Guide to spending money in Iceland
The Northern Lights, active volcanoes, blue lagoons and black beaches: Iceland is full of natural wonders.
Nicknamed the “Land of Fire and Ice”, Iceland is only a three-hour flight from the UK, and makes for an exhilarating destination.
With breathtaking scenery, bustling city life, and plenty of adventures to choose from (such as whale watching, glacier hikes and horse riding), there really is something for everyone.
I visited in June with a friend a few years ago for a long weekend. We loved the never-ending days and “midnight sun”. Special memories include discovering black-sand beaches, watching geysers spurt hot water and steam, and bathing in beautiful blue lagoons.
Here, we break down local costs and explain the best ways to spend money in Iceland.
What is the currency in Iceland?
How much cash can I take to Iceland?
You can take as much as you like into Iceland, but must declare it if you’re carrying more than 10,000 euros (about 1,505,055 Icelandic Króna).
The best way to spend money in Iceland is by using a debit or credit card. You’ll need cash for small purchases and tipping.
How much do things cost in Iceland?
Iceland is one of the most expensive countries in Europe. This is partly due to how remote it is, and the cost of importing food and goods.
You’ll find that many things cost more than they do in the UK. Here are some typical costs to help you work out how much spending money to take to Iceland:
Average costs in Reykjavík
Museum visits: ISK 3,900 (Aurora Reykjavik), ISK 5,040 (Reykjavik City Card 24 hours - gives free access to many museums, swimming pools and unlimited bus travel)
Guided tours: ISK 18,000 - 33,000
Mid-level hotel (per night): ISK 21,282
5* Luxury hotel (per night): ISK 65,309
Average costs in Akureyri
Museum visits: ISK 2,500 (Akureyri Museum)
Guided tours: ISK 12,700 - 22,100
Mid-level hotel (per night): ISK 18,615
5* Luxury hotel (per night): ISK 34,802
Plokkfiskur
The information above is correct as of 2 May 2024. Data sourced from numbeo.com. Note that prices are subject to seasonal and inflationary fluctuations.
How much does it cost to travel around Iceland?
To experience Iceland, you’ll need to travel around and explore. Here’s how the costs stack up for airport transfers, hiring a car, and using the buses.
Visiting the Blue Lagoon
How much should you tip in Iceland?
Tipping is not expected, but is appreciated. Here’s our guide to tipping in Iceland:
Tipping in restaurants
Some restaurants add a service charge to the bill, so check if that is included before deciding whether to tip. If you’ve received excellent service and want to tip, it’s usual to leave around 10%-15% of the total bill, although rounding up is also acceptable. For example, if your meal cost ISK 16,800:
| Tip | The total cost of a meal | Tip amount | Total |
|---|---|---|---|
| 10% | Three-course meal for two people in mid-range restaurant: ISK 16,468 | 1,649 | 18,117 |
| 15% | Three-course meal for two people in mid-range restaurant: ISK 16,468 | 2,470 | 18,938 |
Tips for tour guides
If your guide gives an interesting and well-planned excursion, consider giving them a 10% tip. It’s worth tipping on free tours too, as it may be the only income your guide makes.
This article is for promotional or information purposes only. You must not rely on it as advice.
Please contact a financial adviser if you need advice before you buy a financial product or service.
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