Experience a short break holiday in Reykjavik - Reykjavik Vacation and travel information. Reykjavik is the Capital of Iceland, Looking for a car to hire or a Hotel in central Reykjavik. Iceland is an island located in the north Atlantic Ocean, about the same size as the state of Ohio. The population number less than 300,000 people and 2/3 of the population lives in Reykjavik (the capital) and it's surrounding.