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Best Happy Hour in Reykjavik: Find Cheap Beers & Bars in Iceland’s Capital

Michael Chapman
Autore: Michael Chapman
Esperto verificato

Best Happy Hour in Reykjavik: Find Cheap Beers & Bars in Iceland’s Capital

Looking for the best happy hour Reykjavik has to offer? With over 50 bars offering daily deals, this guide will show you the top budget-friendly spots for a great night out in Iceland’s capital. Read on to find your perfect happy hour spot!

Drinking in Reykjavik is more than just a pastime; it’s a cultural tradition, a celebration, and a way of life for many. The city’s bar scene is best explored by those who appreciate its smoky beer gardens, worn leather seats, and diverse crowds. Go here to read more about the best bars in Reykjavik in 2025.

You can join a locally hosted Reykjavik beer and schnapps walking tour for a fun and informative introduction to Iceland’s drinking culture. It’s a great way to explore the city’s unique history with alcohol.

Ready to dive into Reykjavik’s nightlife? If you want to take your night out to the next level, join VIP Club by booking your services with Guide to Iceland - Iceland's leading travel agency. The VIP Club features discounts and offers on many local bars and restaurants and will help you save a considerable amount of money while traveling in Iceland.

Also, remember to check out the cheapest places to stay in Reykjavik if you are traveling on a budget.

Continue reading to learn about the best happy hour offers in Reykjavik!

Key Takeaways of Happy Hour in Reykjavik

Happy hour in Reykjavik is not just about discounted drinks. It is also one of the best ways to experience the city's lively bar scene without stretching your budget. Here’s a quick overview of what makes happy hour such a popular part of nightlife in Iceland’s capital.

  • Best deals on drinks: Many bars in Reykjavik offer great discounts during happy hour, making it the best time to enjoy a drink without overspending.
  • Variety of bars: From cozy pubs to trendy cocktail lounges, Reykjavik has many venues that participate in happy hour, catering to all tastes.
  • Perfect for budget travelers: Drinks can be pricey in Iceland, so enjoying happy hour helps visitors enjoy the nightlife without breaking the bank.
  • Downtown area: Most of the places are in downtown Reykjavik, locally known as 101, between the streets of Laugavegur and Austurstræti.

Now that you know what makes a happy hour in Reykjavik special, let’s dive into the best places to enjoy it—ranked from the most expensive to the most affordable!

Note: Prices and currency conversions may fluctuate, but this guide is kept up to date to reflect the most accurate information available.

15. SKY Bar

SKY Bar's scenic outdoor seating in Reykjavik, Iceland.

Located on the top floor of Center Hotels Arnarhvoll, SKY Bar offers stunning views over Reykjavik’s skyline, Faxafloi Bay, and Mount Esja. It’s a sleek yet relaxed rooftop lounge that’s just as suited for date night as it is for casual pre-dinner drinks. 

The vibe is elevated but unpretentious, with floor-to-ceiling windows and cozy indoor seating perfect for watching the weather roll off the sea.

The bar serves a solid selection of wines, sparkling drinks, and classic cocktails with a twist, along with a few local beers on tap. Their snack menu includes small plates like sliders, fries, and other light bites, perfect for sharing over drinks or holding you over until dinner. 

With two happy hours daily, there’s no bad time to drop in. Guide to Iceland VIP Club members also enjoy exclusive deals, making it even easier to settle in and stay a while.

Things to Know Before You Visit SKY Bar

Here are some quick details to help you plan your visit to this overlooking Reykjavik bar:

  • Address: Ingolfsstraeti 1, 101 Reykjavik
  • Happy hours: Daily from 18:00 to 20:00 (early) and 20:00 to 23:00 (late)
  • Happy hour offers: Beer for 7 USD (900 ISK), wine and prosecco for 9 USD (1,150 ISK), and cocktails for 13 USD (1,680 ISK)
  • Google rating: 4.4/5
  • Tripadvisor rating: 4/5

14. Kokteilbarinn

The warm and inviting bar area of Kokteilbarinn in Reykjavik, Iceland.

Part of the Monkeys Food & Wine Restaurant, Kokteilbarinn is one of Reykjavik’s best spots for a well-made cocktail. The atmosphere is equal parts stylish and relaxed, with candlelit tables, eclectic decor, and a playlist that leans into laid-back soul and indie grooves. 

