-Rental Car, Duty Free, VAT Return and More
If you’re planning on visiting Iceland, it’s almost inevitable that your adventure will both begin and end at Keflavík International Airport (KEF). Serving as the main hub to and from Iceland, nearly all international travelers will enter via this airport.
Knowing what to expect, and how to prepare for your arrival will ensure you have a positive start to your trip to Iceland, free from the hassle and stress that sometimes comes with arriving in a new location. In this guide, you’ll find out everything you need to know about KEF, from its facilities and services to rental cars, duty-free shopping, and VAT refunds, ensuring your journey starts and ends smoothly.
About Keflavík International Airport
Airport Code: KEF
Keflavík International Airport, known in Icelandic as Keflavíkurflugvöllur, is Iceland’s largest and most important international airport. The airport code for Keflavík International Airport is KEF. Although it’s often referred to as Reykjavik Keflavik Airport, KEF is actually located about 50 km (31 miles) southwest of the Icelandic capital on the Reykjanes Peninsula.
Keflavik Airport (KEF) is about 45 minutes by car from Reykjavik. You can reach the capital via rental cars, buses, or taxis, using Route 41, a direct and smooth highway.
As the main international gateway, KEF serves over 8 million passengers a year, connecting Iceland to Europe, North America, and beyond. Originally built by the U.S. military during World War II, it has transformed into a modern hub managed by Isavia, which oversees air traffic in Iceland.
The airport offers various amenities and operates 24/7 to handle the busy flight schedules. For more information on flights and services, check out the their official website.
Is Keflavik Airport the Same as Reykjavik Airport?
One of the most common questions travelers ask is whether Keflavik Airport is the same as Reykjavik Airport. And the answer is no. Keflavik handles almost all of Iceland’s international flights, while Reykjavik Domestic Airport (RKV) is primarily for domestic flights within Iceland, as well as a few flights to Greenland and the Faroe Islands.
RKV is located much closer to Reykjavik’s city center, but it does not operate international routes outside of the nearby locations mentioned. Therefore, when you’re flying into Iceland from abroad, you’ll most likely land at KEF. Ensure that if you are booking any rental car or transportation that you set your pickup point as KEF and not RKV, as this is a common mistake travelers make that can lead to extra headaches when you arrive.
What’s Inside Keflavik Airport?
Since Iceland is such a small country, you might assume that the airport is pretty basic. That said, Keflavik International Airport is more than just a place to catch your flight. The facility is well-designed, with a range of amenities and services to ensure your journey is as comfortable as possible. The terminal is compact but efficient, making it easy to navigate, even for first-time visitors.
Car Rental at KEF: Arrival Hall
One of the most convenient services offered at KEF is its car rental facilities. Iceland is a country best explored by road, and renting a car will give you the freedom to access all of the top attractions in Iceland and design a custom itinerary based on your own preferences and pace. And fortunately, you won’t even need to leave the airport to pick up your rental car. This is hugely beneficial since it skips the step of securing transportation from the airport to an external rental car facility.
There are four different rental car companies that operate inside the airport, and Hertz Iceland is one of them. The rental desk is conveniently located in the arrival hall, meaning you can sort out your rental car as soon as you land.
Hertz Iceland offers 24/7 services at KEF, which means that you can pick up or return your vehicle no matter what time your flight arrives or departs. Whether you’re starting your Iceland road trip immediately after landing or need to return your car for a red-eye flight, Hertz ensures that your car rental experience is seamless.
When you arrive at KEF, simply follow the signs to the car rental desks in the arrival hall. You’ll also be able to check in and collect your vehicle with minimal hassle, especially if you’ve pre-booked your rental car online. If you want to know more about renting a car from KEF, you can visit Hertz Iceland’s KEF page or check out our tips for renting a car from KEF.
VAT Refund Desk, Customs, and Currency Exchange
If you’re traveling internationally, getting a VAT refund can help you save on big purchases in Iceland. The VAT rate is 24%, and you can claim a refund on items over ISK 6,000.
To make things easy, fill out the VAT refund form before you reach the airport. If your items are in checked luggage, stop by the customs counter in the departure area to get a customs stamp—this step is crucial.
After that, head to the VAT refund desk, where you’ll submit your form. Iceland works with VAT refunds, so they’ll handle it. If the desk is closed, you can drop your documents in a collection box.
- VAT Refund. Open from 4:30 AM to 9:00 PM every day
Also, KEF airport offers currency exchange services if you need to convert any leftover Icelandic krona (Iceland local currency)before heading home.
