Can I drive in Iceland with an Australian licence? Do I need an international driving permit?
It depends on how long you have held your licence and on whether you hire a car. Smartraveller says: “Australian driving licences are valid in Iceland if you have had your licence for a minimum of 1 year. However, some car rental companies require customers to present an International Driving Permit (IDP) if holding a licence issued outside Europe or North America.” (Smartraveller advice for Iceland, checked on 17 October 2026).
Rules change, and car hire companies can ask for more than the law. We quote the official travel advice word for word, with its date; this is information, not legal advice. If you are unsure, ask the embassy of the country you are visiting, your car hire company or your travel insurer before you travel.
What the official source says
Smartraveller advice for Iceland: “Local travel” › “Driving permit”
Australian driving licences are valid in Iceland if you have had your licence for a minimum of 1 year. However, some car rental companies require customers to present an International Driving Permit (IDP) if holding a licence issued outside Europe or North America. Digital driver's licences may not be accepted.
If you need an IDP, get this before you leave Australia. An IDP doesn't replace the requirement for a regular driver's license.
If your driving licence is not written in Latin letters or doesn't include your licence number, a photograph or an issuing date, you'll also need an IDP to drive in Iceland.
Source: Smartraveller: Iceland, page updated 14 April 2026, “still current at” 18 October 2026 (Australian time), checked on 17 October 2026. Quoted word for word; we show only the sentences about driving licences and permits.
What to bring and where to get an IDP
Smartraveller says (in its advice for Vietnam):
Fraudulent websites may claim to issue valid IDPs.
The Australian Automobile Association (AAA) and its member clubs are the only authorised distributors of IDPs for Australian licence holders.
Source: Smartraveller: Vietnam, checked on 17 October 2026.
Hire a car in Iceland
Hiring a car in Iceland? Compare rental companies and prices on DiscoverCars. Check the licence and IDP rules above before you book: the rental desk can refuse your booking without the right permit.
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Other licences in Iceland
| Licence | In Iceland | Checked |
|---|---|---|
| UK licence | It depends | 28 October 2026 |
| Canadian licence | Recommended | 28 October 2026 |
Before you travel to Iceland
- British passport: Iceland entry requirements
- Canadian passport: Iceland
- Australian passport: Iceland
- Italian citizens: Islanda
Questions
Do I need an international driving permit for Iceland with an Australian driver's licence?
It depends on how long you have held your licence and on whether you hire a car. Smartraveller says: “Australian driving licences are valid in Iceland if you have had your licence for a minimum of 1 year. However, some car rental companies require customers to present an International Driving Permit (IDP) if holding a licence issued outside Europe or North America.” (Smartraveller advice for Iceland, checked on 17 October 2026).
Can I drive in Iceland with my Australian licence?
Smartraveller says: “Australian driving licences are valid in Iceland if you have had your licence for a minimum of 1 year. However, some car rental companies require customers to present an International Driving Permit (IDP) if holding a licence issued outside Europe or North America.”
Which international driving permit do I need for Iceland?
The Smartraveller advice for Iceland does not say which convention (1926, 1949 or 1968) the permit must follow.
Where do I get an international driving permit in Australia?
Smartraveller says: “The Australian Automobile Association (AAA) and its member clubs are the only authorised distributors of IDPs for Australian licence holders.”
Where does this answer come from?
From the official travel advice of Smartraveller, read on 17 October 2026 and quoted word for word on this page. It is information, not legal advice.
Spotted a change? Tell us. Every country for an Australian licence · Driving abroad: all licences.