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| Location | 👍 Pros | 👎 Cons |
|---|---|---|
| Rental Desks in the Terminal |
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| Off-Airport Rentals (shuttle required) |
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| Meet & Greet Service |
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On average, car rentals at Keflavik Airport cost around 15,750 ISK per day, with the lowest-priced rentals available from 4,973 ISK per day.
Compare on-airport vs off-airport at KEF. Off-airport locations usually avoid 10-20% airport surcharges and are a 5-10 minute shuttle away.
Time your booking to the season. For July–August, lock in 3-6 months ahead. Shoulder or winter months can be much cheaper.
Pick the smallest car you actually need. Manual transmission often costs 15-25% less than automatic.
Match pickup location to your plan. If you’re staying in Reykjavik first, compare city pickup the next day to avoid an extra rental day and airport fees. If you’ll start sightseeing right away, KEF pickup can beat paying ~8,000 ISK per person for transfers.
Avoid paid extras you don’t need. Premium meet-and-greet and after-hours pickups add fees. Try to arrive during standard desk hours.
Return full to dodge refuelling charges. Top up at stations near KEF before drop-off.
| Location | Parking Options | Approx. Cost | Notes |
|---|---|---|---|
| KEF Airport (Short-Term) | P1 parking area | Check current rates | Closest to terminal, for vehicle return or pickup |
| KEF Airport (Long-Term) | P2/P3 parking areas | Check current rates | Further from terminal, shuttle service available |
| Rental Car Return Areas | Designated zones for each company | N/A | Follow signs for "Car Rental Return" |
| Blue Lagoon | Large parking area | Check current policy | Well-marked spaces, ample room |
| Reykjanes Peninsula Sites | Dedicated spaces at attractions | Varies by site | Keep to marked areas only |
Local Driving Rules:
Regional Considerations:
Get a car so you can visit:
Blue Lagoon – 20 km (12 miles), 15–20 minutes
Reykjavik – 50 km (31 miles), 45 minutes
Reykjanes Peninsula – Bridge Between Continents, Gunnuhver, Reykjanesviti
Golden Circle – Thingvellir, Geysir, Gullfoss
South Coast to Vik – waterfalls, beaches
Snaefellsnes Peninsula – 230 km (143 miles), 2.5–3 hours

How long should I allow for returning a rental car at KEF Airport? You should allow at least 3 hours before your flight. You'll need 30 minutes to return the car, 15-30 minutes for a shuttle if your rental company is off-airport and 2 hours for check-in and security.
Can I pick up a car at KEF Airport and drop it off in Reykjavik (or vice versa)? Yes, most companies allow this, either for free or for a small fee. Companies like Go Car Rental will even give you a free shuttle ride between their locations.
Do I need a special license to drive in Iceland from KEF Airport? No, you just need a valid driver's license from your home country. It's a good idea to also have an International Driving Permit, but most visitors don't need one.
What's the minimum rental age at KEF Airport? Most companies require drivers to be at least 20 years old, and 23 or older for larger vehicles and 4x4s. Drivers under 25 may have to pay a young driver fee of $10-30 per day.