As a UK passport holder do I need to get a Schengen Visa for Iceland for a 4 day holiday?

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What that page means: if you need a Visa to the Schengen area and your first country to land is Iceland, don't come to us, go to the Embassy of Denmark. You are exempt for -- what I presume -- a short visit but there are many more cases where you might need a visa. For example, what if you reside in the UK but hold a non-UK passport? You might need a visa and noone can expect you to fly back to Kyrgyzstan or something just to pick up a visa. What if you want to work in the Schengen area or even immigrate to? And so on.

Edit: since you edited your question, Iceland doesn't enter into this picture! What type of visa do I need to transit through an airport in France ? you are entering Schengen in Paris:

If you are transiting through an airport in France to travel to another airport in France or the Schengen Area you enter the Schengen Area at your arrival airport in France. You pass border police control at this point. Unless you are exempt, you are required to have an entry and short-stay visa for the Schengen Area.

So you are exempt but if someone else reads this answer, they might not be.

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