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How expensive is Iceland?

How expensive is Iceland

When we visited Iceland in March this year we had done lots of research about this wonderful place. We knew it was going to be Expensive however we were not prepared for just how expensive it is! After arriving we headed straight for a walk into Reykjavik centre to get some of the famous Icelandic fish and chips. We came across a cute little restaurant and wondered in and had the freshest meal you could find! After asking for the bill we worked out the Icelandic króna into Pounds and this isn’t the easiest as £1.00 is 140.00 króna. The bill came to 6997.53 !!! this worked out to around £50.00 for a small fish and chips at a very casual restaurant.

The next night we decided to have a cocktail in the hotel bar of Hotel Reykjavik Marina before we went out for dinner and this alone was £45.00 for two drinks!!! Alcohol has a huge TAX on by the government and is very expensive with the average price being £10 – £15 for the cheapest drink. After leaving the hotel we found a lovely little Italian restaurant called Caruso which was in Reykjavik centre that had outstanding reviews online. We decided to have a cocktail while we waited as it was very busy. We ordered a garlic bread starter to share and two pasta dishes with a side of fries. The meal was outstanding and couldn’t rate it enough !! After getting the bill for 18202.70 króna  and working out the price for ourselves this worked out to £130.00 !!! For a very nice meal in an average restaurant this is just the normal price you have to pay, especially in the capital city Reykjavik.

Even shopping at the supermarket we found that buying a few bottles of water and snacks came to £20.00 for just a few items. The high prices are inflated because Iceland has to import most food items as farming is just so hard with the harsh weather conditions. The 2008 crash in Icelands economy caused a high tax on all imports to the country and this has pushed the price up of everything you buy.

The only meal we ate that worked out to be a reasonable price when we converted from Krona to Pounds was at the Hard Rock Cafe! We assumed this is because the meals are a standard price across all restaurants.

With the inflated food and drink prices it’s very easy to go over your budget on just the  everyday things you need without splashing out on fancy food and drinks.

Drinks in Iceland

Breakfast in Iceland

Iceland national park

Please let us know your experiences with Iceland and how you got on with your budget in the comments.

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How expensive is Iceland?


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