Planning Your Trip 6 min read Updated April 2026

Car Hire at Reykjavik Airport — What You Actually Need to Know

Keflavík International Airport (KEF) — where almost every international flight to Iceland actually lands, and where your rental car will be waiting.

Car hire at Reykjavik Airport is one of the most searched phrases by visitors planning a trip to Iceland — and it comes with a catch that catches thousands of people out every year. Your international flight almost certainly does not land at Reykjavik Airport. It lands at Keflavík International Airport, about 50 kilometres southwest of the city. These are two completely different airports, and mixing them up when booking a rental car is one of the most common — and most avoidable — mistakes visitors to Iceland make.

Here's everything you need to know — which airport you'll actually arrive at, why the confusion happens, and how to pick up your rental car without any stress.

In this guide

1. Car hire at Reykjavik Airport — two airports, one common mistake
2. Why everyone gets confused
3. Car hire at Keflavík Airport (KEF) — what to expect
4. Car hire at Reykjavik Airport (RKV) — is it possible?
5. Picking up your car at KEF — step by step
6. Common questions

Car Hire at Reykjavik Airport — Two Airports, One Common Mistake

Most countries have one main airport that everyone flies into. Iceland has two airports near the capital — and they serve completely different purposes. Understanding the difference takes about 30 seconds and will save you a lot of confusion.

Your international flight

Keflavík Airport

KEF

• Iceland's main international airport
• ~50 km southwest of Reykjavik
• Serves flights from North America, Europe, and beyond
• Open 24/7 with full car rental facilities
• Free shuttle from terminal to rental car area
• The airport you want for picking up a rental car

Domestic flights only

Reykjavik Airport

RKV

• Small domestic airport in the city centre
• 3 km from downtown Reykjavik
• Serves domestic routes and a few flights to Greenland and the Faroe Islands
• Limited car rental options, business hours only
• Not where international travellers land
• Not where you want to book your rental car

Quick check: look at your flight ticket

If your ticket shows airport code KEF — you're landing at Keflavík. If it shows RKV — you're on a domestic or regional flight landing in Reykjavik city. Almost every international flight to Iceland is KEF. When in doubt, check the airport code, not just the city name.

Why everyone gets confused

This isn't a careless mistake — the confusion is built into how Iceland's airports are marketed and named. There are a few reasons it catches so many visitors out:

Airlines list the destination as "Reykjavik"

When you book a flight to Iceland, your ticket and booking confirmation will typically say Reykjavik as the destination — not Keflavík. Icelandair, WOW Air before it, and most international carriers have always marketed KEF as "Reykjavik" because that's the capital city visitors are heading to. The airport code (KEF) is there if you look, but the city name says Reykjavik — naturally leading many people to assume they're landing in or near the city itself.

Keflavík Airport is officially called "Reykjavik-Keflavik"

To add to the confusion, KEF's official full name in many booking systems and aviation databases is "Reykjavik Keflavik International Airport." Even official documentation blurs the lines. If you see "Reykjavik Airport" in a car hire comparison site, it almost always means KEF — but it's easy to assume they mean the domestic one in the city.

The two airports are only 50 km apart

On a map, both airports appear to be "near Reykjavik." But 50 km matters when you've just landed after an overnight flight and your rental car is at the wrong location. The drive between KEF and RKV takes about 45 minutes — that's not a quick walk across the terminal.

Don't book your rental car at RKV if you're on an international flight

Some car hire comparison sites list both KEF and RKV as separate pick-up locations. If you accidentally book at RKV when your flight lands at KEF, you'll arrive at Keflavík with no car — and a 45-minute taxi ride between you and your booking. Always double-check the pick-up location code before confirming.

Car hire at Keflavík Airport (KEF) — what to expect

KEF is well set up for car hire. It's one of the most straightforward airport pick-ups in Europe — the process is simple, and you can be on the road quickly after landing.

Where the rental companies are

The larger international brands — Hertz, Avis, Budget, Europcar — have desks inside the arrivals hall at KEF. Smaller local companies, including Project Car Rental, operate a free shuttle service from the arrivals hall to their nearby office. The shuttle takes just a few minutes and runs continuously when flights are arriving.

Local vs. international rental companies

The companies with desks inside the terminal pay significantly higher fees for that space — and those costs are passed on to customers. Local Icelandic rental companies based just outside the airport typically offer better value for the same or better service, with the minor trade-off of a short shuttle ride. For most visitors, the choice to book with a local company is a straightforward one.

Project Car Rental at KEF — how our pickup works

Project Car Rental is a local family business operating at Keflavík Airport since 2020. Here's what pickup looks like:

• Land at KEF, clear customs, collect your bags
• Exit the arrivals hall — our shuttle will be waiting
• Short drive to our office (a few minutes)
• Sign your paperwork, collect your keys, and go
• No deposit required — nothing held on your card

What's included at KEF

From January 2026, all car rental companies in Iceland are required to collect a government road usage fee (kílómetragjald) of ISK 1,550 per day — this applies regardless of which company you book with. Beyond that, what's included varies significantly by company. At Project Car Rental, CDW basic insurance and the airport shuttle are included in the base price. Always check what's included before you compare headline daily rates.

Car hire at Reykjavik Airport (RKV) — is it possible?

Yes — but it's rarely the right choice for international visitors. There are a small number of rental companies operating at RKV, but the selection is limited, availability is business-hours only, and if your flight landed at KEF you'd need to get yourself to Reykjavik city first before picking up your car.

The only scenarios where renting from RKV makes sense are if you're already staying in Reykjavik for a few days before starting a road trip, or if you're arriving on a domestic flight from elsewhere in Iceland. For everyone else — anyone landing at KEF and heading straight into an Icelandic adventure — pick up your car at Keflavík.

Seljalandsfoss waterfall on Iceland's South Coast — about 90 minutes from Keflavík Airport and one of the first great stops on a Ring Road trip.

Picking up your car at KEF — step by step

The process at Keflavík is smooth once you know what to expect. Here's what the first hour after landing looks like if you've booked with a local company:

What to have ready at pickup

• Your driving licence — from your home country. If it's not in the Latin alphabet, bring an International Driving Permit too
• Your passport — for ID verification
• Your booking confirmation — a screenshot on your phone is fine
• A payment card — for any extras or insurance upgrades you choose at pickup

Common questions

You might also like

How Much Does Car Rental in Iceland Cost in 2026?

4WD Car Rental in Iceland – F-Roads, Rules and What You Need to Know

Parking in Iceland – Everything You Need to Know to Avoid Fines

Driving in Iceland – Rules, Roads and What to Expect