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Iceland was a nation in western Europe.
History
Near the year 2010, Icelandic banks became unsound, leaving depositors and investors in financial difficulties. Lady Christina de Souza told the Doctor that the reason she became a thief was that her father had lost his money in this financial debacle. (DW: Planet of the Dead)
In the 2080s, a large population of Icelandic immigrants lived in Cardiff, leading to Icelandic slang terms being used by the inhabitants. (BBCR: Asylum)
In the early 22nd century, the President of the Union of Solar Republics was based in the Icelandic city Reykjavik. (NA: Transit)
Circa the 51st century, Iceland was either known as or part of the Icelandic Alliance. It lost a war to the Supreme Alliance and was occupied until the Filipino Army liberated Reykjavik. (DW: The Talons of Weng-Chiang)
Some time prior to 200,100, the Icelandic city of Polar Ventura hosted Murder Spree 20. (DW: Bad Wolf)
References
Barbara Wright once compared a volcanic heating system on the planet Marinus to the hot springs of Iceland. (DW: The Keys of Marinus)