This church belongs to the Laugarland benefice of the Eyjafiord deanery and is situated southeast of Akureyri.  It is not certain, how long Kaupangur has been a church site, but it is mentioned in the deed of Audunn in 1318.  The catholic churches were dedicated to the Holy Mother and St Olaf, the king of Norway.  The present church was consecrated in 1922 and is the property of the congregation.  It was built by a contractor in Akureyri, Sveinbjorn Jonsson, who later founded a radiator factory in the capital.

The construction material was mainly the so-called r-stone and the place of the steeple makes its architecture rather unusual and distinctive.  The church seats 90 people and was reconstructed in 1988.  Among its valuable properties are altarpieces, one painted by a renowned painter, Thorarinn B Thorlaksson, and an older one from the 17^th century.