Cost of Living in Reykjavik, Iceland

How Much Does It Cost to Live In Reykjavik?

The largest city in Iceland, the capital Reykjavik is home for more than 120 thousand people.

Besides being a major industrial and political center, Reykjavik hosts lots of cultural events and business meetings.

An interesting thing is, if your working mood depends on the sunlight, you will be able to work anywhere from four to sixteen hours per day.

Just like any other capital, Reykjavik is the city of students with a number of universities where the youth studies.

Although, the cost of living in this city is extremely expensive.

Cost of Living Index:
112.57

Iceland FlagIceland : Cost of Living by City

Cost of Living in Iceland
Restaurants

RESTAURANTS

The food in the restaurants in Reykjavik is also expensive.

A cup of coffee (cappuccino) costs $4.78 and a bottle of water is $2.15.

Despite the price of the water, people do not often buy it unless for the bottle that will be later used to carry tap water in.

All the sorts of cafes, restaurants, and bistros offer delicious meals yet the portions are quite small and the prices too high.

Markets

MARKETS

There’s one market in Reykjavik which is the largest in the country and has all sorts of goods you need, from seafood (shark meat, in particular) and eco products to clothes and accessories.

This city has probably the most expensive bread, as much as $3.12 for a loaf.

Eggs cost twice as much, and a kilo of beef round is $23.64 on average.

Transportation

TRANSPORTATION

A large problem for many tourists and businessmen in Iceland is the car-sharing taxi services are not available and not allowed by the government here.

There are no railways in Reykjavik, that is why the local people use bus routes or private cars.

The prices for new cars in Reykjavik are rather high: Volkswagen Golf is $29,187.08 and Toyota Corolla $34,109.92 on average.

Utilities

UTILITIES (MONTHLY)

Prices for water, electricity, rubbish collection and heating/cooling are $100.56 per month.

The Internet connection is quite expensive as compared to the rest of Europe, and costs $62.46.

The mobile phone is $0.17 for a minute of speaking.

Reykjavik is a cold city that is why the figures in the bills can be much higher.

Sports and leisure

SPORTS & LEISURE

A lot of sports halls, swimming pools, sailing clubs, and ski resorts are open to visitors.

Reykjavik has great opportunities for fun leisure and recreation.

The city districts are especially concerned about the healthy lifestyle of children and adolescences and provide conditions for active pastime.

Clothing and shoes

CLOTHING & SHOES

The locals love visiting the central street in Reykjavik for shopping.

There is a huge number of chain stores, exclusive shops, and luxury boutiques.

Also, they have a few large shopping centers in the suburbs of the city with food courts, supervised areas for kids, restaurants, and cinema.

The prices are naturally high.

Rent per month

RENT PER MONTH

Buying property in Reykjavik is a big problem because of the owners of the apartments who stake on the long-term rental of their dwellings.

The rental prices are very high for both residents and visitors to the city.

If you live in Reykjavik for more than half a year, you can apply for some rent benefits from the government.

Cost of Living Averages Table for Reykjavik

*Note: All prices are indicated in USD.
Average Restaurant Prices
Meal (Inexpensive Restaurant)$19.79
Domestic Beer (0.5 Liter)$9.89
Water (0.33 Liter)$2.07
Average Market Prices
Milk (1 Liter)$1.28
Loaf Bread (500g)$3.12
Eggs (12)$4.87
Average Transport Prices
One Way Ticket$3.79
Monthly Pass$101.40
Gasoline$1.84
Average Utilities Prices
Basic (Water, Electricity, Garbage, Heating, Cooling)$100.56
1 min. of Prepaid Mobile Tariff Local$0.17
Internet (Unlimited Data, Cable/ADSL)$62.46
Average Leisure Prices
Fitness Club, Monthly Fee for 1 Adult$59.28
Tennis Court Rent (1 Hour)$34.84
Cinema, 1 Seat, International Release$12.37
Average Clothing Prices
1 Pair of Jeans (Levis 501 Or Comparable)$111.11
1 Summer Dress in a Chain Store (Zara, etc...)$47.84
1 Pair of Adidas Walking Shoes (Mid-Range)$144.72
Average Rent Prices
Apartment (1 bedroom) in City Center$1672.62
Apartment (1 bedroom) Outside of Center$1394.09
Apartment (3 bedrooms) in City Center$2509.64

How Does the Average Person Spend Their Money in Reykjavik?

The average person in Reykjavik, Iceland spends most of his or her money on monthly rent or 32.2% of income.

The rest of the percentage is divided between markets (28.7%), restaurants (16.3%), and transportation (10.9%).

The lowest indicators of expenditure are for the utilities (3.6%) and shopping for clothing and shoes (3%).

The locals in Reykjavik are keen on sports, active lifestyle, healthy food, especially since nature has provided all the conditions and people open the doors for enjoying the city to the fullest.

Average Costs Breakdown

16.3%
28.7%
10.9%
3.6%
5.3%
3%
32.2%

Reykjavik: Average Salary, Minimum Wage & Mortgages

The national minimum wage is not fixed in Iceland, so Reykjavik charges for hours of working.

Also, the hours of work, experience, qualification, residency, and education have an impact on the size of the salary.

The average monthly salary is $3264.06 per employee.

The gross salary might be twice as big.

The mortgage interest rate in Reykjavik is high enough because there are not too many apartments and houses for sale in this northwestern city.

But those who have found their property and are ready to buy it through a mortgage loan, the interest rate is 6.22% per annum for 20 years.

Average Salary$3264.06
Minimum Wage$
Mortgage Interest Rate6.22%

What About Travel Safety in Reykjavik?

Reykjavík Safety Overview

READ THE FULL REPORT: Reykjavík Safety Review

Safety Index:
89
  • OVERALL RISK : LOW
  • TRANSPORT & TAXIS RISK : LOW
  • PICKPOCKETS RISK : LOW
  • NATURAL DISASTERS RISK : MEDIUM
  • MUGGING RISK : LOW
  • TERRORISM RISK : LOW
  • SCAMS RISK : LOW
  • WOMEN TRAVELERS RISK : LOW

Where to Next?

See these related locations:

Or, browse the country/city indexes:

Cost of Living - Country Index Cost of Living - City Index

Share Your Experience