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Are qualified veterinarians and/or good kennel services available? Do animals need to be quarantined upon entry to the country? Are there other considerations regarding pets that are particular to this country?

There are a couple of kennels. There is a four-week quarantine - talk to the Reykjavik Community Liaison Office or the Overseas Briefing Center at State for more details. Some people have imported pets but it is expensive and takes a lot of planning. Pets are rarely allowed in apartment buildings. - Nov 27, 2017
I don't have a pet, but gather that the city regulations about having a pet in town (e.g. in an apartment) are extremely strict. Ask before you get here! - Jun 23, 2015
There is a dog quarantine here, but the kennel is like a posh doggie hotel and I hear they are very while cared for. - Feb 13, 2013
Yes, a 4-week quarantine must be arranged before the pet is allowed in country, at your expense. - Jul 29, 2011