykjavik: ticket machines or mobile apps. Both methods require you to enter your car’s license plate and the correct zone number. Get either one wrong, and you’re likely to be fined.

Pay at Meters / Ticket Machines

Most street-side meters and machines let you pay by zone and time. Some accept credit cards, and a few take coins, but don’t count on coins being available everywhere.

Before confirming your payment:

• Double-check the zone number
• Double-check your license plate

You don’t need to print a ticket. The system logs your plate. But keeping a receipt (printed or digital) is still a good idea.

Pay by App (Recommended)

Using a parking app is faster, easier, and lets you extend time remotely.

The City of Reykjavik lists the following official parking apps:

• Parka
• SíminnPay
• Verna
• EasyPark

All apps follow the same basic steps:

1. Add your license plate
2. Select the correct zone (P1-P4)
3. Choose how long you want to park
4. Start parking and extend or stop the session if needed

Using an app also helps avoid fines from underpayment or overstays.

Common Mistakes (That Cost You Money)

• Wrong plate number - Even one wrong digit will result in a fine
• Wrong zone selected - Match the number on the pole sign, not just the color
• Forgetting to extend - The meter doesn’t warn you when time runs out
• Assuming ‘no sign = free’ - No sign usually means no parking allowed

Tip: If you’re unsure, open the app while standing next to the sign and match the zone number. Most mistakes come from rushing the payment process.

Parking Fines in Reykjavik

Parking enforcement in Reykjavik is strict and mistakes are costly. Fines vary depending on the type of violation, and they increase the longer you wait to pay.

Fine Categories and Escalation

1. Extra Parking Tariff

(For unpaid or underpaid parking)

• 4,500 ISK
• 6,750 ISK (after 14 days)
• 9,000 ISK (after 28 days)

2. Parking Violation Charge

(For parking on sidewalks, bus stops, restricted areas, etc.)

• 10,000 ISK
• 15,000 ISK (after 14 days)
• 20,000 ISK (after 28 days)

3. Disabled Bay Without Valid Permit (PMR)

• 20,000 ISK (or 18,900 ISK if paid promptly)
• 30,000 ISK (after 14 days)
• 40,000 ISK (after 28 days)

What If You're Driving a Rental?

Rental cars are not exempt from parking fines. In most cases, your rental company will pay the fine on your behalf and charge the amount to your card often with an additional admin fee.

How to Appeal a Fine

You can appeal a parking citation within 28 days of the issue date. Note that reviews take time and must go through the official appeal system:

Appeal a parking fine here

Disabled Parking (PMR) in Reykjavik

Parking in designated disabled bays in Reykjavik comes with strict rules and steep penalties for misuse. Here’s what you need to know:

• Who can use PMR bays - Only drivers with a valid disabled parking permit. The permit must be clearly displayed according to local signage or windshield rules.
• Where it’s allowed - PMR permits are only valid in marked disabled bays. Parking in these spots without a valid permit can result in a 20,000 to 40,000 ISK fine (see fines above).
• Use in paid zones or garages - Do not assume parking is free with a permit unless confirmed. Some cities offer exemptions, but unless Reykjavik officially states this, standard rates apply.
• Foreign/visitor permits - These are often accepted, but rules can vary. If you’re unsure, confirm with a local authority or the facility you’re visiting. Check international permit guidance

Note: If a garage requires permit validation via button, intercom, or plate scanner, follow posted instructions carefully, or contact garage staff if in doubt.

How Much Does Parking Cost in Reykjavik?

Prices in Reykjavik depend on the zone. The more central you go, the more it costs. Here's what to expect:

• P1 - Costs 630 ISK per hour (approx. $5.00 USD). Paid parking applies from 09:00 to 21:00 on weekdays and from 10:00 to 21:00 on weekends. Maximum stay is limited to 3 hours.
• P2 - Costs 230 ISK per hour (approx. $1.83 USD). Paid parking applies from 09:00 to 21:00 on weekdays and from 10:00 to 21:00 on weekends.
• P3 - Costs 230 ISK per hour for the first 2 hours (approx. $1.83 USD), then drops to 70 ISK per hour (approx. $0.56 USD). Paid parking applies from 09:00 to 18:00 on weekdays.
• P4 - Costs 230 ISK per hour (approx. $1.83 USD). Paid parking applies from 08:00 to 16:00 on weekdays.

Multistorey Car Parks in Reykjavik

If street parking feels like a gamble, Reykjavík’s multistorey car parks are the safer bet. These garages offer secure, off‑street parking and save you from circling blocks looking for an open space.​

Most use cameras and automatic license plate recognition, so entry and exit are tracked without tickets or barriers. You drive in, park, and leave when you’re ready. Payment is handled by card or a mobile app on the way out.

Best Parking Garages in Downtown Reykjavik

Below are the most reliable parking garages in central Reykjavik and what you need to know before driving in.

