The 12 Biggest and Most Important Cities in Iceland

Population of Iceland

Iceland's total population is just under 400,000, which makes it one of the least populated countries in Europe. Its considerable size means that its population density is very low.

Also, more than 70% of the country’s population lives in the southwestern region, in Greater Reykjavik and the Reykjanes Peninsula—which is also very close to the capital. In fact, only one of the top five biggest cities is not in this region.

But let’s get into the biggest, one by one.

1. Reykjavík

Reykjavik is the capital and most populated city in Iceland. It’s the center of life in this Nordic country. With a population of 140,000, one in three Icelanders lives here, and we’re not counting the metropolitan area. Its name can be translated as Smoky Bay.

This city is the northernmost capital of any sovereign state in the world. In spite of its modest size, it's a cosmopolitan city offering a combination of natural beauty, rich culture, and a modern lifestyle. Reykjavik is also a compact city, making it easy to navigate on foot or by bike, and public transportation is reliable.

As the capital, it’s the city where most of the governmental buildings and public institutions are. The Alþingishúsið, or Parliament House, is located in central Reykjavik, for example.

But if there’s a building that strikes like no other in the city, that’s Hallgrímskirkja. This church is the biggest and tallest temple in Iceland, and it’s the most recognizable structure in the capital. And perhaps in the entire country. Its unique design, inspired by Icelandic basalt formations, offers stunning panoramic views of the city from its tower.

There are other attractions that are worth your time while in Reykjavik. The Saga Museum is a great place to learn about the country’s history. You can also stop by the Reykjavik Art Museum, the largest display of visual arts in the country.

Reykjavik is also a great destination for food lovers. The city hosts some of the best restaurants on the island. The city’s seafood is exceptionally fresh. If you are looking for a bit of everything, go to Laugavegur Street, the main commercial street in the city. It’s full of bars, restaurants, and shops for all kinds of tastes.

The capital is also a place where many whale-watching tours depart.

2. Kópavogur

Just south of Reykjavik, we can find Kópavogur, Iceland's second-largest municipality. Due to its location, it’s a great mix of urban amenities and natural beauty, and it’s known for its striking landscapes and vibrant cultural scene.

The city has a beautiful contemporary church, Kópavogskirkja. This temple is perched on a hill and is a perfect example of Icelandic architectural design. It offers stunning views of the town. Another important landmark is the Smáratorg Tower, the tallest building in Iceland. This modern skyscraper has numerous shops, offices, and a shopping mall, Smáralind.

Nature-wise, Kópavogur has several green spaces and natural landscapes, perfect for hiking, such as Elliðaárdalur Valley and the Kópavogsdalur Valley. Here, you can also find Salalaug, which has a range of hot tubs, steam baths, and swimming facilities.

3. Hafnarfjörður

We are now moving another 6 kilometers (4 miles) further south from Kópavogur, but we are still in the Greater Reykjavik area. Here, we can find the city of Hafnarfjörður, a nice town known for its beautiful harbor, lava fields, and Viking history. It's a perfect destination for travelers looking to experience authentic Icelandic culture.

The harbor is the heart of the town. It's a great place to watch fishing boats or have a nice fresh seafood dinner.

Another great attraction is Hellisgerði Park, which is really close to the city center. This beautiful lava park features unique rock formations and is a serene spot for a picnic or a walk. Local folklore says that the park is home to elves, adding a touch of magic to your visit.

4. Reykjanesbær

Situated on the Reykjanes Peninsula, Reykjanesbær is a vibrant town just a short drive from Keflavík International Airport. It’s a great combination of natural wonders and cultural attractions.

Not far from the city is one of the most famous and visited natural monuments in Iceland: The Blue Lagoon. This incredible place is a geothermal spa famous for its milky-blue waters and therapeutic properties.

If you are looking to learn about Vikings, then Reykjanesbær is the place for you. In this city, there’s the Viking World Museum, a great place to learn about Iceland’s Viking heritage. It also features a full-scale replica of a Viking ship and fascinating exhibits on Viking history and culture.

5. Akureyri

This is Iceland's biggest city outside the Southwest area. Known as the “Capital of the North”, Iceland’s fifth-biggest city is an important port and fishing center. The harbor area is mostly ice-free, making it an important point of reference in sea navigation.

Akureyri is located on the shores of Eyjafjörður, Iceland’s longest fjord. You can get the best views of the city and the fjord from Akureyri Church. If you are a nature enthusiast, the Akureyri Botanical Gardens showcase a diverse range of Arctic and temperate plants.

The city is also known for its lively arts scene, with numerous galleries, theaters, restaurants, and music festivals throughout the year. Don’t miss the fresh seafood and traditional dishes like plokkfiskur (fish stew).

6. Garðabær

We now go back to the Southwest and, more precisely, to Reykjavik’s metropolitan area. This tranquil city is really close to the Álftanes Peninsula. Here, there’s a wide range of walking trails with great views of Reykjavik and the surrounding mountains. It's also a great spot for bird-watching along the coast.

You can also learn about Vikings and Iceland’s early settlers here. Head to the Hofsstaðir Archaeological Park to explore the remains of a Viking-age farm. Garðabær also has cafes and restaurants offering traditional Icelandic dishes and international cuisine.

