Importing a new or used vehicle

When importing vehicles that are subject to registration, import charges must be paid.

Vehicles subject to registration include, among others, cars, trailers, caravans, motorcycles, electric scooters, electric bicycles, and other similar vehicles. See further information on vehicles subject to registration (Icelandic only).

Charges

The import charges are:

excise duty
value-added tax (VAT)
recycling fee (on batteries and tyres included with the vehicle)

Import charges are calculated on the customs value of the vehicle. The customs value consists of the purchase price, transport costs, and transport insurance.

Import charges calculator (Icelandic only) →

Enter the customs value, the vehicle’s curb weight, and information on carbon dioxide (CO₂) emissions to calculate the total price of the vehicle (including import charges) upon arrival in Iceland.

Vehicles subject to reduced import charges

In certain situations, import charges may be reduced or waived under special rules.

Environmentally friendly vehicles powered entirely by electricity, hydrogen, or methane are exempt from excise duty.

Special rules apply, among others, to:

Competition vehicles
Diplomatic vehicles
Tractors
Vans
Motorcycles powered by an electric motor

See further information on the rules that apply to vehicles partially or fully exempt from excise duty.

The process

To estimate the total cost of a vehicle upon arrival in Iceland, you need the following information:

purchase price; the price must be documented with an invoice
transport cost; available from the shipping company
transport insurance; available from the shipping company

This information (the customs value), together with details of the vehicle’s curb weight and CO₂ emissions, is entered into the customs calculator to obtain an estimated total cost. Information on curb weight and emissions can be found in the vehicle’s registration certificate.

Customs declaration

The customs declaration is prepared with the assistance of a licensed customs broker, who handles all communication with the customs authorities on your behalf. The customs clearance process generally takes 3–5 working days. You can follow the process through the Customs Portal (Tollalínan) or contact the shipping company. If any remarks are made regarding the customs declaration, the shipping company will contact you.

Payment of import charges

Information on payment is provided by the customs broker once the customs declaration has been approved. Import charges must then be paid in accordance with the instructions from the customs broker.