Is Iceland Expensive To Visit In 2025?

Wondering whether Iceland is expensive to visit?

You’ve come to the right article as I’m a full-time traveller and I spent 5 days in Iceland. Travelling full-time has allowed me to develop a good judge of whether somewhere is expensive so I’ve written a complete guide to “Is Iceland expensive?

Iceland is a country filled with landscapes unlike anywhere else on our planet, and this natural beauty attracts nearly 2 million tourists each year.

But beautiful things tend to cost a lot of money, right?

One of the most common questions people have before visiting Iceland is “Is Iceland expensive?

And being a Scandinavian country, Iceland automatically has a reputation for being expensive.

After visiting Iceland for myself and spending some time exploring the stunning sights of the country, I’ve created this ultimate guide to whether or not Iceland is expensive.

So let’s crack on.

Is Iceland Expensive?

To put it bluntly, yes, Iceland is expensive.

In fact, Iceland isn’t just expensive, it’s very expensive.

I’ve visited lots of places which are notoriously expensive such as Denmark, Norway and Sweden, and in my opinion, Iceland is the most expensive country out of the lot.

Iceland ranks as the second most expensive country to visit in the world, only behind Switzerland.

I’ve actually visited Switzerland as well, and while there are lots of reasons why Switzerland is expensive, I personally found Iceland to be more expensive.

Iceland is the most expensive country I’ve visited so far.

A picture of me at Seljalandsfoss in Iceland. It's a waterfall running off a rockface with one main stream and a smaller one a few metres to the left. The sun is shining on the waterfall and creating a small rainbow.
A picture of me at Seljalandsfoss in Iceland.

That being said, the prices in Iceland are really weird. They’re very inconsistent. Some things are a lot more expensive than home for me (UK), but some things were actually cheaper.

As a random example, I found a shop selling 4-finger Kit Kats (chocolate bars) for 99 ISK, which is equivalent to £0.59. In the UK, it would cost at least £1 minimum for one of these bars.

But most things are really expensive. For another food example, I paid 3,300 Icelandic krona (the currency in Iceland) for fish and chips and the portion was pretty small. At home in the UK, I can get a much bigger portion for the equivalent of 2,000 krona.

However, there are some ways of saving money and visiting Iceland on a budget. For example, you can drink tap water in Iceland.

In fact, Iceland’s tap water is the best in the world, so you don’t need to pay for water during your trip.

All in all, though, Iceland is expensive to visit, and I’ll now go into further detail about how expensive it really is and why it’s so expensive.

A picture of me in front of Hallgrimskirkja in Reykjavík. It's the main church with stepped stones going up each side coming together in the middle to create a steeple.
Me in front of Hallgrimskirkja in Reykjavík.

How Expensive Is Iceland?

As I’ve said so far, Iceland isn’t just expensive – I would consider places like London or Amsterdam as expensive – Iceland is very expensive.

The average Iceland budget is $198 USD per day per person, not including accommodation.

Iceland is one of those countries where staying in one spot isn’t the best way to visit. You want to see a good portion of the country!

During my trip, for example, I took 5 tours: Golden Circle, Volcanic Wonders, South Coast, Blue Lagoon and a Northern Lights Tour.

In total, these 5 tours cost 60,000 ISK. This is equivalent to £357/€408/$434, so it’s pretty expensive. But I would say it’s worth it.

A picture of the Northern Lights. It's. a luminous green swirl against a dark blue night sky. Is Iceland expensive? Yes, but it's worth it for moments like this.

Once you have taken these tours, you will have seen all of the “must-sees” in Iceland. Of course, there’s much more to Iceland than the must-sees, but it’s a good starting point.

I always find it hard to determine how expensive somewhere is. It’s all relative at the end of the day- it depends on where you come from.

As two examples, if you come from Switzerland, the prices in Iceland won’t be that steep of a jump, but if you come from Poland, everything will be 3 or 4 times the price it is at home.

But as I said in the first section, there are ways to save money in Iceland. I limited my costs by staying in a budget hotel, for example. And on the day of the tours, I only really had one “proper” meal a day, the other one was just a quick bite to eat.

To give you a rough idea, for 5 days in Iceland including flights, accommodation, food, activities, etc., my price for my trip came to around £750 GBP (126,000 ISK/€858/$913).

There are just some costs that there isn’t any avoiding. For example, the cheapest way to get from Keflavík Airport to Reykjavík costs the equivalent of £13. And that was by taking the cheapest way, most people will take a coach transfer for £22 each way.

Or the one day I did decide to have lunch during a tour, I had fish and chips at the Geysir Visitor Centre. This is the portion I was talking about earlier, that cost 3,300 Icelandic krona.

