Avoid high purchase costs
New cars carry significant import-related costs and taxes in Iceland. A monthly fee lets you drive a recent car without that upfront outlay.
Car subscriptions in Iceland
Drive on your terms in Iceland.
One monthly payment. No long tie-ins. An independent, editorial guide to car subscription and flexible lease providers in Iceland.
Market status: Emerging market
Car Subscriptions in Iceland
Iceland does not yet have a dedicated car subscription market in the style of Switzerland or the Netherlands, but its large rental industry offers close alternatives.
Several established rental companies sell monthly rental (mánaðarleiga) for one to three months and long-term rental (langtímaleiga) from twelve months, both with a fixed monthly payment that covers insurance and maintenance.
Cars are expensive to buy in Iceland because of import costs, vehicle taxes and the small market, and the government has introduced per-kilometre charges for vehicles. That makes an all-inclusive monthly fee attractive for newcomers, seasonal workers and companies. Most offers are based in Reykjavík and Keflavík, with Höldur also serving Akureyri in the north. Prices are in Icelandic krónur and are usually quoted on request.
Iceland
Why choose a car subscription in Iceland?
Winter-ready cars and tyres
Rental fleets are maintained for Icelandic conditions, and seasonal tyre changes are typically handled by the provider.
Insurance and maintenance bundled
Monthly and long-term rentals include insurance with an excess and standard maintenance in the fixed price.
Recent vehicles
Fleets are generally one to three years old, which helps reliability in harsh weather.
Bridge for newcomers and seasonal work
Short monthly rentals cover the gap while you settle in, wait for a car or work a season.
3 providers
Car subscription providers in Iceland
Providers we have found operating in Iceland. Listings are editorial and in no particular ranked order, unless marked as promoted.
We have not yet verified a dedicated car subscription provider in this market. The options below are the closest flexible monthly alternatives we found.
Avis Mánaðarleiga & Langtímaleiga
Monthly rental with 1,650 km included and long-term rental from 12 months
Avis in Iceland, operated by Alp hf., offers monthly rental for 30 days or longer and long-term rental for 12 months or more through a dedicated site. The monthly product includes 1,650 km a month, insurance with an excess of roughly 195,000 to 360,000 krónur depending on car size, and standard maintenance, using cars that are mostly one to two years old. It suits households, temporary staff and project work. Long-term rental, including winter rental, is offered to individuals and companies, and prices are given on request.
Minimum term: 1 month
Brimborg Langtímaleiga
Long-term rental of new or used cars from 12 months with service included
Brimborg, a major Icelandic car importer and dealer, offers long-term car rental from 12 months with a fixed monthly fee. Everything except energy, washer fluid and cleaning is included, and both new and used cars are available to individuals and companies. Applicants need a valid licence, a credit card and a passed credit check. Cars are collected and returned at Bíldshöfði in Reykjavík or Tryggvabraut in Akureyri. Prices and conditions are shown per car and term on Brimborg's website.
Minimum term: 12 months
Volvo
Ford
Polestar
Mazda
Citroen
Peugeot
Contact
- Address
- Bíldshöfði 8, 110 Reykjavík, Iceland
Höldur – Bílaleiga Akureyri
Akureyri-based rental company offering 1 to 3-month rentals and long-term leasing
Höldur, the Akureyri-based company behind Bílaleiga Akureyri, offers monthly rental (mánaðarleiga) of one to three months as a bridge between short and long-term hire, with contract options of 30, 45, 60 or 75 days. For longer needs it runs a separate long-term leasing service with a fixed monthly payment on cars that are typically one to three years old, for both individuals and businesses. Pricing, kilometre allowances and inclusions are provided by a sales representative after an enquiry.
Minimum term: 1 month · Maximum term: 3 months
Guide
How car subscriptions work in Iceland
To rent monthly or long-term in Iceland you usually need a valid driving licence, a credit card in your name and, for longer contracts, an Icelandic ID number (kennitala) and a credit check. Monthly rentals typically include a kilometre allowance (Avis, for example, includes 1,650 km a month), and insurance excesses can be high, often hundreds of thousands of krónur. Cars are collected from branches in Reykjavík, Keflavík or Akureyri. Check how kilometre-based road charges are passed on in your contract.
Things to check before you subscribe
- Ask for the insurance excess (sjálfsábyrgð), which can be high.
- Check the monthly kilometre allowance and how kilometre charges are billed.
- Confirm whether winter tyres and studded tyres are included.
- Check whether you need a kennitala for the contract you want.
- Compare the price of a 1 to 3-month rental with a 12-month long-term rental.
Business
Car subscriptions for business
Icelandic companies use long-term rental for staff cars and vans to avoid capital outlay and manage costs predictably. Rental fees are generally treated as operating expenses, but tax treatment, including VAT and any benefit for private use, depends on the company's situation. Ask your accountant (endurskoðandi) before choosing.
Frequently asked questions
Is there car subscription in Iceland?
Not in the strict sense yet. The closest options are monthly rentals of one to three months and long-term rentals from 12 months offered by established rental companies.
What is included in a monthly rental?
Usually insurance with an excess and standard maintenance. Avis includes 1,650 km a month in its monthly rental.
Do I need an Icelandic ID number?
Long-term contracts usually require a kennitala and a credit check. Short monthly rentals may be possible with a passport and credit card; check with the provider.
Can I rent in Akureyri?
Yes, Höldur is based in Akureyri, and Brimborg has a pick-up point there as well.
Are electric cars available?
Yes, several providers offer electric cars in their long-term fleets. Ask about charging arrangements.
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