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
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.
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.
Pre-shipment documentation
We prepare origin documents and export paperwork for Icelandic customs clearance.
Ocean shipping to Reykjavik
The car sails to the Port of Reykjavik. We provide the sailing schedule and tracking once the vessel is confirmed.
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.
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
- See prices
Honda Fit
Fuel-efficient and practical for Icelandic conditions — hybrid variants reduce fuel costs during long drives between settlements.
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Mazda Demio
A reliable compact with a small engine — keeps both excise duty and running costs manageable in Iceland's remote geography.
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Suzuki Swift
Light and economical with straightforward servicing needs — a practical choice for buyers outside the main urban centres.
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Toyota Corolla Axio
Dependable compact sedan with a strong track record in demanding climates — a conservative choice for year-round Icelandic use.
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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.
Shipping cost to major cities in Iceland
- Reykjavik — You are at the port, so inland delivery for a sedan runs only about $150.
- Keflavik — Delivery from Reykjavik to Keflavik adds roughly $160 for a sedan.
- Selfoss — Delivery from Reykjavik to Selfoss adds roughly $170 for a sedan.
- Akureyri — Delivery 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.