In 1857 the Danish king Frederick V11 confirmed the Althing's (Icelandic Parliament) He stated that it was lawful for local danish Jews as well as foreign Jews to settle in Iceland, however only very few accepted that invitation. When depression hit Iceland in the 1930s it was through the good will of the Jewish owned Hambro's Bank that saved iceland from bankruptcy. Unfortunately of the few Jews that managed to escape Nazi Germany many were sent back to whence they came from and subsequently died in the Nazi death camps of Poland and other camps in Eastern Europe as well as some of the camps situated in Germany.
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from the article: Iceland Jews are left out in the cold