Iceland

Iceland is a popular destination for expats due to its high standard of living, natural beauty, and progressive society. Overall, Iceland can be a great destination for expats who are looking for a high quality of life and a unique cultural experience. However, it’s important to do your research and to be prepared for the challenges that come with living in a foreign country.

The general cost of living in Iceland

Iceland is known for having a high cost of living compared to many other countries. The prices of goods and services are generally higher in Iceland than in other European countries, although the cost of living can vary depending on where you live in the country.

Some of the factors that contribute to the high cost of living in Iceland include:

1. Housing: Rent and home prices in Iceland are high due to the limited supply of housing and the high demand from both Icelanders and foreigners.
2. Food and drink: Because of the country’s isolation and the fact that many foods need to be imported, the cost of food and drink can be higher than in other countries.
3. Transport: Gasoline is relatively expensive in Iceland, and public transportation can also be costly.
4. Entertainment: Going out to restaurants, bars, and cultural events can be expensive, although there are often discounts available for students and seniors.
5. Taxes: The tax system in Iceland is progressive, meaning that higher earners pay a higher percentage of their income in taxes.

Overall, the cost of living in Iceland is high, but the country also has a high standard of living, excellent healthcare, and a strong social welfare system.

Wages and salary in Iceland

The wages and salary in Iceland are relatively high compared to other countries. The minimum wage in Iceland is currently 355,000 ISK per month before taxes, which is equivalent to about 2,290 EUR or 2,630 USD. However, many jobs pay more than the minimum wage. The average salary in Iceland is around 617,000 ISK per month before taxes, which is equivalent to about 3,970 EUR or 4,570 USD. It’s important to note that the cost of living in Iceland is also relatively high, so while the wages are high, expenses such as housing, food, and transportation can also be quite costly.

Housing costs in Iceland

Housing costs in Iceland can be relatively high compared to other countries. The average monthly rent for a one-bedroom apartment in Reykjavik, the capital city, is around 200,000 to 250,000 ISK (around $1,500 to $1,900 USD) per month. Outside of Reykjavik, rental prices can be lower, but it will depend on the location and type of accommodation.

If you are planning to buy a property in Iceland, the cost of housing can also be high. The average price of a house in Reykjavik is around 45 million ISK (around $340,000 USD) and can be more expensive for larger properties or those in desirable areas. It is worth noting that real estate prices in Iceland have been steadily increasing in recent years.

Rental costs in Iceland

The rental costs in Iceland vary depending on the location, size, and condition of the property. The capital city, Reykjavik, is known for being particularly expensive. Here are some estimated rental costs for different types of properties in Reykjavik:

• A studio apartment: 160,000 ISK to 220,000 ISK per month
• A one-bedroom apartment: 180,000 ISK to 270,000 ISK per month
• A two-bedroom apartment: 220,000 ISK to 350,000 ISK per month
• A three-bedroom apartment or house: 320,000 ISK to 500,000 ISK per month

It’s important to note that in addition to the rent, tenants are usually required to pay for utilities such as electricity, water, and heating. Some rental properties also require a deposit, usually equivalent to one or two months’ rent, and/or agency fees.

Property prices in Iceland

The cost of properties in Iceland varies depending on the location, size, and type of property. According to recent data, the average price per square meter for an apartment in Reykjavik is around 1,000,000 ISK (approximately 7,800 USD), while the average price for a detached house is around 70,000,000 ISK (approximately 550,000 USD). Outside of Reykjavik, property prices are generally lower. However, it is important to note that housing in Iceland is considered expensive compared to many other countries, and the cost of living in general can be high.

Cost of domestic bills in Iceland

The cost of domestic bills in Iceland varies depending on the location, size of the home, and usage. Here are some estimated monthly costs for common domestic bills:

1. Electricity: The average monthly cost of electricity in Iceland is around 20,000 ISK (about 150 USD) for a family of four living in a 100 square meter apartment.
2. Water: The monthly cost of water in Iceland ranges from 2,500 ISK to 10,000 ISK (about 20-80 USD) depending on the location and size of the property.
3. Heating: The cost of heating in Iceland can vary greatly depending on the type of heating system, the insulation of the home, and the size of the property. In general, the average monthly cost of heating in Iceland ranges from 10,000 ISK to 30,000 ISK (about 75-225 USD).
4. Internet and cable TV: The monthly cost of internet and cable TV in Iceland ranges from 10,000 ISK to 20,000 ISK (about 75-150 USD) depending on the provider and package.

