International industries: filmmaking in Iceland

To shine a light on Iceland, we talk to president of the Icelandic Society of Cinematographers Tómas Örn Tómasson, RVK Studios’ Steinunn L Gunnlaugsdóttir and CEO / founder of Truenorth Leifur B Dagfinnsson about the country’s incentives, offerings and hopes for the future

Words Oliver Webb

The Land of Fire and Ice is home to the oldest parliament in the world (established in 930 AD) and over 100 different words for wind, my personal favourite being hundaveður – meaning weather that you wouldn’t send your dog outside in. It is also renowned for some of the most stunning landscapes – glaciers, waterfalls, black sand beaches, volcanoes and lagoons – making it a filmmaker’s paradise. 

The film industry is still very much in its infancy in Iceland but is rapidly growing. In 1979, the government launched the Icelandic Film Fund and around a decade later, Children of Nature (1991) was nominated for best foreign language film at the Academy Awards. After the 1999 Reimbursement Act and the establishment of the Icelandic Film Centre in 2001, it became much easier for Icelandic directors to co-produce, secure overseas funding and reach global audiences.

One of the productions to stabilise the country’s industry was the children’s TV show LazyTown (2004-2014) – LTS Garðbær Studios was built specifically for it. But the big breakthrough came in 2022 when the reimbursement incentive was increased to 35% and the producers of True Detective decided to shoot the show’s fourth season in Iceland.

There have also been a number of notable Icelandic films in recent years, including The Love That Remains, Lamb and Godland. Despite producing eight to ten full-length films per year, Iceland attracts a range of global productions, with Game of Thrones, Captain America: Civil War, Interstellar and The Odyssey all partially filmed there.

Film funds

In 2011, the Icelandic Society of Cinematographers (ÍKS) was founded and is a member of umbrella association IMAGO. Tómas Örn Tómasson currently serves as the society’s president, having recently taken over from one of the founders, Bergsteinn Björgúlfsson. 

ÍKS represents the views and interests of Icelandic cinematographers to the government, Icelandic Film Fund and the movie industry. “Since ÍKS was founded, it has grown into being a stamp of approval for international productions who come to Iceland and want to use local cinematographers,” says Tómasson.

Once per year, IMAGO puts on a conference where members of the association of cinematographers from each country meet up in order to discuss what’s been happening in the industry. “I went to Vienna last autumn for one of the meetings and was able to participate in the 50-year anniversary of the Austrian Association of Cinematographers,” adds Tómasson.

Tómasson is also on the board of a film festival called Stockfish, which is owned and run by associations in the film industry. He admits that the last six months in Iceland have been fairly challenging as the industry slowly recovers from the effects of Covid-19 and the Hollywood strikes. “It’s still hitting us a few years later, but lots of my colleagues around the world have said the same thing. There were lots of projects that were greenlit before Covid that just fell off the wagon.”

Icelandic incentives

The main financial incentive is Iceland’s production cost rebate. In 2022, Iceland increased the reimbursement rate for foreign film and television productions to up to 35% under certain conditions. The purpose of the change was to make Iceland more competitive internationally and attract larger film and television productions to shoot in the country.

Beyond the financial incentive, Iceland offers a number of practical advantages. It is one of the safest countries in the world and incredibly well organised, with strong infrastructure, good access from Europe and North America and a film community that is used to servicing international productions. The country also offers very experienced production houses such as RVK Studios, Truenorth, Sagafilm, Pegasus Pictures and Glassriver.

What has changed over the years is the depth of production experience around those locations. “Iceland now has producers, crews, production service companies, studio facilities and post-production knowledge that allow international productions to come here with assurance they will have all the support they require,” says Steinunn L Gunnlaugsdóttir, general manager at RVK Studios. 

She says RVK Studios has seen this development from many sides. “The experience of working in Iceland on both our own domestic projects, with international partners and as service providers, has been important in understanding what productions need at all levels,” she continues. “The Icelandic cost rebate has also been an important part of the growth. The reimbursement scheme makes the country more competitive. The incentive works best when it is combined with strong local partners who understand the creative, logistical and financial realities of production.”

According to Leifur B Dagfinnsson, CEO and founder of Truenorth, Iceland currently offers 8000 sq m of stage facilities, including production offices, workshops and supporting infrastructure, providing everything that is needed to service projects of every scale. And there are even plans to double that capacity in the future.

