Calluna vulgaris; the common heather grows along the coastal and bordering inland regions all over Iceland - except for the interior highlands and western fjord regions. It can also be found in inland-regions south of Akureyri. It is a member of the Heath family (Ericaceae). Post script: I haven't been able to take photo's of the common heather when it blooms (end summer/early fall) but I have added a detail photo of flowers from continental European Calluna vulgaris.