Lesbian, gay bisexual, and transgender (LGBT) rights in Iceland are very progressive. In February 2009 a minority government took office, headed by Jóhanna Sigurðardóttir, the world's first openly gayhead of government in modern times. The parliament amended the marriage law on 11 June 2010 to define marriage as between two individuals, thereby making same-sex marriage legal. The law took effect on 27 June 2010. Also, since 2006, same-sex couples have had equal access to adoption and IVF.
On 23 March 2010, the Government presented the bill, which would allow same-sex couples to marry. On 11 June 2010 the parliament unanimously approved the bill. The law took effect on 27 June.
On 11 June 2012, the Icelandic parliament voted in a new law relaxing rules surrounding gender identity and allowing comprehensive recognition regarding recognition of acquired gender and encating gender identity protections. These laws were enacted 27 June 2012. The laws state that the National University Hospital of Iceland (Icelandic: Landspítali - háskólasjúkrahús) is obligated to create a department dedicated to diagnosing gender dysphoria (GID), as well as performing sex reassignment surgery (SRS). After successfully completing an 18-month process, including living 12 months in their preferred gender, applicants appear before a committee of professionals. If the committee determine that a diagnosis of GID is appropriate, the National registry is informed and the applicant chooses a new name to reflect their new gender and are issued a new social security number and ID. Sex Reassignment Surgery is not required for official name change and gender recognition.
Since 27 June 2006, Icelandic same-sex couples became eligible to a range of laws including public access to IVF insemination treatment and both full joint adoption and adopting your own partner's biological children.
Despite its small population, Reykjavík has a visible gay scene, with a few bars and cafés, and some places with a mixed gay and straight crowd. Elsewhere in Iceland, however, the sparse population means there is no gay scene.Akureyri the biggest city outside the capital area, doesn't have any gay bars, despite the town having a population of about 17,700. There has been no studies whether such business would be profitable or not, in the town. Gay pride parades in Iceland are usually held in August.