Since March 25th 2001 Iceland has been a member of Schengen area cooperation of 26 European states. Twenty-two EU Member States are members of the Schengen area, in addition to the EFTA-states Iceland, Norway, Switzerland and Liechtenstein. Of the 27 EU Member States, Bulgaria, Croatia, Cyprus, Ireland and Romania are not members of the Schengen area.
Identity papers that Icelanders should carry when travelling in Europe
Travelling to Nordic countries
Icelandic citizens travelling to the Nordic countries do not need to carry a passport. However, at some point you may need to show proof of identity. Your passport is the most reliable identification document. When checking into flights at Nordic airports you may be asked to show identification documents. Regulations on this may vary from one airline to another. It is common that airlines ask for a passport or other identification documents such as a driver's license.
Travelling to other Schengen countries.
It is recommended that Icelandic citizens carry their passports when travelling to other Schengen countries than the Nordic countries.
Even though Icelanders are free to cross the borders inside the Schengen area, a residence permit is normally required if you intend to stay longer than 90 days in one country.
Travelling to EU Member States outside the Schengen area
When travelling to EU Member States outside the Schengen area, Icelandic citizens need to carry their passport. If you intend to stay in the country for more than 90 days you normally need to apply for a residence permit.