There are different rules for people outside the EEA and those in the EEA or from Japan and the United Kingdom.
An application for exchange must be filled out and submitted with a passport photo. If the applicant has to wear glasses or contact lenses while driving or any other health problems may affect driving, a medical certificate from a general medical practitioner is required. When the application is submitted with the district commissioner the foreign driving licence is also required.
Driving licences from EEA countries, the United Kingdom or Japan
Those who have licences from the EEA, the UK and Japan can exchange their licences without taking a test if the applicant has been residing in Iceland for 6 months. Once an application has been submitted, the district commissioner will call for a confirmation from the issuing country. As a result, an Icelandic licence is issued. Since driving licences from two European countries cannot be held at the same time, the foreign driving licence must be handed over when the Icelandic licence is delivered. Those who wish to exchange a Japanese licence must obtain confirmation of their privileges at the Japanese embassy.
Foreigners outside the EEA
Those who hold driving licences from other countries may apply to exchange their foreign licence after 6 months of permanent residence, and need to pass both theoretical and practical driving tests.
The Icelandic driving licence costs ISK8,000.
The driving licence must be presented.
A passport photo on photographic paper, size 3.5 x 4.5 cm, on a neutral background and the person has to turn straight forward.
medical certificate, if applicable.