It was founded in 930 at Ã ingvellir , ( the `` assembly fields '' ) , which is almost 45 kilometers east of Iceland 's capital , ReykjavÃ k. When the Althing was formed , that was the beginning of Iceland as a country . It was founded in 930 at Ã ingvellir , ( the `` assembly fields '' or `` Parliament Plains '' ) , situated approximately 45 km east of what would later become the country 's capital , ReykjavÃ k , and this event marked the beginning of the Icelandic Commonwealth .