Iceland plans on lifting all remaining coronavirus containment measures in mid-November, if infections continue to remain low and stable.
The goal is to end all the restrictions on public life as of 18 November, Health Minister Svandis Svavarsdottir said.
In Iceland, 89 per cent of the population aged 12 and older is fully vaccinated.
Other rules will start being relaxed on Wednesday, including capacity limit increases at meetings and other events.
From that point 2,000 people can gather instead of the current 500. They will also no longer be obliged to wear face masks.
Restaurants, pubs and nightclubs will also be allowed to stay open longer starting on Wednesday.
With a complete lifting of the measures, the small North Atlantic island will follow its Northern European counterparts.
Denmark, Norway and Sweden already lifted most of their restrictions in September. In Finland, too, many coronavirus measures have already been relaxed.