Even though Iceland is a compact state, its capital is not located in the center of the state, which leads to some isolation between its cities on the other side of the state. However, most of Iceland is covered in glaciers and mountains which are uninhabited so the communications in the state are fairly well due to its compactness.
Iceland's Capital Reykjavik
Borders:
Icelandic Coast
Since Iceland is an island, it does not have any cultural boundaries, only physical.
Iceland's borders are the North Atlantic Ocean, Norwegian Sea, Greenland Sea, the Arctic Circle, and the Denmark Strait.
Colonies:
Iceland does not own any colonies or offshore territories.
However, Iceland was ruled by Denmark for a long period of time, but it was more of a commonwealth of Denmark than a colony.