The capital of Iceland is Reykjavik. As of 2014, Reykjavik is the northernmost capital city in the world. The city was officially founded in 1786 as a trading center, and from there it gradually grew and developed into the capital of Iceland.
Reykjavik is located in the southwestern part of Iceland in a coastal area that's made up of islands, peninsulas and straits. The Reykjavik area has also been shaped by earthquakes and volcanic eruptions. As of 2011, the population in Reykjavik was 119,108, with a population of 202,341 in the metropolitan area. There are residents of Reykjavik from over 100 different countries, with the most populous ethnic group being Poles.