Can you visit Iceland on a budget? I often get asked this question, and I’m not going to lie: Iceland is one of the most expensive countries in the world. But don’t let high costs stop you! Follow these money-saving tips and discover how to make your trip to Iceland not just memorable but far less costly.
Want to visit Iceland on a budget? Follow these seven tips to save money!
Iceland’s otherworldly natural beauty is a BIG reason people dream of visiting. The good news is that many of the country’s most stunning natural sites are absolutely free! While staying at fancy hotels, dining in fabulous restaurants, and taking expensive tours are possible, these aren’t necessary for a great vacation.
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Visit Off-Season
Summer is the MOST popular and expensive time to visit Iceland. However, travelling off-season can help you discover Iceland on a budget. This money-saving tip also allows you to explore the most popular sites when they are less crowded.
September and October are especially beautiful months. The days are still long, but nighttime has returned, providing the chance to see the Northern Lights. The weather is still good, with the added bonus of witnessing Iceland’s moss-covered hills and lava fields transform into rusty fall hues.
Visit on a Stopover
If you still can’t afford Iceland, consider a stopover. Iceland’s two main airlines, Icelandair and Play Airlines, offer free stopovers on transatlantic flights.
This means you can tag on a shorter visit to Iceland when travelling to another destination. You can see a lot in a short time, as many of Iceland’s most incredible sites are within a two-hour drive from downtown Reykjavik. If a stopover trip whets your appetite for more, you can always go back.
Iceland is one of those places that keeps drawing you back!
Basic Accommodations
Airfare and accommodations are two significant cost drivers of any vacation. If you want to visit Iceland on a budget, consider staying at a basic accommodation.
I’ve stayed at all the places listed below. Basic (for me) means that these accommodations have limited amenities and a simple design, but each has:
- Helpful staff
- Ability to self-cater – Shared kitchen or a mini frig, kettle and/or microwave
- Rooms that are clean and well-kept
- Easy access to touristy areas
Reykjavik
Sunna Guesthouse is my favourite, and I’ve stayed here multiple times. The rooms have cozy duvets and are always spotless. They offer less expensive single rooms for solo travellers, and every floor has a small kitchen for self-catering. If you’re lucky, your room might even have a view of the iconic Hallgrímskirkja across the street.
Golden Circle
Bjork Guesthouse is a cozy base from which to explore the Golden Circle. It’s located in the small town of Laugarvatn. While Bjork Guesthouse didn’t have a kitchen, there was a mini frig, microwave and a small grocery store at the nearby gas station. While it was self-check-in, it was easy to contact the hosts, who were friendly and helpful. And if you want to splurge and stay across the street from Geysir, book at Hotel Geysir.
A great money-saving tip is to visit Laugarvatn Fontana. These geothermally heated baths are beautifully situated and more reasonably priced than the Blue Lagoon or Sky Lagoon.
Snaefellsnes Peninsula
Arnarstapi Hotel is a bit pricier than others because there are fewer accommodation options in the area. But I would highly recommend visiting the Snæfellsnes Peninsula. With the majestic, glacier-capped volcano, Snaefellskokull and photogenic Kirkufell, you can experience Iceland’s remote beauty without driving too far away from Reykjavik.
South Coast
Hotel South Coast is near the town of Selfoss, an excellent base for exploring Iceland’s south coast, with its black beaches and stunning waterfalls. But Selfoss is also conveniently located for a Golden Circle day trip.
Drive Yourself
There are terrific tour companies in Iceland, and taking a tour is a wonderful way to discover the country. If your trip is based in Reykjavik, suggest these tours: Golden Circle, South Iceland, and Snæfellsnes Peninsula.
I adore the freedom of stopping whenever I want. Iceland is just one of those places where you won’t have to drive far to see something that will take your breath away.
Even as a solo traveller, I was comfortable booting around the country on my own. But of course, if you truly want to do Iceland on a budget, you can save more money by sharing the cost of the rental car.
Iceland is easy to navigate and very safe compared to many other countries. My one caution is to pay attention to the weather. In Iceland, the weather is constantly changing. High winds and winter driving conditions are added risks. Highly recommend the website Safe.is. It provides helpful information and up-to-date driving conditions for any road in the country.
