Elves exist in Iceland

"One day God Almighty came to see Adam and Eve. They greeted him well and showed him all over the house. They showed him their children, too, and God thought highly of them. He asked Eve whether she had any more children beside these she had shown him, and she replied, no.
But the truth of the matter was that Eve had not finished washing some of the children and had been ashamed to let God see these. And for this reason she had hidden them away.
God knew this, however, and he said to her, That which has been hiden from me shall be hidden from men." ("Elves and Stories of Trolls and Elemental Beings"- Iceland Review)


And here we have hidden people in Iceland. They live in rocks and hills, stones and hummocks.
Everywhere you can here the story about how they change the road projects because of the rocks, or how they move the rocks, because elves and other hidden people are made on them.