Ties between Germany and Iceland extend back more than a thousand years, weaving together history, culture and commerce. While today both nations maintain embassies in each other’s capitals and cooperate in international organisations, the roots of their relationship run much deeper.
Early contacts and religious links
Europe’s old legends reference Iceland even in the early medieval era. The saga of the Nibelungs, for example, placed the fictional Queen Brünhild in Iceland, suggesting northern lands held a mysterious allure. Real contact began by at least the late 10th century, with a German missionary bishop, Frederick, arriving in 981 to support the island’s Christianisation. In the following decades, priests such as Þangbrandr (also known in German as Dankbrand) continued these efforts.
Church connections with German-speaking lands were strong in the centuries that followed. Iceland’s first bishop, Ísleifur Gissurarson, was consecrated in the city of Bremen in 1056. Until 1104, the bishopric at Skálholt in southern Iceland remained under the spiritual authority of Bremen’s archbishop. It was also in Germany, during the 11th century, that Adam of Bremen wrote the first German-language accounts of Iceland.
Trade, upheaval and migration
Economic relations took off from the 15th century, with German merchants, particularly from Hamburg and members of the Hanseatic League, serving as major trading partners. This trade not only brought goods but technology and cultural influences. The art of printing reached Iceland by way of Hamburg: the first Icelandic script was published there in 1530 and the first printing press arrived soon after. The spread of Lutheranism in Iceland also traced its paths to influences from Germany.
Ties were not without tension. Trade restrictions imposed by Denmark between 1602 and 1787 disrupted direct commerce between Iceland and German cities. In the modern era, World War II marked a significant turning point. During the war, Iceland was cut off from Denmark after German forces occupied Denmark and Norway, and in 1944, a German submarine attack claimed lives on board the Icelandic ship Goðafoss.
Postwar migration left a more positive legacy. In 1949, hundreds of German workers, mostly women, arrived in Iceland to help on farms, answering the country’s call for agricultural labour. Many settled permanently, marrying Icelanders and contributing to the ties that now bind the two countries at a family level.
Modern cooperation and cultural exchange
Formal diplomatic relations were established in 1952, and the German and Icelandic embassies remain important links today. Shared values underpin collaboration in NATO, the United Nations, and a range of economic forums. Economic ties remain strong: Germany is one of Iceland’s key partners in trade, buying processed goods and marine products, while German exports to Iceland include vehicles and industrial equipment.
Cultural connections continue as well. Organisations promote language learning, and both countries participate in scientific projects, particularly in marine and Arctic research. The Goethe-Institut and academic exchanges foster educational ties, while descendants of German postwar immigrants have contributed a new dimension to Icelandic society.


