Welcome to the forum. I strongly suspect that you're our only member who lives in Iceland, so without that experience, or any knowledge of driving conditions there, it's dfficult to advise you.
But I would guess that a high priority must be ground clearance, given that north Iceland is remotest from Reykjavik and presumably rural and mountainous. The models suggested by Badbusdriver make a lot of sense, although I've no idea what the comparative volumes of petrol and diesel sales are in Iceland. If fuel stations are few and far between, people are likely to go for diesel. And remember that as you're buying secondhand, you'll be looking at cars from a period when diesel wasn't demonised, if indeed it is at all in Iceland.
Finally, nothing soldiers on quite as well as an old Toyota, so start your search there.
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