We never made it that far north from a Reykjavik trip, due to poor weather and visibility uon the road 1.. but it's up near the Londranger peaks/cliffs as far as I know. Didn't get to see many northern light spectacles either..
It looks Italian to me, too. Northern parts, such as Lombardy. Best I can do is say Milan. But that's going on building colour, style, architecture etc. Possibly Venice.