Last updated: June 2026 | Reviewed by the Hertz Iceland Team
The BMW X5 Plug-in Hybrid is a luxury 4×4 SUV available as a guaranteed model with Hertz Iceland. It’s a strong choice for the Ring Road and main paved/gravel routes, offering high comfort and performance — but it is not permitted on F-roads.
BMW X5 Rental in Iceland: 4×4 Luxury SUV Guide
The BMW X5 Plug‑in Hybrid is a powerful 4×4 luxury SUV rental in Iceland, combining high-performance engineering with premium comfort and modern hybrid efficiency. As part of the Luxury Fleet, it is ideal for travellers who want a smooth, safe, and luxurious drive on Iceland’s top routes, from Reykjavík and the Golden Circle to longer Ring Road adventures.
Is the BMW X5 Good for Driving in Iceland?
Yes, absolutely. The BMW X5 Plug‑in Hybrid is an excellent choice for driving in Iceland, especially if you value performance and comfort on longer itineraries.
- Real-World Space: A couple driving the Ring Road for 10 days with 2–3 large hard‑shell suitcases plus camera gear will find the boot and rear seats more than sufficient. A family of 4 on a long weekend trip will also fit comfortably.
- Performance: Its intelligent 4×4 (xDrive) system and powerful engine (approx. 390+ HP) provide confident acceleration and stability on Iceland’s paved roads and main gravel stretches, even when conditions are wet, windy, or lightly snowy.
- Cabin Comfort: Inside, the X5 offers a spacious, premium cabin with three‑zone climate control and heated seats—essential for keeping drivers and passengers comfortable on 4–6 hour driving days.
- Safety Tech: Advanced driver‑assistance features, such as adaptive cruise control and lane support, help make long Iceland drives safer and less tiring.
When Is the BMW X5 the Right Choice?
- Summer (May–September): Ideal for full Ring Road journeys (7–10 days) and premium self‑drive itineraries where you want strong performance and an extra safety margin on longer distances.
- Winter (October–April): Very well suited for Winter on Iceland’s main roads. When equipped with our winter tyres, the X5 offers significantly more stability and confidence than smaller SUVs.
⚠️ Not ideal if:
- You plan to drive into the Icelandic Highlands or on F‑roads (e.g., Landmannalaugar or Þórsmörk). This vehicle is not allowed there.
- You are a group of 5 tall adults with 5 large suitcases. (For this, we recommend a [[Link to Land Rover Defender]] or a large 7-seater).
Rental Requirements & Restrictions
- Minimum Age: 25 years old.
- License: Valid driving license held for a minimum of 1 year.
- An International Driving Permit (IDP) / International Driving License (IDL) is also required if your national driving license is not in Roman script.
- Payment: Valid credit card under main renter’s name is required.
- F-Road Policy:STRICTLY FORBIDDEN.
- The BMW X5 is not allowed on F-roads (Highland tracks).
- It is allowed on Road 35 (Kjölur) and Road 550 (Kaldidalur) only when conditions are clear and open.
Inside the BMW
Step inside the BMW X5 and you’ll immediately understand why it set the standard for the luxury SUV segment. The cabin blends premium leather seating, soft-touch surfaces, and BMW’s intuitive iDrive infotainment system into a space that feels genuinely first-class. Dual-zone climate control, heated seats, and a panoramic sunroof keep every passenger comfortable, whether you’re on a short city transfer or a full Ring Road adventure.
Rear passengers enjoy generous legroom, and the ambient lighting sets the mood for Iceland’s long summer evenings and moody winter drives.
When you hire a BMW X5 with Hertz Iceland, comfort is never an afterthought.



BMW X5 Dimensions, Seating and Luggage For Your Trip
The BMW X5 belongs to the mid-size SUV class and offers a well-balanced combination of size, comfort, and practicality. Here’s a quick overview of the key specs:
| Feature | Specification |
| Drive System | 4×4 (AWD – xDrive) |
| Transmission | Automatic |
| Fuel Type | Plug-in Hybrid (Petrol + Electric) |
| Seats | 5 (Best for 2–4 Adults + 1 Child) |
| Luggage Capacity | 3 Large Suitcases + 2 Small Bags |
| Best For Trips | Ring Road (7–10 Days), South Coast, Luxury Getaways |
| Allowed Road Types | Paved Roads & Standard Gravel. NO F-Roads. |
💡 Hertz Insider Tip: “In Iceland, treat the BMW X5 Plug‑in Hybrid as a powerful petrol 4×4 that has a bonus electric motor. You do not need to hunt for chargers. Use the electric mode for short Reykjavík drives or hotel‑to‑dinner trips, but rely on the powerful petrol engine for longer days on the Ring Road where fast‑charging is less common.