Food and Shops
One of the perks of flying out of KEF is the great selection of food and shopping options that are available in the departure hall, especially once you’ve cleared customs. Whether you’re looking for a last-minute Icelandic souvenir or need to grab a bite before your flight, KEF has plenty to offer.
When it comes to shopping in Iceland, you’ll discover a variety of local brands, which are perfect for picking up unique souvenirs. Check out 66°North for durable outerwear designed for the island’s tough weather, or grab some skincare products from Blue Lagoon, made from the spa’s natural minerals. Don’t miss Epal for Scandinavian furniture and Kormakur and Skjoldur for traditional knitwear.
Make sure to visit the duty-free store, where you can find local treats like Icelandic chocolates and spirits, as well as luxury goods. It lines up with flight schedules, so it’s open while flights are running. A tip: alcohol is pricey in Iceland, so the duty-free shop is the best place to stock up.
If you’re hungry before your flight, there are plenty of dining options. From quick bites at Bakad to sit-down meals at Keflavik Diner and Jomfruin featuring Icelandic cuisine, you’ll have choices galore. There’s pizza, local beers, and even a Baejarins Bestu for that last taste of Icelandic hotdogs. If you’re in a rush, grab-and-go options are also available.
Arriving in Iceland? The food choices in the arrival hall are limited to a small bakery and a convenience store, perfect for a quick snack after your flight.
How to Get In and Out of Iceland Airport
Keflavik International Airport is well connected to Reykjavik and other parts of Iceland, so getting in and out of the airport is relatively straightforward.
Rental Car
The most convenient and straightforward way to get out of Keflavik International Airport is via a rental car. Driving in Iceland is incredibly safe and offers the freedom to visit remote areas that public transport may not reach. As mentioned earlier, Hertz’s car rental services are available 24/7 at the airport (not all of the rental car companies at the KEF arrival hall offers 24/7 rental services), making it easy to pick up or return your vehicle at any time. Driving from KEF to Reykjavik takes about 45 minutes, and the well-maintained roads along the peninsula make for a scenic and pleasant drive.
Bus
If you’re not driving during your visit, there’s a reliable bus service from KEF to Reykjavik. Companies like FlyBus run regular routes, with the trip taking about an hour to an hour and a half, depending on traffic. The buses are comfortable and have free Wi-Fi, so you can stay connected. Just keep in mind that while public transport is available in Reykjavik, renting a car is the best way to explore all that Iceland has to offer, unless you prefer organized tours.
Taxi
For those who prefer door-to-door service, taxis are available 24/7 at Keflavik Airport. However, be prepared for a steep fare. Iceland is known for being a relatively expensive destination, and taxi rides from KEF to Reykjavik can cost significantly more than a bus ticket or rental car. Taxis may be worth considering if you’re traveling with a group or have a lot of luggage.
Tips for Arriving and Departing from KEF
Whether you’re arriving in Iceland or preparing to fly home, a few tips can help you make the most of your time at KEF and avoid unnecessary stress.
Arriving at KEF
When you arrive, one of the first things you’ll want to do is visit the duty-free shop located near the baggage claim area. This is the best place to pick up tax-free goods before officially entering the country, especially alcohol, which can be more expensive when purchased in Reykjavik. Keep in mind that Iceland’s VAT is 24%, so duty-free shopping can provide significant savings.
Once you’ve grabbed your luggage, head to the car rental desk if you’ve pre-booked a rental car, or make your way to the bus or taxi stand to reach your accommodation in Reykjavik or elsewhere in Iceland.
Departing from KEF
If you’re departing from Keflavik, make sure to arrive at the airport at least two to three hours before your flight. Even though the airport is small, the check-in process, customs, and security checks at KEF can be time-consuming, especially during peak tourist seasons. After clearing security, you’ll have access to the airport’s various shops and restaurants, so there’s no need to rush through the airport.
Be sure to take care of any VAT refund paperwork before heading through security. Once you’re past security, you won’t be able to access the customs desk, so it’s important to sort out your VAT refund ahead of time. Remember to keep your receipts handy, as customs will need to verify your purchases before issuing the refund.
Final Thoughts on Keflavik International Airport
Keflavik International Airport may be small by international standards, but it plays a vital role as Iceland’s gateway to the world. With its modern facilities, helpful services, and convenient transport options, KEF offers a smooth experience for travelers arriving in and departing from Iceland.
With Hertz Iceland rental car facilities located right in the airport, you can pick up and drop off your rental car without hassle. Ensure you book your rental car online and in advance to streamline you experience at Keflavik International Airport even more and ensure that your trip to Iceland gets off to an amazing start.
