Iceland Driving Abroad: Licence and International Driving Permit Guide

Driving abroad with an Icelandic licence

Holders of Icelandic driving licences often assume their card works everywhere without extra paperwork. That assumption holds inside the European Economic Area, where Icelandic licences are treated as European licences. Outside the EEA the picture changes. Some destinations recognise the Icelandic licence on its own. Others expect an International Driving Permit as an official translation. Rental desks sometimes impose their own extra conditions even when local law does not require an IDP.

The practical confusion arises because three different layers exist at once: the legal recognition rules of the destination country, the policy of the car-rental company, and the insurance implications if something goes wrong. An Icelandic driver planning a trip to the United States, Japan, Australia or many other countries outside Europe needs to understand which layer applies. This guide separates those layers so you can decide what documents to obtain before you leave Iceland.

Iceland issues International Driving Permits under the 1949 Geneva Convention. The permit is a translation booklet, not a standalone licence. You must always carry the original Icelandic licence with it. The IDP does not create driving rights, does not extend the validity of your domestic licence, and does not guarantee that every rental company will accept it. Its purpose is to make the details of your Icelandic licence readable to foreign authorities and counter staff.

Can an Icelandic licence be used abroad?

Icelandic driving licences are Pan-European in design and are valid for driving in all EU and EEA countries. Official Icelandic guidance states that the licence is accepted across the European Economic Area without an International Driving Permit. For travel further afield the same guidance recommends obtaining an international driving licence. That recommendation is not the same as a universal legal requirement.

Whether an IDP is legally required depends on the destination. Countries that are parties to the 1949 Geneva Convention on Road Traffic generally recognise an Icelandic IDP issued under that convention. Some countries that are parties only to the 1968 Vienna Convention may treat a 1949-model IDP differently. A minority of destinations require an official translation or local temporary permit regardless of convention status. Always check the rules of the specific country you plan to visit rather than relying on a general European assumption.

Even where the destination law accepts the Icelandic licence alone, an IDP can still be useful. Police officers and rental staff who do not read Icelandic benefit from the multi-language translation. In practice many drivers from Iceland obtain the IDP for any trip outside the EEA simply to avoid delays at the rental desk or roadside checks.

Situations where an IDP is often irrelevant include short stays inside the EEA, driving in countries that explicitly recognise European-format licences, and destinations that have bilateral arrangements with Iceland. Situations where it is frequently requested include the United States, Canada, Japan, Australia, New Zealand and many Asian and Latin American countries. Confirm the current position with the embassy or transport authority of the destination before you travel.

Iceland participation in the 1949 Geneva and 1968 Vienna Conventions

Iceland is a contracting party to the 1949 Geneva Convention on Road Traffic. It acceded in 1983. Icelandic authorities therefore issue International Driving Permits in the 1949 format. The 1949-model IDP is valid for one year from the date of issue.

Iceland is not a party to the 1968 Vienna Convention on Road Traffic. As a result, Iceland does not issue the three-year IDP associated with the 1968 convention. Travellers from Iceland who need an IDP for a destination that only recognises the 1968 form should verify acceptance of the 1949 booklet in advance. In many countries both forms are accepted, but that is not universal.

The distinction matters mainly when the destination country is a party to only one of the two conventions. For the majority of tourist destinations the 1949 IDP issued in Iceland is sufficient. Always confirm with the destination authority if your itinerary includes countries known to prefer or require the 1968 model.

Who issues the Iceland IDP?

International Driving Permits for holders of Icelandic licences are issued by District Commissioners (Sýslumenn) throughout Iceland and by the Icelandic Automobile Association (FÍB). Both are authorised to issue the 1949-convention permit. The process is straightforward and is completed in person in most cases.

How to obtain it

Applicants must appear in person at a District Commissioner's office or at FÍB. You need to be at least 18 years old and hold a valid Icelandic driving licence. Bring the licence and one printed passport-sized photograph (35 x 45 mm). Under exceptional circumstances, for example if the applicant is already abroad, a District Commissioner may accept an application by post. In that case you must send photographs of both sides of the driving licence, a passport-style photo printed on photographic paper, and arrange payment in advance. Processing still takes up to one working day once the documents arrive.

Photographs must meet specific standards: printed on photographic paper, 3.5 x 4.5 cm, light monochrome background, front-facing, and showing the head at a height of 30–36 mm. Passport-system photos cannot be reused. The issuing office does not take the photograph on site.

Documents required

The core documents are:

• Your valid Icelandic driving licence
• One printed passport-sized photograph meeting the size and quality rules above
• Proof of identity if requested by the issuing office

No separate application form is required beyond what the District Commissioner or FÍB provides on the day. The permit is issued only for the vehicle categories already authorised on your Icelandic licence.

Cost

The fee at a District Commissioner's office is ISK 1,200. Confirm the current fee with the specific office or with FÍB before you attend, as charges can be updated. Payment is normally made on the spot.