It’s important to note that these are just estimates, and actual costs may vary depending on individual circumstances.

Utility bills in Iceland

The cost of utility bills in Iceland varies depending on several factors such as the location, size of the apartment or house, and the season. The main utility bills in Iceland include electricity, water, heating, and waste management.

Electricity bills in Iceland are usually high, and they are charged according to the usage per kilowatt-hour (kWh). The average cost of electricity per kWh is around ISK 27 (USD 0.21) in Iceland.

Water bills in Iceland are usually calculated based on the water consumption, and the average cost of water per cubic meter is around ISK 1800 (USD 14). However, some apartments and houses may have their water supply included in the rent.

Heating bills in Iceland are dependent on the type of heating system in use, which can either be electric, oil, or geothermal heating. The cost of heating can vary depending on the size of the house or apartment and the location. In general, the average cost of heating in Iceland is around ISK 50,000 (USD 390) per month.

Waste management bills in Iceland are usually included in the housing association fee, which covers the cost of waste disposal and recycling.

Overall, the cost of utility bills in Iceland can be high, and it is advisable to research the costs before renting or buying a property.

Telecommunications in Iceland

The cost of telecommunications services in Iceland can vary depending on the service provider, type of service, and package selected. Here are some rough estimates of the prices for some common telecommunications services in Iceland:

• Mobile phone plans: Monthly mobile phone plans can start at around 2,000 ISK (approximately 15 USD) and go up to 15,000 ISK (approximately 110 USD) or more depending on the package and the service provider. Prepaid SIM cards are also available, with prices starting at around 1,000 ISK (approximately 7 USD).
• Internet service: The cost of internet service in Iceland varies depending on the provider, location, and the type of service. For a 100 Mbps download and 100 Mbps upload speed, the monthly cost can range from 6,000 ISK (approximately 45 USD) to 10,000 ISK (approximately 75 USD).
• Cable TV: Monthly cable TV service packages can start at around 4,000 ISK (approximately 30 USD) and go up to 10,000 ISK (approximately 75 USD) or more, depending on the package and the provider.

It is important to note that these prices are estimates and can vary depending on the provider and location. It is best to research and compare different providers and packages to find the best deals.

Healthcare costs in Iceland

Healthcare costs in Iceland can vary depending on the services required and the individual’s situation. Iceland has a public healthcare system that provides basic healthcare to all legal residents. The system is funded by taxes and has a co-payment system for certain services.

The co-payment system applies to services such as visits to the doctor, specialist consultations, and hospital care. The co-payment amounts can vary depending on the service and are subject to change. In general, co-payments range from around 1,000 ISK to 5,000 ISK per service.

There are also private healthcare options available in Iceland, which can be more expensive than the public system. Private health insurance can also be purchased to cover costs not covered by the public system, but it is not required.

Prescription medication costs can also vary, but the government regulates the prices of medication to keep them affordable. The cost of medication may be partially covered by the public health insurance, but the patient may be required to pay a portion of the cost.

It is important to note that emergency healthcare services are free of charge for both residents and visitors in Iceland.

Childcare costs in Iceland

Childcare costs in Iceland are generally high, with many families spending a significant portion of their income on childcare. The cost of childcare can vary depending on factors such as the age of the child, the type of childcare chosen, and the location of the childcare provider.

In Iceland, there are different options for childcare, including public and private daycares, kindergartens, and in-home daycare providers. The cost of these services can range from around 20,000 ISK (approximately $160 USD) per month for in-home daycare to over 200,000 ISK (approximately $1,600 USD) per month for private daycares and kindergartens.

Families with low income or multiple children may be eligible for government subsidies to help cover the cost of childcare. It is also important to note that Iceland has a generous parental leave policy, allowing both parents to take time off work to care for their child without losing their jobs.

