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Is Iceland expensive?
Quick answer
Yes — Iceland is one of the most expensive countries in Europe, especially for food, alcohol and accommodation. A restaurant main course often costs 3,000–5,000 ISK and a beer 1,200–1,800 ISK, but tap water is excellent and free, most natural sights cost nothing, and sharing a private vehicle keeps transport reasonable for groups.
What's expensive
- Eating out — a main course is typically 3,000–5,000 ISK; alcohol is heavily taxed (a beer is 1,200–1,800 ISK).
- Accommodation — especially in Reykjavík in peak season.
- Imported goods — most things are shipped in.
What's free or cheap
- Tap water — some of the cleanest in the world, straight from the tap.
- Nature — waterfalls, beaches, most viewpoints and hikes are free.
- Swimming pools — local geothermal pools are inexpensive.
Ways to save
Travel in the shoulder season, self-cater some meals, buy alcohol at the airport Duty Free, and share tours and transport.
Getting value from tours
Private tours and transfers are priced per vehicle, so for a family or group the per-person cost is often close to a coach seat — with a private trip on your own schedule.
Ready to plan your trip?
Tell us your dates and we'll arrange a private airport transfer or a tailor-made tour with a local driver-guide.