Processing time

District Commissioners process the International Driving Permit in up to one working day. Same-day issue is common when you attend in person with the correct documents. Postal applications under exceptional circumstances also aim for completion within one working day after receipt of the materials.

Validity

An Icelandic International Driving Permit is valid for one year from the date of issue. It covers only the vehicle categories shown on your Icelandic licence. The IDP is not valid on its own; it must always be presented together with the original Icelandic driving licence. It does not extend the validity of the domestic licence and cannot be used for driving inside Iceland.

Rental-car realities vs legal rules

Legal recognition and rental-company policy are not the same thing. A destination may legally accept your Icelandic licence without an IDP, yet the rental desk may still ask for one. Rental firms set their own risk and administrative rules. These rules can include a minimum holding period for the licence (often one year), a higher minimum age than the legal driving age, and a preference for an IDP even when local law does not demand it.

In practice, major international rental brands operating outside the EEA frequently request an IDP from Icelandic drivers. Smaller local companies may be more flexible if the licence is in Latin script and carries a photograph. The only reliable way to know is to read the terms of the specific booking or to contact the rental company before travel. Do not assume that the absence of a legal requirement means the rental company will hand over the keys without the extra document.

Always carry the original Icelandic licence. Digital versions of the Icelandic licence are valid only inside Iceland and are not recognised for driving abroad. If you rely solely on a phone image or a digital certificate, you risk being refused the vehicle.

Insurance and accident implications

An International Driving Permit does not itself provide insurance cover. Motor insurance is a separate contract. When you rent a vehicle, the rental company's insurance terms determine what is covered and under what conditions. Some policies require that every driver listed on the contract holds a licence that the destination recognises, sometimes with an IDP if the company demands one.

If you are involved in an accident or stopped by police, the absence of a document that the rental contract required can affect claim handling. That is a contractual issue, not a statement that the IDP is a legal insurance document. Before you travel, check whether your personal motor policy (if any) or the rental insurance excludes driving without an IDP in the destination country. Confirm the exact wording rather than relying on general advice.

Icelandic drivers should also note that third-party liability cover is compulsory in most countries. The rental company usually includes it, but excess levels, collision-damage waivers and personal-accident cover vary. Read the rental agreement carefully and consider additional cover if the destination has high repair costs or difficult recovery conditions.

Police / traffic-stop practicalities

In countries that recognise the Icelandic licence or the accompanying IDP, police typically ask for the domestic licence first. The IDP serves as a translation so the officer can read the categories, validity dates and personal details. Present both documents together. An IDP produced without the original Icelandic licence is not accepted as proof of driving entitlement.

Inside the EEA the Icelandic licence alone is normally sufficient. Outside the EEA the combination of licence plus IDP reduces the chance of misunderstanding, especially if the officer does not speak English or Icelandic. Carry the documents in a readily accessible place rather than packed in luggage.

If the destination requires a local translation or a temporary permit in addition to or instead of an IDP, obtain that document before driving. Failure to produce the required papers can lead to fines or the vehicle being immobilised until the paperwork is resolved. The precise powers of police vary by country; treat any request for documents seriously and contact your embassy if you believe a demand is incorrect.

Residence vs tourist rules

Tourist stays are treated differently from residence. As a short-term visitor you may drive on your Icelandic licence (and IDP where required) for the period allowed by the destination's visitor rules. Once you establish permanent residence in another country, local conversion or exchange rules usually apply.

In Iceland itself the reverse situation is clear. Foreign licence holders who take up permanent residence must generally exchange or convert their licence after six months. Holders of licences from EEA countries, the United Kingdom, Switzerland or Japan can exchange without retaking tests after six months of permanent residence. Holders from other countries must take theory and practical tests after the same six-month period. You cannot apply for the exchange until the six months have passed, but after that point exchange becomes obligatory.

When you move abroad from Iceland, the destination country will apply its own residence clock. Some countries require conversion after three, six or twelve months. Others require it as soon as you become a resident. An Icelandic IDP does not exempt you from those rules. Plan the conversion early if you intend to stay long term, and do not rely on the tourist recognition period once residence is established.

Digital Icelandic licences are valid only for use inside Iceland. They do not travel with you for foreign driving. Always take the physical card.

Official Government and Issuing Authority Resources

The primary official source for International Driving Permits issued in Iceland is the island.is service pages maintained for District Commissioners. These pages set out the conditions, cost, processing time and validity of the permit. The Icelandic Automobile Association (FÍB) is the other authorised issuer and can provide practical motoring advice to members and non-members.

For questions about exchanging a foreign licence into an Icelandic one, or about the six-month residence rule, consult the island.is guidance on foreign driving licences. Destination-country rules should be checked with the transport authority or embassy of the country you plan to visit. Requirements change, so verify the latest position close to your travel date rather than relying solely on older information.

Source: Official island.is guidance on international driving licences and District Commissioner services, last verified 2026-09-22. Convention participation confirmed via United Nations treaty records for the 1949 Geneva Convention on Road Traffic.