It is more than possible to travel around Iceland on a budget, granted you’re aware of the financial pitfalls, as well as the shortcuts around expenditure. Before arriving in Iceland, make sure to take time assessing your budget, making accommodation and rental vehicle choices appropriately.

Buying alcohol from the duty-free store, or purchasing from the state-sponsoured liquor store Vínbúðin, is a surefire way of avoiding the high costs of drinking at a bar. Almost all bars in the Icelandic capital, Reykjavík, have daily happy hours too, cutting down on the cost further.

Another means of avoiding reckless spending is to avoid 10/11 convenience stores. Despite their abundance in Iceland, prices are notoriously higher than in other stores, such as Bónus and Krónan. On that note, there is also no need to purchase bottled water in Iceland; originating from the country’s glaciers, tap and spring water are perfectly drinkable.

When it comes to cuisine, one should tread lightly when spending at restaurants. Discount offers will generally occur around lunchtime, making this a better time to eat out, while cooking at home will radically cut down on what you’re paying for grub.

It should go without saying that avoiding some of the pricier attractions, namely the Blue Lagoon, will save the wallet from a massive dent. In fact, much of Iceland can be enjoyed entirely free; Reykjavík is the perfect city for budget travellers, with plenty of compelling cultural landmarks, surrounding hiking trails and points of interest.

Naturally, avoid taxis at all costs and be aware of the services charges proposed by your bank. With handy tips such as these, it should be easy to keep your expenditure to a minimum while travelling around Iceland.

Budget Self Drive Tours

31 Budget Self Drive Tours

6 Day Midnight Sun Summer Self Drive Tour of Iceland’s Hidden Gems & Black Sand Beaches

14 Day Budget Self Drive Tour of the Complete Ring Road of Iceland with Myvatn & the Westfjords

13 Day Budget Self Drive Tour of the Complete Ring Road of Iceland with Waterfalls & the Westfjords

In-Depth 5 Day Northern Lights Road Trip to Iceland’s Golden Circle & Snaefellsnes Peninsula

Short City Break in Reykjavik | Four-Day Summer Road Trip around the Capital of Iceland

Romantic 7 Day Northern Lights Self-Drive Getaway in Iceland with Ice Caving & Waterfalls

Scenic 3 Day Budget Self Drive Tour of Iceland with Hot Springs & the Golden Circle

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Top things to do in Iceland

Find the Northern lights

Explore an Ice cave

Go on a Road trip

Do the Golden circle

Visit Reykjavik

Bathe in the Blue lagoon

See the Glacier lagoon

Discover the South coast