Iceland is considered as a very attractive destination for economic migrants. The main reasons why they decide to go there are, among others, high earnings, pro-social policy of the state, as well as the beautiful circumstances of nature. Does it really pay off to go to Iceland? Check what the costs of living in Iceland are, and decide for yourself!
Iceland – Entry and staying
It is worth remembering that Iceland is not a member of the European Union, but belongs to the Schengen area. Therefore, entry into the territory of Iceland is possible (without completing additional formalities).
It is enough for an EU citizen to show one of the following documents at the border:
- ID card
- passport
- temporary passport
If you intend to stay in Iceland for 3 months or less, you do not need to register or apply for a residence permit. However, if you work in Iceland or decide to stay longer – it will be necessary to obtain a residence permit. To do this, register yourself in the National Register and prepare the necessary documents:
- copy / photocopy of passport or ID card
- a birth certificate
- certificate of marital status (optional)
- confirmation of health insurance
- confirmation of employment (type and period of employment, amount of remuneration)
You will also need to obtain an Icelandic Kennitala ID number, necessary to live in Iceland. It is a 10-digit code that is given for a period of 6 months. After this time, it should be extended. A Kennitala number will come in handy when making an appointment with a doctor, as well as when setting up a bank account.
Earnings in Iceland
The minimum wage in Iceland is ISK 368,000 gross (approximately EUR 2646). However, this amount may vary depending on the decisions of local trade unions.
Average earnings in Iceland are estimated at around ISK 410,000 – 470,000 gross (approx. EUR 2948 – 3379).
Interestingly, in Reykjavik, average earnings are several times higher and usually amount to about ISK 700,000 gross (about EUR 5032).
In turn, the gross hourly wage in Iceland amounts to an average of ISK 3960 gross (EUR 28).
The table below shows examples of monthly rates for individual professions. The salary values come from job offers published on our europa.jobs portal.
| Occupation / Industry | Sample gross monthly earnings |
| Plumber | ISK 630,000 (approx. EUR 4529) |
| Paver | ISK 460,000 (approx. EUR 3307) |
| Mechanic | ISK 732,000 (approx. EUR 5262) |
| Builder | ISK 600,000 (approx. EUR 4313) |
| Work in gastronomy / hotel industry | ISK 472,000 (approx. EUR 3393) |
| Agriculture | ISK 578,000 (approx. EUR 4155) |
| Fishing | ISK 490,000 (approx. EUR 3522) |
| Welder 111 | ISK 840,000 (approx. EUR 6038) |
For more information, see our previous article: Earnings in Iceland – average rates, the most popular industries
Now check what the costs of living in Iceland!
Costs of living in Iceland
Now we go to the most important part of this article – what are the costs of living in Iceland? Is working and living in this country profitable? Read further!
How much does it cost to rent an apartment in Iceland?
Of course, the rental price will vary depending on:
- the size of the apartment (studio / two-room apartment)
- location (it will be more expensive in the city center than on the outskirts)
- additional amenities
The amount of monthly rent can shock foreign workers. When deciding to rent a studio apartment in the capital – Reykjavik – we have to take into account the costs of ISK 130,000 per month (approx. EUR 935). A little less, about EUR 626 / month, may cost a rental in the south of Iceland. On the other hand, in the Western Fjords, there is a chance to find a studio apartment for half of the price – EUR 469.
If you want to save a little on the apartment, look for a place to stay in Iceland’s second largest city – Akureyri. There, apartments’ prices are about ⅓ cheaper than in Reykjavik.
In turn, for a two-room apartment in Reykjavik you have to pay about ISK 200 000 per month (about EUR 1438). Prices for the same apartment in other parts of Iceland will be 2/3 (south) and 1/2 (West Fjords) respectively.
WHERE TO LOOK FOR APARTMENTS IN ICELAND?