It’s a solid choice if you're looking to swap out beer for something a bit more refined without feeling too formal.

During happy hours, you’ll enjoy 25% off cocktails and items on the cocktail bar menu. Their drinks are playful and creative, and if you’re visiting with friends, the champagne train—a celebratory pour of bubbly shared across the bar—is always a crowd-pleaser. 

Guide to Iceland VIP Club members also get exclusive deals, adding even more value to one of the city’s best-kept cocktail secrets.

Things to Know Before You Visit Kokteilbarinn

Here are some quick details to help you plan your visit to this refined Reykjavik cocktail bar:

13. Elly Bar

A glass of liquor sitting on top of a wooden piano in Elly Bar in Reykjavik, Iceland.

Tucked into a corner of Laugavegur Street, Elly Bar feels like the kind of place you accidentally discover and end up making your go-to for the week. It’s warm, welcoming, and slightly quirky in the best way—think mismatched furniture, playful lighting, and a crowd that’s equal parts laid-back locals and curious travelers.

The bar has a strong cocktail game and ten Icelandic beers on tap, along with a menu of tasty Mexican bites like tacos, burritos, and nachos, with vegan options for those who want to eat vegan in Reykjavik. Happy hour keeps things easy on the wallet, and the atmosphere comes alive in the evenings with live music, karaoke, and occasional piano sing-alongs.

The bar has a strong cocktail game and ten Icelandic beers on tap, plus a menu full of tasty Mexican bites like tacos, burritos, and nachos (with vegan options, too). Happy hour here keeps things easy on the wallet, and the atmosphere comes alive in the evenings with live music, karaoke, and occasional piano sing-alongs.

Even better, Guide to Iceland VIP Club members get a serious upgrade with generous savings on both cocktails and beer, making this one of the best places in the city for a classy drink that doesn’t empty your wallet.

Things to Know Before You Visit Elly Bar

Here are some quick details to help you plan your visit to this warm Reykjavik hangout:

12. 22 Bar

The colorful facade of 22 Bar in Reykjavik, Iceland.

22 Bar is a stylish spot in the heart of Reykjavik, known for its welcoming atmosphere and great selection of drinks. Whether you're in the mood for a relaxed evening with friends or a lively night out, this bar offers the perfect setting with its cozy yet modern decor and upbeat energy.

With a prime location on Laugavegur Street, 22 Bar attracts a mix of locals and travelers, creating a dynamic and social vibe. The bar frequently hosts live music, adding to its appeal as a must-visit destination for those looking to enjoy Reykjavik’s nightlife.

During happy hour, guests can enjoy discounted beer, wine, and cocktails, making it a fantastic place to start the night before exploring the city's bustling bar scene. VIP Club members also get special savings on all food, ideal if you’re staying for a bite.

Things to Know Before You Visit 22 Bar

Here are some quick details to help you plan your visit to this stylish Reykjavik bar:

  • Address: Laugavegur 22, 101 Reykjavik
  • Happy hours: Daily from 12:00 to 20:00 (beer and wine) and 17:00 to 21:00 (cocktail)
  • Happy hour offer: Discounts on beer, wine, and cocktails
  • Google rating: 4.5/5

11. Prikid

The cozy, wooden interior of Prikid Cafe in Reykjavik, Iceland.

One of the oldest and most iconic bars in Reykjavik, Prikid is a local legend that’s been serving up affordable drinks, hip-hop beats, and late-night burgers since 1951. By day, it’s a laid-back cafe with retro diner vibes, perfect for coffee or brunch. 

As the day goes on, it transforms into a divey, buzzing bar packed with locals and travelers alike. In fact, many consider it one of the best hangover spots in Reykjavik.

It has one of the best-value happy hours in the city, especially if you're into beer-and-burger combos or a low-key night out. The crowd is friendly, the music is loud, and the walls are covered in posters, street art, and graffiti in Reykjavik from decades past.

If you’re around on a Sunday night, swing by for their retro movie screenings. Old films, popcorn, and drink deals set the mood for a chill end to the weekend.

