The use of Virtual Private Networks (VPNs) is entirely legal in Iceland, reflecting the country's strong commitment to digital rights. There are no specific laws that prohibit individuals or businesses from utilizing this technology to secure their internet connection or mask their IP address. The nation is consistently ranked as one of the best environments for internet freedom globally, where users experience minimal restrictions on the content they can access online (1).
While privacy tools are legal, the nation enforces specific data retention laws that impact internet service providers. The regulatory framework requires these providers to store communications data, such as IP addresses, for a set duration to aid law enforcement. This legal obligation for ISPs underscores the intersection between user privacy rights and state-mandated surveillance measures for investigating serious criminal offenses (2).
"There are no government-imposed restrictions on connectivity in Iceland, and the government does not exercise technical or legal control over the ICT infrastructure. According to Article 72 of the Electronic Communications Act, the government can “close” or “restrict” the internet “in times of hostilities” or during emergencies."
The country generally abstains from blocking or filtering online content, fostering an environment where digital tools can be used without interference. Political, social, and religious websites remain accessible, and the government does not impose technical controls on the infrastructure. This approach ensures that individuals can utilize connection-securing software to protect their online presence without facing state-imposed barriers or censorship mechanisms (1).
Source:
https://freedomhouse.org/country/iceland/freedom-net/2024
https://pub.norden.org/temanord2024-532/8-iceland.html
Last updated: 11-01-2026 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