Study costs in Iceland

Studying in Iceland can be a bit expensive for international students, especially when compared to other European countries. The cost of tuition fees can vary depending on the level of study and the university, with private institutions generally being more expensive. However, Icelandic universities are known for providing high-quality education, and there are also opportunities for scholarships and grants to help cover some of the costs.

In general, the cost of living in Iceland can be high, and this can also affect the overall cost of studying in the country. Housing can be particularly expensive, and students may need to budget carefully for food, transportation, and other living expenses.

It is worth noting that there are some differences between tuition fees for EU/EEA/Swiss students and non-EU/EEA/Swiss students. EU/EEA/Swiss students generally pay the same tuition fees as Icelandic students, while non-EU/EEA/Swiss students may have to pay higher fees.

Overall, while studying in Iceland can be expensive, it can also be a unique and rewarding experience, with opportunities to explore the country’s natural beauty and rich culture.

The cost of food and drink in Iceland

The cost of food and drink in Iceland is generally higher than in many other countries, primarily due to the country’s remote location and its reliance on imported goods. However, there are ways to keep costs down, such as shopping at discount supermarkets, buying in bulk, and eating out less frequently.

Basic groceries, such as bread, milk, and eggs, can cost anywhere from 200 to 500 ISK (Icelandic króna), depending on the brand and where you shop. Meat, fish, and produce can be more expensive, with prices varying based on the season and availability. Imported goods, such as cheese and other dairy products, can also be quite costly.

Eating out in Iceland can be expensive, with prices typically ranging from 2,000 to 5,000 ISK per person for a meal at a mid-range restaurant. However, there are some more affordable options, such as fast food restaurants and food trucks, which can offer meals for under 1,500 ISK.

Alcohol is heavily taxed in Iceland, and prices can be significantly higher than in many other countries. A beer or glass of wine at a restaurant can cost anywhere from 1,000 to 1,500 ISK, while purchasing alcohol from a government-run liquor store (Vinbudin) can be even more expensive.

Overall, the cost of food and drink in Iceland can be high, but there are ways to keep costs down by being strategic about where and what you purchase.

Groceries

In Iceland, groceries can be quite expensive, especially for imported items. However, there are ways to reduce costs by shopping at discount grocery stores, buying local products, and taking advantage of sales and discounts. The major supermarket chains in Iceland include Bonus, Netto, Hagkaup, and Kronan, and there are also several smaller specialty food stores and markets. Some popular Icelandic grocery items include skyr (a type of yogurt), Icelandic lamb, seafood, and local vegetables such as potatoes, carrots, and turnips. Imported items such as fruits, nuts, and spices can be quite expensive, as they need to be shipped from overseas.

Restaurants in Iceland

The cost of eating out in Iceland can vary depending on the type of restaurant and location. In general, dining out in Iceland can be quite expensive, particularly in Reykjavik. For example, a basic meal at a fast-food restaurant can cost around 1,500 ISK (approximately $13 USD), while a three-course meal for two at a mid-range restaurant can cost around 25,000 ISK (approximately $220 USD). However, there are also many more affordable options available, such as street food stalls, cafes, and smaller restaurants.

Beer, wine, and spirits in Iceland

Alcoholic beverages are generally expensive in Iceland due to high taxes. Prices vary depending on the type of alcohol and where it is purchased. As of 2021, the average price of a beer in a bar or restaurant is around 1,200-1,500 ISK (8-10 USD) for a half-liter, while a bottle of wine in a restaurant can cost 5,000-10,000 ISK (33-66 USD) or more. At liquor stores, a 750 ml bottle of wine can cost around 2,500-5,000 ISK (16-33 USD), a 6-pack of beer around 2,000-3,500 ISK (13-23 USD), and a 700 ml bottle of spirits around 6,000-10,000 ISK (40-66 USD) or more. Non-alcoholic drinks such as soda and juice are also relatively expensive in Iceland compared to other countries.

Coffee in Iceland

The price of coffee in Iceland can vary depending on where you buy it. In general, a cup of coffee can cost around 400-700 Icelandic krona (3-5 USD) in a café or coffeehouse. However, the price may be higher in more touristy areas or establishments. If you buy coffee from a convenience store, the price is usually lower, with a cup of coffee costing around 200-300 Icelandic krona (1.5-2 USD).

