Borgarnes is a town located on a peninsula at the shore of Borgarfjörður in Iceland and is the largest town in the Borgarbyggð municipality with …Borgarnes is a town located on a peninsula at the shore of Borgarfjörður in Iceland and is the largest town in the Borgarbyggð municipality with a population of about 3800 residents. It is a main junction in Iceland and the gateway to the Snaefellsnes National Park. Iceland's capital Reykjavík is 69 kilometers from the center of Borgarnes. The second largest bridge in Iceland, the Borgarfjarðarbrú, connects traffic to and from Reykjavík.