Crossing borders with rental cars in Iceland has become a popular way to explore the country's stunning landscapes and neighboring regions. When you rent a car in Iceland, you open up a world of possibilities for your vacation. However, there are certain rules, restrictions, and tips you should be aware of when planning your cross-border journey.

Countries Allowed for Rental Car Travel

Iceland's unique location means that there are only a few countries you can travel to directly with a rental car. These include:

  • Denmark (by ferry)
  • Faroe Islands (by ferry)

Please note that most rental car companies in Iceland do not allow their vehicles to be taken to other countries, even by ferry. Be sure to check with your rental car company about their specific rules and restrictions before planning a cross-border trip.

Countries Not Allowed for Rental Car Travel

Due to various factors such as insurance, logistics, and distance, most rental car companies in Iceland do not allow their vehicles to be taken to the following countries:

  • Greenland
  • Norway
  • Sweden
  • Finland
  • United Kingdom
  • Ireland
  • Any other European countries

Border Crossing Locations and Rules

If you plan to take your rental car from Iceland to Denmark or the Faroe Islands, you must use a ferry service. The main ferry services are:

  • Smyril Line: Connects Seydisfjordur (Iceland) to Hirtshals (Denmark) via Tórshavn (Faroe Islands)

Be aware that taking a rental car on a ferry usually incurs additional costs, and you must inform the rental car company beforehand. Failure to do so can result in fines and voided insurance.

Required Documents

To cross borders with a rental car in Iceland, you'll need the following documents:

  • Valid driver's license (international driver's license if required)
  • Passport
  • Rental car agreement and insurance documents
  • Written permission from the rental car company (if necessary)

Returning the Car

You must return your rental car to the same location in Iceland where you picked it up. Returning a car in another country is typically not allowed and can result in hefty fines.

Tips for Drivers

  • Always check with your rental car company about their cross-border policies and restrictions.
  • Book your ferry tickets well in advance, as they can sell out quickly during peak seasons.
  • Keep all required documents easily accessible when crossing borders.
  • Familiarize yourself with local driving laws and regulations in the countries you plan to visit.