Iceland is a European country.
Iceland . It has a population of and an area of 103000 km2 , making it the most sparsely populated country in Europe . Until the 20th century , Iceland relied largely on subsistence fishing and agriculture , and was among the poorest in Europe . It maintains a Nordic social welfare system that provides universal health care and tertiary education for its citizens . The Nordic countries or Nordics are a geographical and cultural region in Northern Europe and the North Atlantic , where they are most commonly known as Norden ( lit. : The North ) .