The BMW X5’s boot comfortably fits 3 large hard-shell suitcases plus 2 smaller soft bags. Rear seats fold flat for extra room, making it a natural fit for travellers carrying cold-weather gear, hiking kit, or camera equipment across Iceland. For couples and small families travelling together, the X5 offers a genuinely premium amount of usable space.
Why Rent the BMW X5 with Hertz Iceland?
- Choosing Hertz Iceland means you are renting from a locally owned operator with over 50 years of experience. We are proud to be recognized as Iceland’s Leading Car Rental Company at the World Travel Awards.
- Guaranteed Model: When you book this category, you drive this specific BMW X5 mode.
- Safety First: We equip every BMW X5 with season‑appropriate tyres (studded in winter if needed) and provide 24/7 emergency phone assistance across the entire island.
- Convenience: Pick up your car directly at KEF Airport Arrival hall or our downtown Reykjavík office.
Roadside Assistance
Help when you need it most — covering the towing fees for common situations on the road.
Pricing
| Stand-alone Roadside Assistance | 1,990 kr./day |
| With Max Cover Roadside Assistance | 990 kr./day |
Pro Tip: The Hertz Iceland Difference
Travel with peace of mind. We offer a Newer, Reliable Fleet (under 2 years old, low mileage), a Prime Location (inside Keflavik Airport (KEF) arrival hall), and comprehensive, cross-country Nationwide Support with premium customer service—just a phone call away.
History of BMW
BMW, which stands for Bayerische Motoren Werke, was founded in 1917 through a merger of several German companies including Rapp Motorenwerke and Bayerische Flugzeugwerke. In its earliest years, the company focused on aircraft engines, railway brakes, and farm equipment, contributing to both World War efforts.
BMW’s transition into passenger vehicles began in 1928, though it was not until the 1960s that the brand truly found its identity. The launch of the Neue Klasse range of sports sedans defined the direction BMW would take for decades: high-performance, driver-focused vehicles that didn’t compromise on luxury or style. From that point forward, BMW grew into one of the world’s most respected automotive manufacturers.
The BMW X5, launched in 1999, was a pivotal moment in the company’s history. It effectively created the luxury SUV category as we know it today, combining the space and capability of an SUV with the dynamic handling and premium refinement that BMW drivers expected. More than two decades later, the X5 continues to lead its class and remains one of the most sought-after vehicles in the world.
Hiring a BMW X5 rental in Iceland means getting behind the wheel of a true icon.
Rental Locations
Hertz Iceland offers a network of convenient pick-up and drop-off locations across the country, making it easy to start your BMW X5 rental car wherever your journey begins.
Our Iceland Rental Locations
Keflavík International Airport (KEF)
Summer (1 May – 30 Nov): 24/7
Winter (1 Dec – 30 Apr): Mon-Sun: 05:30–02:00
Reykjavík Downtown
Mon–Fri: 08:00–17:00 | Weekends: 08:00–15:00
Self-service pick-up outside staffed hours
Reykjavík Domestic Airport (RKV)
Weekends: 09:00–15:00
Keflavik Downtown
Akureyri Airport (AEY)
Key box pick-up during terminal hours
Egilsstaðir Airport (EGS)
Key box pick-up available
Ísafjörður Airport (IFJ)
Key box pick-up available
Höfn Airport (HFN)
Hafnarfjörður Selhella (HQ)
Weekends: CLOSED
Bíldudalur Airport (BIU)
Contact to confirm: hertz@hertz.is
Skagaströnd Support Station
Contact to confirm: hertz@hertz.is
Important: New Iceland Road Tax (2026)
As of January 1, 2026, the Icelandic government requires a mandatory Kilometer Tax on this vehicle type. This replaces traditional fuel taxes with a usage-based fee.
