Cost of Living in Iceland

Updated: January 01, 2025

If you've ever considered moving to Iceland, one of the first questions that likely crossed your mind is, "What is the cost of living in Iceland?" After all, it's essential to have a clear picture of your potential expenses before making such a life-changing decision. At this page, we'll dive into the nitty-gritty of the cost of living in Iceland and whether the reported $3224 per month figure aligns with the average monthly salary of $3030.17.

Restaurants

Markets

Transportation

Childcare

Clothing

Rent Per Month

Buy Apartment

Salaries

Iceland

restaurant Restaurants	Price	World Range
Meal, Inexpensive Restaurant	17.12 $
Meal for 2 People, Mid-range Restaurant, Three-course	95.86 $
McMeal at McDonalds (or Equivalent Combo Meal)	13.69 $
Domestic Beer (1 pint draught)	8.22 $
Imported Beer (12 oz small bottle)	7.19 $
Cappuccino (regular)	4.17 $
Coke/Pepsi (12 oz small bottle)	2.36 $
Water (12 oz small bottle)	1.85 $

store Markets	Price	World Range
Milk (regular), (1 gallon)	1.34 $
Loaf of Fresh White Bread (1 lb)	3.02 $
Rice (white), (1 lb)	2.77 $
Eggs (regular) (12)	5.06 $
Local Cheese (1 lb)	12.49 $
Chicken Fillets (1 lb)	15.37 $
Beef Round (1 lb) (or Equivalent Back Leg Red Meat)	22.77 $
Apples (1 lb)	2.76 $
Banana (1 lb)	2.07 $
Oranges (1 lb)	2.24 $
Tomato (1 lb)	4.0 $
Potato (1 lb)	2.33 $
Onion (1 lb)	1.26 $
Lettuce (1 head)	2.36 $
Water (1.5 liter bottle)	1.71 $
Bottle of Wine (Mid-Range)	17.12 $
Domestic Beer (0.5 liter bottle)	2.87 $
Imported Beer (12 oz small bottle)	2.5 $
Cigarettes 20 Pack (Marlboro)	10.54 $

commute Transportation	Price	World Range
One-way Ticket (Local Transport)	3.36 $
Monthly Pass (Regular Price)	54.78 $
Taxi Start (Normal Tariff)	5.07 $
Taxi 1 mile (Normal Tariff)	2.4 $
Taxi 1hour Waiting (Normal Tariff)	54.23 $
Gasoline (1 gallon)	2.02 $
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)	28757.27 $
Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car)	32047.42 $

mark_as_unread Utilities (Monthly)	Price	World Range
Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft Apartment	106.62 $
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans)	0.15 $
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)	64.03 $

kitesurfing Sports And Leisure	Price	World Range
Fitness Club, Monthly Fee for 1 Adult	58.92 $
Tennis Court Rent (1 Hour on Weekend)	31.67 $
Cinema, International Release, 1 Seat	11.64 $

child_friendly Childcare	Price	World Range
Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child	262.47 $
International Primary School, Yearly for 1 Child	5048.5 $

checkroom Clothing And Shoes	Price	World Range
1 Pair of Jeans (Levis 501 Or Similar)	107.87 $
1 Summer Dress in a Chain Store (Zara, H&M, ...)	50.21 $
1 Pair of Nike Running Shoes (Mid-Range)	139.95 $
1 Pair of Men Leather Business Shoes	170.67 $

night_shelter Rent Per Month	Price	World Range
Apartment (1 bedroom) in City Centre	1307.6 $
Apartment (1 bedroom) Outside of Centre	1057.94 $
Apartment (3 bedrooms) in City Centre	1854.8 $
Apartment (3 bedrooms) Outside of Centre	1622.55 $

home Buy Apartment Price	Price	World Range
Price per Square Feet to Buy Apartment in City Centre	4884.47 $
Price per Square Feet to Buy Apartment Outside of Centre	3742.8 $

account_balance_wallet Salaries And Financing	Price	World Range
Average Monthly Net Salary (After Tax)	3030.17 $
Mortgage Interest Rate in Percentages (%), Yearly, for 20 Years Fixed-Rate	5.55 %

Dining Out

The cost of dining varies with the type of establishment. A meal at an affordable restaurant averages around 17.12 USD, while a three-course dinner for two at a mid-range restaurant generally costs 95.86 USD.

