Private car renting is an activity that is run for commercial purposes where individuals can bid
renting, usually for a short period of time, a privately owned vehicle subject to registration
through a rental agency.
The conditions for a private rental business license are as follows:
Good reputation, that is, that the applicant or the responsible person has not been guilty of criminal conduct (criminal record)
Professional liability insurance from a recognized insurance company
Legal domicile within the European Economic Area (EEA)
Authority to manage an estate, confirmation that the applicant is not in bankruptcy proceedings (certificate of estate - Búsforræðisvottorð)
Cars intended for rental owned by the applicant
Applicable registration with the Tax Registry of Companies
Debt with public fees, taxes with the collectors of the Treasury or contributions to a pension fund does not exceed ISK 500,000
It must be noted that before vehicles are rented out, the relevant vehicle must be reported to the Icelandic Transport Authority each time and it must be registered in the vehicle rental category (Ökutækjaleiga).
Each person can have up to two vehicles of their possession for rental through a private car rental that has a valid private car rental permit.
The cost of car rental permit is in accordance with the tariff of the Icelandic Transport Authority and is 89.880 ISK. The processing of a private car rental permit takes up to 15 working days.
Service provider
The Icelandic Transport Authority