It's possible to get brass in Iceland. From memory about 150-200 might be active in the summer months, though many of these might be temporary tourers: you can find reference to the website elsewhere on this site. Local girls are very much in the minority - because it's such a small community and people are very involved in each others' lives. I've used two, but neither now work, though I still visit one occasionally for former regular's treats. The standard of living, but also the cost over there is a good deal higher than the UK.
Icelanders are very direct. If a local woman wants to have sex with you, you'll be in little doubt about it. They mostly speak excellent English and are culturally very compatible. They're a great people - act accordingly.
Update: the format here is different from my recollection, so i'm not sure if it's the same website I was referring to earlier, but it may be useful.
External Link/Members OnlyAs you can see; most aren't native, and I expect many of the adverts featured are now long out of date.