Iceland is a small country and only 364,000 people live on this small island in the North Atlantic. The capital is home to 112,000 inhabitants of this country. Meet amazing facts about Reykjavik. 1. Iceland is proud of its oldest parliament in the world, which was founded in Thingvellir in 930. At the beginning of the 19th century, the national parliament, the Althing, was re-established in 1844 in Reykjavik, where it still sits next to the Austurvollur square. 2. Reykjavik is the capital and largest city of Iceland. 3. Located