Cost of living and prices in Iceland, prices of food, rent, shopping, etc 🇮🇸 Updated Jul 2023

Iceland, a country situated in Northern Europe, spans across 103,000 square kilometres with a population of 308,910. The population density comes to 3.0 people per square kilometre, making it one of the lowest in the world. The official language of Iceland is Icelandic, and the currency used is the Icelandic króna. The country's GDP is $14,590,000,000, with a GDP per capita of $47,231.

Despite being known for its remote location and natural beauty, Iceland can be an expensive place to live. The cost of living is relatively higher than other neighbouring countries, such as Norway, Sweden, and Denmark. However, the high standard of living, excellent healthcare, and low crime rates, make the cost worth it for many. It is an ideal place for those looking to experience a unique culture and astonishing landscapes that are hard to find elsewhere.

If you are planning to move to Iceland, it is essential to know the cost of living to plan your budget. The most significant expenses include housing, utilities, transportation, food, and healthcare. However, compared to other North European countries, housing and healthcare costs are relatively lower, while food and transport may cost a bit more. Still, Iceland's endless natural attractions, high quality of life, and distinctive culture make it a fabulous place to live and work.

Cost of Living Estimate in Iceland

Total cost of living in Iceland for two person with average consumption for one month will be 2051.79 USD, no rent price included. Click here to calculate cost-of-living estimate in Iceland

You can calculate cost of living in Iceland by changing quantity using input near each good or service. Resulting total will appear in a floating box in the bottom of your screen.

Restaurants prices

Iceland is known for its unique cuisine and adventurous food options. The country is known for its fresh fish, lamb, and dairy products, which you can find in almost every restaurant in the country. You can also taste traditional Icelandic dishes like fermented shark and pickled rams testicles, though these might not be for the faint-hearted! If you're looking for something less daring, you can try some of the local delicacies like skyr, a thick and creamy yogurt-like product that is a staple in Icelandic cuisine. Additionally, many restaurants in Iceland offer vegetarian and vegan options, so there's something for everyone.

When it comes to dining options, Iceland has plenty to offer. From high-end restaurants with panoramic views to small, cozy cafes, there's something to suit every taste and budget. If you're looking for a unique dining experience, you can visit one of the many seafood restaurants located along the Icelandic coastline, where you can enjoy fresh seafood while taking in the stunning ocean views. Alternatively, you can try one of the food trucks or street vendors that serve up delicious and affordable meals. No matter where you choose to eat, you're sure to have a memorable dining experience in Iceland.

Meal in Inexpensive Restaurant
17.50 $
Meal for 2 People, Mid-range Restaurant, Three-course
95.43 $
McMeal at McDonalds or Alternative Combo Meal
12.72 $
Domestic Beer, 0.5 liter Draught
8.74 $
Imported Beer, 0.33 liter Bottle
7.95 $
4.20 $
Coca-Cola, 0.33 liter Bottle
2.29 $

Markets prices

Iceland is known for its high cost of living, which is reflected in the market prices. As a result, travelers should prepare to potentially pay more than they expect for basic goods and services. However, the country's unique geography and limited resources play a significant role in the higher prices. For instance, many imported items have to be shipped from other countries, leading to higher transportation costs. Additionally, the harsh and remote landscape of Iceland makes it challenging for farmers and producers to grow crops or raise livestock, leading to higher prices for fresh produce and meat.

Despite the higher market prices, Iceland still offers ample opportunities to budget-conscious travelers. Many of the country's natural landmarks, such as the breathtaking waterfalls and scenic hiking trails, are free to explore. Additionally, visitors can save money by shopping at local grocery stores and cooking their meals rather than eating out. Some tourist activities, such as thermal pools or museums, may have an entry fee, but there are often discounts available for children, students, or those on a budget. Overall, Iceland's market prices may be higher than other destinations, but the country's unique culture and stunning landscapes make it well worth the cost.

