When meeting a business counterpart in Iceland, a handshake is the normal form of greeting. Businesspeople are expected to dress smartly, although casual wear is widely accepted for social functions. Although an Icelander's second language is generally Danish, a very high proportion of the population is fluent in English.

July is the holiday month and offices often close down for a three-week annual break. Standard office hours are Monday to Friday 0900-1700 (although many firms alter this to 0800-1600 during the summer).

Characteristically, Icelanders can be quite reserved (except on Friday and Saturday nights) but very direct. Visitors are often invited into homes (especially if on business) and bringing a gift for the host is the norm (a bottle of foreign wine is always welcomed). Instead of surnames, the majority of Icelanders use the system of patronymics. Instead of a surname the first name of the father is used plus son (son) or daughter (dóttir). Because of this, the telephone directory is listed by first name.