Quick answer: Yes — Iceland is one of the world’s most expensive countries. Budget travelers should plan about $120–180/day; mid-range $250+/day. But the best things (the landscapes) are free.
Iceland has a fearsome reputation for prices — and it’s largely deserved. Here’s an honest breakdown and how to keep costs down.
What’s expensive
Restaurants, alcohol, guided tours and car hire are the big costs. A casual dinner can be $30–45; a beer $10+.
What’s free or cheap
The Golden Circle, waterfalls, black-sand beaches and many hot springs are free. Tap water is pristine; hot-dog stands and supermarket food (Bónus, Krónan) are cheap.
How to do Iceland cheaply
Self-drive in a camper, cook your own meals, bring duty-free alcohol, and visit free natural sights. Full tips in our Iceland on a budget guide.
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Written by
John Morrison is the founder and lead travel writer at Packzup. Over the past decade he has explored destinations across Africa, the Americas, Asia, Europe, the Middle East, and Oceania — always self-funded, never on a press trip.