You will find all the latest news and regulation regarding Covid19 on the official information site: covid19.is. Make sure you meet all conditions before you travel and follow all the guidelines in place at each moment. Things are looking good for the rest of 2021 but the situation will always be fluid and can change quickly.
Iceland is 103.000km2 (39.000 square miles) and is crossed by the Arctic Circle at it's northernmost point. Born from the sea by volcanic forces around 20 million years ago, Iceland is the youngest country in the world. Volcanic forces are still very active, with an eruption every five years on average. The landscape is mountainous in character, typified by the rugged and uninhabited interior highlands with sharp, deep fjords on the north and east coasts, and plains and sands on the south coast. 24% is at an altitude of less than 200m, mostly around the coast. Glaciers cover 12% and the rest is mostly deserted wasteland.
Most likly you will be arriving in Iceland at Keflavik airport. Lucky for cyclist Isavia, who operate the airport, has set up a Bike Pit area to welcome cyclist to Iceland. It's located outside the main building and cyclist can bring their luggage there and assemble their bikes with the tools provided away from the often crowded areas inside the airport. It's open 24/7, free to use and nicely decorated as you can see.