✔ Transparent Pay-Per-Km Pricing
- Government Road Tax: 6.95 ISK / km
- Hertz Service Fee: 1.40 ISK / km (+ VAT)
*Approx. 0.056 USD/km (Gov) + 0.011 USD/km (Service). Charged based on actual distance driven at the end of your rental.
Questions? For inquiries regarding the Icelandic Road Tax or billing specifics, please contact our dedicated support team at: roadtax@hertz.is
Road Trips with BMW X5
The Golden Circle
Iceland’s most beloved day trip is even better in a BMW X5 rental car. The 300km loop from Reykjavík takes you through Þingvellir National Park, the erupting Geysir geothermal area, and the iconic Gullfoss waterfall.
Roads are fully paved throughout, letting the X5’s smooth ride and powerful engine do what they do best. The panoramic sunroof adds a front-row seat to Iceland’s epic skies, and iDrive navigation keeps the route stress-free from start to finish.
The South Coast to Jökulsárlón
Pick up your BMW X5 hire at Keflavík and head east along Iceland’s stunning South Coast . The route passes Seljalandsfoss and Skógafoss waterfalls, the black sand beach at Reynisfjara, and culminates at the breathtaking glacier lagoon at Jökulsárlón.
At roughly 600 km round-trip, the X5’s 650-litre boot handles everything you pack for a multi-day trip, while the raised ride height gives you a commanding view of the landscape at every stop.
Reykjavík to Akureyri via the Ring Road
For a deeper look at Iceland, a BMW X5 car rental from Reykjavík heading north along the Ring Road delivers scenery you won’t forget. Drive through lava fields, stop at Goðafoss waterfall and Mývatn lake, and arrive in Akureyri, Iceland’s charming northern capital.
The X5’s all-wheel drive and refined suspension manage Iceland’s varied road conditions with ease. Drop the vehicle at Hertz Akureyri Airport when you’re ready to fly back south.
BMW X5 | Guaranteed Mode FAQ
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Is the BMW X5 a guaranteed model?
Yes. When you book this specific category with Hertz Iceland, you are guaranteed to receive a BMW X5. We do not apply the “or similar” rule to this luxury class. You get exactly the premium experience you booked.
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Is the BMW X5 a guaranteed model?
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Is the BMW X5 good for winter driving in Iceland?
Yes. The BMW X5 4×4 is excellent for winter driving on Iceland’s main roads (Ring Road, Golden Circle). Its heavy chassis, intelligent AWD system, and our season-appropriate winter tyres provide superior traction and stability compared to lighter SUVs.
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Is the BMW X5 good for winter driving in Iceland?
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How much luggage actually fits in the BMW X5?
The boot comfortably fits 3 large hard-shell suitcases plus 2 smaller soft bags. For couples, folding the rear seats creates a massive space for extra gear, camera equipment, or bulky winter clothing.
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How much luggage actually fits in the BMW X5?
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Can I drive the BMW X5 to Landmannalaugar (F-roads)?
No. Even though it is a 4×4, the BMW X5 is strictly forbidden on F-roads (highland tracks) like the route to Landmannalaugar or Þórsmörk. It is permitted on road 35 (Kjölur) and 550 (Kaldidalur) only when conditions allow.
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Can I drive the BMW X5 to Landmannalaugar (F-roads)?
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BMW X5 vs Dacia Duster – which is better for Iceland?
It depends on your trip. The Dacia Duster is a budget-friendly manual 4×4 that is allowed on F-roads. The BMW X5 is a premium automatic luxury SUV strictly for main roads, offering significantly higher comfort, silence, and horsepower.
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BMW X5 vs Dacia Duster – which is better for Iceland?
BMW X5 is a Guaranteed Model
- When you rent the BMW X5 Plug-in Hybrid from Hertz Iceland, you are assured to receive this exact model, providing a premium and reliable driving experience for your Iceland adventure.
More car features are listed below. Get more information about our car coverages and Extras, and detailed rental requirements by clicking the links.
End your journey planning with confidence by choosing a BMW X5 Plug‑in Hybrid rental in Iceland that combines luxury, power and local expertise from Hertz Iceland. With a spacious interior, advanced safety features and Iceland‑ready 4×4 capability, it is a premium choice for travellers who want both comfort and peace of mind on Iceland’s roads.























