Iceland is far from being as ice-cold as its name suggests. The land is free of snow in the summer, except for glaciers and some mountain tops. In winter snowfall can be heavy in the mountains, and snow falls frequently in the lowlands, but it can melt swiftly at lower elevations, and there is no guarantee that Christmas be snowy.
Cross-country skiing is a great way to wander about when snow covers the lowlands. Snow can be found in the highlands and mountains through most of winter when the lowlands are snow-free.
Photos: Snowmobile by Adam Russell (CC BY-SA)