It will be best to search for apartments on local sites such as:
Or on Icelandic Facebook groups:
Summary of monthly rental prices
| Studio apartment (30m²) | Two-room apartment (50-60m²) | |
| Reykjavik | EUR 939 | EUR 1450 |
| South of Iceland or the city of Akureyri in the north | EUR 626 | EUR 967 |
| West Fjords | EUR 469 | EUR 725 |
Additional fees:
- electricity, heating, water, garbage per apartment 85m² – ISK 15,000 (EUR 108)
- Internet (from 60 Mbps) – ISK 9400 (EUR 68)
If you want to go to a seasonal job in Iceland, don’t be afraid of these prices! Usually, the employer provides employees with free or partially paid accommodation.
Cost of living in Iceland – transport and other services
It is worth bearing in mind that there is only one public transport option in Iceland and these are Strætó BS buses.
They allow you to move around Reykjavik and its surroundings, but they run very rarely (from some stations only once a day). For a one-time ticket for a city bus without discount, we will pay 470 ISK (approx. EUR 3.38).
In turn, the so-called Flybus, runs from Keflavik airport. The price for the journey with this carrier on the Keflavik-Reykjavik airport route is 2700 ISK (EUR 19.41).
People who live in Iceland permanently have already found out that the best transport option is their own car. The price for fuel at Icelandic petrol stations is approximately ISK 341 per liter (EUR 2.45).
Prices for food products in Iceland
It has to be admitted that Iceland is not a cheap country, especially when it comes to a short tourist trip. The prices for basic food products can surprise you. However, if someone lives in Iceland and earns in Icelandic Kronur, then this difference is somewhat blurred.
CHECK HOW MUCH YOU WILL PAY FOR BASIC FOOD PRODUCTS IN ICELAND STORES:
| Product | Price |
| Rye bread | ISK 249 (EUR 1.79) |
| Rapeseed oil (1 liter) | ISK 298 (EUR 2.14) |
| Eggs (6 pieces) | ISK 419 (EUR 3.01) |
| Sliced cheese (330 grams) | ISK 828 (EUR 5.95) |
| Minced meat (1 kg) | ISK 998 (EUR 7.17) |
| Grounded coffee (550 grams) | ISK 379 (EUR 2.72) |
| Tea (20 bags) | ISK 269 (EUR 1.93) |
| Juice in a cardboard box | ISK 459 (EUR 3.30) |
| Coca cola (2 liter) | ISK 249 (EUR 1.79) |
| Pasta | ISK 349 (EUR 2.51) |
| Ketchup | ISK 379 (EUR 2.72) |
| Canned tuna | ISK 339 (EUR 2.44) |
| Sliced canned tomatoes (400 grams) | ISK 98 (EUR 0.70) |
| Greenhouse cucumbers (1 kg) | ISK 998 (EUR 7.17) |
| Potatoes (1 kg) | ISK 198 (EUR 1.42) |
| Zucchini (1 kg) | ISK 2232 (EUR 16.04) |
| Apples (1 kg) | ISK 352 (EUR 2.53) |
| Flour (2 kg) | ISK 239 (EUR 1.72) |
| Rice (1 kg) | ISK 229 (EUR 1.65) |
Icelandic specialties – what is worth trying?
- Rugbrauð – volcanic bread baked in a geothermal bakery
- Humar súpa – lobster cream soup
- Coconut fish soup
- Hakarl – fermented shark pieces
- Gellur – fish tripe
- Hvalspik – whale steak
- Svid – sheep’s head
- Sviðasulta – sheep’s head jelly
- Kleinur – Icelandic donut
- Kanilsnúðar – cinnamon rolls
- lamb and mutton (very good quality!)
It must be admitted that some of these dishes sound very peculiar and may scare, as well as arouse curiosity. Maybe it’s worth the effort and try such an original kitchen?
Where to shop in Iceland?
Here are some of the most popular supermarkets:
You have to decide by yourself if living and working in Iceland will pay off. If yes, then you are already determined to go!
