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Ahsan Mukhtar

Iceland IBAN

IS·ISK·SEPA

By Awais ImranUpdated October 18, 2026IBAN formats match the SWIFT IBAN RegistryOur methodology

A Iceland IBAN is 26 characters long and Iceland is in SEPA.

IS and two check digits open every Iceland IBAN; its remaining 22 form the BBAN (Basic Bank Account Number).

Example Iceland IBAN

Electronic format

IS140159260076545510730339

Print format

IS14 0159 2600 7654 5510 7303 39

IBAN structure for Iceland

Country code

IS

Check digits

14

Bank code

0159

Branch code

26

Account number

007654

Identification number

5510730339

Total length26 characters

Format reference: SWIFT IBAN Registry.

Iceland IBAN questions

Can someone in the euro area pay an Icelandic account by SEPA transfer?

Yes, in euros. Iceland is in the European Economic Area, and the EPC's December 2025 register of SEPA scheme countries, version 8.0, places it among the EU and EEA members with ISK as its currency. SEPA covers electronic payments in euros, so a payment meant to arrive in krónur travels outside it.

Who supervises banks in Iceland?

The Central Bank. The Financial Supervisory Authority merged into it at the turn of 2020 under the Act on the Central Bank of Iceland, no. 92/2019, which took effect on 1 January 2020. Supervisory decisions rest with the bank's Financial Supervision Committee, and one of three deputy governors covers financial supervision.

Are there still capital controls on money sent to Iceland?

Most ended in March 2017. Rules on Foreign Exchange effective 14 March 2017 lifted most of the restrictions imposed on households and businesses since autumn 2008, including the requirement for residents to repatriate foreign currency. The Central Bank kept limits aimed at carry trade, such as on derivatives trading other than hedging.

Iceland: krónur through Seðlabanki's own payment system

Payments in Icelandic krónur settle through an interbank system owned and operated by Seðlabanki Íslands, the Central Bank of Iceland. In September 2024 the bank called it the foundation of payment intermediation in the króna, made up of a real-time gross settlement component and an instant payment component called EXP, which also settle securities and card payments. That month it began assessing the Eurosystem's TARGET services, starting with the TIPS instant payment platform.

On 24 June 2026 the ECB and Seðlabanki Íslands signed an agreement for Iceland to join TIPS, so that króna payments settle instantly in central bank money from 2028. The króna will be the fifth TIPS currency, after the euro, the Swedish krona and the Danish krone, with the Norwegian krone also due in 2028.
Alongside TIPS, the Central Bank is working with deposit institutions on a domestic system for payment requests between bank accounts, under its full control and hosted in Iceland. Payments 2025 says the system would be independent of foreign ownership and foreign infrastructure, letting users pay merchants and service providers with a smartphone app.
Payments 2025, published on 4 June 2025 as the bank's first standalone payments report, says most Icelandic payments are digital, chiefly cards and electronic transfers. Citing rising cyberattacks and geopolitical risk, the bank is examining a way to keep card payments working at physical outlets without an internet connection.

Sources: ECB: Iceland joins TIPS for instant payments (24 June 2026); Central Bank of Iceland: TARGET services assessment (Sep 2024); Central Bank of Iceland: Payments 2025; Central Bank of Iceland: new rules on foreign exchange (2017).