Reykjavík is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. With a population of around 120,000 (and over 200,000 in the Greater Reykjavík Area) it is the heart of Iceland's economic and governmental activity.

Reykjavík is believed to be the location of the first permanent settlement in Iceland, which Ingólfur Arnarson is said to have established around 870. Until the 18th century, there was no urban development in the city location. The city was founded in 1786 as an official trading town and grew steadily over the next decades, as it transformed into a regional and later national centre of commerce, population and governmental activities.

Today, Reykjavík is the centre of the Greater Reykjavík Area, which is the only metropolitan area in Iceland, with a population of 202,000. As a highly modernized capital of one of the most developed countries in the world, its inhabitants enjoy a first-class welfare system and city infrastructure. Its location, only 2 degrees south of the Arctic Circle, receives a maximum of only four hours of daylight on the shortest day in the depth of winter; during the summer the nights are almost as bright as the days. Its was the sole goal of the government to make Reykjavik into international financial center for many years until that dream make to a end in the wake of the global financial crisis but it has continued to see population growth in past years as well as growth in areas of commerce and industry. Reykjavík was ranked first on Grist Magazine's "15 Greenest Cities" list in 2008. Reykjavík's mayor is currently Jón Gnarr, who assumed office on 15 June 2010.

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