Water, 0.33 liter Bottle
1.76 $
Milk, Regular,1 liter
1.20 $
Loaf of Fresh White Bread, 0.5 kg
2.88 $
White Rice, 1 kg
2.83 $
Eggs, 12 pack
4.86 $
Local Cheese, 1 kg
13.07 $
Chicken Breasts, Boneless and Skinless, 1 kg
16.73 $
Beef Round or Equivalent Back Leg Red Meat, 1 kg
24.83 $
Apples, 1 kg
2.43 $
Banana, 1 kg
2.20 $
Oranges, 1 kg
2.48 $
Tomato, 1 kg
4.07 $
Potato, 1 kg
2.23 $
Onion, 1 kg
1.33 $
Lettuce, 1 head
2.46 $
Water, 1.5 liter Bottle
1.93 $
Bottle of Wine, Mid-Range Price
19.89 $
Domestic Beer, 0.5 liter Bottle
3.14 $
Imported Beer, 0.33 liter Bottle
2.85 $
Pack of Cigarettes
10.34 $

Transportation prices

Iceland offers various transportation options for travelers to explore its breathtaking landscapes. One of the most popular ways to get around is by renting a car. This will allow visitors to have the freedom to explore the country at their own pace, discover secret spots, and take detours to less-known attractions. Iceland has a great network of roads and highways, and the scenery on the way is nothing short of stunning. People should be aware, however, that during the winter months, it can be challenging to drive due to the harsh weather conditions.

For those who prefer not to rent a car, Iceland has a reliable public transportation system, including buses that connect major cities and towns. A great option for tourists is to take a bus tour, which is a guided excursion around Iceland's highlights, with knowledgeable guides who can provide insights and anecdotes about the country's history and culture. Additionally, Iceland has an extensive network of hiking trails, making it possible to explore on foot, while enjoying the beautiful scenery and clean air. Whether by car, bus, or foot, Iceland offers a range of transportation options that are sure to provide visitors with a memorable experience.

One-way Ticket, Local Transport
3.50 $
Monthly Pass, Regular Price
93.45 $
Taxi Start, Normal Tariff
5.49 $
Taxi, price for 1 km, Normal Tariff
2.39 $
Taxi, price for 1 hour Waiting, Normal Tariff
59.17 $
Gasoline, 1 liter
1.56 $
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)
26,243.53 $
Honda Civic 1.6 Or Alternative New Car
28,319.16 $

Utilities Per Month prices

Travelers to Iceland should be aware of the high cost of utilities in the country. Due to its remote location and limited resources, Iceland relies heavily on imports for many basic necessities, which can drive up the cost of living. Additionally, Iceland's harsh and unpredictable weather conditions can lead to high heating costs, especially during the winter months when temperatures can drop below freezing. Travelers should budget appropriately to account for these added expenses.

One way to save on utilities costs while visiting Iceland is to be mindful of energy consumption. Many hotels and rental homes in Iceland use geothermal energy, which is a renewable resource, to heat their buildings. However, excessive energy usage can still result in high utility bills. To conserve energy, travelers can take simple steps such as turning off lights when leaving a room and adjusting the thermostat to a lower temperature at night. Being mindful of energy usage not only helps to save money but also reduces the environmental impact of tourism on the country.

Basic utilities for 85m2 Apartment including Electricity, Heating or Cooling, Water and Garbage
97.25 $
Prepaid Mobile Tariff Local, price per 1 min, No Discounts or Plans
0.16 $
Internet, 60 Mbps or More, Unlimited Data, Cable/ADSL
50.92 $

Sports And Leisure prices

Iceland is a paradise for adventure-seekers. Whether you're looking to hike a glacier, snorkel in crystal-clear waters, or go whale watching, Iceland has an array of activities that will keep you busy during your stay. For those who prefer to stay in the city, Reykjavik has plenty of cultural offerings such as world-class museums and lively nightlife. For sports enthusiasts, Iceland is home to a thriving soccer scene and offers opportunities for golfing, horseback riding, and even playing beach volleyball on black sand beaches.

For those looking to unwind, Iceland has many options for leisure activities. The country is known for its geothermal spas, such as the famous Blue Lagoon, which offer natural hot springs to relax in. Visitors can also take a dip in one of Iceland's pristine rivers or lakes. For a more cultural experience, spending an evening at a traditional Icelandic music event or dining on fresh seafood while enjoying views of the beautiful countryside is the perfect way to unwind after an adventurous day. Whatever your interests, Iceland has something for everyone.

Fitness Club, Monthly Fee for 1 Adult
62.92 $
Tennis Court Rent, 1 Hour on Weekend
25.01 $

Salaries And Financing prices

Salaries in Iceland are generally higher than in many other countries. This is due to the country's high cost of living and the fact that Iceland relies heavily on its tourism industry. Many foreigners who work in Iceland earn a good salary, particularly in the hospitality and tourism sectors. However, it is important to note that salaries can vary greatly depending on the industry and qualifications of individual workers.

