Voters are expected to punish the incumbent coalition after the Panama Papers revealed a global tax evasion scandal that ensnared several senior politicians and forced former prime minister Sigmundur David Gunnlaugsson to resign.
Although the current government of the conservative Independence Party and the centrist Progressive Party survived the scandal, it promised a snap election six months before the end of its term in spring 2017.
The Pirate Party - founded in 2012 by activists, anarchists and former hackers - has been campaigning for public transparency, institutional reform, individual freedoms and the fight against corruption.
Three separate polls, released a day before the election, showed that the Pirate Party could gain up to 21 per cent of the vote and the Left-Green movement up to 16.8 per cent.
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Each of the polls, conducted by the University of Iceland, research company MMR and Gallup, indicate the incumbent conservative coalition government will most likely be voted out.
The Pirate Party could become the parliament's second largest party and form the nation's second centre-left government since Iceland's independence from Denmark in 1944. The Social Democrats and Greens ruled in a coalition between 2009-2014.
In any negotiations to form a government, the Pirate Party is expected to have leverage over the Independence Party and the leftist Green movement could for the first time hold the balance of power.
Together, they could have more than 50 per cent of the votes, according to the latest polls, which however also show a high proportion of undecided voters.
"We think that these parties can cooperate very well, they have many common issues. I think it will be a very feasible governmental choice," Katrin Jakobsdottir, leader of the Left-Green movement told AFP.
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