Iceland, a small island country located in the North Atlantic Ocean, is known for its natural beauty, with stunning landscapes that include glaciers, waterfalls, geothermal springs, volcanic mountains and, of course, the Northern Lights. It’s also home to some of the world’s most unique wildlife, including Icelandic horses, puffins, and whales.
If you are considering moving to Iceland, the various costs listed below will help you make an informed decision on what costs are involved when moving and living in this part of the world.
Quick Iceland Facts:
- Population: 376,248 (2022 estimate)
- Official Language:The official language of Iceland is Icelandic, a North Germanic language spoken by about 319,000 people in Iceland. Most Icelanders speak English as a second language.,
- GDP Per Capita:US$68,383.77
- Volcanoes: Iceland is home to over 30 active volcanoes and around 130 that are considered inactive. The most famous of these is Eyjafjallajökull, which erupted in 2010 and caused widespread disruption to air travel across Europe.
- Currency: Icelandic krona (kr, Íkr). As of October 2022, $1 = kr 144.16, £1 = kr 160.74, €1 = kr 141.31, $1 CAD = kr 104.2, $1 AUD = kr 92.938
1. Moving and Shipping Costs to Iceland
Here are some sample container shipping rates to Iceland from other countries around the world.
Destination Country (Port/City) | 20FT | 40FT |
---|---|---|
Andorra (Andorra la Vella) | $990 | $1,662 |
Australia (Sydney) | $1,511 | $2,464 |
Bangladesh (Chittagong) | $1,463 | $2,016 |
Belgium (Antwerp) | $2,794 | $4,274 |
Canada (Vancouver) | $5,789 | $7,145 |
China (Shanghai) | $3,960 | $7,350 |
Croatia (Rijeka) | $3,883 | $5,513 |
Germany (Hamburg) | $2,915 | $4,326 |
Guernsey (St Peter Port) | $3,188 | $4,628 |
Hong Kong (Hong Kong) | $1,155 | $2,111 |
India (Mumbai) | $5,335 | $6,720 |
Italy (Trieste) | $3,883 | $5,513 |
Jersey (St Helier) | $3,188 | $4,628 |
Lithuania (Klaipeda) | $3,289 | $4,757 |
Luxembourg | $2,882 | $4,274 |
Netherlands (Rotterdam) | $2,794 | $4,274 |
Pakistan (Karachi) | $2,233 | $2,793 |
Poland (Gdansk) | $3,289 | $4,757 |
Russia (Saint Petersburg) | $2,805 | $4,200 |
Slovenia (Koper) | $3,883 | $5,513 |
South Korea (Busan) | $7,306 | $13,737 |
Spain (Valencia) | $1,067 | $1,596 |
Thailand (Laem Chabang) | $4,246 | $7,886 |
US (Los Angeles) | $1,625 | $1,855 |
US (New York) | $2,452 | $2,398 |
Vietnam (Saigon) | $4,378 | $8,148 |
2. Iceland Housing Costs
In recent years, Iceland has experienced a housing boom. The country’s population is growing, and there is an increase in the number of people moving to Iceland. As a result, the demand for housing has increased, and the prices of houses have gone up.
Monthly Rental Prices in Iceland
- 1 bedroom apartment in City Centre: kr140,000 – kr250,000
- 1 bedroom apartment outside the City Centre: kr100,000 – kr210,000
- 3 bedroom apartment in City Centre: kr220,000 – kr350,000
- 3 bedroom apartment outside the City Centre: kr200,000 – kr290,000
- Price per square metre (10.7 square feet) to buy in City Centre: kr400,000 – kr1,000,000
- Price per square metre (10.7 square feet) to buy outside City: kr400,000 – kr800,000
Iceland Housing Cost Comparison
This is how rents in Iceland compare with other countries around the globe.
- United Kingdom is 13.05% cheaper
- United States is 31.23% more expensive
- Canada is 5.37% cheaper
- Australia is 0.42% more expensive
- Germany is 27.35% cheaper
- France is 29.72% cheaper
- Spain 40.21% cheaper
- Italy 43.25% cheaper
Source: Numbeo
How to Save on Housing Costs
- Share an apartment or house. Iceland is a very expensive country to live in. Consider renting a room in a house or apartment with roommates to lower your accommodation costs. Have a look at the following sites to find your perfect room or flat mate: Housing Anywhere, Just Landed, Coliving and Erasmusu.
