How much does it cost to live in Iceland?


The cost of living in Iceland is $2054 per month, which is at least 3% less expensive than in the USA.

Iceland’s upscale living cost is the biggest concern for many digital nomads and expats.

Therefore is crucial to comprehend the cost of living in Iceland before relocating to Iceland. 

It is arguably true if you have ever heard a rumor that Iceland is expensive. If you’re planning on moving to Iceland, you must be ready to spend at least $2000 a month to live a comfortable life.

Did you know Iceland ranked the 7th most expensive country to live in globally?

This is because Iceland is geographically isolated, and many other reasons corroborate this statement.

On the flip side, the good news is the average salary in Iceland is $3402.

The high salary in Iceland is one of the perks of living in this Nordic island country.

How expensive is accommodation in Iceland?

A digital nomad must acknowledge that the housing cost in Iceland is expensive.

The estimated cost to rent a one-bedroom apartment in Iceland is approximately $1300.

On average, you should expect to pay a price ranging from $1200 to $1800 for an apartment in city areas. 

If you lived in the United States instead of Iceland, you would pay around 24% more for accommodation.

For example, a 1-bedroom apartment in Iceland costs approximately $1,349, but it costs $1,446 for the same in the USA.

If money is not an issue, you can purchase property in Iceland that can cost you more than 300 thousand dollars.

And if you are low on finance, you can choose cheaper options like hostels and Airbnb.

How expensive is food in Iceland?

Food, in general, is expensive in Iceland. You will have to arrange around $645 per month for food alone.

Since Iceland imports food, groceries are equally expensive in Iceland.

A liter of milk comes at $1.2, and a pint of draft local beer costs around $8.

If you lived in the United States instead of Iceland, you would pay 10% more for groceries.

The average cost of a meal in an inexpensive restaurant is $25 per person. You can cook your meal to save some bucks; the average cost per person would be $15 per day. 

How expensive is transportation in Iceland?

The cost of transportation in Iceland would be between $5 and $ 100 per day.

In general, expect to pay $80 for transportation per month.

Traveling by bus is the most convenient option in Iceland.

A monthly pass for the local bus in the city area costs $77.

If you lived in the United States instead of Iceland, you would pay around 25% less for transportation.

For example, if it costs $1.20 for 1 liter of gasoline in the USA, it will cost $1.90 per liter in Iceland.

If you are living out of the city area, you can rent or buy a car.

A liter of gas is priced at $1.5. The cost of renting a car with insurance is $40 per person per day. 

Read more about Iceland and the visa options for nomads.