Iceland is an independent, sovereign country—not a territory of Denmark. It has been fully self-governing since June 17, 1944, when it formally became a republic, severing its last constitutional ties to the Danish crown.
Today, Iceland is a founding member of the United Nations, NATO, and the European Free Trade Association (EFTA). It maintains close cultural and diplomatic ties with Denmark but conducts its own foreign policy, manages its own resources (including fisheries and energy), and issues its own currency (the króna).