Umbrella or raincoat?

Neither.
Layer with a thermal shirt/ merino wool sweater/ and a hooded, synthetic waterproof windbreaker. In Iceland, some May days the high temp is in the upper 40’s with rain showers more common than steady, pouring rain. A ski cap & gloves may also come in handy.

You definitely need a raincoat. Get a good quality one that’s windproof as well. An umbrella will be useless for wind and Iceland is pretty windy.

Plus rain pants.

Suggest you pack a gortex or similar waterproof rain jacket that is large enough to layer under if necessary. I recently returned from two weeks in Italy and there were quite a few rainy days. Only used my umbrella twice but the raincoat every day that was rainy as well as other cool days. It really blocked the wind and cold and was also a pickpocket deterrent when I wore my small crossbody under the zippered coat.

we always bring a goretex rain jacket, and a puffy underlayer even in summer. Add rain pants if you will be in Iceland. Umbrellas are only useful with no wind.

I love my Eddie Bauer thigh length rain jacket because of it's pockets. It has both inside nd outside zip pockets plus a hood and is easy to layer with a fleece vest for warmth. I don't even have to carry a purse some days. And, I find it much more useful than an umbrella which usually gets ruined by the wind anyway.

We go to Iceland often. An umbrella there is completely useless as the wind will tear it apart in about 5 seconds. You need a waterproof (not resistant) jacket with a hood. Rain pants are very helpful too not only for the rain and waterfalls but they block the wind. You want the kind that have zippers at the bottom so you can easily put them on/off without taking your shoes off. I never take a heavy coat there even in the winter. Layers are key. A wool or fleece hat and gloves are necessities. You don’t need heavy gloves but something more than thin knit ones.

I wonder what "raincoat" means where Kenko is from. Where I am from, it's a "hooded, synthetic waterproof windbreaker." Speaking of where I am from, I am surprised to see a PNW Mole Person asking whether to take an umbrella or a raincoat. The answer is raincoat (really, rain jacket; maybe Kenko is hairsplitting?). The more specific answer is "the best rain jacket you already own."

Maybe a water resistant top with a hood (or just a hat) for the unlikely occurance of rain "maybe". When the rain is in the forecast every shop you pass will be selling 10 euro umbrellas. Buy one if you need one.

Thanks everyone. I'll bring my REI waterproof windbreaker and layer my puffy coat. One less thing to carry around "just in case." G3rryCee I needed to know if I should go buy an umbrella, you are right, I don't use them here. My feet are webbed and I don't tan, I rust!!

I’m definitely team hooded raincoat. And if it’s more than a sprinkle and 60 or less, something that covers your tush at least. Preferably long enough to sit on as well. I hate holding an umbrella while on a sidewalk with other people dodging their umbrellas etc. More than 1 person on my last trip had their umbrella turn inside out with not very much wind at all I thought.

I always take both. I use the umbrella to keep rain off my face. My last trip was to Peru and it rained a lot on the trails and in town, and we wore rain pants too. One of our tour members had come up with an ingenious way to attach his umbrella to his rain parka leaving his hands free for hiking poles.

After the wind did a number to my umbrella on my first Paris trip many years ago, I don't bother to bring one anymore.

My waterproof raincoat is perfect-great pockets, covers my thighs, packs in its own pocket.-except the hood is too big. I've solved this problem with a waterproof ball cap under the hood. Keeps the hood up and the rain off my face.