Transport costs in Iceland

Transportation costs in Iceland can be quite high. Here are some examples:

• Gasoline: As of May 2023, the average price for a liter of gasoline in Iceland is around 270 ISK (2.1 USD).
• Car rental: The cost of renting a car in Iceland varies depending on the season and the type of vehicle. During the high season (June to August), a small car can cost around 10,000-12,000 ISK (78-94 USD) per day, while a larger car or a 4×4 can cost around 20,000-30,000 ISK (157-235 USD) per day.
• Public transport: The cost of public transport in Iceland varies depending on the location and the type of transport. For example, a single fare on a bus in Reykjavik costs 470 ISK (3.7 USD) if purchased with a travel card, or 500 ISK (3.9 USD) if purchased on the bus. A single fare on a bus in Akureyri costs 420 ISK (3.3 USD). A one-way ticket on the Reykjavik city bus airport express costs 1,200 ISK (9.4 USD).
• Taxis: Taxis in Iceland are generally quite expensive. The starting fee is around 600-800 ISK (4.7-6.3 USD), and the price per kilometer is around 300-400 ISK (2.4-3.1 USD).
• Domestic flights: The cost of domestic flights in Iceland varies depending on the airline, the route, and the season. As an example, a one-way ticket from Reykjavik to Akureyri can cost around 20,000 ISK (157 USD) during the high season.

It’s important to note that prices in Iceland can be affected by various factors such as seasonality, exchange rates, and availability, and may fluctuate.

Public transport in Iceland

The cost of public transport in Iceland varies depending on the mode of transportation, the distance, and the time of travel.

For example, a single fare on the Reykjavik city bus system, Strætó, is currently (as of May 2023) 500 ISK when paid with a prepaid travel card, and 600 ISK when paid with cash. Discounted fares are available for students, seniors, and children.

Long distance coaches, such as those operated by the companies Reykjavik Excursions and Gray Line Iceland, offer a variety of tours and transfers to popular destinations outside of Reykjavik. The cost of these services varies depending on the route and the operator, but fares are generally quite expensive, often ranging from several thousand to tens of thousands of Icelandic Krona.

Taxis and other car services in Iceland are also relatively expensive compared to other countries. The cost of a taxi ride is typically charged by the meter, with an initial fee of around 750-800 ISK and additional fees per kilometer traveled.

Overall, Iceland is known for its high cost of living, and public transport is no exception. However, there are discount options available, particularly for those who purchase prepaid travel cards or use certain types of payment methods.

Private transport in Iceland

Private transport in Iceland can be quite expensive, as the country’s isolated location means that many goods have to be imported. The cost of owning and operating a car in Iceland can be high due to the country’s harsh weather conditions and high fuel prices. In addition, Iceland has some of the highest car rental rates in the world, with prices ranging from about 10,000 ISK to 30,000 ISK per day depending on the type of vehicle and the time of year.

There are also several toll roads in Iceland, including the Hvalfjörður Tunnel and the Vaðlaheiði Tunnel, which can add to the cost of driving. Public transportation in Iceland is generally more affordable, with bus fares ranging from about 500 ISK to 1,000 ISK for a single ticket, depending on the distance traveled. Taxis are also available in urban areas, but can be expensive compared to public transport.

Leisure activities in Iceland

Iceland offers a range of leisure activities, including outdoor activities, cultural events, and entertainment options. Some popular leisure activities in Iceland include:

1. Outdoor activities: Iceland is known for its stunning natural beauty, and outdoor activities such as hiking, camping, fishing, skiing, snowmobiling, and whale watching are popular among locals and tourists alike.
2. Cultural events: Iceland has a thriving arts and culture scene, with many music festivals, theater productions, and art exhibitions held throughout the year. The annual Reykjavik Arts Festival is one of the country’s biggest cultural events, featuring performances by local and international artists.
3. Museums and galleries: Iceland has a number of museums and galleries, showcasing the country’s history, culture, and art. Some of the most popular museums in Iceland include the National Museum of Iceland, the Reykjavik Art Museum, and the Viking World Museum.
4. Hot springs and spas: Iceland is home to many natural hot springs, where visitors can relax and soak in the warm, mineral-rich water. Some of the most popular hot springs in Iceland include the Blue Lagoon, the Secret Lagoon, and the Mývatn Nature Baths.
5. Nightlife: Reykjavik is known for its vibrant nightlife, with a wide range of bars, clubs, and music venues to choose from. The city has a lively atmosphere, and many bars and clubs stay open until the early hours of the morning.

