Parking fines in Iceland: how to pay and what to do if you receive one

Whether you’ve just spotted a ticket on your windscreen in Reykjavík or heard from your rental company after returning home, parking fines in Iceland are a common part of self-driving travel, and nothing to panic about.

With unfamiliar signs, busy city zones, and the occasional language barrier, it’s easy for visitors to make small parking mistakes. The good news? These fines are straightforward to handle, especially if you act promptly.

Before we dive into fines, it’s helpful to understand how parking in Iceland, especially in Reykjavík, is structured. Like many European cities, Iceland’s towns use zoned parking systems, with colour-coded areas that determine how much you pay and when. If you're new to local parking zones and rules, we recommend checking our parking guide and this overview of driving in Iceland before you hit the road.

In this guide, we’ll walk you through:

• What to expect if you receive a parking fine in Iceland
• How much it might cost
• How to pay it (even from abroad)
• And what happens if the fine goes unpaid

Let’s keep your Icelandic road trip smooth and worry-free.

What happens if you get a parking fine in Iceland?

So you’ve returned to your car and found a ticket, or heard from your rental provider about one after your trip. Don’t worry, it happens to plenty of visitors and is simple to resolve.

What a parking ticket looks like

In Iceland, parking fines are typically issued as white printed tickets placed under your vehicle’s windscreen wiper. These are issued by local parking authorities when a violation is noticed on site.

In some cases, especially in Reykjavík, parking enforcement may also use digital systems to register the fine based on your licence plate. If that happens, the fine may not be left on the car but instead sent directly to your rental provider. If you're travelling with Höldur, you’ll be informed clearly and promptly if any fines are reported after your rental.

Common reasons for parking fines

Parking tickets in Iceland are typically issued for:

• Not paying for parking in a paid zone
• Letting your parking session expire
• Parking in a restricted area (such as bus stops or yellow-marked zones)
• Failing to activate or use a valid parking app

Even seasoned travellers occasionally misread signage, especially in downtown Reykjavík, where rules and zones can shift from one street to the next.

When will you know?

In many cases, the fine is placed on the vehicle while you're parked. However, if the violation is recorded digitally (such as through licence plate scanning), the notice may arrive later, often sent directly to the rental agency. If you're travelling with Höldur, we’ll reach out to you after your trip with full details and a simple process to resolve it.

How much are parking fines in Iceland?

Parking fines in Iceland aren’t just common, they can also be quite costly if left unpaid. With strict enforcement and a digital monitoring system in place, especially in urban areas like Reykjavík, it’s important to know what you could be fined for and how much it might cost.

Parking fines and regulations in Iceland

In Iceland, you can be fined for:

• Not paying for parking in paid zones
• Parking in spaces for people with disabilities without a permit
• Parking on the street in areas without marked spaces
• Parking in the direction of oncoming traffic
• Parking on pavements, pedestrian areas, or off-road
• Sleeping overnight in a campervan outside designated campsites
  
  

Fines also apply to speeding, unsafe driving, and unpaid tolls, but this article focuses on parking-related violations.

If you receive a fine while driving a rental car:

• It may be left on your windscreen
• If unpaid, it’s sent to the vehicle’s owner (your rental provider)
• Höldur will charge the fine to your payment card and inform you clearly, no hidden surprises

How much are the fines?

Fines are set locally and may differ slightly depending on the town or municipality. However, Reykjavík, where many visitors spend time, gives a good sense of the typical costs:

Extra parking tariff

In Reykjavík, the cost of parking fines depends on the type and severity of the violation. For standard infractions like parking without a valid ticket or overstaying the paid time, the fine is 4,500 ISK. However, if you pay it within three business days, it’s reduced to 3,400 ISK. If left unpaid for 28 days or more, the penalty doubles to 9,000 ISK.

General parking violations

For more serious violations, such as parking on pavements, blocking pedestrian crossings, or parking outside marked bays, the fine rises to 10,000 ISK. Again, there’s a reduced rate of 8,900 ISK if paid promptly, but if ignored, the fee increases significantly to 20,000 ISK after 28 days.

Parking in reserved spaces

The steepest fines are issued for parking in designated spaces for people with reduced mobility without a valid permit. This offence carries a base fine of 20,000 ISK, with a reduced rate of 18,900 ISK if paid within three days. If left unpaid, it doubles to 40,000 ISK.

You can find this breakdown and more details at the City of Reykjavík’s official parking citations page.

Why it pays to pay quickly

• Fines are discounted (usually by 1,100 ISK) if paid within three business days
• If left unpaid for more than 28 days, they can double in cost
• Prompt payment also avoids extra administrative charges or follow-up contact from the rental agency

How to pay a parking fine in Iceland

Whether you spot a fine on your windscreen or receive notice after your trip, paying a parking ticket in Iceland is straightforward. Especially if you act quickly.

If you receive a ticket while still in Iceland

Most parking tickets issued in person can be paid online or at a local bank. Here’s how:

• Check the ticket for a barcode or payment reference number; this will direct you to the correct payment portal.
• Pay online through the municipal website listed on the fine.
• For Reykjavík, use the city's online parking citation payment system.
• Prefer to pay in person? Visit a local bank, such as Íslandsbanki, Landsbankinn or Arion Bank.
• If the site is only in Icelandic, don’t hesitate to ask your hotel, host, or car rental provider (like Höldur) for help.
  
  

Paying online (for international visitors)

If you’ve already returned home and have been contacted by Höldur or another rental agency about a parking fine, don’t worry, it’s still possible to pay. In most cases:

• Your rental provider will notify you by email
• You'll receive a copy or summary of the citation
• Payment may be processed directly by the agency using your card on file, along with a clearly stated administrative fee (if applicable)

At Höldur, we aim to make this process transparent and hassle-free, so you can focus on the memories, not the paperwork.

What happens if you don’t pay the fine?

While it might be tempting to leave a parking fine unpaid, especially if you’ve already left Iceland, it’s not recommended. Fines issued by local parking authorities don’t just disappear, and ignoring them can lead to added costs and complications.

If you're driving a rental car

If you receive a fine while renting a car, the local authority will send the notice directly to the vehicle’s registered owner, in this case, Höldur. As the renter, you’re still responsible for the fine.

Here’s what happens:

• Höldur pays the fine on your behalf, using the payment details linked to your rental
• You’ll receive an email with full details of the fine, including an explanation of the charge
• A small administrative fee may be added, in line with your rental agreement
  
  

This ensures the fine is resolved quickly and fairly, no debt collection, no confusion, no delay.

Ignoring the fine leads to higher costs

In Iceland, parking fines nearly always:

• Increase after 14 or 28 days if left unpaid
• May be doubled or even tripled for serious violations or extended non-payment
• Can incur additional late fees or penalties, including additional charges from the rental provider
  
  

Best to resolve it promptly

The easiest, cheapest, and most stress-free way to handle a parking ticket? Pay it as soon as you’re notified, or let Höldur handle the process and keep you informed every step of the way.

Don’t let a parking fine dampen your Icelandic adventure

Parking fines in Iceland are a common experience for travellers, but they’re also easy to manage if you know what to expect. Whether it’s a missed app session in Reykjavík or a fine that shows up after your trip, acting quickly and understanding your options can make all the difference.

By using local parking apps, paying attention to signage, and knowing the basic rules, like avoiding unmarked areas and respecting designated spaces, you can often avoid fines altogether. And if you do receive one, Iceland’s payment systems make resolution straightforward.

A small ticket shouldn’t stand in the way of your once-in-a-lifetime experience. With a little preparation and local insight, you’ll stay focused on what really matters: the journey.