[magicalhippo]

Iceland, like Norway where I'm from, is part of the European Economic Area[1] through the European Free Trade Association[2], but not a full EU-member. They get access to the EU single market, by agreeing to implement EU legislation in a number of areas.

It can be quite confusing at times. For example, both Iceland and Norway are part of the Schengen agreement[3], so in that respect we're "from EU" when traveling.

[1]: https://en.wikipedia.org/wiki/European_Economic_Area

[2]: https://en.wikipedia.org/wiki/European_Free_Trade_Associatio...

[3]: https://en.wikipedia.org/wiki/Schengen_Agreement

[nibbleshifter]

Its always confusing to people that "not all in Schengen are in the EU, and not all the EU are in Schengen".

Its incredibly useful for visa reasons though.