Ever Wondered About the Cost of Living in Iceland?
Iceland is a notoriously expensive country for many reasons. According to Numbeo, the tiny island nation in the North Atlantic is the 9th most expensive country in the world to live in. Because of its location, many products have to be imported, which can be very expensive. A high labour tax makes its cost more expensive than in other countries as well. What may seem expensive is offset, however, by the excellent social and welfare system.
Restaurants
Eating out in a cheap restaurant in Reykjavik costs £14.20 (2,000 ISK), whereas a three-course meal at a mid-range restaurant for two persons costs £85 (12,000 ISK). While having a cappuccino in a cafe in Reykjavik costs £3.81 (536 ISK).
Groceries
While Iceland is a remote island in the North Atlantic, many things have to be imported, which can obviously elevate prices. A litre of milk in Reykjavik will cost you £1.10 (154 ISK). A kilogram of rice will come up to £2.23 (313 ISK), while one kilogram of local cheese amounts to £12.29 (1,731 ISK).
Transportation
In Iceland, there are no trains (yet), so public transportation consists of buses and taxis. For a monthly bus pass in Reykjavik you will pay £84 (11,875 ISK). The price for an initial taxi ride costs £4 (600 ISK), and to buy a Volkswagen Golf costs £24,144 (3,400,000 ISK).
Utilities
This is the one area in which Iceland really cuts the consumer price index some slack because of the inexpensive geothermal heating that circulates through the city’s infrastructure. In Reykjavik you can pay basic utilities in an 85 sq. meter apartment for £90 (12,700 ISK). The cost of internet in Reykjavik is £48 (6,715 ISK) per month.
Rent
To rent a one-bedroom flat in the city centre of Reykjavik costs £1,341 (189,000 ISK) per month, which is not much of a difference from the price of a three-bedroom apartment outside the city centre of Reykjavik that’s at £1,715 (241,515 ISK).
Volcanic Iceland Epic Trip
meet our Local Insider
Hanna
HOW LONG HAVE YOU BEEN A GUIDE?
2 years.
WHAT DO YOU LOVE ABOUT YOUR JOB?
It's the personal contact, the personal experiences. I love meeting people from all over the world... I really like getting to know everyone and feeling like I'm traveling with a group of friends.
WHAT DESTINATION IS ON YOUR TRAVEL BUCKET-LIST?
I have so many places on my list, but I would really lobe to go to Africa. I consider myself an “adventure girl” and Africa feels like the ULTIMATE adventure!
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Since you are here, we would like to share our vision for the future of travel - and the direction Culture Trip is moving in.
Culture Trip launched in 2011 with a simple yet passionate mission: to inspire people to go beyond their boundaries and experience what makes a place, its people and its culture special and meaningful — and this is still in our DNA today. We are proud that, for more than a decade, millions like you have trusted our award-winning recommendations by people who deeply understand what makes certain places and communities so special.
Increasingly we believe the world needs more meaningful, real-life connections between curious travellers keen to explore the world in a more responsible way. That is why we have intensively curated a collection of premium small-group trips as an invitation to meet and connect with new, like-minded people for once-in-a-lifetime experiences in three categories: Culture Trips, Rail Trips and Private Trips. Our Trips are suitable for both solo travelers, couples and friends who want to explore the world together.
Culture Trips are deeply immersive 5 to 16 days itineraries, that combine authentic local experiences, exciting activities and 4-5* accommodation to look forward to at the end of each day. Our Rail Trips are our most planet-friendly itineraries that invite you to take the scenic route, relax whilst getting under the skin of a destination. Our Private Trips are fully tailored itineraries, curated by our Travel Experts specifically for you, your friends or your family.
We know that many of you worry about the environmental impact of travel and are looking for ways of expanding horizons in ways that do minimal harm - and may even bring benefits. We are committed to go as far as possible in curating our trips with care for the planet. That is why all of our trips are flightless in destination, fully carbon offset - and we have ambitious plans to be net zero in the very near future.