Groceries

Basic grocery prices are accessible for most essentials. For instance, a gallon of milk costs about 1.34 USD, a loaf of bread 3.02 USD, and a dozen eggs approximately 5.06 USD.

Transportation

Public transport is relatively affordable, with a single trip priced at about 3.36 USD and a monthly pass around 54.78 USD. If you plan to use public transit regularly, these passes offer great value.

Utilities

For an 85 m² apartment, monthly utility bills—including electricity, heating, water, and waste services—average around 106.62 USD.

Sports and Recreation

For those interested in fitness and leisure, a monthly gym membership averages around 58.92 USD, while an hour on a tennis court on weekends costs about 31.67 USD.

Childcare and Education

Families looking for private childcare services will find that a month at a local preschool or kindergarten costs around 262.47 USD. For international schooling options, annual tuition can reach approximately 5048.5 USD.

Clothing and Footwear

Clothing and shoe prices vary widely. A pair of Levi's 501 jeans, for example, costs about 107.87 USD, and mid-range Nike sneakers are priced around 139.95 USD.

Apartment Rentals

Rental prices depend on location, with a one-bedroom apartment in the city center averaging 1307.6 USD per month, while one outside the center costs around 1057.94 USD.

Real Estate for Purchase

If you're considering buying property, prices per square foot vary as well. In central areas, the price per square foot is roughly 4884.47 USD, while in the suburbs, it's closer to 3742.8 USD.

Average Salary and Mortgage Rates

The average monthly net salary here is about 3030.17 USD after taxes, and mortgage interest rates for a 20-year fixed-rate loan average around 5.55% annually.

Warnings & Dangers in Iceland

TERRORISM RISK: LOW

There haven't been any terrorist attacks in Iceland's recent history. However, they shouldn't be ruled out, so remain aware of your surroundings at all times.

OVERALL RISK: LOW

Iceland is a very safe country to visit. It is actually considered the safest country in the world, which still doesn't mean that you should completely relax: petty crime has recently been on the rise in the capital city, Reykjavik.

TRANSPORT & TAXIS RISK: LOW

Taxis and other means of transportation are very safe and reliable in Iceland.

PICKPOCKETS RISK: LOW

There is almost no pickpocketing in Iceland, it is a country that boasts extremely low crime rates. Avoid flashing your valuables in public, or leaving them in plain sight and you should encounter no problems.

NATURAL DISASTERS RISK: LOW

The biggest threats for tourists in Iceland actually lie in nature. The most important thing for tourists and visitors is to monitor local news for information on the weather (since it can change very quickly) and follow the advice of authorities as well as the signs you see on the road, or anywhere in nature.

MUGGING RISK: LOW

Mugging is uncommon in Iceland, and so is kidnapping. However, as in any country, it is recommended that you remain vigilant at all times. Be wary of people trying to distract you, as it might be a trick to try to steal from you.

SCAMS RISK: LOW

Scams are also not common in this country, but you should use your common sense and double-check everything. Be wary of people offering you help with anything or giving you unsolicited advice or directions.

WOMEN TRAVELERS RISK: LOW

Iceland is very safe for women traveling solo, probably one of the safest countries for female travelers. Just follow the rules of common sense such as avoiding deserted and poorly lit streets and areas, and your trip should go smoothly.

Cost of Living in Iceland

Iceland

Restaurants

Markets

Transportation

Utilities (Monthly)

Sports And Leisure

Childcare

Clothing And Shoes

Rent Per Month

Buy Apartment Price

Salaries And Financing