New Year’s Eve in Reykjavik is unlike anywhere else in Europe. There is no official civic fireworks show organised by the city. Instead, residents buy their own fireworks - legally and in large quantities - and set them off from rooftops, hillsides, and back gardens simultaneously from around 23:00 until well past 01:00. The sky above the city erupts at midnight in a way that takes first-time visitors completely off guard. Add community bonfires (brennur), outdoor concerts, and a population that genuinely celebrates outdoors despite sub-zero temperatures, and you have one of the world’s most unusual and memorable New Year’s Eve experiences.
The Brennur: Community Bonfires
The tradition of the brennur is the beating heart of Icelandic New Year’s Eve. Neighbourhood associations organise large bonfires across Reykjavik and surrounding towns, burning Christmas trees, old furniture, and wooden pallets collected over the preceding weeks. The bonfires serve as a community gathering point before the midnight fireworks.
Key bonfire locations in 2025/2026:
- Laugardalur (Laugardalslaug area) - one of the largest and most accessible bonfires in Reykjavik, close to public transport. Typically lit around 20:30.
- Ægissíða (near the domestic airport) - popular family bonfire on the waterfront. Good views across to Seltjarnarnes.
- Geirsnef, Seltjarnarnes - the bonfire at the tip of the Seltjarnarnes peninsula has an open sea backdrop and is less crowded than city-centre bonfires.
- Hafnarfjörður - the neighbouring town holds its own independent bonfire and fireworks tradition. Worth the 15-minute drive for a less touristy atmosphere.
Bonfire events are free to attend and no tickets are required. Dress warmly - you will be standing near a large fire, which provides some heat, but the surrounding temperature is still below zero. Check local Reykjavik news (visir.is or ruv.is) in the days before for confirmed times, as they shift slightly year to year.
Fireworks Viewing: Best Spots in Reykjavik
At midnight, the entire city launches fireworks. From a rooftop or elevated position, you will see displays going off in every direction simultaneously. This is not a single set-piece show from one location - it is a 360-degree event.
Best vantage points:
- Hallgrímskirkja churchyard - the area around Iceland’s iconic church sits on one of Reykjavik’s highest points. The elevation gives clear sightlines across the city. It fills up by 23:30.
- Perlan observation deck - the glass dome atop Perlan offers an elevated 360-degree view of the city and is heated. Check the Perlan website for NYE opening hours; entry fees apply (typically around 3,990 ISK as of 2026).
- Öskjuhlíð hill (below Perlan) - free alternative to the Perlan deck. The wooded hillside has clearings with good views, and many locals climb it to watch.
- Old Harbour (Grandi) - flat but offers a wide open sky and water reflections. The harbour area has food stalls on NYE most years.
- Tjörnin pond - the city centre lake reflects the fireworks. Atmospheric, accessible, and close to bars and restaurants if you want to step back inside quickly.
NYE Events and Concerts
Aldrei for eg dauður (New Year’s Eve concerts at Harpa) Harpa Concert Hall hosts a series of NYE concerts over 30 December and 31 December. Programming varies by year - past editions have featured Icelandic orchestral performances, jazz acts, and pop artists. Tickets typically range from 4,500 to 9,500 ISK depending on the performance. Book via tix.is several months in advance; popular shows sell out before December.
New Year’s Eve at Laugardalur Sports Complex This area becomes one of the city’s main outdoor gathering spots in the hours before midnight. Family-friendly, with a large bonfire, food vendors, and the space to see fireworks from multiple directions. No entry fee.
Downtown bars and clubs Reykjavik’s Laugavegur and Austurstraeti bar strips operate until 04:30–05:00 on NYE. Cover charges vary by venue (typically 2,000 to 4,500 ISK after midnight). Spots like Paloma, Húrra, and Bravó run NYE-themed programming. Most have a mixed local and tourist crowd. Arrive before 22:00 if you want to get inside a popular venue without a long queue.
Where to Eat: NYE Dinner in Reykjavik
Most Reykjavik restaurants run set NYE menus priced between 15,000 and 30,000 ISK per person (approximately £85 to £175 as of 2026), not including drinks. Reservations typically open in September or October and sell out before December. Book as early as possible.
Grillmarkadurinn (The Grill Market), Lækjargata 2a One of Reykjavik’s best-known Icelandic restaurants, known for its use of local meat, seafood, and wild game. NYE set menu usually priced around 22,000 to 26,000 ISK per person. Smart-casual dress.
Matur og drykkur, Grandagarður 2 Offers modern takes on traditional Icelandic recipes - the menu changes seasonally but often includes lamb, cod, and skyr-based desserts. NYE covers typically around 20,000 to 24,000 ISK per person. The Old Harbour location is walking distance from good fireworks viewing spots.
