Reykjavik and the Southwest require a mix of walking in the capital and a hire car or shuttles for outlying sites.
In intra-muros Reykjavik, everything is walkable: the historic centre (Hallgrímskirkja, Harpa, old harbour, Laugavegur) fits in a 1,500 m square. The yellow Strætó buses (ISK 450 / €3 single, ISK 1,700 / €11 day pass) cover the entire city and suburbs. No metro, no tram. Taxis are expensive (the meter starts at ISK 700 / €4.50 and the minimum fare is rarely under €15).
From Keflavík Airport, two options: FlyBus (Reykjavik Excursions, €35 one way to your Reykjavik hotel via BSI or direct, 45-50 minutes) or Airport Direct (€32 one way, same service). Taxis from Keflavík cost ISK 18,000-20,000 (€120-130). The hire car is picked up at the airport exit (agencies Hertz, Avis, Sixt, Lotus, Blue Car Rental, Reykjavik Cars) — most have a counter inside the airport.
For the Blue Lagoon, the Reykjanes peninsula and the Golden Circle, a hire car is the most flexible option (count €70-100/day for a compact 2WD). Without a car: Reykjavik Excursions or Gray Line shuttles to the Blue Lagoon (€45 return), day tours to the Golden Circle (€80-130/person), Northern Lights excursions from Reykjavik (€60-90/person, re-tour guaranteed if no aurorae).
Parking in Reykjavik is paid (red, blue, green zones) Monday to Friday from 9am to 6pm, with an underground car park at Harpa and several surface car parks in the centre. Central hotels generally don't have dedicated parking — check before booking if you're driving.
Read also
- Reykjavik, the world's northernmost capital — Hallgrímskirkja, Harpa, street art, music scene and new Nordic gastronomy.
- The Blue Lagoon — The world's most famous milky-blue geothermal lagoon, 20 minutes from the airport.
- The Golden Circle — Þingvellir, Geysir and Gullfoss: the must-do day loop from Reykjavik.
- Iceland — Complete country guide: Schengen entry, budget, when to go, regions.