Q: We are a couple from Finland. We visited Iceland two years ago and are coming again next fall. We fell so much in love with Iceland that we want to spend more time there and perhaps move there some day.

Because of financial reasons we can’t rent a car there every year. Because of that we have been exploring the option of owning a car in Iceland.

What are the yearly costs of owning a car in Iceland and what is required for a foreign person to own a car: taxes, inspections, insurances?

Also in Finland there is a cheaper insurance for cars that are used only for few months in a year. Do you have the same arrangement in Iceland?

What is the process of bringing an older truck from Finland and what could it cost? Or is it cheaper to buy a car in Iceland?

Also we have been thinking of taking a sabbatical year from work. What is required in order to live and work in Iceland for a whole year?

Thanks for the great forum!

Ville and Jossu, Oulu, Finland

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A: This was my response to a similar question in 2010:

Contact different insurance companies to compare prices, terms and special arrangements: TM, VÍS, Sjóvá, Vörður and Elísabet. You could expect to pay around ISK 100,000 (USD 875, EUR 653) per year.

As for taxes, they depend on the weight of the vehicle. For the average car you pay approximately ISK 12,500 (USD 109, EUR 82) twice a year. For further information contact the Commissioner of the Inland Revenue.

In the case of older cars, inspection takes place once a year during the month which is stated in the last digit of your car plates. If you will only be here a few months a year, I’m sure you could get an exemption.

To have your car inspected costs around ISK 5,000 (USD 44, EUR 33). For further information, check out Frumherji and Adalskoðun (Tel: +354 590-6900), for example.

Also in 2010, a reader asked whether it would be viable to buy a second-hand car in Iceland and sell it again approximately one month later.

At the Hekla dealership in Reykjavík, I was told that it would hardly be worth the time and money to buy a used car for such a short period of time (which would of course not apply in your case). Very few of the used cars they sell cost less than ISK 1 million (USD 7,800, EUR 5,800).

If you buy a car in Iceland to use here, but not simply to export, you must have a kennitala, an Icelandic ID number, which I believe is only issued to those who live in the country. You can contact the National Registry if you want to check whether there are any exceptions.

If you want to take a look at the used cars currently available at Hekla, they are listed on this website. It is in Icelandic but the information is pretty standard: tegund means “make,” ár refers to the year the car was manufactured, ekinn states how far the car has been driven in kilometers, verð means “price” and tilbodsverð “discount price.” If you click on the make of the car you can see a picture of it.

But the website bilasolur.is is probably the best place to look. It has information about sales agencies and available cars in English. You should contact difference agencies and compare terms and prices.

To bring your car to Iceland from abroad you would either have to drive it to Denmark and take the Norræna ferry (check out the prices here) or have it shipped (check out eimskip.is and samskip.is).

In the latter case there is a customs fee to be paid (to ask how much, contact the Directorate of Customs), although it is possible to obtain a permit for temporary exemption from paying import taxes.

Either way, if you leave your car in Iceland you have to switch to Icelandic license plates after a certain amount of time (for further information, contact the Road Traffic Directorate).

As for parking your car for long periods of time while you’re back in Finland, it might be best to contact the respective local authorities.

The Directorate of Labor has published a guide to living and working in Iceland, including estimated cost of rent, groceries, etc.

You can find information on residence permits and other practicalities on the website of the Directorate of Immigration.