Kopar, Geirsgata 3 Seafood-focused restaurant right on the harbour with a relaxed atmosphere for a special occasion. Known for shellfish and fresh catch. NYE menus in the 18,000 to 22,000 ISK range. Good for couples.
Snaps Bistro, Þórsgata 1 French bistro with a loyal local following. A more relaxed option than the high-end Icelandic restaurants - NYE menus typically around 12,000 to 16,000 ISK per person. Less formal, good for groups.
If budget is a concern, several pizza and burger restaurants in the Laugavegur area do not run set menus and remain more affordable. Reykjavík Roasters café runs regular hours on 31 December if you want a casual late afternoon meal before the evening.
Where to Stay: Hotel Picks for NYE
NYE accommodation in Reykjavik books out 6 to 9 months in advance. NYE rates are significantly higher than the standard December rate - budget 50 to 80% above normal for the night of 31 December.
Fosshotel Reykjavik, Þórunnartún 1 A large downtown hotel with good views from upper floors. Rates on NYE typically start around 55,000 to 75,000 ISK per night (approximately £310 to £420). Book direct or via hotel booking platforms by September for best availability.
Hotel Borg, Pósthússtræti 11 Historic art deco hotel on Austurvöllur square, one block from the main fireworks viewing areas. NYE rates typically from 70,000 ISK per night. Ideally located for walking to celebrations and back.
Hótel Holt, Bergstaðastræti 37 Smaller boutique hotel with an art collection and good restaurant. Quieter neighbourhood but 10 minutes’ walk from the main fireworks area. NYE rates around 45,000 to 60,000 ISK per night.
CenterHotel Þingholt, Þingholtsstræti 3 Central, modern hotel a short walk from Hallgrímskirkja. A practical mid-range option for NYE. Rates around 40,000 to 55,000 ISK per night on 31 December.
For self-catering, Airbnb apartments in the 101 Reykjavik postcode give you a kitchen and more space - useful if you want to cook before heading out. Book as early as hotels.
Getting Around on NYE
Public buses: Strætó buses run a modified NYE schedule. Buses are free to ride on New Year’s Eve (an annual tradition in Iceland). Check the Strætó app for routes and times; services run later than usual but do not operate all night.
Taxis: Hreyfill (+354 588 5522) and BSR (+354 561 0000) are the main licensed taxi operators in Reykjavik. Expect long waits and surge pricing after midnight. Book a return taxi in advance if you are travelling to or from outside the city centre.
Walking: The 101 Reykjavik area is compact enough to walk between bonfires, viewing spots, bars, and restaurants. Pavements can be icy - wear boots with grip.
Driving: Avoid driving in central Reykjavik between 23:00 and 02:00 on NYE. Parking is difficult and streets are crowded. If driving from outside the city, park near a bus stop and take the free Strætó bus in.
What to Wear: December Weather in Reykjavik
Expect temperatures between -2 and 3°C on 31 December, with wind chill often making it feel -8 to -12°C. The fireworks and bonfire events mean standing outside for extended periods.
Packing list for NYE night:
- Thermal base layer (top and bottom)
- Fleece mid-layer
- Waterproof and windproof outer jacket (shell or insulated jacket)
- Waterproof trousers or thick jeans with thermal leggings underneath
- Wool or fleece hat covering the ears
- Waterproof gloves or mittens (mittens are warmer)
- Merino wool or thermal socks
- Waterproof boots with grip - pavements and hillsides are icy
- Hand warmers for inside gloves during long fireworks viewing
If you are planning a restaurant dinner before heading outside, layers are practical since you will be moving between heated interiors and outdoors repeatedly. A small backpack or bag lets you manage extra layers.
Practical Notes
Fireworks safety: Consumer fireworks are legal in Iceland and sold across the city from mid-December. Much of the revenue from fireworks sales goes to the Icelandic Association for Search and Rescue (ICE-SAR). Be aware that fireworks are being launched in residential streets - keep clear of buildings and parked cars near midnight.
Photography: A tripod is near-essential for capturing the fireworks display. The all-directions nature of the show means a wide-angle lens from an elevated spot captures the best results.
Northern Lights: New Year’s Eve in Reykjavik means significant light pollution from fireworks between 23:30 and 01:30. If you want to see the Northern Lights, plan for a night earlier in your trip or head outside the city. After 02:00 on 1 January, light levels drop and aurora hunting becomes viable again if skies clear.
Emergency services: Iceland’s emergency number is 112. Alcohol is readily available on NYE - behaviour on Laugavegur late at night can be lively. Pharmacies in Reykjavik are closed on 1 January.