now it´s possible to apply for a passport at Ísland.is

The process is such that applicants pre-register an application for themselves or a child under their custody for whom a passport is to be applied, as well as selecting the passport delivery point. Once registration on the website is complete, applicants may appear at the sheriff's office when it is convenient for the district commissioner's opening hours to complete the part of the application process that requires attendance, such as photo-shooting, signing and fingerprinting.

After pre-registration it is sufficient that one of the guardians attends to his/her child on camera and can do so in district commissioner's office in Iceland regardless of his/her residence. You can book an appointment for a photo shoot with the district commisioner in the capital area through No booking is required with other district commissioner's office.