- Different areas – different prices. Reykjavik is the most expensive city in Iceland but, if you move to outskirts of the city, you’ll find more affordable areas. Akureyri, Hafnarfjörður, Seyðisfjörður, Kópavogur, and Húsavík are all great places to live and, if you do your research, you’ll find areas to suit your budget.
3. Iceland Food, Grocery and Restaurant Costs
Rekkjavik has a good range of food available in its supermarkets but the further you move away from the capital, the more restricted you’ll be on the variety of food available. Vegans and vegetarians are increasing in numbers in Iceland so you’ll find a good selection of fresh fruit and vegetables in all grocers and supermarkets.
- Inexpensive Restaurant: kr1,650 – kr4,910
- Bottle of Coke: kr200 – kr500
- 1L of milk: kr161 – kr245
- Loaf of Bread: kr280 – kr800
- 12 Eggs: kr562 – kr1,140
- 1kg Chicken: kr1,800 – kr2,798
- 1kg Beef: kr2,000 – kr4,699
- 1kg Apples: kr250 – kr800
- 1kg White Rice: kr200 – kr920
This is how restaurants and food prices compare with other major countries in the world.
- UK restaurants are 24.29% cheaper and groceries are 37.43% cheaper than Iceland.
- US restaurants are 22.69% cheaper and groceries are 7.51% cheaper than Iceland.
- Canadian restaurant 27.42% cheaper and groceries are 15.69% cheaper than Iceland.
- Australian restaurants are 26.86% cheaper and groceries are 6.77% cheaper than Iceland.
- French restaurants are 25.00% cheaper and groceries are 16.87% cheaper than Iceland.
- German restaurants are 37.31% cheaper and groceries are 35.47% cheaper than Iceland.
- Italian restaurants are 30.65% cheaper and groceries are 33.44% cheaper than Iceland
- Spanish restaurants are 42.30% cheaper and groceries are 47.37% cheaper than Iceland
Source: Numbeo
Bonus Tips for Cheaper Food, Restaurants and Groceries
- Know your supermarkets: Iceland has a good range of foods to suit most cultures. There are many farmers’ markets selling great fresh produce in most areas within Iceland. There are also excellent health food stores which sell organic foods. Popular supermarkets in Iceland are Bonus (the cheapest supermarket), Netto, Hagkaup and Kronan. Beware of the 10/11 convenience stores which are found all over Iceland as they are extremely expensive. They also put their prices up by at least 8% every evening to catch the trade from people returning from the Northern Lights tours.
- Find Cheap Eats: It’s expensive to eat out in Iceland but if you hunt around you may find some good restaurants that offer specials on various days of the week. Have a look at the following sites for suggestions – Arctic Adventures, Trip Advisor, Guide to Iceland, Travel & Blossom, and The Boho Chica.
4. Iceland Alcohol Costs
Social drinking is part of everyday life in Iceland, whether it’s while watching a game of lacrosse or just enjoying an evening with friends. There’s a large selection of traditional Icelandic spirits to keep out the cold plus a small selection of imported spirits, beer and wine. The state run liquor stores called Vinbudin are the only shops where you can buy liquor. Supermarkets only sell low-alcohol beer. Note that the legal age for drinking in Iceland is 20.
- Pint (0.5L) domestic beer at a restaurant/pub: kr841.79 – kr1,500
- Bottle of imported beer at a restaurant/pub: kr800 – kr1,500
- Pint (0.5L) domestic beer at a supermarket: kr330 – kr590.91
- Bottle of imported beer at a supermarket: kr300 – kr500
- Mid-range bottle of wine at a supermarket: kr2,000 – kr4,000
How to drink for less in Iceland
- Keep an eye on the local papers and flyers for cheap drinks, either in supermarkets or in bars, clubs and restaurants.
