Where to find overnight parking in Reykjavík: a local’s guide for travellers

Reykjavík may be one of the world’s smallest capital cities, but when it comes to parking, especially overnight, it can still feel like navigating a maze. Whether you're winding down after an epic day on the Golden Circle or preparing to drop off your rental before flying home, knowing where to safely and legally leave your car overnight can make all the difference.

As Iceland’s largest car rental company, Höldur has helped thousands of travellers explore the country on their own terms, and we know exactly where to rest your wheels when the day is done.

Let’s help you park with peace of mind.

Can you park overnight in Reykjavík?

Yes, you can, but it’s essential to understand Reykjavík’s parking regulations before leaving your car overnight.

The city is divided into four main parking zones (P1 to P4), each with different payment requirements depending on the location and time of day:

• P1 (Red): Charged from 9 AM to 9 PM on weekdays and Saturdays, and from 10 AM to 9 PM on Sundays and public holidays.
• P2 (Blue): Charged from 9 AM to 9 PM every day, including Sundays and holidays.
• P3 (Green): Charged from 9 AM to 6 PM on weekdays only.
• P4 (Orange): Charged from 8 AM to 4 PM on weekdays only.

Parking is free outside of these hours, which means overnight stays between late evening and early morning are generally allowed, as long as you’re parked legally.

To see the full breakdown of zone times and payment rules, refer to the official Reykjavík city website at Obligation to Pay for Parking – reykjavik.is.

A few things to keep in mind:

• Street parking is permitted overnight, but always check signage carefully. Temporary restrictions for snow removal, loading zones or resident permits may apply.
  
  
• No sleeping in vehicles is allowed within the city. Icelandic law prohibits overnight stays in cars or campers in urban areas outside of designated campsites.
  
  
• Some private car parks, such as those near hotels or commercial buildings, operate 24 hours a day and may charge overnight, even if city zones do not.
  
  
• Yellow-painted kerbs or blue signs with red stripes indicate no parking at any time.
  
  

Overnight parking in Reykjavík is absolutely possible, just think of it as part of the adventure, and use local resources like Höldur’s parking guide to stay informed and ready for the road ahead.

Best places for overnight parking in Reykjavík

If you're looking to park your rental car overnight and avoid unwanted surprises, here are some trusted options used by locals and visitors alike:

Residential streets in P3 and P4 zones

Streets just outside the busiest downtown core, especially in Zone P3 and P4, offer more affordable options and are generally free between 6 PM and 9 AM, except where otherwise marked.

Always check signs carefully, especially around schools, hospitals or reserved residential areas.

Hverfisgata area

While central, streets around Hverfisgata can offer quieter overnight options, particularly toward the east end of the road. Metered during the day, many spots are free after enforcement hours. These are ideal for those staying in guesthouses or apartments nearby.

Central parking garages (paid, secure options)

If you prefer a more secure or covered location, especially during winter. Reykjavík offers several 24-hour parking garages in the heart of the city. These include:

• Hafnartorg parking garage. Modern, underground, close to shopping and Harpa.
  
  
• Harpa concert hall garage. Convenient for guests staying near the Old Harbour or city centre.
  
  
• Reykjastræti parking garage. Centrally located and within walking distance of most downtown hotels.
  
  

These garages charge by the hour or day, but provide excellent peace of mind and protection from the elements.

Free parking spots in Reykjavík

Finding completely free parking overnight in central Reykjavík is increasingly rare, especially as enforcement has expanded. That said, you can still reduce costs by:

• Parking in P3 zones is free after 6 PM on weekdays and all day on weekends.
  
  
• P4 zones are free after 4 PM on weekdays and all day on weekends.
  
  
• Using off-peak evening hours to take advantage of reduced or no enforcement
  
  
• Avoiding commercial or tourist-heavy areas like P1 altogether

Always check street signs before leaving your car. What’s free one block over may be paid on your side of the road.

Reykjavík hotels with parking

If your overnight stay includes hotel accommodation, booking a room with secure parking can make life much easier. Many central hotels offer on-site or affiliated parking, some included, some for a fee.

Here are a few traveller-friendly options:

• Hotel Reykjavík Grand. Offers free overnight parking and is just outside the main parking zones
  
  
• Fosshotel Reykjavík. Has private parking available for a fee
  
  
• Hótel Ísland. Conveniently located near Laugardalur with parking for guests
  
  
• Storm Hotel by Keahotels. Paid parking available in a central location
  
  

Always confirm parking details when you book, especially in high season.

Can you sleep in your car in Reykjavík?

Short answer: not in the city.

Sleeping in vehicles is prohibited within city limits under Icelandic wild camping laws. Reykjavík enforces this strictly, and fines apply for unauthorised overnight stays in public areas.

If you’re travelling in a camper or plan to sleep in your rental vehicle, head to a designated campsite like:

• Reykjavík Campsite (Laugardalur) - Open all year with showers, power hookups and laundry
  
  
• Eco campsites outside city limits - Better views, more space and full facilities
  
  

For more information on wild camping and driving responsibly, visit Höldur’s parking guide.

Tips for safe, legal overnight parking

To help you park confidently, here are a few local-approved tips:

• Use the EasyPark or Parka app – Easy to pay and extend parking remotely
  
  
• Avoid yellow lines and blue ‘No Parking’ signs
  
  
• Check for snow removal or construction notices
  
  
• Face the direction of traffic – A requirement on Icelandic roads
  
  
• “Einkastæði” = reserved/private – do not park there
  
  

Respecting the rules helps protect Reykjavík’s charm, and your wallet.

Explore Reykjavík by day, rest easy by night

Reykjavík rewards the curious, and the considerate. Whether you're exploring cosy coffee houses, soaking in a geothermal spa or heading off to the South Coast in the morning, knowing your car is legally and safely parked gives you one less thing to worry about.

Frequently asked questions about overnight parking in Reykjavík

Where can I park overnight in Reykjavík?

Residential streets in P3 and P4 zones after enforcement hours are your best bet. Alternatively, paid garages like Harpa, Hafnartorg and Reykjastræti offer secure overnight parking.

Is overnight parking free in Reykjavík?

Often yes, from 6 PM to 9 AM in P3 and P4 zones, depending on signage. Always check local rules before leaving your car.

Can I park on the street overnight?

Yes, as long as the area is not restricted and you observe marked regulations.

Do Reykjavík hotels offer parking?

Many do, some like Hotel Reykjavík Grand offer it for free. Confirm when booking.

What is the best app for parking in Reykjavík?

EasyPark and Parka are widely used and compatible with foreign cards.

Are there long-term parking options?

Yes, but mainly outside central areas. Long-term options are best arranged through private car parks or hotels.

Can I leave my car for multiple days?

Only in permitted areas or private spaces. Do not leave a rental car unattended on the street for several days.

Parking peacefully with Höldur

Parking in Reykjavík doesn’t have to be a guessing game. With a bit of planning, a little local insight and a dash of adventurer’s patience. You’ll find a spot that suits your plans, whether you're staying for the night or prepping for the next leg of your Icelandic journey.

Still have questions? Explore our full travel resources at Höldur’s Driving in Iceland guide or speak to one of our friendly team members.

Your Icelandic adventure awaits, and we’ll make sure the ride is as unforgettable as the destination.