Is Reykjavik Expensive? An In-Depth Guide to the Cost of Living in Iceland’s Capital

If you’re thinking about planning a vacation to the beautiful and ultra-modern city of Reykjavik, then it’s important to understand the cost of living in one of the world’s northernmost capital cities. With its combination of stunning natural beauty and vibrant city life, Reykjavik is a great choice for a summer getaway or a winter escape. But how far can your budget stretch in this fascinating city?

When it comes to cost of living, Iceland is certainly not as inexpensive of a country as many visitors may think. In fact, in a 2020 comparison of the world’s costliest cities conducted by The Economist Intelligence Unit, Reykjavik took the 11th spot. This shouldn’t, however, put you off from planning a trip to Reykjavik—especially with a little bit of budget homework and planning. Here’s a comprehensive guide to all the aspects of living in Reykjavik that might affect your pocket.

Accommodation

Finding the right accommodation is essential for any trip and this is especially true in Reykjavik. As you might expect from a European capital city, hotels in Reykjavik are generally expensive—even the more affordable mid-scale options can easily set you back around 95 EUR ($105) per night for a double room. However, if hosting websites like Airbnb are more up your alley, it is still possible to find a great apartment or room in Reykjavik for around 80 EUR ($90) per night. Whenever booking accommodation in Iceland, make sure to read reviews carefully—it’s always best to check that you know exactly what you’re getting before booking!

Food Costs in Reykjavik

On the whole, food costs in Reykjavik are usually considered to be quite typical of European capital cities—and slightly on the expensive side compared to most other destinations in Europe but well within reach for the average traveler if done wisely. Food prices vary considerably in Reykjavik but on a general level they are typically slightly more expensive than other European cities—with fast food meals averaging around 15 EUR ($17), and typical restaurant meals costing around 20 EUR ($23). Grocery store prices also tend to be high compared to other countries—although there are still plenty of ways for clever budgeters to get good value for money.

Transportation in Reykjavik

Reykjavik’s small size makes it incredibly easy to get around, and many travelers opt to explore the city on foot or by bike. However, if you don’t have the time or energy to do so, then an affordable option is to take a taxi—the cost of one typically varies between 15–30 EUR ($17–$34). An alternative option is to use public transport—which ranges from 7–14 EUR ($8–$16) per ticket (depending on how long the journey is).

Leisure in Reykjavik

Reykjavik is a city of art and culture, and if you’re looking to take part in shows, concerts, and other cultural activities, then prices will usually range from 8 – 40 EUR ($18–$45). As well as activities indoors, travelers will be delighted to find there are plenty of free activities to enjoy outdoors too—from visiting local natural hot springs such as Perlan or Blue Lagoon (if your budget doesn’t quite stretch far enough to take advantage of all the services), or explore the many hiking trails around Reykjavik.

Overall Cost of Living in Reykjavik

According to Numbeo (a reputable cost of living comparison website which gathers data from real visitors), visitors should take into account spending anywhere between 500 -1000 EUR ($570 -$1140 ) per week when planning a trip to Reykjavik—which should include accommodation, food, transportation and leisure activities. Ultimately, however, this figure depends heavily on how much luxury you plan to indulge in during your stay and how much you spend per day on meals and experiences. After all, luxury goods in Reykjavik are far from cheap but there is no shortage of fantastic experiences each traveler can enjoy without spending too much.

So is Reykjavik expensive? Well, it all depends on how you choose to embrace every aspect of your stay. With proper planning and budgeting, it’s very possible to take advantage of all the fantastic experiences on offer in Reykjavik with minimal strain on your wallet! If you’re looking for an experience like no other then why not try taking advantage of a unique Reykjavik Icelandic Beer Tour? Led by locals, this intimate guided tour takes visitors through some of Reykjavik’s interesting history and beer scenes, with plenty of stops along the way for samples! If this sounds like something right up your alley then consider checking out the Reykjavik Icelandic Beer Tour for more information!