Car rental in Reykjavik, Capital of Iceland
Kick off your Iceland road trip right in the city.
Looking for the best deal on car rental in Reykjavík? Thrifty Iceland has you covered. If you’ve already arrived in the city from Keflavík Airport, picking up your rental car from our Reykjavík Downtown location is a smart, stress-free move.
We’ve got two easy-to-reach city stations – one near Perlan and the other next to Reykjavík Domestic Airport (RKV). From there, it’s just a short drive to Iceland’s most iconic routes, scenic stops, and wild adventures.
Do You Need a Rental Car in Reykjavík?
Short answer: it depends on your plans.
🚶 If you’re only staying in Reykjavík and sticking to city sights, you can get around easily by foot, bus, or taxi.
🚗 But if you’re planning day trips, visiting natural hot springs, or chasing waterfalls, a rental car gives you the freedom to explore Iceland on your terms – without relying on tour schedules or public transport.
📍 Pro tip: Renting from our Reykjavík location means you can start your journey without heading back to the airport. Smart, right?
Car Options at Thrifty Reykjavík
Budget-friendly rides for every road and every kind of traveller.
Whether you’re road-tripping across Iceland or just cruising around Reykjavík, we’ve got the perfect rental car waiting for you at our downtown location. Here’s what you can choose from:
🚗 2WD & 4WD Sedans
Ideal for solo travellers, couples, or small families planning short trips around the capital or along paved roads. Want something fuel-efficient and easy to park? Our 2WD sedans check all the boxes. Planning to drive in winter or explore off the beaten path? Go for a 4WD version for extra grip and peace of mind.
🚙 Large SUVs
Got big plans or travelling with the crew? Our SUVs offer extra space, comfort, and the power to handle Iceland’s rougher roads and winter weather. Great for longer trips, mountain routes, and F-road detours (as long as it’s a 4WD model!).
🚐 Vans & Minibuses
Travelling with a group or carrying lots of gear? Our passenger vans and minibuses (up to 9 seats) are perfect for family getaways, friend groups, or travellers who like bringing everything just in case. Spacious, comfy, and wallet-friendly.
🌟 And the best part? All our rentals are clean, modern, well-maintained, and come with no deposit required. Now that’s the Thrifty way.
Driving in Reykjavík – What to Know
City driving in Iceland is smooth and easy – once you know the local rules.
Speed limits in and around Reykjavík are clearly marked, but here’s a quick refresher before you hit the gas:
- 🏙️ Urban roads (main city streets): 50 km/h
- 🛣️ Paved rural roads (like the KEF–Reykjavík route): 90 km/h
- 🪨 Gravel roads: 80 km/h
- 🏡 Residential zones: 30 km/h
🚦 Rush hours happen on weekdays between:
⏰ 07:00–09:30 in the morning
⏰ 16:00–18:00 in the afternoon
Plan around these if you’re heading out of town – or back into it!
Parking in Reykjavík
Yes, it’s paid – but it’s easy once you know how it works.
Reykjavík is divided into four parking zones, each with its own price point:
🔴 Red zone – Most expensive, typically near Laugavegur and city centre hotspots
🔵 Blue zone – Slightly cheaper, still central
🟢 Green zone – Mid-range and more residential
🟠 Orange zone – Cheapest, but further out
💡 Tip: Pay at the meter or use the EasyPark app – and always check the signage for hours and pricing.
🚐 Travelling in a camper or van?
Overnight parking on city streets is not allowed. You must park in a designated campsite if you plan to sleep in your vehicle. There are several well-equipped campgrounds near Reykjavík, so no excuses!
Reykjavík’s Must-See Spots (a.k.a. your ultimate city pit stops)
Got a few hours in the world’s northernmost capital? Good news – Reykjavík may be small, but it’s packed with charm, colour, and character. Here are our top picks to cruise through with your rental car:
- Snap a selfie at the Sun Voyager – Reykjavík’s dreamy steel sculpture that looks like a Viking ship (but cooler).
- Ride up to Hallgrímskirkja – That tall, rocket-shaped church? It’s got the best views in town.
- Harpa Concert Hall – A shimmering glass gem by the harbour. Even if you skip the show, the architecture is a showstopper.
- Swing by Perlan – Right near our office! A rotating dome with exhibitions, forest trails, and glacier views.
- Cruise down Laugavegur – Reykjavík’s main street for shopping, snacking, and people-watching.
- Catch the sunset at Grótta Lighthouse – Just a short drive west, and seriously worth it.
- Stroll around Lake Tjörnin – A peaceful pond in the heart of the city, full of ducks, swans, and charm.
- Soak it up at Sky Lagoon – Warm water + ocean views = a dreamy detour.
- Dip into a local pool – Icelanders love their hot tubs. You should too.
- Pop into a museum (or three) – Art, history, punk rock… there’s something for every mood.
📍 With a rental car, you’ve got the freedom to skip the crowds, find your own vibe, and make Reykjavík your own.
Flying into Iceland? Start from KEF Instead
🛬 If you’re arriving by international flight, your airport will be Keflavík International Airport (KEF) – about 40 minutes from Reykjavík.
Thrifty Iceland is located inside the KEF arrivals hall, so you can rent your car right after landing. No shuttles, no hassle.
Ready to Book Your Reykjavík Car Rental?
City start. Country freedom. One Thrifty car.
Whether you’re staying local or hitting the Ring Road, booking your Reykjavík car rental with Thrifty is the smartest move you’ll make.
Visit www.thrifty.is and reserve your ride today – because in Iceland, freedom is best enjoyed on four wheels.
