A new year and a new beginning, as they say. 2024 arrives in Iceland with changing public price structures, a historic milestone in population size, and leadership restructuring. Here’s all you need to know about the upcoming developments in Iceland.

Iceland’s population will reach 400,000 & election of new president

It is predicted that within the first six months of 2024, Iceland’s population will surpass 400,000 people. Currently, the population is only 10,000 people away from that mark. According to Statistics Iceland, the growth has been more rapid than expected, as this population milestone was initially predicted not to be reached before 2050.

Iceland’s president Guðni Th. Jóhannesson announced that he would not run for reelection, stepping down after two terms (8 years) in office. A new president will be elected in June. A few individuals have already announced their intent to run for office in the upcoming election. In Iceland, the presidency is largely a matter of symbolism as the president has very little political power.

The mayor of Reykjavík, Dagur B. Eggertsson, stepped down from his position on January 16. He was Reykjavík’s mayor for the last ten years. Progressive Party Leader Einar Þorsteinsson will take over as mayor until the next election in 2026.

Pool prices and garbage disposal fees hike

Municipalities in Iceland have announced higher prices for trash collection, as a new system for sorting refuse is being implemented in the capital area. The biggest increase is in Reykjavík, where the price for two bins goes from ISK 52,600 (€350) to ISK 73,500 (€490). The highest fee remains in the more affluent neighbouring municipality of Seltjarnarnes and amounts to ISK 75,000 (€500). From January 10th, it also won’t be possible to collect disposable paper bags for the biodegradable trash free of charge from the supermarkets anymore. They can be picked up at the recycling centre Sorpa or the second-hand furniture store Góði hirðirinn instead and are still free of charge there.

In Reykjavík, prices for entrance to the swimming pool, museum tickets and petting zoo admissions in Laugardalur have also increased. A single adult ticket to a public pool increased by 6 per cent and will now cost ISK 1,330 (€9). Yearly passes went up by 5.5%, while prices for towel and swimming suit rentals have also risen.

A hike in bus fare prices for the public transport company Strætó was also announced. Strætó operates the city buses in the Reykjavík capital region. They will rise by an average of 11% —with a single ticket now costing ISK 630 (€4.20). The increase has been justified by citing higher fuel prices. The buses outside the capital area are not affected by those changes.

Tax rates on substances & electric vehicles increase

Municipalities have also upped the fees for some of the services they offer, while the 2024 budget, recently approved by Alþingi, heralds new taxes and adjustments to the existing ones. Tax rates on alcohol and tobacco go up by 3.5 per cent, Morgunblaðið reports, as does the licensing fee for public broadcasting and the gasoline tax.

A litre of gasoline will cost an extra ISK 4.20 (€0.03), while the tax on diesel increases by ISK 3.70 (€0.02). The vehicle tax on lighter automobiles rises by 30% as well, while owners of electric cars will need to pay a new fee per kilometre, which for the average driver will amount to ISK 90,000 (€600) per year.

Owners of hybrid, electric and hydrogen vehicles will now need to keep track of the mileage of their vehicles and register them on island.is in the beginning of 2024. This procedure must be repeated once a month. According to the Icelandic government, this change is due to a stark decrease in the state’s revenue from vehicles since 2018 and the ongoing need for the development of road infrastructure. The kilometre fee will be paid monthly. People concerned by this change can visit the government-run website “Vegir okkar allra” to find out more about this change.

EU travel fee not coming into effect until 2025

The ETIAS waiver program announced by the EU, which was initially due to come into effect in 2024 has been postponed to 2025, so that travellers from outside of the EU are not facing registration fees of €7.00 just yet. ETIAS travel authorisation is an entry requirement for visa-exempt travellers who are visiting one of the thirty participating European countries. The entry requirement is valid for up to 90 days in any 180 days. Travellers intending to visit Iceland will also need an ETIAS travel authorisation to enter Iceland from 2025 on. This system will not replace visa requirements for citizens who currently require a visa to visit any EU country, like travellers from China, India, and South Africa.

This article was first published in Iceland Review.

What will change in Iceland in 2024?