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A month in Iceland

Two rules shape a month in Iceland. The lodging tax is written for places rented generally for less than a month, and a homestay may be rented for no more than 90 nights a year.

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Akureyri seen across the calm water of Eyjafjörður, the town reflected below snow-streaked mountains, with trees in the foreground
Photographed in 2018. Photo: Gerd Eichmann, CC BY-SA 4.0, via Wikimedia Commons

What a month costs to set up

No official statistic on monthly rents in Iceland was found, and no reputable source on deposits or utilities, so this guide gives no figures for them. The known costs come from the tax authority, the towns and the platforms.

The lodging tax is ISK 800 per unit per night in licensed accommodation, where a whole apartment rented as one is one unit. Thirty nights at that rate would come to ISK 24,000. Skatturinn defines the taxed unit as accommodation in places rented generally for less than one month, and whether a single stay of a month in such a place is taxed was not verified, so ask the host how the month is billed. A registered homestay charges no lodging tax within its limits, and a booking that is cancelled carries no lodging tax: any tax already collected on it is refunded.

On Airbnb, 28 nights or more is a monthly stay: the first month is charged up front and released to the host 24 hours after check-in, and each later month is charged 10 days before it starts.

The areas that suit a month

Coloured roofs of central Reykjavík seen from the Hallgrímskirkja tower on a sunny day, with the old harbour, a docked ship and Mount Esja across the bay
Photo: Olga Ernst, CC BY-SA 4.0, via Wikimedia Commons

Reykjavík and Akureyri are the two towns with services all year, and each has an airport: Keflavík is 50 km from Reykjavík, and Akureyri airport about 4 km from the town. For a month with a car in Reykjavík, the zones matter: resident permits are not valid in P1 and P4, P3 drops to ISK 70 an hour after the first 2 hours on weekdays, and no zone charges on the statutory holidays the city lists, such as 17 June and Christmas Day. In Akureyri the two zones charge only from 10:00 to 16:00 on weekdays, at ISK 225 or ISK 113 an hour, so evenings and weekends cost nothing.

The south coast villages and the Golden Circle towns suit a quieter month for anyone who drives every day; the weather decides many of those days, so check umferdin.is and vedur.is before setting out. Snæfellsnes suits a month of walking and small towns, about 175 km from Reykjavík.

The paperwork

Iceland is in the Schengen area, though not in the EU. Visitors from outside the EU without a visa can stay up to 90 days in any 180-day period, counted across every country that uses the EU Entry/Exit System, fully operational since 10 April 2026.

The rules for EEA citizens who stay longer than three months were not verified from an Icelandic official page, so they are not covered here.

What platforms and the law call a long stay

Airbnb calls 28 nights or more a monthly stay and applies its long-term cancellation policy, which generally asks for 30 days' notice of changes.

Icelandic law draws two lines that matter for a month. A homestay host may rent for at most 90 nights and ISK 2,000,000 in a calendar year in total, whether one or two properties are registered, so a month there uses a third of the year's nights. Renting more than that needs an operating licence. The lodging tax, for its part, is defined for places rented generally for less than one month.

Pitfalls

A homestay listing without a registration number. The number must appear in all marketing and on booking sites.

Booking a homestay late in the year. Its 90 nights may already be close to used.

Parking a month in P1 or P4 in Reykjavík on a resident permit. Those permits are not valid in either zone.

Letting a tunnel toll slide. The Vaðlaheiði tunnel near Akureyri must be paid online within 24 hours, or the rental company pays and adds a fee.

Planning a September or October month around the highlands. The F-roads usually close from mid-September.

A winter month on the wrong tyres. Studded tyres are allowed from 1 November to 15 April, so ask the rental company what the car will have.

Questions

Is the lodging tax charged on a month in Iceland?

The tax is ISK 800 per unit per night in licensed accommodation, but Skatturinn defines it for places rented generally for less than one month. Whether a single month-long stay is taxed was not verified, so ask the host how the month is billed.

Can a homestay be rented for a month?

Yes, within the host's limit of 90 nights and ISK 2,000,000 a calendar year. A month uses a third of those nights.

Which town in Iceland is best for a month?

Reykjavík or Akureyri, the two towns with services all year and an airport close by.

How long can a non-EU visitor stay in Iceland?

Up to 90 days in any 180-day period across the countries using the EU Entry/Exit System. Iceland is in the Schengen area though not in the EU.