various neologisms

Balearic islands: Skipshöfðaeyjar (THE Balearic Islands are attached to the mainland of Spain at Cabo de la nao (ship's cape, skipshöfði) by a submarine plateau. An alternative name for the Balearic islands could be 'Skipshöfðaeyjar', like the Cape Verde islands in West Africa were named after Cape Verde, the westernmost point on the African continent.)
Portugal: Andlitsland, Andlitsströnd (Andlitsland liggur við Aftanshafið (German Abendmeer, Atlantische Ozean: Google "Kurzgefasstes vollständiges" and "Abendmeer")
Nefland (because Lisboa, the Capital is situated in the "Nose" of Portugal or the Iberian Peninsula as a whole. The word 'nose' can be regarded as a toponymical element denoting the westernmost part of a head-shaped landmass, which is the Iberian peninsula)
Portuguese: Andlitlendingur, andliska, andliskur/Neflendingur, neflenska, neflenskur
Brazilian Portuguese (language): Bríslenska
Douro: Dofrá (The name of the British city of Dover (Icelandicized as Dofrar (Íslensk Orðabók, 1992)) is derived from the Celtic river-name Dour and has the same origin as the Portugese Douro, a name presumably given by the Celtic tribes that inhabited the area before Roman times. The Celtic root is *dubro- (Modern Welsh dwr "water" and its Irish cognate dobhar. This means that the truly Icelandicized name of the Poruguese river becomes Dofrá.
Porto (City of Porto): Dofrárhöfn (Douro-port)
Port (wine): Dofrárveig (The vineyards where the Port grapes are grown are situated along the banks of the River Douro, so the river can be used to refer to the wine, if fact to a greater extent than the city-name Porto).
Algarve: Hökuhérað (The "chin" of the face of the Iberian penisula. The anatomical term "chin" could be applied toponymically when refering to a "southwesternmost point of land". If you take a look at the profile of a human head, that's exactly the position of the chin.)
Iberian penisula:
1) Anddlitsskagi
2) Nefskagi (Refers to the face-shape of the Western coast-line of the peninsula but also to the idea of "westernmost land". The position of a nose and face on the profile of a human head points to the western- or Easternmost part of a land-mass and applies to the Iberian penisula, which was considered as the Westenmost region in antiquity)
3) hökuskagi (referring to the "chin", the southwesternmost point on the peninsula but also to the fact that the whole peninsula itself is the southwesternmost part of Europe)
Pyrenees: Skagaskilsfjöll (The natural wall of the Iberian peninsula)
Ebro: Íberafljót (the word Iberian and Ebro have the same origin. Íberafljót = river of the Iberians)
Galicia: Ennisland (see Not only does Javier Bardem show a different side of himself in the 2002 feature Mondays in the Sun, so does Spain. This comedy/drama is shot in Galicia, the forehead of the "face" of the Iberian peninsula, ... http://www.metroactive.com/metro/11.05.08/dvd-mondays-0845.html
Tagus (River): Naselfur, Nefá (The River running into the Atlantic at the 'Nose of Portugal')
Lisboa: Nefós, Nasarhöfn (The River at the nostril or nose of the Iberian penisula), Nasós (nostril-estuary)
Basque: Bugtverji
Sevilla lowlands: Kverkflóaslétta, Kverkslétta (The use of "chin" (haka) as a toponymic element denoting the southwesternmost point on the head-shaped Iberian peninsula (Algarve region) can be extrapolated further by calling the gulf of Cadiz "kverk(a)flói". The Íslensk Orðabók mentions for 'kverk' (in the singular form): hornið milli höku og háls, hakan neðanverð. "Kverk" as a toponymic element then stands for a region "situated slightly east from the southwesternmost chin-like point on a head-like landmass (chin)). The Spanish lowlands at the gulf of Cadiz could be called kverkslétta or Niðurspánn (because it is the only lowland in Spain to any significant extent). The city of Sevilla could then translate as Kverksléttaborg or Niðurspánarborg, the Guadalquivir river is the Kverkelfur or Niðurspánarelfur, the Guadalquivir marshes are the Kverkelfarmýrar or Niðurspánarmýrar and Cadiz Kverknes.
Trafalgar: Njörvahvarf (because it is the Northvesternmost point of the strait of Gibraltar and Hvarf has existed as a designation of the Nordwestermost point of Scotland, Cape Wrath,
Cape spartel (Morocco): Serkjanjörvahvarf (the westernmost cape in the strait of Gibraltar on the african continent)
Balkan: Bálkn (Balkan can be easily icelandiczed: bálkn, which sounds like the neuter nouns gálkn and hólkn.)
Richard the Lionheart: Gramdýrsnegg-Ríkarður
Sacred College: Kjörguðsjarlar (College of cardinals who elect the pope)
Sulphur: synonyms for 'brennisteinn': vítisgula, Surtshallur
Neanderthal man: Nefmaðurinn ("The skulls of Neanderthals, a hominid species that lived contemporaneously with modern humans until 30.000 years ago, have much more robust feature than do modern humans and have the LARGEST NOSES of any hominin species, living or extinct." excerpt from "Faces Around the World: A Cultural Encyclopedia of the Human Face" by Margo DeMello) See also: http://www.msnbc.msn.com/id/41074946/ns/technology_and_science-science/t/neanderthal-nose-enigma-why-so-big/
antioxidant: holdryðvarnarefni (andoxunarefni contains the loan-word 'oxun')
Psiloriti mountains: Seifseyjarfjöll (the mountain-range on the birth-island of Zeus)
Evangelista (Italian masculine name): Erindis-Helgi
Trabzon (Turkish port): Trafshöfn (Earlier name: Trapezus)
Sadducees (Jewish sect): Saðverjar (Not exaggerated an adaptation if you compare with: Samaritan - Samverji, Nazarene - Naðverji, Moabites - Móverjar)
Essenes (Jewish sect): Essningar