The estimated monthly cost of living in Iceland in 2024 is around €2.700 for a single person renting an apartment in a decent area. For a family of three, the cost of living increases to 4,200 Euros per month.
In this article, we’ll go more in depth with all the expenses to be expected when living in Iceland, one of the most peaceful and safest countries in the world.
Since Iceland is so small with just one city – Reykjavik – having over 100,000 inhabitants, you can imagine that prices will be generally the same throughout the country.
And while you already saw that living here is not cheap, the living standards are high and the salaries you can earn in Iceland will also ensure that you have the money needed to cover your expenses.
With these in mind, let’s check out the monthly expenses in Iceland this year, spreading them into categories to make it easier to understand where your money will go.
What is the average monthly cost of living in Iceland?
From my experience, the average monthly cost for living a decent life in Iceland is €2.700, or 415,000 ISK for a single person. This will cover rent, food costs and other expenses that are required for a person to enjoy life here.
For a family of three, around €4,200 or 633,000 ISK will be enough to cover all expenses, including education-related expenses (schools are free in Iceland) and everything else.
Have in mind that these are just estimated values that can vary a lot depending on your own lifestyle.
Are you an outgoing person, who loves movie nights, eating out, going to every festival and not missing an event? Or are you shopaholic?
If so, your monthly cost of living in Iceland will definitely be higher than the average we are calculating here, because spending here and there, even in smaller amounts, does add up at the end of the month.
And Iceland is definitely not one of those cheap places in the world where you can live on $500 a month! On the contrary – it’s one of the more expensive ones in Europe.
With these in mind, let’s start breaking down the costs a little bit and see how much you should expect to pay in various categories while in Iceland.
Costs for accommodation and real-estate in Iceland in 2024
Accommodation costs in Iceland and Reykjavik, like everywhere in the world, have gone up a lot in recent years.
On average, a single person should expect to pay between €1,200 to €1,800 per month for rent, depending on they type of place they live in:
- €1,200 for a one-bedroom apartment
- €1,800 for a two-bedroom apartment
If you’re not like most people and you want to buy property in Iceland instead, expect to pay around €6,000 per square meter in central areas and some 10-15% less in areas that are farther away.
House prices in Iceland are pretty high, with a regular apartment of small house of 80 square meters (86 square feet) will cost around €480,000 Euros to buy. This is why most people choose to rent here!
In central Reykjavik though, you can find prices that go well above the values listed here.
The truth is that the demand for accommodation has increased continuously in Iceland over the years, but not a lot of new buildings have been built. So prices are going up (and inflation doesn’t help either!)
I personally expect the rental prices to explode in the next few years in Iceland, so it wouldn’t hurt to lock in your contract for 2-3 years if possible.
But, then again, it seems that they’re going up steadily throughout Europe as well. The cost of living in Finland is also going up, for example.
Costs for utilities in Iceland
Here are the estimated amounts you will pay for utilities when renting (or owning a place) in Iceland:
- €175 for a one-bedroom apartment
- €240 for a two-bedroom apartment
These include electricity, heating, cooling, garbage collection and water, but not the internet, phone and TV costs.
The costs for utilities are generally not included in the monthly rental costs, but some owners do include all or some of these in the monthly fees.
So pay attention to this, as you can end up saving quite a bit of money if these costs are already included (or spend more on top of your rent if they’re not).
Monthly food prices in Iceland in 2024
Food costs are the most difficult to estimate, in my opinion, as there are lots of variables in play.
Based on my own way of spending, I would estimate a single person to need €500 per month for groceries and eating out.
You won’t eat more than 1-2 times per week on this budget, and cook at home for the rest of the time. If you prefer to eat out a lot, your monthly expenses will go up quite a bit as restaurants in Iceland are pretty expensive.
For example, if you were to eat a basic lunch every day at a restaurant, you would pay a minimum of €350 just for that.
With two other meals to account for and maybe some snacks in between, food prices can definitely skyrocket easily.
But again, this depends on your eating habits, on your diet, and basically how often you eat and what (snacks throughout the day add up too).
The estimated cost above is based on my own experience, which includes consuming decent quality food cooked at home (but not the most expensive), many fruits and vegetables and eating out 1 time per week.
Here are some reference prices for the most basic ingredients and the most popular foods you can choose to buy.
Get an idea of what drinks, ingredients and whole meals cost in Iceland:
- €3.9 for a loaf of bread
- €1.8 for a 1l-bottle of milk
- €7.50 for a kg of Tomatoes
- €1.8 for 1kg potatoes
- €17.50 for a kg of chicken breasts
- €5.00 for a coffee (Café Latte or Cappuccino)
- €13.00 for a sandwich
- €13.00 for a fast-food meal such as a Burger King or McDonald’s Combo
- €20 for one meal at a cheap restaurant
- €60 for one three-course meal at a higher-end restaurant
Costs for transportation in Iceland
Transportation costs in Iceland can be relatively low, as there is an excellent public transportation system in cities like Reykjavik and the other larger ones.
But if you want to travel more around the country, you might need a car which is expensive, as the cost of gasoline is high, and insurance is mandatory.
What means you choose to travel by, and how much it costs, will definitely add up to your monthly expenses in Iceland. Here are your options and their specific prices:
- €3.50 for one ride on public transport
- €100 for one monthly public transport ticket
- €3.00 per km on taxi or other similar means of transport
- €2.00 for one liter of gasoline
Other costs in Iceland
Lastly, life is unforeseeable, and unexpected costs can arise. Plus, we have other expenses that can’t be placed in any of the categories above.
And that’s perfectly normal, as life is more than work, rent, utilities and food. Spiritual, emotional and social nurture are also important.
So, let’s check the prices for some more pleasant ways to spend time in Iceland, such as going out to a movie or getting a gym subscription.
Here are the prices you should expect, for this kind of extra-activities:
- €13.50 for one cinema ticket per adult
- €60.00 for monthly gym subscription
- €60.00 for monthly high-speed internet subscription
- €20 for monthly mobile plan with 10GB of data and free calls in the network (plus some 50-100 minutes of free international calls).
Conclusion
To paraphrase superhero movies, with high income come higher expenses. And with Iceland is known as one of the best-paying countries in the entire Europe, the cost of living is also amongst the most expensive.
Adding all the costs above up, we end up with around €2,700 needed each month for a single person to live a decent life.
Family life is cheaper on a per person basis, my estimated cost of living in Iceland for a family of three being €4,200. A solid reason to work hard towards meeting the Icelandic woman of your dreams (or man, depending on your preferences).
Do have in mind that these are just estimates: your spending habits can easily bring these costs way up. All in all though, the cost of living hasn’t changed much in these past few years in Iceland
Wrapping it up, Iceland is a pretty expensive country to live in, with high monthly expenses – but, just like anywhere else, lowering down your expenses to the minimum and saving money will most likely be possible with the average salary – or even lower.
Even though it’s not a cheap place to live in, Iceland is still a great-paying country, with amazing career opportunities, a clean and safe environment and a great community, with high levels of education and civic spirit.
I recommend visiting before moving here – and for that I have some recommended hotels (or hostels if you want to keep your expenses low) and I strongly recommend checking out my free, full guide to moving to Iceland, including expenses and visa requirements.
If you want to share your own experience with the living costs in Iceland this year, don’t hesitate to comment below. The more opinions we have, the easier it is to paint a clearer picture about the monthly cost of living in Iceland.