Cost to import a car from Japan to Iceland

Rates & rules last reviewed

Iceland has no fixed age limit on used-car imports, and both left- and right-hand drive vehicles can be registered, which means Japanese domestic stock is an option for Icelandic buyers. Vehicles arrive at the Port of Reykjavik, Iceland's only significant vehicle entry point. The cost structure differs from EU markets: import charges include excise duty, 24% VAT, a recycling fee and additional processing charges for batteries and tyres. Iceland is an EEA member but not an EU customs union member, so its tariff rules are its own — duty can be low or zero depending on the vehicle's HS classification, but the excise and recycling charges mean the full tax load deserves careful calculation. When you import a car from Japan to Iceland, our licensed team manages the sourcing, shipping to Reykjavik, customs clearance and registration formalities.

Main ports
  • Reykjavik
Import age rule
Iceland drives on the RIGHT (LHD). No simple age cap. Import charges are the CO2-based excise (vörugjald) + 24% VAT + recycling/processing fees. RHD imports are enthusiast-only.
Steering
LHD
Duties & taxes
Iceland has 0% car customs duty but a CO2-based excise (vörugjald) that is the dominant cost, plus 24% VAT on top. Using engine cc as a CO2 proxy, vörugjald is ~24% of value for a small petrol car, ~38% mid, ~60% for a large SUV (statutory cap 70%). With VAT compounding, total landed tax is ~54% of CIF for a small car and 100%+ for a large SUV — a duty+VAT-only model understated this by 25–65 points.

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Estimate only — duties, freight and last-mile delivery vary and policies change. Our team confirms exact, current figures on WhatsApp before any bid.

How to import a car from Japan to Iceland

  1. Choose the car you want

    Tell us your requirements. Iceland has no age limit and accepts right-hand drive, so we shortlist freely and confirm the car will meet Icelandic inspection and registration requirements.

  2. We source it from Japan's auctions

    Our licensed USS auction access lets us find the right car, read the auction sheet and grade, and verify real condition before you commit.

  3. Pre-shipment documentation

    We prepare origin documents and export paperwork for Icelandic customs clearance.

  4. Ocean shipping to Reykjavik

    The car sails to the Port of Reykjavik. We provide the sailing schedule and tracking once the vessel is confirmed.

  5. Customs clearance, excise, VAT and recycling fees

    Our team handles Icelandic customs, pays excise duty, 24% VAT, the recycling fee and any battery or tyre processing charges applicable to your vehicle.

  6. Vehicle inspection, registration and delivery

    The car goes through Icelandic vehicle inspection and registration formalities. We then arrange delivery to Reykjavik, Keflavik, Akureyri or your location.

Import duties & taxes in Iceland explained

Iceland charges excise duty and 24% VAT on imported vehicles, along with a recycling fee and battery/tyre processing charges. Import duty can be low or zero depending on the car's HS tariff code, but the total charge including excise and VAT is typically meaningful and should be calculated before committing. Because the exact excise and duty amounts depend on the car's type, value and fuel type, our team confirms the exact, current figure for your car.

Popular Japanese cars for Iceland

  • Honda Fit

    Fuel-efficient and practical for Icelandic conditions — hybrid variants reduce fuel costs during long drives between settlements.

    See prices
  • Mazda Demio

    A reliable compact with a small engine — keeps both excise duty and running costs manageable in Iceland's remote geography.

    See prices
  • Suzuki Swift

    Light and economical with straightforward servicing needs — a practical choice for buyers outside the main urban centres.

    See prices
  • Toyota Corolla Axio

    Dependable compact sedan with a strong track record in demanding climates — a conservative choice for year-round Icelandic use.

    See prices
  • Daihatsu Mira

    Very low running costs and minimal fuel consumption — ideal if keeping the ongoing cost of ownership as low as possible is the priority.

    See prices

Shipping cost to major cities in Iceland

  • ReykjavikYou are at the port, so inland delivery for a sedan runs only about $150.
  • KeflavikDelivery from Reykjavik to Keflavik adds roughly $160 for a sedan.
  • SelfossDelivery from Reykjavik to Selfoss adds roughly $170 for a sedan.
  • AkureyriDelivery from Reykjavik to Akureyri adds roughly $290 for a sedan.

Frequently asked questions

Is there an age limit to import a car from Japan to Iceland?
No — Iceland has no fixed age cap for vehicle imports. The car must clear Icelandic customs, pass the local vehicle inspection and complete registration formalities before it can be driven.
What taxes do I pay to import a car from Japan to Iceland?
Iceland charges excise duty, 24% VAT on the imported value, a recycling fee and battery/tyre processing charges. Import duty can be low or zero depending on the HS classification — our team confirms the exact, current figure for your car before you commit.
Can a right-hand-drive Japanese car be registered in Iceland?
Yes. Iceland accepts both left- and right-hand drive, so right-hand-drive Japanese imports can be registered once they pass the vehicle inspection and registration process, which our team manages.

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