You need an International Driving Permit (IDP) to rent a car in Iceland, even if your home country's license is valid there

Iceland does not require an IDP by law. Your valid driver's license from the United States, Canada, Australia, or most other countries is legally sufficient to drive on Icelandic roads. However, car rental companies in Iceland almost universally require an IDP as a condition of the rental contract. Without one, you will not be able to rent a vehicle, even if your home license is perfectly legal.

The reason is practical, not legal: an IDP is a translation of your license into multiple languages, including Icelandic. Rental companies use it to verify your driving history and reduce disputes if something goes wrong. Police in Iceland can also read it without needing a translator. For this reason, every major rental agency — Hertz, Avis, Budget, and local companies — lists an IDP as mandatory.

If you plan to drive in Iceland, you should obtain an IDP before you leave home. It is inexpensive, takes a few weeks to arrive by mail, and cannot be obtained once you are already in Iceland.

Key Takeaways

  • Iceland's law does not require an IDP, but every car rental company in Iceland requires one as a condition of renting.
  • An IDP is a certified translation of your driver's license and costs between $15 and $30 depending on your country.
  • You must obtain your IDP in your home country before traveling; it cannot be issued in Iceland.
  • Your IDP is valid for three years and is issued by your country's automobile association or equivalent government body.
  • Driving without renting a car — for example, if a friend lends you their vehicle — does not legally require an IDP, but police may ask to see one.

How to get an International Driving Permit in your country

The process varies by country, but the steps are similar everywhere. In the United States, you obtain an IDP through the American Automobile Association (AAA) or the American Automobile Touring Alliance (AATA). In Canada, contact the Canadian Automobile Association (CAA). In Australia, the National Roads and Motorists' Association (NRMA) or the Royal Automobile Club (RAC) issues them. Each country has one or two official issuing bodies — there is no international office that issues IDPs.

You will need your valid driver's license, a passport-sized photograph (usually 2x2 inches or 35x45 millimeters), and a completed process form. Some organizations accept applications by mail; others require you to visit in person. Processing typically takes one to three weeks. Fees range from $15 to $30 in most countries. Some organizations charge extra for expedited processing, which can reduce the wait to a few business days.

Order your IDP at least four weeks before your trip. If you are leaving sooner, contact your automobile association to ask whether they offer rush processing. Do not wait until you arrive at the airport or rental counter — IDPs are not issued outside your home country.

What information is on an International Driving Permit

An IDP is a small booklet, usually about the size of a passport. The front cover displays your photograph, name, date of birth, and license number. Inside are translations of your license information into French, Spanish, German, and other languages, depending on the issuing country. The back pages include your driving record summary — the vehicle classes you are licensed to drive and any restrictions (such as corrective lenses required).

The IDP itself does not grant you any driving rights you do not already have. It is purely a translation document. Your home country's license remains the actual proof of your driving status. The IDP straightforward makes that proof readable to officials and rental companies in other countries. In Iceland, rental agents will check both your home license and your IDP before handing over the keys.

Validity and expiration of your IDP

An IDP is valid for three years from the date of issue. It expires on the date printed on the front cover. Your IDP must be valid on the date you rent the car in Iceland — if it expires during your trip, that is acceptable, but if it has already expired before you arrive, rental companies will refuse to rent to you.

Your IDP is tied to your home country's driver's license. If your home license expires or is suspended, your IDP becomes invalid even if the three-year period has not ended. If you renew your home license before your trip, you may need to obtain a new IDP as well — check with your automobile association, as some countries issue a new IDP automatically with a renewed license, while others require a separate process.

What happens if you arrive in Iceland without an IDP

If you reach Iceland without an IDP, you cannot rent a car from any major rental company. Some travelers have attempted to argue that their home license is sufficient under Icelandic law, but rental companies have a contractual right to set their own requirements, and they uniformly refuse rentals without an IDP. You will have no recourse.

Your options at that point are limited. You can hire a driver for the duration of your stay, use public transportation (limited outside Reykjavik), or book guided tours that include transportation. None of these are practical for most visitors. The cost and inconvenience of these alternatives far exceed the cost of obtaining an IDP before you leave home.

If you realize after booking your rental that you do not have an IDP, contact the rental company when ready. Some will cancel your reservation without penalty if you notify them in advance. Do not show up at the counter without one and expect to negotiate.

Driving without renting: borrowed or company vehicles

If you are driving a car that belongs to someone else — a friend, family member, or employer — you do not legally need an IDP to drive in Iceland. Your home country's license is sufficient. However, police may still ask to see an IDP if they stop you, and not having one could complicate the interaction, even though you are not breaking the law.

The person who owns the vehicle must have valid insurance that covers you as a driver. Make sure this is arranged before you get behind the wheel. If you are involved in an accident and the insurance company discovers you were not the registered driver, coverage disputes can arise. Clarify the insurance situation with the vehicle owner in writing before you drive.

IDP requirements for other countries you might visit

If your trip includes other European countries in addition to Iceland, check the requirements for each one. Most European Union countries do not legally require an IDP, but some recommend one, and car rental companies in those countries may also require it. Having an IDP simplifies travel across multiple countries and is useful even if not every destination requires it.

Some countries outside Europe — such as Japan, Thailand, and several others — do require an IDP by law. If your trip is longer or more complex, obtaining an IDP before you leave home covers you for all destinations. The three-year validity means you can use the same IDP for multiple trips.

Frequently Asked Questions

Can I get an International Driving Permit in Iceland?

No. IDPs are issued only in your home country by your country's automobile association or equivalent government body. Iceland does not issue IDPs to visitors. You must obtain one before you travel.

Is an IDP the same as an International Driving License?

No. An International Driving License is not a real document — it is a scam product sold online by unlicensed vendors. An International Driving Permit is the only legitimate document, issued by official automobile associations. Do not purchase an "International Driving License" from any website.

What if my home country's license is in a non-Latin alphabet?

An IDP is especially important for you. It translates your license information into Latin characters and multiple languages, making it readable to Icelandic police and rental companies. Without it, your home license alone may not be accepted by rental companies, even though it is legally valid.

Do I need an IDP if I am only visiting Reykjavik and not driving?

No. An IDP is only necessary if you plan to drive. If you are using public transportation, taxis, or guided tours, you do not need one.

How much does an International Driving Permit cost?

Fees vary by country, typically between $15 and $30. Some automobile associations charge extra for expedited processing. Contact your country's issuing body for the exact fee and current processing time.