It gets even better for Guide to Iceland VIP Club members, where you’ll enjoy generous discounts on food and drinks and perhaps a little something free to kick off your visit.

Things to Know Before You Visit Prikid Cafe

Here are some quick details to help you plan your visit to this iconic Reykjavik hangout:

10. Den Danske Kro

Den Danke Kro is a staple in the Reykjavik bar scene

One of the best deals you'll find in Reykjavik is at Den Danske Kro. Not to mention that they offer discounted prices for Guide to Iceland's VIP club members.

They offer a great selection of beers, including many Icelandic classics. For something more exciting, their cocktail menu features well-priced options by Reykjavik standards, with special discounts on Thursdays alongside the regular happy hour.

This place is a go-to spot for many locals for a night out with friends. The pub's interior is reminiscent of an old Danish tavern, with wooden accents and friendly staff. 

Live music performances often occur, complete with drunken sing-alongs, so definitely plan a visit if that's your jam. If you're feeling competitive, challenge your friends to a game of darts.

Things to Know Before You Visit Den Danske Kro

Here are some quick details to help you plan your visit to this local Reykjavik bar:

9. Saeta Svinid

Sæta Svínið is a sharp dresser.

With a glamorous, piggish ambassador to attract passersby, Saeta Svinid (which translates to "The Sweet Pig") is a great gastropub that offers tasty and somewhat upscale pub food with a somewhat funky but inoffensive atmosphere. Oink!

When the Icelandic sun makes a rare appearance, the outdoor area in front of the pub quickly fills up, as the spot is one of the few in the area that's not covered in shade. It's a great place to grab a tasty lamb sandwich or a burger as an excuse to wash the meal down with a refreshing draft. 

In the evening, Saeta Svinid becomes a popular nightlife spot. It maintains its pub atmosphere on the upper floors but offers a rowdier alternative with a dance floor in the basement. 

The bar has a tight event calendar, hosting events that have become staples in the Icelandic bar scene, including karaoke and bingo. 

Saeta Svinid is one of the most popular places for the ultimate hangover meal in Iceland, and with your VIP Club perks, you can enjoy exclusive discounts on select days.

Things to Know Before You Visit Saeta Svinid

Here are some quick details to help you plan your visit to this popular Reykjavik gastropub:

8. Litli Barinn

Litli Barinn is a cozy neighborhood bar

One of the most recent additions to the Reykjavik bar scene is Litli Barinn, a cozy little neighborhood hideout just outside the main downtown area. 

It's gained traction for its cocktails, wine selection, and delicious food, all of which are affordably priced. We’re not just saying that, either. The food menu ranges from approximately 11-25 USD (1,410 to 3,200 ISK), cheaper than many fast food places in Iceland.

The whole concept behind the place is that the price point should allow for casual, spontaneous visits while serving nutritious meals from local ingredients. The interesting drink selection is updated regularly as they're always looking for some new additions. 

Guide to Iceland VIP Club members also get exclusive discounts on the menu, making it an even better stop for affordable dining and drinks.

For an idea of what to expect, you can check out this Litli Barinn review from our night out there. It really is well worth the visit, especially for some tapas with your drink or a full meal.

Things to Know Before You Visit Litli Barinn

Here are some quick details to help you plan your visit to this cozy Reykjavik hangout:

7. Skuli Craft Bar

Check out the craft beer selection at Skúli

For craft beer enthusiasts, Skuli Craft Bar is the place to go. It's a favorite spot for beer lovers, thanks to its impressive selection of quality craft beer. You'll have plenty of interesting options, and the staff can help you find a brew that suits your palate or introduce you to new flavors you might not have tried before.

Choose from four different beers on tap or a glass of red or white wine for a discounted price during happy hour. Also, you can take full advantage of your Guide To Iceland’s VIP Club perks and get deals even on other days.

It's less than a 5-minute walk from Ingolfstorg Square and Austurvollur Square, so it's close to many Reykjavik attractions but slightly removed from the busiest areas. 

The bar itself has a cool, modern vibe and is a great place to hang out with friends or just relax and enjoy a good beer. They have plenty of seating, so you can easily find a spot to chill. If you're lucky enough that the weather is nice, there are plenty of benches outside to soak in the sun!

