[3][4] Iceland remained extremely homogenous from its settlement era until the twentieth century.

[5] According to historian Gunnar Karlsson, "migration from Iceland is unique in that most went to Canada, whereas from most or all other European countries the majority went to the United States.

[8][9] Immigration to Iceland rose rapidly in the late twentieth century, encouraged by Iceland's accession to the European Economic Area in 1994, its entry into the Schengen Agreement in 2001, and the country's economic boom in the early twenty-first century.

[21][22][23] But, while it is popularly believed in Iceland that racism does not exist there,[24] there is evidence that in some respects immigrant populations experience prejudice and inequalities.

[25] For example, Iceland has a higher dropout rate from upper secondary school among young immigrants than the EEA average.

Use of the patronymic system is required by law, except for descendants of those who acquired family names before 1913 (about 10% of the population).

One notable Icelander with an inherited family name is football star Eiður Smári Guðjohnsen.

According to University of Iceland economists Davíd F. Björnsson and Gylfi Zoega, "The policies of the colonial masters in Copenhagen delayed urbanisation.

Instead, Denmark bought the fish caught from Iceland at below world market prices.

"[33] A 2017 study looking at individuals going to the capital area for higher education found that "Only about one in three University of Iceland students from regions beyond commuting distance return after graduation, while about half remain in the capital area and others mostly emigrate.

This number is composed of 10 digits, whereof the first six are made up of the individual's birth date in the format DDMMYY.

It is worth noting that the completeness of the National Registry eliminates any need for census to be performed.

Evangelical Lutheran Church of Iceland (official) 58.6%, Roman Catholic 3.8%, Independent Congregation of Reykjavik 2.6%, Independent Congregation of Hafnarfjordur 1.9%, Pagan Worship 1.5%, Icelandic Ethical Humanist Association 1.4%, other or unspecified 18.7%, none 7.7% (2024 est.)