Step 6: Book a driving instructor and take the practical test. After passing the theory test, contact a licensed driving instructor (ökukennari). The instructor will evaluate your driving, run a preparation lesson, and book the practical test with Frumherji on your behalf.
The practical test has two parts. First, an oral assessment in the car covering lighting, safety equipment, and the vehicle's registration certificate (skráningarskírteini). Questions about general vehicle maintenance may also come up. You must answer at least 3 out of 5 questions correctly. Then, a driving test on a route chosen by the examiner.
Step 7: Receive your Icelandic license. Once you pass both tests, Frumherji sends the documentation to the District Commissioner, who issues your Icelandic driving license.
Step-by-step: direct exchange (EEA, UK, Switzerland, Japan)
For eligible license holders, the process is simpler.
Step 1: Establish permanent residence and wait six months.
Step 2: Visit the District Commissioner's office with your license, passport, a passport-sized photo, and your residence certificate. If you wear prescription glasses or lenses while driving, bring a medical certificate.
Step 3: Pay the license issuance fee of 8,600 ISK (as of March 2026) and submit the application.
Step 4: The District Commissioner contacts the country that issued your license to verify it is valid. Processing time varies depending on how quickly the issuing country responds.
Step 5: Once verified, your Icelandic license is issued and your EEA license is surrendered.
What it costs to convert your driving license in Iceland
The total cost depends on which path you take.
Direct exchange (EEA/UK/Switzerland/Japan): The license issuance fee is 8,600 ISK (as of March 2026). If a medical certificate is required, your health center may charge a small additional fee.
Tested exchange (all other countries): Costs add up. The theory test fee is 7,090 ISK and the practical driving test fee is 18,820 ISK (as of March 2026). A preparation lesson with a driving instructor runs around 18,000 ISK for 60 minutes. Add the 8,600 ISK license issuance fee, and the total lands in the range of 50,000 to 60,000 ISK, assuming you pass both tests on the first attempt. A medical certificate (if required) and any retakes add to that.
All fees are paid separately: the license fee to the District Commissioner, test fees to Frumherji, and instructor fees directly to the driving instructor.
How long the conversion process takes
For direct exchanges, the timeline depends on the verification response from the issuing country. Some countries respond within days, others take weeks.
For tested exchanges, plan for at least two to four weeks after submitting your application. You need to schedule the theory test, pass it, connect with a driving instructor, and book the practical test. Frumherji has service locations throughout Iceland, but availability can vary, especially outside Reykjavik.
The entire process, from the six-month residency threshold through license issuance, often stretches to seven or eight months total from the date you first arrive in Iceland.
Tips for passing the Icelandic driving test
The theory test is not difficult for experienced drivers, but it does cover Iceland-specific rules that may trip you up. A few areas to focus on:
Icelandic traffic signs follow European standards but include some local variations. Pay close attention to right-of-way rules at unmarked intersections (the right-hand rule applies by default). Stopping distance questions account for Iceland's frequent wet, icy, or gravel road conditions. First aid questions appear on the test and are easy points if you study them.
For the practical test, the oral assessment catches people off guard more often than the driving itself. Know the vehicle's lighting system, safety equipment, and what information appears on the registration certificate. General maintenance questions (tire pressure, oil levels) can also come up.
Drive calmly and follow Icelandic traffic norms during the road portion. The examiner is watching for safe, confident driving in real conditions.
Driving in Iceland before your license is converted
Your foreign driving license is valid in Iceland for the first six months of permanent residence, provided it meets basic requirements: it must be valid, include a photo, show an expiration date, and be written in Latin characters. If your license uses a non-Latin script (Arabic, Chinese, Thai, for example), you need an International Driving Permit (IDP) alongside it.
Tourists and short-term visitors can drive on their home license for up to 90 days without any additional requirements, assuming it is valid and in Latin characters.
After six months of residence, your foreign license is no longer valid for driving in Iceland. If you have not completed the conversion process by then, you have one additional month. After seven months of residence, driving on a foreign license is not permitted.
Digital driving license in Iceland
Once you have your Icelandic license, you can access a digital version through the island.is app using your electronic ID (rafræn skilríki). The digital license is legally valid as proof of your right to drive when interacting with Icelandic police.
The digital license is only valid within Iceland. For international travel, you still need your physical card or an International Driving Permit. Both District Commissioners and the Icelandic Automobile Association (FÍB) are authorized to issue IDPs for Icelandic license holders.
Once you have your Icelandic license, you may want to explore your options for getting around. Our guide to buying a car in Iceland covers pricing, import duties, and the used car market. If you are purchasing a vehicle, car insurance is mandatory. For those who prefer not to drive, our public transport guide covers buses, domestic flights, and what is realistically accessible without a car.
Frequently asked questions
Can I drive in Iceland with a US license? Yes, for short stays and for the first six months of permanent residence. After six months, you must convert to an Icelandic license. The conversion requires both a theory test and a practical driving test, as the US is not on the direct exchange list.
Do I need an International Driving Permit to drive in Iceland? Not if your license is in Latin characters and meets standard requirements (photo, expiration date, valid status). If your license is in non-Latin script, you need an IDP. Some car rental companies may request an IDP regardless of your license format.
What happens if I fail the theory test or driving test? You can retake the theory test after one week. The practical test can also be retaken, though you will need to rebook through your driving instructor. Each retake costs the same fee as the initial attempt.
Can I convert a motorcycle or commercial vehicle license? Yes. The same process applies, but you must pass the relevant tests for each vehicle category you want to convert. A Category B (standard car) conversion does not automatically include motorcycle or commercial vehicle rights.
Do I have to surrender my foreign license? If your license was issued by an EEA country, yes. Holding licenses from two EEA states simultaneously is not permitted. If your license was issued outside the EEA, you keep your original license.
Where do I take the tests? Frumherji administers all driving tests in Iceland and has service locations across the country. The theory test can be booked directly through their website. The practical test is booked by your driving instructor.
Last updated: March 2026
This is the full process for license holders who need to take the tests. If you hold an EEA, UK, Swiss, or Japanese license, skip to the direct exchange section below.