Fair to say this was the last time I ate in a visitor centre in Iceland- but I will admit it was absolutely delicious!

All in all, Iceland is super expensive, but for many people, it’s a once-in-a-lifetime trip, so it’s worth saving up for. Iceland creates unforgettable memories, no doubt about it.

A picture of 3 fish bites, a small portion of fries and coleslaw.

Why Is Iceland So Expensive?

There are lots of reasons why Iceland is so expensive but there are a few main reasons. In no particular order, these reasons are:

  • Exclusivity
  • Remoteness
  • Popularity
  • Way of life

The exclusivity of Iceland is one reason it’s so expensive. It’s such a unique country and it’s like visiting another planet.

Iceland’s abundance of beautiful waterfalls, stunning landscapes, once-in-a-lifetime opportunities and its ability to produce lifelong memories results in high prices for tourists.

People are willing to pay good money to see the Northern Lights, so why wouldn’t the tour companies charge high? This links to popularity too. If tourists are willing to pay the high prices for tours, they’re going to charge it.

And the more and more popular Iceland becomes, the more and more expensive it’s going to become. And to give you an idea, Iceland’s tourism is growing at a rapid rate.

Another reason why Iceland is so expensive is because it’s so remote. It’s an island in the middle of the Atlantic Ocean, nowhere near anywhere else.

The remote location means Iceland has to pay large amounts for importing things, which is one of the reasons why there aren’t many fast food chains in Iceland. There’s no McDonalds!

These high import fees have to go somewhere and it works its way down until you, the person paying for things, and that’s another reason prices are high.

But the final reason Iceland is so expensive, and in my opinion, it’s the reason that Scandinavia and Switzerland are all so expensive, and it’s because the quality of life is better.

Iceland ranks as the third happiest country in the world, which perfectly reflects the way of life in Iceland.

The atmosphere in the country is really nice, it feels safe, friendly and warm. When visiting, I got a really good sense of Reykjavík and I loved it. I can see why people are so happy living in Iceland, and it is as simple as they have a better way of living.

A picture of the Sun Voyager statue. in Reykjavik. It's a metal sculpture of a viking boat.

Everyone is so relaxed and chilled, and they take life as it comes. No one complains about the weather, for example.

It’s a really clean city and country too, no one litters. And I didn’t see a homeless person throughout my whole trip.

One of the guides from the tours I took said that he’d lived on minimum wage in multiple countries. Elsewhere in Europe, he had to watch his spending, track what he was eating, how he could save money, etc. But in Iceland, he could live comfortably on minimum wage.

Through all my travels, I’ve found a really random way of judging a place, and that’s by how people cross the road. In busy cities where everyone is rushing, people walk out in front of cars, no one waits for the green man, everyone’s in a hurry.

But in Iceland, I didn’t see a single local walk before the green man. Everyone waited by the side of the road, patiently, until it turned green. Sometimes this took a few minutes, but they didn’t care. That’s why Iceland is expensive- they live better lives!

A picture of me in front of a glacier in Iceland. Is Iceland expensive? Yes. But so worth it!

How Much Is Accommodation In Iceland?

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Accommodation in Iceland isn’t actually that out of line with the rest of Europe. It’s marginally more expensive, but nothing drastic.

An average mid-range hotel will cost around 19,000 ISK per night, or £113/€129/$137. So they are by no means the most expensive hotels you will ever see.

But going back to the reasons why Iceland is expensive, none of these really apply to mid-range hotels. They don’t have to import a new bed every day, for example.

I chose to stay in the 100 Iceland Hotel and while it wasn’t the best hotel I ever stayed in in my life, there was nothing wrong with it either.

A picture of the side of a hotel with the name of the hotel as a sign and some wall art which says "If change is all you require, dwell not on the present or prior, imagine a view where everythings new and make that your only desire" written on a hot air balloon.

Of course, there are lots of high-end hotels in Reykjavík too, and these are very expensive, because the “quality of life” in these hotels is higher than in most parts of Europe, so they’re more expensive.

Hostels are also pretty expensive in Iceland. The average dorm bed will cost around 6,500 ISK per night. It’s not really in line with the other prices of different types of accommodation, but it’s just one of those things no one can do anything about.

How Much Are Tourist Attractions In Iceland?

It’s actually pretty funny/weird to calculate the price of tourist attractions in Iceland. It depends on how you’re travelling the country.

What I mean is that most things in Iceland are actually completely free. All the waterfalls, national parks, lava fields; everything natural is free.

But if you take a tour, like a Golden Circle Tour, you have to pay for the tour to take you to these locations. The reason is because they’re all hours outside of Reykjavík, and you also get a guide teaching you about the sights.

