Geography · Europe

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Iceland · Northern Europe

Quick answerIceland is a country in Northern Europe, with a population of 392,404 (2025). Its capital is Reykjavík, its official language is Icelandic, and its currency is the Icelandic króna (ISK). It covers 103,000 square kilometres (39,769 square miles), and its time zone is Atlantic/Reykjavik.

Iceland is a Nordic island country in the North Atlantic, home to about 392,000 people. Its capital and largest city is Reykjavík, its official language is Icelandic, and its currency is the Icelandic króna.

Key facts

CapitalReykjavík
Population392,404 (2025) · 0.4 million
Population density3.9 people per km² (land area)
Area103,000 km² (39,769 sq mi) total · 100,250 km² (38,707 sq mi) land
Official languageIcelandic (official)
CurrencyIcelandic króna (ISK, kr)
Time zoneAtlantic/Reykjavik
GovernmentUnitary parliamentary republic
Coastline4,970 km
Highest pointHvannadalshnúkur, 2,110 m
Life expectancy82.8 years (2024)
Calling code+354
Driving sideRight
Internet domain.is

Overview

Iceland is a Nordic island country in the North Atlantic Ocean, between Greenland and Norway, just south of the Arctic Circle. It sits on the Mid-Atlantic Ridge, the boundary between the North American and Eurasian tectonic plates, and its volcanic activity — geysers, hot springs and frequent eruptions — comes from that rift. The island covers 103,000 square kilometres, with a coastline of 4,970 kilometres cut by many fjords, and around a tenth of its land is covered by glaciers. The largest ice cap, Vatnajökull, holds the country's highest point, Hvannadalshnúkur, at 2,110 metres.

About 392,000 people lived in Iceland in 2025, according to the World Bank, making it the most sparsely populated country in Europe, with fewer than four people per square kilometre. About 94 per cent of Icelanders live in towns, and roughly two-thirds of the population live in the Capital Region around Reykjavík, the capital and largest city. Icelandic is the official language, and life expectancy at birth was 82.8 years in 2024. The Gulf Stream warms the island, so despite its high latitude Iceland has a temperate climate, with cool summers and mild winters for its latitude.

Settlement began in 874, when the Norwegian chieftain Ingólfur Arnarson built his homestead at what is now Reykjavík, and the Althing, founded in 930, is one of the world's oldest functioning parliaments. After centuries under Norwegian and then Danish rule, Iceland became a republic in 1944. It is a unitary parliamentary republic and a member of NATO, though it has no standing army. Its economy, worth about $35 billion in 2025, was built on fishing and now also rests on tourism, aluminium smelting powered by geothermal and hydroelectric energy, and biotechnology. Iceland has three UNESCO World Heritage sites: Þingvellir National Park, the volcanic island of Surtsey and Vatnajökull National Park.

Notable facts

How Iceland compares

Comparison table — Iceland next to 3 similar countries (neighbours first, then the same subregion).

CountryPopulationAreaDensityCapital
Iceland ★ 392,404 (2025) 103,000 km² 3.9 people per km² Reykjavík
Norway 5,633,770 (2026) 323,802 km² 18.5 people per km² Oslo
United Kingdom 69,483,939 (2025) 244,376 km² 286.5 people per km² London
Australia 27,801,023 (2025) 7,692,024 km² 3.6 people per km² Canberra

Cities in Iceland

See all 2 cities in Iceland →

Frequently asked questions

What is the capital of Iceland?

The capital of Iceland is Reykjavík. It is also the country's largest city, with about 139,000 people in the city itself (2026) and about 252,000 in the wider Capital Region. Reykjavík is the world's northernmost capital of a sovereign state and is home to the Althing, Iceland's parliament, and most government offices.

What is the population of Iceland?

Iceland had a population of 392,404 in 2025, according to the World Bank. It is the most sparsely populated country in Europe, with fewer than four people per square kilometre. About 94 per cent of Icelanders live in towns, and roughly two-thirds of the whole population live in and around the capital, Reykjavík.

What language is spoken in Iceland?

Icelandic is the official language of Iceland and is spoken by almost everyone in the country. It is a North Germanic language, closely related to Norwegian, Danish and Swedish, but it has changed less than its neighbours since the Viking Age, so modern Icelanders can still read the medieval sagas in the original.

What currency is used in Iceland?

Iceland uses the Icelandic króna (ISK, symbol kr). Iceland kept its own currency when it joined the European Economic Area in 1994 and is not a member of the European Union, so the euro is not used. Prices in shops are shown in krónur, and the currency is divided into 100 aurar, though aurar coins are no longer in circulation.

Where is Iceland?

Iceland is a Nordic island country in the North Atlantic Ocean, between Greenland and Norway, just south of the Arctic Circle. It sits on the Mid-Atlantic Ridge, the boundary between the North American and Eurasian tectonic plates, which is why the island has volcanoes, geysers and hot springs. It is Europe's westernmost country.

What time zone is Iceland in?

Iceland uses Greenwich Mean Time (GMT, UTC+0) all year round and does not observe daylight saving time, so the clocks never change. That makes Iceland the same time as London in winter and one hour behind London in summer. The IANA time zone name is Atlantic/Reykjavik.

Quick quiz

Three questions from the facts on this page. No sign-up, no score is saved.

1. What is the capital of Iceland?

2. What was the population of Iceland in 2025?

3. What currency is used in Iceland?

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Sources & last updated

Last updated: . Figures are shown with their year; where sources disagree, the value is left out rather than estimated.