And for sports lovers, the city has three excellent golf courses set against stunning natural landscapes.

7. Mosfellsbær

This little city is also near Reykjavik but just 15 kilometers (9 miles) north. It’s the hometown of Hálldor Laxness, the only Nobel Prize winner in Iceland's history. At his former home, now a museum, you can explore the writer's life and works.

Mosfellsbær is also a place of great natural beauty. The town has many hiking trails that allow you to explore the surroundings. The Mosfellsheiði Heath is perfect for walking and exploring Iceland’s diverse flora and fauna. The area is also great for mountain biking, including routes to Mount Esja, a popular spot with panoramic views of Reykjavik and the surrounding region. Another great option is to hire any of the many horseback riding tours available. It’s a great way to discover the lava fields and rivers.

This town is also a great spot to enjoy the local cuisine. Many restaurants in Mosfellsbær offer farm-to-table dining experiences, which means you’ll eat produce as fresh as it gets.

8. Selfoss

On the banks of the Ölfusá River in southern Iceland, we find the city of Selfoss, a gateway to some of the country's most breathtaking natural wonders. It’s really close to the Golden Circle route, which makes it an ideal base for exploring some of the main attractions in Iceland: the Gullfoss waterfall, the Geysir geothermal area, and Thingvellir National Park.

But Selfoss is not only that. It’s also a vibrant town with a rich agricultural heritage. The Ölfusá River is the largest river by volume in Iceland. It creates a gorgeous panoramic view while crossing the town, and it’s also a great spot for fishing.

If you like chess, you’d like to know that is where the grandmaster Bobby Fischer spent his last years. He is actually buried here. There’s also a small museum dedicated to his life, the Bobby Fischer Center.

Not far is the town of Hveragerði, the center of geothermal activity in Iceland, with the Hveragerði Geothermal Park as the main attraction.

9. Akranes

A great place to stop if you drive north from Reykjavik for a short time is the city of Akranes. Located at the end of a small peninsula on the west coast, one of the town’s main attractions is its old lighthouse. It offers great panoramic views of the surrounding area, and it’s also a popular spot for photography, especially during sunset.

Akranes also has a stunning local beach, Langisandur. It’s famous for its golden sands and clear waters. It’s ideal for a relaxing walk or a picnic by the sea. You can also stop by the Akranes Folk Museum, where you can learn about the town’s maritime and cultural heritage.

The nearby Akrafjall Mountain is a fantastic hiking spot. There are a high number of trails, offering stunning views of the coastline and the town below.

10. Husavik

Perhaps not huge in size, but a fantastic destination nonetheless. If you want to experience whale-watching when in Iceland, this is the place you must go to. It’s, in fact, known as the “whale-watching capital” of the country.

This picturesque little town is nested in a beautiful bay. Apart from being the port from where many whale-watching tours depart, it’s a charming place. The most famous landmark is the wooden church Húsavíkurkirkja.

The town also has a museum dedicated to the Eurovision Song Contest. The 2020 comedy Eurovision Song Contest: The Story of Fire Saga, starring Will Ferrel and Rachel McAdams, is set in Húsavík.

11. Seltjarnarnes

Just west of Reykjavik, Seltjarnarnes is a charming small peninsula town. This little city is known for its natural beauty and proximity to the capital, making it an ideal spot for a day trip.

Located at the tip of the peninsula is the Grótta Lighthouse, one of the most iconic landmarks in the area. The area is a protected nature reserve, perfect for bird watching, especially during migration seasons. It’s also a fantastic spot to witness the Northern Lights in winter.

If you are looking for a place to disconnect while being really close to the capital, the Seltjarnarnes coastline is full of walking paths that offer great views of Faxaflói Bay and the surrounding mountains. They are perfect for leisurely strolls, jogging, and cycling.

There’s also a local geothermal pool, Sundlaug Seltjarnarness. You don’t need to go far from the capital to enjoy a relaxing time in its warm waters, hot tubs, and steam baths.

12. Vestmannaeyjabær

To finish, we’re going off the mainland and into Vestmannaeyjar, also known as the Westman Islands. The whole archipelago is part of the Vestmannaeyjabær municipality, the main town in the islands. The main island, Heimaey, is the only inhabited one and serves as the hub of this unique community.

The king of these islands is the Eldfell Volcano. Its eruption in 1973 reshaped the main island significantly. Visitors can hike up the volcano to witness the new lava fields and enjoy panoramic views of the island and the surrounding ocean.

The town also hosts the Eldheimar Museum, a place dedicated to this dramatic eruption, which gained the island the nickname ‘Pompeii of the North.” The area is also one of the windiest in Europe.

It’s highly recommended that you take a boat tour here to explore the rugged coastline, sea caves, and smaller islands. These excursions often allow you to see puffins, other seabirds, and marine life, such as whales and seals.

Not just natural beauty

As we have just seen, Iceland is much more than a collection of astonishing landscapes. Of course, we understand that most visitors come to the island looking for them, but there are many great cities and towns that may surprise you.

The vibrant cultural, historical, and artistic life of the country is best experienced in its cities. So make room in your itinerary to chat with the locals, learn about their costumes, or discover the great food.