Things to Know Before You Visit Skuli Craft Bar

Here are some quick details to help you plan your visit to this Reykjavik craft beer bar:

6. Kaldi Bar

Best Happy Hour in Reykjavik: Find Cheap Beers & Bars in Iceland’s Capital

Kaldi Bar was the first of its kind in Iceland, bringing the lager-sodden bumpkins of Iceland into the modern age of beer drinking. With the roaring success of the brewery, Kaldi Bar was a natural offshoot that has cemented itself as one of the trendier spots in Reykjavik.

Located right in the middle of the bar scene, Kaldi's size does little in terms of supply for the ridiculous demand there is to get in. It is one of the city's most popular bars. Once you get into its narrow interior, with all of its trendy patrons, you will almost feel pressured not to squander this wonderful opportunity that life has granted you.

As you might infer from its name, Kaldi Bar has multiple beers on tap from the brewery, including the classic Kaldi, which is popular with the locals. 

The not-so-roomy bar has a surprisingly large, seated outdoor area that's even heated up in the wintertime. Really begs the question of why anyone would want to stay inside.

Things to Know Before You Visit Kaldi Bar

Here are some quick details to help you plan your visit to this trendy Reykjavik bar:

5. The Irishman Pub

The Irishman Pub fills up quickly on weekends, despite the troubadour music.

If the lively atmosphere of the Dubliner isn’t for you, there’s another Irish pub in town that’s neater and more relaxed. The Irishman Pub took the Icelandic bar scene by storm when it opened its doors, welcoming people into a somewhat gentrified Irish pub atmosphere. 

With a long happy hour, decent prices, and a treacherous wheel of fortune, it seems like the Irishman Pub has everything you'd need in a bar. 

Oh, and don't miss the opportunity to enjoy discounted beers as an exclusive VIP Club member! The locals seem to agree, as they make sure it's absolutely packed to the brim every weekend. 

One thing to keep in mind is that the bar has live music from Thursdays to Saturdays. Yes, that means troubadours. Make of that what you will, but if listening to one more rendition of Wonderwall is going to send you off the edge, this might not be your go-to.

Things to Know Before You Visit The Irishman Pub

Here are some quick details to help you plan your visit to this relaxed Reykjavik Irish pub:

4. Lebowski Bar

Lebowski Bar is a temple dedicated to Dudeism.

If, for reasons best known to yourself, you have somehow managed to avoid watching The Big Lebowski since its release more than 20 years ago, we suggest you first watch the film before heading to this bar. 

Only then will you be able to fully appreciate the amount of time, care, and expense that went into designing this unique and memorable venue.

As a fan, Lebowski Bar is the closest you can come to experiencing the film’s universe without starring alongside Jeff Bridges himself. The rugs, stretched out decoratively across the bar, really do hold the room together, as does the 10-pin bowling alley positioned along the bar’s right wall.

In the background, timeless tunes like Kenny Rogers’s Just Dropped In (To See What Condition My Condition Was In) and Dylan’s The Man in Me complement the cinematic atmosphere. Out of character, you may hear The Eagles here, too. 

The details are everywhere. Taking a look at the menu, you’ll instantly recognize over 30 types of White Russian cocktails, for instance. Want to know more details about what to expect? Read this comprehensive review of Lebowski Bar.

Lebowski Bar often has something going on, be it a movie showing, a computer games quiz, an open dance floor, or new DJ sets. These kinds of attractions keep the bar a popular spot, with its most popular hours on weekend nights.

Highlight: You might even be lucky enough to win 10 free beers on the Spin the Wheel during happy hour!

Things to Know Before You Visit Lebowski Bar

Here are some quick details to help you plan your visit to this movie-themed Reykjavik bar:

3. Kiki Queer Bar

Kiki is a great queer bar.Photo by David Bill

Kiki Queer Club is Iceland’s only current gay club, continuing to carry the torch for Iceland’s “gayest corner” at Laugavegur 22. The club attracts people of all ages, sexualities, and tastes and is a staple visit among many on a weekend night. 

Given Iceland's safety, LGBT travelers will usually be safe wherever they wish to drink. You can learn more about the local gay culture with our guide to gay Iceland.

