On Friday (25 February), all public and border regulations in relation to Covid were removed for all visitors, regardless of vaccination status. The country’s quarantine requirement for those infected was also lifted.
In a statement, the country’s health ministry said it wanted "as many people as possible" to be infected with the virus to achieve "widespread societal resistance".
"We can truly rejoice at this turning-point, but nonetheless I encourage people to be careful, practice personal infection prevention measures and not to interact with others if they notice symptoms," the minister for health said.
The UK Foreign Office said: "All Covid-19 related travel restrictions for Iceland have now been removed from 25 February 2022. Domestic restrictions have also been removed."
Steve Heapy, chief executive of Jet2.com and Jet2CityBreaks, described the move as an "enormous step towards normality".
"We applaud the Icelandic government for leading the way when it comes to reopening international travel and we are confident that other nations will follow suit," he added.
"We are already seeing very strong demand for flights and trips to Iceland and we expect that demand to step up even further following this extremely positive news."