- Many bars and restaurants have specials after work, particularly on Thursdays and Fridays. Have a look at the following sites for more tips on where to go to save money on a night out – Guide to Iceland, Iceland with a View, Adventures with Luda, and Seeker.
5. Iceland Transportation Fares
People in Iceland rely on buses, planes and ferries to get around the country. The public bus system is extensive and covers most of the country. During the summer the Highland Bus and the Hikers Bus pass will take you to some of the out of way beauty spots in Iceland.
Here are some example ticket costs.
- Adult Single Metro – kr450 – kr550
- One day ticket – kr940
- Monthly season ticket, unlimited – kr13,300
How to save money on public transport
- Purchase an Icelandic Bus Pass which allows you unlimited travel on all scheduled buses in Iceland for a set period of time.
- Take advantage of the Reykjavik City Card, which offers free or discounted travel on certain bus routes within Reykjavik.
- Invest in a monthly pass for unlimited travel on all bus routes.
- Walking and cycling are options but obviously weather dependent.
6. Cost of Internet in Iceland
Broadband in Iceland is priced at an average of kr9,000 per month for 60Mbps (unlimited data, cable/fibre). It is one of the most expensive countries in Europe for internet.
Here are some of the internet providers in Iceland:
7. Cost of Clothing, Personal Items, Gym and Leisure
Iceland has cool summers and cold winters due to its oceanic climate. The average temperature for January is between -3C to 3C, while in July it’s 8C to 15C. Iceland’s rainfall varies depending on location – between 400 to 4000 mm. Iceland experiences an average of four to five hours of daylight per day in winter and 20 to 22 hours in summer.
Here are some clothing prices, together with other useful prices.
- Pair of Jeans: kr10,000 – kr20,000
- Summer Dress: kr3,700 – kr13, 000
- Running Shoes (Trainers): kr12,000 – kr25,000
- Business Shoes: kr15,000 – kr33,000
- Short Doctor’s visit (15 mins): kr5,936
- Deodorant: kr621
- Shampoo: kr742
- Toilet Paper (4 rolls): kr528
- Gym membership: kr6,666.67 – kr14,500 per month
- Movie (cinema) ticket: kr1,400 – kr2,400
Source: Numbeo and Expatistan
8. Cost of Owning a Car and Driving a Car in Iceland
Many people in Iceland choose to buy cars as it gives them the freedom to travel freely without having to plan around public transport timetables. The cost of owning and running a car in Iceland is high. The price of petrol is high, as is the cost of insurance and annual vehicle inspections. In addition, winter tyres are essential for driving in winter conditions, and these are also expensive.
Iceland’s roads are well maintained, and Icelanders drive sensibly and safely. Driving licenses issued in the EEA, UK, or Japan are valid in Iceland for the same type of driving as they permit in the country of issue. All other licences are valid for six months of driving, after which you will need to get an Icelandic Licence
Here are some other sample costs of owning and operating a car in Iceland:
- Volkswagen Golf:kr 3,600,000 – kr 4,890,000
- 1 litre (¼ gallon) of gas (petrol):kr 220 – kr 347.90
- Other fees (if any):Other fees include the cost of taxes, license, title and registration fees. The average cost of owning and running a car per annum is between kr400,000 and kr500,000.
Source: Expatistan
Ways to save money driving in Iceland
- Car sharing or pooling is one way to save money. Try Carpool World, Share Traveller and Samferda.
- Unfortunately there is no Uber or Uber equivalent in Iceland.
Need your car/vehicle moved to Iceland? Then read our guide to: Car Transport & Vehicle Shipping.
9. Taxes in Iceland
The personal income tax in Iceland is progressive, with rates ranging from 24% to 46%. The tax base includes all forms of income – salaries, investments and pensions. There are a number of deductions and allowances available, which can reduce the amount of tax payable.
VAT is levied in Iceland at a standard rate of 24%. However, there are a number of exemptions and reduced rates for certain goods and services. VAT is also paid on imports into Iceland.
Iceland has a number of double taxation agreements in place, which provide for exemption from Icelandic tax on incomes from another country.
