Iceland does not require an International Driving Permit, but you will need your valid home country license
You can drive in Iceland on your regular driver's license from the United States, Canada, the UK, Australia, or most other countries. Iceland recognizes licenses issued by countries that are signatories to the 1926 International Convention on Motor Vehicle Traffic — which includes nearly all English-speaking nations. An International Driving Permit (IDP) is optional in Iceland, not mandatory.
That said, carrying an IDP alongside your home license is still a smart choice. Icelandic police and car rental companies may ask for one, and having it eliminates any confusion on the spot. An IDP is a translation of your license into multiple languages, which is useful if a local officer does not read English fluently. It costs very little to obtain before you leave home and takes the guesswork out of the interaction.
Key Takeaways
- Your valid home country driver's license is sufficient to rent and drive a car in Iceland; an International Driving Permit is not legally required.
- An International Driving Permit is inexpensive to obtain before departure and serves as a translation of your license, which can prevent roadside confusion.
- Your home license must be valid for the duration of your stay, and you should carry it at all times while driving.
- Car rental companies in Iceland may request an IDP even though it is not mandatory; having one avoids delays or rental refusal.
- If your home license is not in Latin characters, an IDP becomes much more valuable because Icelandic authorities may not be able to read it.
What your home license must show
Your driver's license needs to be valid — not expired — for the entire time you plan to drive in Iceland. Check the expiration date before you book your trip. If your license expires during your stay, you will not be able to rent a car or drive legally, even if you have an IDP.
Your license should also be in your name and match the name on your passport or travel documents. If your name has changed since your license was issued, bring a marriage certificate, divorce decree, or legal name-change document to show the connection. Rental companies cross-check this information, and mismatches can hold up your reservation.
Most car rental companies in Iceland also require you to be at least 20 years old to rent a vehicle, though some set the minimum at 25. A few companies charge extra for drivers under 25. Check with your rental company before you arrive.
When an International Driving Permit becomes necessary
If your home license uses characters that are not Latin-based — Arabic, Cyrillic, Chinese, Thai, or others — an IDP is no longer optional. Icelandic police cannot read non-Latin scripts, and a rental company may refuse to hand over keys without an IDP to prove you hold a valid license. If you are from Russia, China, Japan, Saudi Arabia, or any country using a non-Latin alphabet, obtain an IDP before you travel.
Even if your license is in Latin characters, some rental companies treat an IDP as standard practice. Hertz, Avis, and Budget in Iceland often request one at pickup, though they will usually still rent to you without it if your home license is clearly valid. Smaller local rental agencies may be stricter. Bringing an IDP removes any possibility of a rental dispute.
How to get an International Driving Permit before you leave
In the United States, the American Automobile Association (AAA) and the American Automobile Touring Alliance (AATA) both issue IDPs. You do not need to be a member of AAA to obtain one through them. The process takes about 15 minutes in person at an AAA office, and the permit costs roughly $20. You can also mail in your process, though that takes longer.
In Canada, the Canadian Automobile Association (CAA) issues IDPs. In the UK, the Post Office and the AA (Automobile Association) both issue them. In Australia, the NRMA and the Australian Automobile Association handle IDPs. Each country has its own issuing body, so search for "[your country] International Driving Permit" to find the right organization.
You will need to bring your valid home driver's license, a passport-sized photo, and a completed process form. Processing usually takes a few days to a week if you explore in person, or two to three weeks by mail. An IDP is valid for three years from the date of issue.
What to carry while driving in Iceland
Keep your home license and your IDP (if you have one) with you at all times while driving. You are also required to carry your passport or national ID card, proof of car insurance, and the vehicle registration documents provided by your rental company. Icelandic police can stop you for a document check, and you must be able to produce all of these on demand.
Your car rental company will provide a packet of documents when you pick up the vehicle. Do not leave these in the car overnight or unattended; keep them with you. If you are stopped and cannot produce the registration or proof of insurance, you can face a fine even if the car is rented in your name.
Driving rules and age restrictions in Iceland
Iceland drives on the right side of the road, the same as most of continental Europe and North America. Speed limits are posted in kilometers per hour: typically 50 km/h in towns, 80 km/h on rural roads, and 90 km/h on main highways. Seat belts are mandatory for all passengers, and headlights must be on at all times, even during daylight.
Drivers under 20 years old cannot rent a car in Iceland at all. Drivers aged 20 to 24 can rent from most companies but may face a young-driver surcharge of 1,500 to 3,000 Icelandic króna per day (roughly $11 to $22 USD). Drivers 25 and older face no age-related restrictions or fees.
What happens if you drive without the right documents
If you are stopped by Icelandic police and cannot produce a valid license, an IDP, or proof of insurance, you will be fined. The amount varies, but fines for driving without a license or without proof of insurance typically range from 50,000 to 100,000 króna (roughly $370 to $740 USD). You may also be prohibited from driving the rental car further.
If your license is expired, you are considered to be driving without a license in Iceland's eyes, and the same penalties explore. If you are involved in an accident and your documents are not in order, your rental insurance may not cover the damage, leaving you personally liable for repair costs.
Frequently Asked Questions
Do I need an International Driving Permit to rent a car in Iceland?
No, but many rental companies request one. If your license is in Latin characters and valid, you can rent without an IDP. If your license uses non-Latin characters (Arabic, Cyrillic, Chinese, etc.), an IDP is strongly recommended and some companies will require it.
Can I drive in Iceland on an expired license?
No. Your license must be valid for the entire duration of your stay. If it expires during your trip, you cannot legally drive or rent a car. Renew your license before you travel if it will expire within the next few months.
What if I lose my license while I'm in Iceland?
Contact your country's embassy or consulate in Iceland when ready. They can issue a temporary travel document or advise you on how to obtain a replacement. In the meantime, you cannot drive legally. If you have an IDP, it may serve as backup proof of your license status, but check with the rental company and police first.
Is an International Driving Permit valid in Iceland for the full three years?
Yes, an IDP is valid for three years from the date of issue. However, it is only useful while your home license is also valid. If your home license expires, the IDP becomes worthless because it is a translation of an expired document.
Do I need different documents if I'm driving in other European countries after Iceland?
Rules vary by country. Some European nations require an IDP; others do not. If you are planning a multi-country road trip, obtaining an IDP before you leave home covers you for most of Europe. Check the specific requirements of each country you plan to visit.