On the other hand, if you rent a car and take an Icelandic road trip, you aren’t paying for a tour, and instead, you’re paying to rent the car and pay for gas (which is very expensive in Iceland!).

A picture of me on a black beach in iceland with my hood up because it's very windy.

As I said earlier on, I took 5 tours during my time in Iceland and the total came to 60,000 ISK (£357/€408/$434).

And to reiterate what I said afterwards, it’s worth it. Sure, it costs a lot. But it’s so, so worth it. I’ll never forget my first time in Iceland (I plan to go back), it was a dream come true.

There are also some tourist attractions which you do have to pay for though. Such as the Blue Lagoon, Sky Lagoon, the museums in Reykjavík, and some more.

Again, they’re expensive…but worth it. Spending a few hours in the Blue Lagoon will probably be some of the most expensive few hours of your life, but also some of your favourite few hours of your life. It’s a case of “you get what you pay for“, and Iceland does not disappoint.

A picture of the Blue Lagoon in Iceland as the sun sets. It's a blue water pool with volcanic rocks and landscapes all around. It's one of the most expensive things to do in Iceland.

How Expensive Is Food In Iceland?

Food, in my opinion, is the most expensive thing about Iceland.

It makes sense, giving that most things need to be imported. Again, there are few fast food chains in Iceland. I think the only worldwide brands I saw were Domino’s and a Taco Bell.

The average meal in Iceland like a burger and chips cost between 3,000 and 4,000 Icelandic krona. This is for standard meals, things like steak etc. are obviously much more expensive.

Prices are pretty consistent from restaurant to restaurant, so much so that we decided to have a meal in the Hard Rock Cafe because the prices were the same as any other restaurants.

In the picture below, the chicken and chips cost 3,290 ISK and the burger and chips cost 3,490 ISK.

A picture of two meals at the Hard Rock cafe. One is chicken goujons and chips and one is a burger and chips. Is Iceland expensvie in terms of food? Yes, very.

If you are looking for snacks or anything in Iceland, I recommend going to a Bónus. There are some great deals to be had, such as the cheap Kit Kats I talked about earlier.

It’s also a good place to buy croissants, or other bread products to bring with you on tours to save having to buy lunch.

But yes, food is the most expensive part about Iceland in my opinion.

How Much Is Public Transport In Iceland?

Public transport in Iceland is also pretty expensive. For example, bus 55 which takes you to and from the airport costs 2280 ISK each way.

There are only buses in Iceland, no trains. But there are ferries which are considered public transport, such as the ferry to the Westman Islands, one of the best Iceland winter day trips.

For within Reykjavík, you need to use KLAPP tickets, it’s not possible to pay on the bus using cash or card. You can simply download the app and get the tickets there.

But I don’t really recommend taking the bus in Reykjavík, I don’t think there’s much point. It’s a really small city and everything is very close together, so you can walk pretty much everywhere.

For the rest of Iceland, I recommend taking guided tours.

And if you were wondering, unfortunately, there is no Uber in Iceland.

A picture of two buses in Rekyjavik. They're orange-yellow and look like buses elsewhere in Europe.

Is Iceland Expensive: FAQ

Below are some questions related to “Is Iceland expensive?” along with my answers to each question.

Is Iceland very expensive to visit?

Yes, Iceland is very expensive to visit. It’s one of the most expensive countries in the world to visit, but it’s more than worth it. Iceland is such a unique country and there is nowhere else like it.

How much does a meal cost in Iceland?

Most meals in Iceland cost between 3,000 and 4,000 Icelandic krona. This is the rough equivalent of £18/€20/$22 to £24/€27/$29. These prices are for an average meal such as fish and chips or a burger with fries.

Is Iceland expensive to eat and drink?

Yes, eating and drinking is one of the most expensive things in Iceland. A bottle of water costs about 400-600 ISK and the average meal costs between 3,000 and 4,000 ISK.

Is Iceland expensive for UK tourists?

Yes, Iceland is very expensive for UK tourists. The exchange rate is roughly 1000 ISK to £6 GBP. As a reference, a typical meal, burger and chips for example, costs between 3,000 and 4,000 ISK, or £18-24, so it’s pretty expensive for UK tourists.

Final Thoughts: Is Iceland Expensive?

And there you have it, a complete guide to “Is Iceland expensive?

Remember, my answer is yes, Iceland is very expensive.

It’s one of the most expensive countries in the world to visit, but it’s so worth it for the priceless experiences.

Enjoy your trip to Iceland, you’re guaranteed to have the trip of a lifetime! Want to know where to spend your money in the country? Maybe take some Iceland souvenirs home with you that you can’t buy anywhere else in the world!