The cost of leisure activities in Iceland can vary depending on the activity and location. Outdoor activities such as hiking and camping are generally affordable, while activities such as whale watching and hot springs can be more expensive. Cultural events and entertainment options can also vary in price, with some events being free and others requiring an admission fee.

Clothing in Iceland

Clothing in Iceland can be relatively expensive compared to some other countries. This is partially due to the country’s isolation and small population, which makes it more expensive to import goods. However, there are many outdoor clothing brands based in Iceland that produce high-quality, durable clothing that is suitable for the country’s rugged landscape and unpredictable weather. It is also possible to find more affordable clothing options in chain stores and outlets.

Sports in Iceland

Sports are an important part of Icelandic culture and lifestyle. Football (soccer) is the most popular sport in Iceland, and it is played by people of all ages and skill levels. Other popular sports include handball, basketball, volleyball, golf, and horseback riding.

Iceland’s unique geography also makes it an ideal location for outdoor sports such as hiking, mountaineering, skiing, snowboarding, fishing, and kayaking. There are many opportunities for these activities throughout the country, and they are enjoyed by locals and tourists alike.

In addition, Iceland is well-known for its traditional sports, such as glima (a form of wrestling) and knattleikr (a Viking ball game). These sports have a long history in Iceland and are still played and celebrated today.

Taxation and social security in Iceland

Taxation and social security in Iceland are both quite high compared to many other countries, but residents benefit from a comprehensive welfare system that includes universal healthcare, free education, and other social services.

Here are some key facts about taxation and social security in Iceland:

1. Income tax: Residents of Iceland are required to pay income tax on their earnings, with rates ranging from 37.3% to 46.24%, depending on income level. The tax system is progressive, meaning that those with higher incomes pay a higher rate of tax.
2. Value-added tax (VAT): The standard VAT rate in Iceland is 24%, which is higher than most other countries.
3. Social security contributions: Employees in Iceland are required to contribute a percentage of their salary to the country’s social security system. The employer also contributes to this system on behalf of the employee. The total contribution is currently 8.39% of an employee’s salary.
4. Capital gains tax: Residents of Iceland are required to pay capital gains tax on profits from the sale of certain assets, including real estate, shares, and other investments. The rate of capital gains tax is currently 22%.
5. Inheritance tax: Iceland has an inheritance tax that applies to the transfer of assets after a person’s death. The tax rate ranges from 10% to 50%, depending on the value of the assets.

Overall, while taxes in Iceland may be high, residents of the country benefit from a range of social services and a high standard of living.

Assistance with living costs in Iceland

There are several forms of assistance available to help with living costs in Iceland, especially for those who may be experiencing financial difficulties.

1. Housing subsidies: The government provides housing subsidies to those who are renting a property and have low incomes. This subsidy can cover up to 50% of the rent, depending on the income of the household.
2. Child benefits: The Icelandic government provides child benefits to parents or legal guardians of children under the age of 18. The amount of the benefit depends on the age of the child and the income of the household.
3. Unemployment benefits: Those who have lost their jobs and meet certain eligibility requirements may be eligible for unemployment benefits. The amount of the benefit depends on the length of employment and the income earned.
4. Social assistance: The government provides social assistance to those who are unable to support themselves due to a lack of income or other financial difficulties. The amount of assistance depends on the individual’s circumstances and needs.
5. Disability benefits: Those with disabilities may be eligible for disability benefits, which provide financial assistance to help cover living expenses.
6. Student loans and grants: Icelandic students can apply for loans and grants to help cover the costs of tuition fees, textbooks, and living expenses while they are studying.

It’s worth noting that the eligibility criteria and the amount of financial assistance available may vary depending on the specific program and the circumstances of the individual applicant.