Iceland, a Nordic island nation, is known for its dramatic landscape with volcanoes, geysers, hot springs, and lava fields. While it offers a unique living experience, the cost of living in Iceland is relatively high compared to other countries. This can be attributed to its remote location, harsh climate conditions, and high standard of living. Let’s delve into the various factors that contribute to the cost of living in Iceland.

Housing Expenses in Iceland

Rent: Housing is one of the significant contributors to the high cost of living in Iceland. In the capital city, Reykjavik, rent for a one-bedroom apartment in the city center can range from 150,000 to 250,000 ISK per month. Outside the city center, the rent can be slightly lower, ranging from 120,000 to 200,000 ISK.

Buying a Home: For those looking to buy property, the price per square meter in the city center of Reykjavik is approximately 600,000 to 1,000,000 ISK. Prices are lower outside of the city center, costing around 400,000 to 800,000 ISK per square meter.

Utilities: Monthly utilities for a standard 85m2 apartment including electricity, heating, cooling, water, and garbage can cost around 20,000 to 30,000 ISK. Internet subscriptions are also relatively high, generally around 6,000 to 10,000 ISK per month for a 60 Mbps or more unlimited data plan.

Transportation Costs in Iceland

Public Transportation: Public transport in Iceland is reliable but can be pricey. A monthly pass in Reykjavik can cost around 12,000 ISK. However, many residents choose to use cars due to the limited coverage of public transport in remote areas.

Fuel Costs: Fuel prices in Iceland are high due to taxes and import costs, typically costing around 250 ISK per liter.

Car Ownership: The cost of owning a car in Iceland includes not only the purchase price but also high registration and insurance fees.

Food and Grocery Expenses

Groceries: Food expenses in Iceland are high due to the need to import many products. A liter of milk costs around 120 ISK, a loaf of bread about 400 ISK, and a dozen eggs approximately 600 ISK.

Dining Out: Eating out in Iceland can be costly. A meal at an inexpensive restaurant might cost around 2,500 ISK, while a three-course meal for two at a mid-range restaurant can easily cost 15,000 ISK or more.

Alcohol and Tobacco: Due to high taxes, alcohol and tobacco products are expensive in Iceland. For example, a bottle of mid-range wine can cost about 2,500 ISK, and a pack of cigarettes around 1,300 ISK.

Healthcare and Medical Expenses

Healthcare in Iceland is of high quality and is funded by the state through taxes and levies. Residents are covered by the Icelandic social insurance system, which provides access to a wide range of healthcare services at a low cost. However, private health insurance is also available and can be quite expensive.

Education Costs

Public Schools: Education in Iceland is free at public schools. However, there are miscellaneous costs associated with schooling, such as for books, school trips, and other activities.

Private and International Schools: Private and international schools are available, especially in Reykjavik, but tuition fees can be substantial, often ranging from 800,000 to 2,000,000 ISK per year.

Recreational and Leisure Activities

Gyms and Fitness Centers: The cost for a membership at a standard gym or fitness center can range from 5,000 to 12,000 ISK per month.

Entertainment: Movie tickets cost around 1,500 ISK each, and a monthly subscription to a streaming service like Netflix costs about 2,000 ISK.

Outdoor Activities: Iceland’s natural beauty offers numerous free or low-cost outdoor activities such as hiking, bird watching, and visiting natural parks.

Conclusion

The cost of living in Iceland is undoubtedly high, mainly due to its geographical isolation and the high quality of goods and services. However, the country offers a unique lifestyle and stunning natural beauty that many find worth the extra cost. For those considering moving to Iceland, it is crucial to budget carefully and consider all potential expenses to make an informed decision.