10. Flight Costs from Iceland
If you do make the move to Iceland, here’s approximately how much it will cost to fly to other major world cities based on lowest, one-way fares from Skyscanner as of late 2022:
- London: kr511
- New York: kr2,345
- Los Angeles: kr4,543
- Toronto: kr3,835
- Vancouver: kr6, 041
- Dubai: kr2,399
- Sydney: kr10,101
- Melbourne: kr11,766
- Cape Town: kr8,137
- Hong Kong: kr7,759
Other Iceland Relocation Tips
The costs and pricing above should give you a good idea of the cost of living in Iceland but perhaps the following extra tips will make your move go smoothly.
11. Relocating to Iceland Alone
Moving is always a stressful time but moving on your own can be exceptionally difficult. Icelandic culture is probably different from anything you have experienced before but settling in will be easier when you’ve met some likeminded souls. Here are a few tips about settling in Iceland.
- Meetups:Iceland has many Meetup groups covering a wide range of activities from horseback riding to hiking. You can have a look on Facebook and Expat to find people you’d like to connect with.
- Attend local events: There is always something going on in Iceland and many of the activities are free. Have a look at the following sites for inspiration – Eventbrite, Lonely Planet, and Iceland Travel Guide.
12. Moving to Iceland with a Family
Iceland has a lot to attract families. It is safe, the air is clean, and it has a very low crime rate. The country is also famous for its natural beauty, with its stunning landscapes, and unique geothermal features.
- New parents (or parents to be):Check out Iceland, Meetup and Facebook for advice, courses and ways to meet other parents or parents to be.
- Live in a family friendly area:Reykjavik, is a great place to raise a family. With its many parks and museums, your children will never be bored. There are also plenty of schools and childcare facilities in Reykjavik. Other great towns for families include Kópavogur, Húsavík, Akureyri, Hafnarfjörður and Seyðisfjörður.
- Find things to do with the kids:Iceland has so much for children to do in summer and winter. Have a look at the following website for inspiration – Family Can Travel, Nordic Visitor, Tripadvisor, and Wandaring Wagars.
13. Moving to Iceland for Work
Moving to a new country for work is one of the most common reasons people choose to move. While it is possible to move without a job, it makes sense to ensure there are jobs in your field before you make the move
Iceland has a strong economy and is always looking for new talent. You can find job vacancies in many industries including IT, tourism, fishing, construction, teaching and medicine.
Here are a few things to consider when moving for work:
- Salary:The cost of living in Iceland is high so, as expected, salaries are also high. You can also check salary ranges on sites such as Glassdoor and Payscale.
- How to find work: If you want to have a job lined up before you move to Iceland, but aren’t sure where to begin, the following sites are good places to start: Prospect, Indeed, Northstack, and Starfatorg. You may also want to Google recruiters in your industry, as they can often help land you some initial interviews as well.
14. Moving to Iceland from Australia
There are approximately 70 Australians living in Iceland, all of whom live in Reykjavik. If you’d like to join them, there are a few things you should keep in mind.
- Size comparison:Iceland is tiny compared with Australia. It’s a mere 1.33% the size of Australia. It also has 25.1 million fewer people living there.
- Join expat groups: com, Internationsand Facebook offer ways of meeting up with other Australians in Iceland.
15. Moving to Iceland from Canada
There is a small group of Canadians living in Iceland. If you’re considering making the move from Canada here are a few things to consider.
- Size:Regarding size, Canada is almost ten times larger than Iceland. In terms of population, Iceland has about 1% of the population of Canada.
- Expat groups:Meeting up with fellow Canadians helps the moving process. Link up through sites such as Internations and Meetup.
16. Moving to Iceland from the United Kingdom
There’s a small contingent of Brits living and working in Iceland. If you’re considering joining them, here are a few bonus tips:
- Size: Iceland is 2.4 times smaller than the UK and has 65.4 million less people living there.
- Expat groups:If you want to get together with others from the UK who are enjoying the weather, then go to Internations and Meetup.
Hopefully, the tips and costs above are helpful. If want to get started pricing out how much it will cost you to move to Iceland you can start by comparing moving quotes here.