Thinking of moving to Iceland in 2025? Before you pack your bags, you need to know the real cost to live in Iceland, and it’s no joke. A family of four may spend over 724,000 kr per month (excluding rent), and a single person about 193,000 kr.
Iceland is stunning, safe, and peaceful, but it also comes with one of the highest living costs in the world. That’s why we’ve broken down all the numbers for you like food, rent, transport, childcare, bills, everything in detail, so you know exactly what to expect and how to plan smart.
And if you’re planning the move, we’ll show you how Easy Way Removals can take a big load off your shoulders and make settling in smoother.
As per the Numbeo data, a family of four needs about 724,162 kr each month, not including rent. On the other hand, a single person needs around 193,578 kr each month, also excluding rent.
Now let’s get into the details of living expenses in Iceland, section by section.
Food is quite expensive in Iceland because most items are imported. Even basic things like milk, bread, and eggs cost more than you might expect.
For example, one litre of milk costs around 240.93 kr, a loaf of bread (500g) is about 511.60 kr, and a dozen eggs are roughly 797.27 kr. Chicken fillets (1kg) can cost 3,035.76 kr, and beef (1kg) is even higher at 5,324.47 kr.
Fruits like apples cost around 409.81 kr per kilo, and tomatoes are about 619.38 kr per kilo. A bottle of wine will set you back 2,950 kr, domestic beer (0.5 litre) is 452.44 kr, and a pack of 20 cigarettes like Marlboro costs 1,725 kr.
If you want to save some money, try shopping at discount grocery stores like Bónus or Krónan. They can really help cut down your grocery bill.
Going out to eat in Iceland is a nice treat, but it can be heavy on the wallet. A meal at an inexpensive restaurant costs around 3,250 kr, while a three-course dinner for two at a mid-range place can go up to 17,000 kr.
Even a quick McDonald’s combo meal is 2,500 kr. If you’re just grabbing a coffee, a regular cappuccino is about 743.56 kr. As you can see, dining out regularly adds up quickly.
A good tip is to cook more meals at home if you’re looking to save money.
Rent is one of the biggest costs when living in Iceland, especially in busy city areas like Reykjavik. A one-bedroom apartment in the city centre costs around 275,000 kr per month, while the same kind of place outside the centre is a bit cheaper at 248,333.33 kr.
If you need more space, a three-bedroom apartment in the city centre is about 395,125 kr, and outside the centre, it’s roughly 338,074.07 kr. If you’re okay with living a bit away from the city, you can save a lot on rent.
Utilities in Iceland depend on the size of your place, but on average, basic things like electricity, heating, water, and garbage cost around 11,149.61 kr per month. This can range anywhere from 7,563 kr to 22,185 kr.
For the internet, a high-speed unlimited plan (60 Mbps or more) costs about 10,930.53 kr, and mobile phone plans with 10GB+ data are around 3,648.57 kr monthly.
These are important monthly expenses to keep in mind when budgeting your life in Iceland.
Getting around in Iceland is reliable but not cheap. A single ride on local public transport costs 650 kr, and a monthly pass is 10,800 kr, which is worth it if you travel a lot. If you drive, gasoline costs around 311.91 kr per litre, and taxis charge about 324 kr per kilometre.
Thinking about buying a car? A new Volkswagen Golf will cost you around 5,890,000 kr, and a Toyota Corolla is even more at 6,666,666.67 kr. If you’re commuting daily, using a monthly bus pass will save you money in the long run.
If you have kids, childcare and schooling are other big costs.
A private preschool or kindergarten costs about 43,630.30 kr per month for full-day care. If you’re planning to send your child to an international primary school, expect to pay around 3,744,295 kr per year.
These numbers show how important it is to budget for your child’s education in Iceland.
Clothing and shoes, especially brand-name items, are pricey in Iceland.
A pair of Levi’s jeans or similar brands costs around 17,361.25 kr. A summer dress from places like Zara or H&M is about 7,915 kr. If you want a good pair of Nike running shoes, which will cost you roughly 21,993.82 kr, and men’s leather business shoes are even higher at 29,831.25 kr.
If possible, try to buy clothes when you travel or wait for local sales to save some money.
Enjoying your free time in Iceland is great, but again, not cheap.
A monthly gym membership for one adult costs around 10,338.58 kr. Renting a tennis court for an hour on the weekend will cost you 5,650 kr, and a regular movie ticket for an international release is about 2,190 kr.
These are fun ways to relax, but they do add to your monthly expenses.
If you’re thinking about buying a home in Iceland, be prepared to pay a lot.
In Reykjavik city centre, the price per square meter is around 924,665.86 kr. If you’re buying outside the city centre, it’s a bit less at 784,668.53 kr per square meter.
Buying property here is a big investment, so you need to plan very carefully.
The average net salary in Iceland is 552,179.52 kr per month. But here’s the catch. High salaries are matched by high living costs. You need to plan your income vs expenses carefully.
Getting ready to move? Use this easy moving checklist to stay organised from beginning to end.
Here’s a quick breakdown of average monthly costs in Iceland (excluding rent):
| Category | Single Person (kr) | Family of Four (kr) |
| Food and groceries | 90,000+ | 240,000+ |
| Utilities and internet | 25,000+ | 40,000+ |
| Transport | 11,000+ | 35,000+ |
| Childcare | N/A | 43,630+ |
| Leisure and clothes | 20,000+ | 50,000+ |
| Total Estimate | 193,578.4 | 724,162.4 |
If you’re moving to Iceland, this step-by-step packing guide with Easy Way Removals will make everything much easier.
If you’re planning to move to Iceland, things can get overwhelming with shipping furniture, packing, paperwork, customs, and it’s a lot. That’s where Easy Way Removals can help.
No matter if you’re moving your whole family or just yourself, we offer:
We’re here to make your move to Iceland simple and stress-free, so you can focus on starting your new life in this amazing country.
Not sure if you should move by yourself or hire help? This simple guide about using a removal company will help you decide.
Yes, the cost to live in Iceland is expensive, but you’re also getting safety, cleanliness, and a great quality of life. If you plan your budget smartly, especially by managing rent and food expenses, living in Iceland can be a dream experience.
