Cost of Living in Iceland
Land of Fire and Ice; offers high wages and incredible safety, but with a very high cost of living and isolation.
Explore the Wise account£2,981
Average cost per month
Distribution of Expenses
Sagas & geothermal bathing
Glaciers, volcanoes & waterfalls
Energy independent; expensive
Cost of living breakdown for Iceland
You can expect to spend around £2,981 per month for 1 person as of 2026, on common living costs such as housing, food, and transport.
Housing
Standard of Living
Food & Drink
Iceland average costs for food and drink.
Salary & Services
Iceland average salaries and services.
Average living costs in Iceland
| Item | Average price | Price range |
|---|---|---|
| 1 Bedroom Apartment in City CentreRent Per Month | £1,777.81 | £1,507.35 - £2,110.30 |
| 1 Bedroom Apartment Outside of CentreRent Per Month | £1,485.59 | £1,127.50 - £1,808.82 |
| 3 Bedroom Apartment in City CentreRent Per Month | £2,462.54 | £2,110.30 - £3,014.71 |
| 3 Bedroom Apartment Outside of CentreRent Per Month | £1,997.75 | £1,808.82 - £2,230.88 |
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Frequently asked questions
The cost of living in Iceland depends on your lifestyle and location. On average, a single person needs £1,196 per month without rent, while a family of four requires £4,458. Renting a 1-bedroom apartment in the city centre costs an additional £1,778 on average.
Public transport prices vary, but generally, a one-way ticket for local transport in Iceland costs £4. If you are commuting regularly, a monthly pass is typically priced at £65.
The average monthly net salary (after tax) in Iceland is currently £3,402.
Dining costs depend on your choices. A meal at an inexpensive restaurant in Iceland costs approximately £21, while a three-course meal for two people at a mid-range restaurant costs around £90.
The estimated monthly cost of living in Iceland for a single person is £1,196, excluding rent.
For a family of four living in Iceland, the estimated monthly costs are £4,458, not including rent.
Rent prices in Iceland depend on location. The average monthly rent for a 1-bedroom apartment in a city centre is £1,778, compared to £1,486 outside the centre. For a 3-bedroom apartment, the average is £2,463 in city centres and £1,998 in suburban areas.
Basic utilities in Iceland (including electricity, heating, cooling, water, and garbage for an 85m² apartment) cost an average of £71 per month. Internet access typically adds another £65.