Dagfinnsson adds that, beyond the financial incentives, Iceland offers something few countries can match: “An incredible diversity of locations within short travel distances, a safe and efficient working environment, experienced English-speaking crews and a long track record of hosting some of the world’s biggest film and television productions.”

Weathering storms

Iceland is well known as a location destination but isn’t widely recognised for studio and full-service production. Gunnlaugsdóttir argues the industry has grown beyond that. “At RVK, we have invested in production infrastructure, including one of the largest studio facilities in Europe, because we know the country can support much more than location shooting.”

Gunnlaugsdóttir suggests that numerous factors have driven the growth in Iceland becoming a popular destination for international productions. While Iceland’s natural environment is often the first attraction, the real reason productions keep coming back is that the production community has become more mature, experienced and home to internationally sought-after talent.

“Iceland gives access to unique environments, but also to people who know how to work in those conditions,” she adds. “Shooting in Iceland requires local knowledge, as well as planning and experience, especially when productions are working in remote areas or with changing weather and light. Having the right Icelandic production partner can make a major difference.”

There is also a creative incentive, and Iceland has a strong identity on screen. “It can represent other worlds, remote landscapes or extreme environments, but it can also bring its own cultural and cinematic character to a project. For many productions, that combination is very valuable,” Gunnlaugsdóttir says.

As the weather is so temperamental, productions will often rely on studios for weather cover, waiting for storms to pass. “There is a saying in Iceland: ‘If you don’t like the weather, wait five minutes because it’s constantly changing’,” says Tómasson. “International productions are beginning to realise that Icelandic cinematographers are prepared for the weather conditions and know how to handle the changes. Due to this, DOPs from here are often used in main or second units. For example, a scene in the final episode of Stranger Things was filmed here and I was hired to shoot it due to adverse weather conditions and crew unavailability.”

Looking ahead

The Icelandic industry might be small, but it is also ambitious, outward-looking and experienced well beyond its size. The challenge is mainly maintaining continuity, growth and balance.

International productions bring valuable experience, investment and visibility to Iceland, allowing local crews and companies to work at an international level and build relationships with global partners. “It is equally important that this growth strengthens Icelandic filmmaking as well,” says Gunnlaugsdóttir. “A healthy industry needs both incoming international production and a strong local creative ecosystem.”

In terms of talent, many Icelandic filmmakers and crew members do work internationally, but Gunnlaugsdóttir sees that as a positive. “Icelandic crews often move between Iceland and other markets, bringing back experience, relationships and knowledge. The goal is to make Iceland a place where people can continue to return, create and build long-term careers.”

What gives Gunnlaugsdóttir hope for the future is that Icelandic cinema has a strong identity and is increasingly connected to the world. She argues Icelandic stories can travel and its filmmakers have shown that a small country can have a large presence.

Dagfinnsson says that the local Icelandic production landscape is more challenging at the moment, as the government has not provided the Icelandic Film Centre with the funding required by law. “We are actively pushing for increased support to protect and strengthen Icelandic filmmaking. Despite these challenges, the industry remains resilient. Iceland has built a strong reputation internationally and we believe the future is bright as long as the necessary support is put in place.”

Iceland has always punched above its weight creatively and has an exceptional tradition of storytelling. Dagfinnsson argues that, although there have been recent challenges, he is optimistic about the future. “Being the oldest storyteller in northern Europe with the Icelandic sagas, Iceland has world-class filmmaking talent and landscapes that continue to inspire filmmakers from every corner of the globe.”

The biggest threat to the industry remains an issue the rest of the world is currently facing: people are going to the cinema less. “That is something I worry about,” says Tómasson. “Streaming services help the industry, but also keep the audience at home, so it’s a double-edged sword. On a positive note, I have felt that the industry is recovering and more news is coming about productions in the ‘start holes’ like we say in Icelandic. I’m also hopeful that the recent success of The Odyssey shows people that the cinematic experience is always special.”

Tómasson stresses the importance of depicting Iceland on screen as it helps boost the tourism industry. “The government are starting to make that connection, but I’d like them to realise it more,” he says. “If it wasn’t for the reimbursements, we wouldn’t have big productions coming here.”

Despite recent setbacks and industry woes, the future is bright for the Icelandic film industry. As they say, ‘enginn verður óbarinn biskup’ (nobody becomes an unbeaten bishop).

This article appears in the August/September 2026 issue of Definition