The Tv daredevil hired a vehicle from a branch of Hertz during a visit to the country last year (12), but staff were unhappy with the state of the Toyota Land Cruiser when he returned it.
He left the country before paying for the damage, and during a return trip earlier this week (beg22Jul13) he was arrested on arrival at Keflavik International Airport.
Margera was released from custody on Wednesday (24Jul13) after settling the unpaid bill.
According to Tmz.com, he later told a local Tv station he had damaged the car while drunk, adding, "I kicked the door in... and then there was a scratch over there that they had to replace the whole panel for."
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