Self Cater
Self-catering is one of the best money-saving tips for Iceland. Even the most basic restaurant can seem expensive. Indulge in a fine dining experience with wine and dessert for two; the price will be more than a week of self-catering.
Shop for basics at Bonus or Kronan, Iceland’s two discount grocery stores.
Skyr is protein-packed yogurt made in Iceland for over 1000 years and is a delicious breakfast. Stock up at Brauð & Co, one of Reykjavik’s best bakeshops, for some amazing sourdough bread and pastries.
Or use an Icelandic money-saving tip and eat at the gas station. Olis, N1 and Orkan are the main chains where you can buy gas, groceries, and dine out on reasonably priced fast food. The food quality is far better than you’d expect for a gas station. Every gas station will have Icelanders’ beloved hot dogs, pizza, and burgers; some may even offer Icelandic lamb soup.
Drink the Water
Don’t buy bottled water in Iceland. Bring your own water bottle and fill it up at any tap. Iceland’s water is incredibly clean and some of the best in the world. But be warned—it might smell eggy.
The eggy smell is most prevalent in the hot water due to the sulphur content. It’s not dangerous and totally safe.
For cold water, let the faucet run for a second or two to eliminate any hot water from the pipes, and the sulphur smell should disappear. But you’ll notice it when you take your sulphur-scented hot shower.
Free & Spectacular Places in Iceland
Whether spending a day in Reykjavik or travelling around Iceland’s Ring Road, there is much to admire for free. The best way to travel on a budget in Iceland is to visit the FREE places.
In recent years, I have noticed that many places have started charging a parking fee to help with the upkeep, but seeing the actual site is free.
This is a short list of places relatively close to Reykjavik. There are many more all around the country, but this is an excellent list to get you started.
Free in Reykjavik
- Hallgrimskirkja—The church’s sanctuary is free to enter, but you must pay to take the elevator to the bell tower to enjoy the views.
- Harpa – Free to enter the lobby of Reykjavik’s magnificent concert hall.
- Sun Voyager – A stylized silver ship on the waterfront. It looks terrific when photographed at sunrise.
- Window Shopping – Even if you can’t afford an Icelandic wool sweater, you can still window shop along Laugavegur or stroll up Rainbow Street.
- Grótta Lighthouse & Beach – A lovely natural spot and one of the best places in greater Reykjavik to see the Northern Lights.
Free in the Golden Circle
- Geysir – One of the must-see destinations in the Golden Circle. Park your car and walk to Strokkur Geysir. Have your camera ready and wait to see it shoot water 30 metres (100 ft) up into the air.
- Gullfoss – A spectacular waterfall that is free to visit, but warning… you may be tempted by the large gift shop near the parking lot.
Free along the South Coast
- Seljalandsfoss is a popular waterfall due to its proximity to the ring road. It’s free to visit, but there is a small parking fee.
- Skogafoss – Another amazing waterfall. When the sun is shining, a rainbow is almost guaranteed.
- Reynisfjara Black Sand Beach– A beautiful beach near the little village of Vik. See the dramatic sea stacks jutting out from the ocean. But be careful not to get too close to the water due to dangerous seeker waves.
- Jökulsárlón Glacier Lagoon – You don’t have to pay to visit this dramatic lake where huge chunks of ice have calved off of Europe’s largest glacier, Vatnajökull.
- Diamond Beach—Nearby Jökulsárlón Glacier Lagoon, this beach is sprinkled with baby icebergs stranded on its black sands.
Free Snaefellnese Penisula
- Kirkjufell – A stunning and often photographed mountain, Kirkjufell and its nearby waterfalls were made more famous on Game of Thrones. You must pay to park by the waterfalls, but there are free pull-over spots along the road.
- Snæfellsjökull – A spectacular volcano capped with a glacier. On a clear day, it can be seen looming in the distance all the way from Reykjavik.
- Lava Field Hike – Walk near the cliffs populated by seabirds. The spongy moss-covered lava fields between Arnarstrapi and Hellnar are an easy and pleasant hike.
If you found this post helpful, you might also be interested in discovering Five Hidden Gems in Reykjavik.