• Vesturgata Parking Garage (Vesturgata 7) - Right in the historic center near Reykjavik’s oldest streets. First hour: 270 ISK (approx. $2.14 USD). Additional hours: 140 ISK (approx. $1.11 USD). One disabled space and four EV charging spots.
• City Hall Parking Garage (Tjarnargata 11) - Located beneath City Hall next to Tjörnin lake. First hour: 270 ISK (approx. $2.14 USD). Additional hours: 140 ISK (approx. $1.11 USD). Two disabled spaces and 12 EV chargers.
• Traðarkot Parking Garage (Hverfisgata 20) - Just off Laugavegur. Central and reliable. First hour: 270 ISK (approx. $2.14 USD). Additional hours: 140 ISK (approx. $1.11 USD).
• Kolaport Parking Garage (Kalkofnsvegur 1) - Opposite Harpa Concert Hall. Good option for central access. First hour: 270 ISK (approx. $2.14 USD). Additional hours: 140 ISK (approx. $1.11 USD).

Overnight Parking in Car Parks

If you’re looking for secure overnight parking in Reykjavik, a city garage is often your safest bet. Most are well-lit, monitored, and close to hotels or Airbnbs. Just know what you're driving into. Spaces are tight, and turns are tighter, especially if you're in a larger 4x4 or SUV. Take it slow.

Garages close from midnight to 07:00. During those hours, you can enter on foot using the EasyPark app and a PIN. But don’t count on driving out while it’s closed. Exits may be blocked or unmanned. If the barrier doesn’t open on approach, it means the garage is full.

All garages charge based on total time parked, not per-hour blocks like on the street. Double-check your app settings before leaving the car. Need help? Call +354 411 3403 or email bilahus@reykjavik.is. If street parking near your stay isn't working, this is the next best move.

Parking at Hotels and Accommodations in Reykjavik

If you're wondering where to park in Reykjavik while staying the night, hotel parking can be an easy option, but only if you check ahead. Many hotels in the city don’t offer free parking, and some don’t have any parking at all.

Always call in advance or filter your search on platforms like Booking.com to avoid surprises. Our clients often take this route: drive into the city, park at the hotel, explore Reykjavik on foot, and then head out on the road trip the next morning.

It saves time, avoids parking fines, and makes the most of your rental from the start. If your hotel doesn't have parking, nearby garages or outer-zone street parking (P3 or P4) are usually your best bets.

Parking Fines in Reykjavik and How to Avoid Them

Parking wrong in Reykjavik isn’t cheap. And no, rental cars don’t get a free pass. If you mess up, the fine will find you. It usually comes from the City of Reykjavik, the Icelandic police (Lögreglan), or straight to your inbox via your rental company.

You can get fined for:

• Not paying for parking
• Overstaying your paid time
• Parking in disabled bays without a permit
• Pulling into a bus stop or restricted area
• Stopping on streets without marked bays
• Parking in the wrong direction
• Parking off-road or on pavements

Fines start at 4500 ISK (about $35 USD). Pay within 3 days, and it drops by 1100 ISK. Wait 14 days, and it jumps to 6750 ISK. Ignore it for 28 days, and it doubles to 9000 ISK.

Other charges:

• 10000 ISK (approx. $79 USD) for parking on a pavement
• 20000 ISK (approx. $159 USD) for using a disabled spot without a permit

Parking Tips for Rental Cars in Reykjavik

Parking in Reykjavik with a rental car is simple if you don’t make the same mistakes everyone else does. These are the things we’ve seen too many times:

• Parking too close to intersections - Icelandic rules require at least 5 meters (16 feet) from a corner. Tourists ignore it and get fined fast.
• Opening doors into the wind - This wrecks rental cars constantly. Reykjavik winds can rip a door off its hinge. Hold it tight every time.
• Assuming a free spot is legal - If it isn’t clearly marked with a P, skip it. No signage means no parking.
• Parking against traffic - You must park in the same direction as the flow of traffic.
• Leaving valuables visible - Reykjavik is safe, but visible bags still tempt break-ins. Don’t give anyone a reason.

Parking Tips to Avoid Fines

Park only within marked spaces. Anything outside a clearly painted bay can result in a fine even if the street looks empty.

Common signage terms to know:

• STANS = Stop (no parking or no entry)
• LOKAÐ = Closed (area not in use)
• Íbúakort = Resident permit required (don’t park there without one)

Sunday parking: P1 and P2 zones are not always free on Sundays. Paid hours often run from 10:00 to 21:00. Always check the sign.

FAQs About Parking in Reykjavik

What happens if I get a parking ticket in Reykjavik with a rental car?

The fine is issued by the city and sent to Cars Iceland. We notify you, pay it if required, and charge the amount plus an admin fee to your booking.

Where to park for free in Reykjavik?

Look for residential streets just outside P3 and P4 zones. Evenings and most public holidays are free. Always check signage. “Frítt” means free. Don’t assume.

Is parking at Sky Lagoon free?

Yes, parking at Sky Lagoon is currently free for visitors. The lot is spacious, but it fills up quickly during peak hours. Arrive early or book a non-peak slot.

Is it easy to drive and park in Reykjavik?

Driving is easy. Parking? Less so. Zones shift, signs confuse, and spots disappear fast. Use apps like Parka or EasyPark and avoid the red zones unless it's a quick stop.

What happens if I get a parking ticket in Iceland and just fly home?

Your rental company will still charge your card. Ignore it, and you risk late fees, debt collectors, and getting banned from renting in Iceland or Europe.