When it comes to financing in Iceland, it is important to be aware of the country's unique banking system. Iceland experienced a major financial crisis in 2008, which had a significant impact on the country's economy. As a result, there are certain restrictions in place when it comes to transferring money in and out of the country. Visitors to Iceland should also be aware that credit cards are widely accepted, but it is always a good idea to have some cash on hand for smaller purchases or in case of an emergency.

Cinema ticket, 1 Seat
11.85 $
Average Monthly Net Salary, After Tax
2,547.41 $
Mortgage Interest Rate in Percentages for 20 Years Fixed-Rate, Yearly, Fixed-Rate
0 %

Childcare prices

Childcare in Iceland is considered to be expensive, especially when compared to other countries in Europe. Parents have to pay a hefty price for placing their children in a kindergarten or a school. This is mainly because of the high living costs in the country, and the fact that the government subsidizes very little of the childcare expenses. Parents in Iceland have to pay a considerable portion out of their pockets every month to ensure that their children are well looked after and given a proper education.

Schools and kindergartens in Iceland are well equipped and offer good quality education to children. Most of them follow a curriculum that includes a mix of play-based learning and academics. Children in Iceland start school at the age of six and attend until they're sixteen years old. The state provides free education to children in Iceland, but it doesn't cover the full cost of childcare. Therefore, parents often have to pay extra for things like meals, uniforms, and extracurricular activities.

Private Preschool or Kindergarten, Monthly for 1 Child
287.44 $
International Primary School, Yearly for 1 Child
19,086.21 $

Clothing And Shoes prices

Clothing and shoes can be quite expensive in Iceland due to high import costs and a smaller market. However, there are still plenty of options for those looking to purchase stylish and practical clothing. Many international brands can be found in the larger cities, but it's important to keep in mind that prices may be higher than what you're used to. There are also local Icelandic brands that offer unique designs and high-quality materials, but again, prices tend to be on the higher side.

As for places to buy clothing and shoes in Iceland, there are a few options. Reykjavik has numerous shopping streets and malls, such as Laugavegur and Kringlan, that offer a variety of stores for all budgets. In addition, there are outdoor markets like Kolaportið where you can find secondhand clothing and vintage treasures. If you're looking for Icelandic brands, stores like Geysir and Farmers Market offer a selection of clothing and accessories made by local designers. And of course, there are online options if you prefer to shop from the comfort of your own home.

Pair of Jeans in a Chain Store Like George, H&M, Zara, etc.
124.18 $
Summer Dress in a Chain Store Like George, H&M, Zara, etc.
74.88 $
Pair of Running Shoes, Mid-Range Price
146.16 $
Pair of Leather Business Shoes
198.51 $

Rent Per Month prices

Travelers looking for flexible accommodation options will find plenty to choose from in Iceland. From cozy cottages to modern apartments, short-term rentals and stays are abundant. The options range from budget-friendly to luxurious, making it easy to find something that suits your needs and budget. Whether you're looking for a weekend escape or an extended stay, you'll find plenty of options to choose from.

Iceland has a range of options for short-term visitors, including hotels, hostels, and rental apartments. Many hotels and apartment rentals are conveniently located in the heart of the city with easy access to popular attractions. Most hostels offer affordable accommodation options for budget travelers, while luxury hotels offer top-notch amenities and services. No matter what your budget or preferences, there are plenty of short-term accommodation options to choose from in Iceland.

One bedroom apartment in city centre
1,363.96 $
One bedroom apartment outside of city centre
1,091.54 $
Three bedroom apartment in city centre
2,098.26 $
Three bedroom apartment outside of city centre
1,749.57 $

Buy Apartment prices

Iceland is known for its stunning natural beauty, which makes it a popular destination for tourists from around the world. For those interested in buying real estate in Iceland, there are a variety of options available. Whether you are looking for a cozy cottage in the countryside or a modern apartment in the city, there is something for everyone.

However, it's important to note that real estate prices in Iceland can be quite high, especially in popular tourist areas. This is due to the limited amount of available land and the high demand for properties with scenic views. That being said, there are still plenty of affordable options available for those willing to do some research and explore different parts of the country. Whether you are looking to invest in a vacation home or a rental property, Iceland has a lot to offer for those interested in real estate.

Price per m2 to Buy Apartment in City Center
4,223.12 $
Price per m2 to Buy Apartment Outside of City Center
3,071.84 $