Reykjavík is the capital and largest city of Iceland. Its latitude, at 64°08' N, (about the same as Fairbanks, Alaska) makes it the world's northernmost capital of a sovereign state and a popular tourist destination. It is located in southwestern Iceland. With a population of around 120,000 (and over 200,000 in the Capital Region), it is the heart of Iceland's cultural, economic and governmental activity.
About two thirds of Iceland’s total population of 320,000 live in or near the city. Iceland is the least populated country in Europe. The city was founded in 1786 as an official trading town and grew steadily over the next decades as it transformed into a regional and later national center of commerce, population, and governmental activities.