Your Essential Guide to Iceland: Currency, Culture, and Car Rental Tips

Planning a trip to Iceland? This guide has everything you need for your adventure in the Land of Fire and Ice. We cover the local currency, cultural basics, and how to get around. Knowing these details will help you have a smooth and memorable journey, especially if you plan to rent a car and explore on your own.

Understanding Iceland's money is key, as it is not part of the European Union's monetary system. Learning a few local phrases can also make your trip more enjoyable. Most importantly, a reliable car from Keflavik Airport gives you the freedom to see Iceland’s amazing natural sights at your own pace.

Understanding Iceland's Money: The Króna

What is the Currency in Iceland?

Iceland uses its own currency, the Icelandic króna (ISK). Its symbol is "kr." You might be surprised to learn they don't use the Euro, even though Iceland is a European country. Iceland has kept its own money system since 1885. Knowing this will help you budget your trip for things like renting a car at Keflavik Airport.

Currency Exchange and Rates

The value of the Icelandic króna changes daily compared to other currencies like the US dollar or the Euro. You can exchange your money in a few places:

• At currency exchange desks at Keflavik International Airport.
• At banks in Reykjavik and other towns.
• At some hotels or tourist centers.
• Through ATMs, which are often the easiest option.

While you can exchange money, most places in Iceland accept credit cards. This reduces the need to carry a lot of cash. However, having some króna is useful for small shops or businesses that might not take cards.

Using Credit Cards and Getting Cash

Credit and debit cards are accepted almost everywhere in Iceland. This includes car rental desks at Keflavik Airport. Visa and Mastercard are the most common. Using a card is often easier than carrying large amounts of cash.

If you need cash, ATMs usually offer good exchange rates. Banks also provide competitive rates, but airport exchange counters may have higher fees. For most of your major costs, like your rental car, a credit card will work just fine.

 

Interesting Facts About Iceland

Geography and Nature

Iceland is an island located between Europe and North America. It's about the size of South Korea but has a very small population of around 370,000 people. This means there is a lot of open space to explore.

The country has big changes in daylight between seasons. In the summer, you can experience nearly 24 hours of daylight. This is great for long road trips. In the winter, daylight is limited to just 4-5 hours, which creates perfect conditions for seeing the Northern Lights.

Culture and Environment

Iceland has one of the highest literacy rates in the world. The country publishes more books per person than any other nation. This love for reading and storytelling goes back to the ancient Viking sagas.

Iceland is also a world leader in clean energy. Over 99% of its electricity comes from renewable sources like geothermal and hydroelectric power. This focus on the environment is a big part of Icelandic life and tourism.

Basic Icelandic Phrases

Learning a few words in Icelandic can make your trip better and show respect for the local culture. While most Icelanders speak excellent English, trying to speak their language is always appreciated.

Greetings and Polite Words

• Halló (HAL-low) - Hello
• Góðan daginn (GO-than DAH-ginn) - Good day
• Bless (bless) - Goodbye
• Takk fyrir (tahk FIH-rirr) - Thank you
• Afsakið (AHF-sah-kith) - Excuse me / Sorry

Helpful Phrases for Travel

These phrases can be useful when you're driving your rental car around Iceland.

• Hvar er...? (kvarr air) - Where is...?
• Bílastæði (BEE-lah-stai-thee) - Car park
• Bensínstöð (BEN-seen-stuth) - Gas station
• Hjálp! (hyowlp) - Help!

 

Why Renting a Car is the Best Way to See Iceland

The Freedom of a Rental Car

Renting a car at Keflavik Airport gives you the freedom to explore Iceland on your own schedule. We are one of three authorized car rental companies located inside the Keflavik airport terminal. You can find our desk in the arrivals hall. Your car will be waiting just outside in the airport car park.

A self-drive holiday has many benefits:

• Flexibility: Stop wherever you want, whenever you want.
• Access: Reach remote spots that tour buses can't.
• Value: It can be more affordable for families and groups.
• Freedom: Revisit your favorite places or discover new ones.

Planning Your Road Trip

Iceland's Ring Road (Route 1) is a great starting point for a road trip. It connects many major sights and is open all year. Some popular stops include:

• South Coast: See the famous Seljalandsfoss and Skógafoss waterfalls, Reynisfjara black sand beach, and the Jökulsárlón glacier lagoon.
• West: Explore the Snæfellsnes Peninsula, relax at the Blue Lagoon, and visit Reykjavik's cultural sites.

A rental car makes it easy to visit these places. It also gives you space for your luggage and any gear you need for Iceland’s changing weather.

 

Frequently Asked Questions

Does Iceland use Euros?

No, Iceland's official currency is the Icelandic króna (ISK). Some tourist businesses might accept Euros, but you'll get change in króna at a less favorable rate.

What is the currency in Iceland called?

The currency is the Icelandic króna (plural: krónur). The international code is ISK, and the symbol is "kr."

Can I use credit cards everywhere in Iceland?

Yes, credit cards are widely accepted. Visa and Mastercard are taken almost everywhere. It's often easier to pay by card than with cash.

Should I exchange money before I arrive in Iceland?

It’s usually better to get Icelandic króna after you arrive. ATMs at the airport and in towns offer good rates. You can pay for large expenses like your car rental with a credit card.

How much cash do I need in Iceland?

You won't need much cash. A small amount, like 5,000-10,000 ISK per day, is enough for small purchases at places that might not accept cards.

What do I need to rent a car at Keflavik?

You will need a valid driver's license, a credit card in the driver's name, and a passport or national ID. Some drivers may need an International Driving Permit.

When is the best time for a road trip in Iceland?

Summer (June-August) has the best road conditions and long daylight hours. Spring and fall have fewer crowds. Winter driving is more challenging but offers chances to see the Northern Lights.

Are there driving restrictions in Iceland?

Main roads are well-kept, but highland roads (F-roads) require a 4WD vehicles and are closed in winter. General speed limits are 50 km/h in towns, 90 km/h on paved roads, and 80 km/h on gravel roads. Always check road and weather conditions before you drive.

 

Get Ready for Your Icelandic Adventure

Iceland is a country of amazing beauty and unique culture. By understanding the currency, learning a few phrases, and renting a car at Keflavik Airport, you can have an incredible trip.

Driving yourself lets you discover Iceland’s hidden waterfalls and remote hot springs at your own pace. With the right preparation, your adventure will be one you’ll never forget.

As Iceland's largest car rental provider, Höldur offers a fleet of over 8,000 vehicles and rental locations across the country. As the official Europcar franchisee, we provide professional and dependable service.

Start planning your journey today and get ready to experience one of the world's most spectacular destinations.

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