The Icelandic Transport Authority: Registration plates
What rules apply for driving a car with foreign license plate in Iceland?
Foreign nationals may obtain a temporary driving permit from the Icelandic Revenue and Customs when they bring their vehicles to Iceland. The same applies to Icelandic citizens who have stayed abroad and owned the vehicle in question for a certain minimum period. When the driving authorisation expires, the vehicle must have been exported out of the country or the use of it will be prohibited.
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