How Much Does It Cost to Live In Iceland?
Iceland is a very special country with unique and unforgettable nature, great destinations, and famous architecture.
From volcanoes and rivers to botanical gardens, the landscapes are stunning and worth seeing with your own eyes.
The climate of the country and favorable natural resources make this country a perfect destination for active recreation.
Climbers, hang-gliders, anglers, and swimmers are heading to Iceland to enjoy rivers, mountains, fresh air, and clean water resources.
The most expensive thing in Iceland is food and the cheapest thing here is water because you can drink it right from the tap.
Iceland : Cost of Living by City
RESTAURANTS
The restaurants in Iceland are very expensive, which is why local citizens often recommend that you buy food in the supermarkets or the markets and cook it yourself.
The combo meal in McDonald’s or a similar eatery is $14.092, while the bill for a three-course meal in a mid-range restaurant for two people is $98.8.
Imported beer costs $7.05, and a small bottle of water is $1.91.
MARKETS
The food in the markets is not cheap at all.
Although, you can buy kilograms of food instead of a small portion in the restaurant for this money.
Just to name a few, a bottle of mid-range wine is $17.97, a kilo of beef round is $24.52, and skinless boneless chicken breasts are $115.96 per kilo.
TRANSPORTATION
A broad network of public transportation in Iceland allows its citizens to get around the country safely and fast.
Bus routes, ferry boats, taxis, and local airports all aim at making your travel as comfortable as possible.
Although, the prices for tickets are one of the most expensive ones in the world.
A monthly pass will cost you $56.72, still, it’s cheaper than buying a one-way ticket for $3.45 every time you go anywhere.
UTILITIES (MONTHLY)
Surprisingly, the utility bills in Iceland are really low, according to the statistics.
The prices of water, heating, cooling, rubbish management, and housekeeping are $106.75 per month.
The Internet connection is much more expensive than in the EU countries and is $64.54 per month for a high-speed unlimited data cable/ADSL connection.
SPORTS & LEISURE
Iceland is full of picturesque places with fascinating views and nature around.
The national parks, geysers, waterfalls, canyons, beaches, farms, glaciers, and wildlife reserves are the words that describe this country the best.
If you don’t like exploring nature, you can go to one of the museums, exhibitions, or outdoor music festivals.
Prices for traditional sports are given below.
CLOTHING & SHOES
A great number of concept stores, markets, clothing and shoe shops, accessory shops, and designer boutiques are there in every city of Iceland.
The prices in the chain stores like Zara, H&M, or Nike are high, just like the rest of the goods in this country.
It is cheaper to go to the same shop in another country and still has some money left.
RENT PER MONTH
Accommodation in the land of greenery costs too much, even for a native.
People usually have to give out half their salary for the monthly rent of a one-bedroom apartment which is not a luxurious one.
It is worth considering sharing a three-bedroom apartment outside the center with a few friends at $1,755.93.
Cost of Living Averages Table for Iceland
*Note: All prices are indicated in USD.| Average Restaurant Prices | |
|---|---|
| Meal (Inexpensive Restaurant) | $17.61 |
| Domestic Beer (0.5 Liter) | $8.45 |
| Water (0.33 Liter) | $1.91 | Average Market Prices |
| Milk (1 Liter) | $1.39 |
| Loaf Bread (500g) | $2.98 |
| Eggs (12) | $5.12 | Average Transport Prices |
| One Way Ticket | $3.45 |
| Monthly Pass | $56.72 |
| Gasoline | $2.12 | Average Utilities Prices |
| Basic (Water, Electricity, Garbage, Heating, Cooling) | $106.75 |
| 1 min. of Prepaid Mobile Tariff Local | $0.13 |
| Internet (Unlimited Data, Cable/ADSL) | $64.54 | Average Leisure Prices |
| Fitness Club, Monthly Fee for 1 Adult | $60.36 |
| Tennis Court Rent (1 Hour) | $30.67 |
| Cinema, 1 Seat, International Release | $12.22 | Average Clothing Prices |
| 1 Pair of Jeans (Levis 501 Or Comparable) | $108.45 |
| 1 Summer Dress in a Chain Store (Zara, etc...) | $48.32 |
| 1 Pair of Adidas Walking Shoes (Mid-Range) | $138.13 | Average Rent Prices |
| Apartment (1 bedroom) in City Center | $1441.19 |
| Apartment (1 bedroom) Outside of Center | $1193.32 |
| Apartment (3 bedrooms) in City Center | $2010.50 |
How Does the Average Person Spend Their Money in Iceland?
Spending money is no big deal in Iceland.
You can spend more than you can earn here.
The monthly rent absorbs 29% of the monthly income of an average person in Iceland.
Then there go the markets with a percentage rate of 32.2%, restaurants which take 15.9%, and transportation (10.6%).
Spending money on clothing and shoes operates under the ‘less is better’ principle.
About 3.8% of the wage is for paying bills, and 5.5% of the total income is left for sports and leisure.
Average Costs Breakdown
Iceland: Average Salary, Minimum Wage & Mortgages
An average monthly net salary after tax is $3,821.49 per person who is well-qualified, experienced, and officially employed in Iceland.
The minimum wage is not fixed throughout this least populated country but separate branches of the economy accept minimum remuneration within the industry.
An average salary is slightly higher than the minimum wage for special and general workers.
Most of the people living here in Iceland are busy with industrial fishing, energetics, tourism, and IT technologies.
A lot of foreigners come here every year to find a job and settle down.
The mortgage interest rate is 5.47% which is offered by pension funds, housing financing funds, and commercial banks, as well as saving banks.
Iceland Safety Overview
READ THE FULL REPORT: Iceland Safety Review
Safety Index:
- OVERALL RISK: LOW
- TRANSPORT & TAXIS RISK: LOW
- PICKPOCKETS RISK: LOW
- NATURAL DISASTERS RISK: LOW
- MUGGING RISK: LOW
- TERRORISM RISK: LOW
- SCAMS RISK: LOW
- WOMEN TRAVELERS RISK: LOW
Cost of Living by City in Iceland
| City | Cost of Living Index |
|---|---|
| Reykjavik | 112.57 |
