Iceland and Norway are partners in the Arctic Lands with fjords and snow a plenty. They were for hundreds of years ruled by Denmark.
FLAG OF ICELAND
Both nations employ the Scandinavian Cross of matching design and conversed colours.
Here a trick not to get them confused. Iceland is closer to the UK thus it looks more like the British flag, and like the UK Iceland is an island nation separate from the European mainland. And Norway is much closer to Denmark and it looks more like the great Dane flag, and like Denmark she is connected to the European mainland.
FLAG OF NORWAY
Geographically Iceland is at the very fringe of officially European lands that satisfy the requisite that it must be lands due north of Africa. But that's only on the eastern side, the west side of Iceland is not due north of Africa and a part of the North American Continental Plate.
This geographic uniqueness fits Iceland as she sits at a nexus between Europe and North America. Iceland was an essential jumping point to reach the Americas by the Norse peoples.
Although Iceland is a part of Europe she is closer to North America by her proximity to Greenland. Norway also has a portion of herself closer to North America's Greenland than Europe, Svalbard.
And Yes! Santa Clause has homes is Norway and Iceland. Mrs. Clauses family is originally from Iceland. While His uncle twice removed is from Norway.