Car Rental Tips

How to park for free in Reykjavík: tips to save on your Iceland trip

16.07.2025

Planning to drive in Iceland's capital? Whether you're picking up your rental car in Reykjavik or just stopping by for the day, understanding how and where to park can save you time, money, and stress. Parking rules in Reykjavík can be confusing for visitors, particularly with the various paid zones and local signage. However, with the right tips and insights, you can find free parking in Reykjavík and make the most of your visit.

For more detailed guidance on car travel and parking across Iceland, check out our blogs on Driving in Iceland, Parking in Reykjavík: A Comprehensive Guide and Parking in Iceland: What You Need to Know.

Is parking free in Reykjavík?

Short answer? Sometimes, but only in specific places and at limited times. Reykjavík has a structured parking zone system, and most areas in and around the city centre require payment during business hours and on weekends. However, free parking is always available outside of those hours in some outer areas.

To take full advantage of lower-cost or free parking, it is helpful to understand the timing of paid hours, zone boundaries, and alternative options, such as hotel car parks and multi-storey garages. Planning ahead can make your journey smoother and more affordable.

Where to find free parking in Reykjavík

In Reykjavík, free parking is limited to times outside the standard charging hours. During weekdays, parking is generally free before 9:00 a.m. and after 5:00 p.m. or 6:00 p.m. in certain zones. On Saturdays and Sundays, however, parking charges still apply in Zones P1 and P2. It's essential to check each zone’s active hours carefully to avoid fines.

Paid parking zones in Reykjavík

The city operates a colour-coded parking system in the centre, which designates rates and hours based on proximity to high-traffic destinations.

  • Zone 1 (P1): The most central and expensive area, typically marked red or pink on maps. Rates are 630 ISK per hour. Charges apply Monday to Friday from 09:00 to 21:00 and Saturday to Sunday from 10:00 to 21:00. The maximum allowed stay is three hours.
  • Zone 2 (P2): A surrounding area, usually marked in blue. Rates are 230 ISK per hour. Paid hours are Monday to Friday from 09:00 to 21:00 and Saturday to Sunday from 10:00 to 21:00.
  • Zone 3 (P3): A green-marked area further from the centre. Rates are 230 ISK per hour for the first two hours and 70 ISK per hour thereafter. Paid hours are Monday to Friday from 09:00 to 18:00.
  • Zone 4 (P4): Often marked orange on maps and furthest from the city core. Rates are 230 ISK per hour. Paid hours are Monday to Friday from 08:00 to 16:00.

Public holidays in Reykjavík are not exempt from parking charges unless explicitly stated. Always check nearby signs or use the city’s parking apps for the most accurate updates. Reykjavík City provides detailed zone maps and pricing at reykjavik.is.

Reykjavik Parking Zones

Free parking beyond designated zones

In addition to the marked zones, some residential or commercial streets without signage may offer free parking. These areas are often located beyond the outer boundary of the zone. However, drivers should remain cautious: signage marked “Einkastæði” indicates private or reserved parking, which is not available for public use.

Hotel parking in Reykjavik

Some hotels in Reykjavík provide complimentary parking to their guests, either in private lots or shared spaces. As availability varies, always contact your accommodation directly to confirm parking terms. If you're specifically looking for hotels in Reykjavík with free parking, book early and verify conditions in advance.

Multi-storey car parks

Multi-storey car parks in Reykjavík are another practical option, especially if you plan to stay in the city centre for an extended period. These garages are typically less expensive than on-street parking in central zones and offer reliable availability.

  • Typical rates: 260 ISK for the first hour and 130 ISK per additional hour
  • Top locations: City Hall, Traðarkot, Kolaportið, Harpa, Vesturgata

Parking near attractions - what to avoid

Many visitors assume that attractions such as Hallgrímskirkja, Harpa Concert Hall and Laugavegur shopping street offer free parking. They do not. These locations fall within the P1 and P2 zones, the most expensive area and parking spots fill quickly. If you're visiting these areas, we recommend parking just outside the paid zones and walking in, or using a nearby multi-storey garage.

Free overnight parking - know the rules

Even if you find a free spot, sleeping in your car is not allowed within Reykjavík city limits. This applies to passenger vehicles, campervans, and motorhomes. Violating these rules may lead to fines.

For legal and safe alternatives, read our upcoming guide on [overnight parking in Iceland] (placeholder).

Avoiding parking fines

To avoid unnecessary charges:

  • Always pay during paid hours in designated zones
  • Do not overstay your paid time
  • Avoid restricted or private parking (marked "Einkastæði")

Fines typically start around 4,500 ISK. Use the Parka or EasyPark apps to pay accurately and receive reminders. For more information, visit our article on parking fines in Iceland.

Volkswagen ID4 parked in front of Harpa Concert Hall in Reykjavik Iceland

Quick parking tips for Reykjavík

  • Arrive early to find the best spaces
  • Use parking apps to track hours and locations
  • Choose garages for longer stays
  • Take advantage of free evening and Sunday windows
  • Always check signage before leaving your vehicle

 

FAQs

Can you park for free in Reykjavík?

Yes, during off-hours, on Sundays and in certain outer areas

How much is street parking in Reykjavík?

Between 90 and 600 ISK per hour, depending on the zone.

Where can I park when visiting Reykjavík?

In multi-storey garages, hotel lots or just outside the paid zones.

Do I need to pay for parking in Iceland?

Yes, in most urban centres including Reykjavík and Akureyri.

What is the parking fine in Reykjavík?

Fines start around 4,500 ISK.

Can I sleep in my vehicle overnight?

Not within city limits. Overnight parking is prohibited.

How much does parking in Reykjavík cost?

Anywhere from 90 to 600 ISK per hour, based on location.

Free parking in Reykjavík is possible with a little planning and awareness. From time-based free hours to quieter streets outside the core zones, it’s worth knowing your options in advance. Your journey through Iceland begins with smart planning, including where to park your car.