Stöðin er nálægt bankanum.

Because -in is the definite article attached to the noun.

So:

• stöð = station
• stöðin = the station

In Icelandic, the is usually not a separate word like in English. It is often added to the end of the noun.

Here, stöð is a feminine noun, and stöðin is the nominative singular definite form.

Because nálægt requires the dative case, and the noun is also definite.

So the changes are:

• base form: banki = bank
• dative singular: banka
• dative singular definite: bankanum = the bank in the dative

The ending -num is part of the definite dative form here.

So bankanum does not mean a different word from banki. It is the same noun, but in a different grammatical form.

Because nálægt governs the dative.

That means when you say that something is near something else, the noun after nálægt must be in the dative:

• nálægt banka
• nálægt bankanum

This is something Icelandic learners often just have to memorize: certain prepositions or preposition-like words always require a certain case.

Nálægt means near or close to.

In this sentence, it links the station to the bank by showing location. You can think of it as working much like a preposition in English, even though Icelandic grammar books may sometimes describe it a bit differently.

The important practical point is:

• nálægt + dative

So when you use nálægt, the following noun should normally be in the dative.

This is the normal Icelandic word order for a simple statement:

• Stöðin = subject
• er = verb
• nálægt bankanum = location phrase

So it follows a pattern similar to English:

• The station
  • is
    • near the bank

Icelandic word order can change in other contexts, but this sentence is very straightforward and natural.

Er is the present singular form of the verb vera, which means to be.

Because stöðin is singular, Icelandic uses er:

• ég er = I am
• þú ert = you are
• hann/hún/það er = he/she/it is

Here the subject is stöðin, which is singular, so er is the correct form.

A few clues show this:

1. It is in the nominative case, which is the usual case for the subject.
2. It agrees naturally with the verb er.
3. The phrase nálægt bankanum is a location phrase, so it describes where the subject is.

So the sentence is about the station, and it says where the station is.

A few pronunciation points may help:

• ö is somewhat like the vowel in French peur or German schön, not like English o
• ð in stöðin is like the th in this
• á is usually pronounced like ow in English now, but longer and cleaner
• stress in Icelandic usually falls on the first syllable

Roughly:

• stöðin ≈ STOE-thin
• nálægt ≈ NOW-lyaht or NOW-legt depending on how narrowly you describe it
• bankanum ≈ BAN-ka-num

These are only rough guides. Native pronunciation is best learned by listening.

Because Icelandic usually expresses definiteness by attaching the article to the noun itself.

So instead of a separate word like English the, Icelandic often uses endings:

• stöð = station
• stöðin = the station
• banki = bank
• bankanum = to/at/by the bank, depending on context and grammar

This attached article is extremely common in Icelandic.

Yes, if you mean the station is near a bank or simply near bank in an indefinite sense.

Compare:

• Stöðin er nálægt banka. = The station is near a bank.
• Stöðin er nálægt bankanum. = The station is near the bank.

Both use the dative after nálægt. The difference is just indefinite versus definite.

Yes. That would mean the bank is near the station.

It uses the same pattern:

• subject in the nominative: bankinn
• er
• nálægt
  • dative: stöðinni

This is a good way to practice the structure:

• X er nálægt Y-dative

The dictionary forms are:

• stöð = station
• banki = bank

When you look up Icelandic nouns, dictionaries usually give the indefinite nominative singular form, not the form you happen to see in the sentence.

So if you want to find stöðin, look for stöð. If you want to find bankanum, look for banki.

Yes. It shows several very important features at once:

• the definite article attached to the noun
• the verb vera in the present tense: er
• a location expression with nálægt
• case government, because nálægt takes the dative

So even though the sentence is short, it teaches a lot of core Icelandic structure.