Very quickly, you are bound to succumb to the positive energy of the bar, dancing away to the bouncy 80s hits, sipping on the cocktails upstairs, conversing happily, and making new friends on your travels.

If you're a Guide to Iceland VIP Club member, you’ll also enjoy discounts on cocktails at the bar, adding even more value to your night out.

Things to Know Before You Visit Kiki Queer Club

Here are some quick details to help you plan your visit to this queer Reykjavik club:

2. The English Pub 

Best Happy Hour in Reykjavik: Find Cheap Beers & Bars in Iceland’s Capital

Ah, the English Pub, an institution unto itself. This particularly Icelandic breed of the English pub has a lovely seating area out back, adjoined to Austurvollur Square, perfect for enjoying a draft beer at a discounted price with your VIP Club membership.

There is often football on television and live music almost every night. The pub encourages musical requests and patrons to dance along, making for a potentially energetic evening every night of the week. 

Perhaps best known for its premium ales, the pub’s founders spent six long years collating 40 of the best brands available. Their dedication paid off, making The English Pub famous today for its selection. 

Things to Know Before You Visit The English Pub

Here are some quick details to help you plan your visit to this Reykjavik sports pub:

1. Bastard Brew & Food

Bastard Bew & Food is a pretty cool place to hang out

Bastard Brew & Food deserves a special place of honor on this list for its contribution to improving the drinking experience in the city and offering one of the best happy hours in Reykjavik.

Bastards has some fantastic drinks, including their own beer and unique cocktails, which you can get cheaper at two different times of the day.

It's also a great option for dinner or snacking, especially those warm pretzels with jalapeno cheese sauce. It's the perfect companion to happy hour when they offer 4 USD (510 ISK) off large drafts, draft cocktails, and wine by the glass.

Throughout the week, they also have special offers, such as:

  • Mondays: All-day happy hour
  • Tuesdays: Special prices for tacos, Corona, and margaritas
  • Wednesdays: 4 USD (510 ISK) off select gin and tonics
  • Thursdays: 4 USD (510 ISK) off all cocktails

However, the best deal is to join Guide to Iceland's VIP Club to enjoy greater deals at this laid-back gastropub, which is perfect for curing a hangover.

Bastards has an outdoor seating area, which is pretty cozy, especially as it's heated. There's also a darts area on the upper floor, which you should check out during a visit. 

Check out this review of Bastard Brew & Food for more information.

Things to Know Before You Visit Bastard Brew & Food

Here are some quick details to help you plan your visit to this welcoming Reykjavik hangout:

Happy Hour Reykjavik Tips and Late-Night Drinking Culture

Reykjavik has a range of options, from dive bars to sophisticated venues.Photo from Locally Hosted Reykjavik Beer & Food Tour at the Old Harbor

If you’re looking to extend your stay in the bars, know that the prices specified here will likely double. However, if you’re like most people, the financial cost matters less the more pints you consume. Who can put a price, after all, on six shots of Jager?

We should also take a short moment to clear up any misunderstandings that may have arisen from this session. Happy hour is, naturally, the cheapest time to head to the bars.

However, if you’re hoping for a Friday/Saturday with a little more juice, pizzazz, and energy, keep in mind that Icelanders themselves tend to avoid the expensive downtown Reykjavik prices by heading out much later.

If you wish to act like the Icelanders but still want to drink throughout the evening, you can visit a little place called Vinbudin, the state-run liquor store.

Vinbudin, the state run liquor store.Photo from Wikimedia, Creative Commons, by Danninja. No edits made.

Overall feelings about Vinbudin are mixed. On one hand, thank you, thank you, and thank you again. On the other hand, liquor of any kind cannot be bought from any other local shops in Reykjavik or supermarkets in Iceland (unless you count 2.25% beer as beer, which you probably don’t.)

This leaves Vinbudin as the sole option for a stay-at-home drinker, which naturally means a strong awareness of the opening times. Most are open from 11:00 to 18:00, though some have licenses to stay open until 20:00.

Note: Vinbudin is closed all day Sunday, so you’ll have to head out on the town if you want to drink on this day. 

And while we’re still on the topic of gut rot, firewater, booze, John Barleycorn, Dutch Courage, and hooch, allow us to recommend to you the drinks you’ll find most interesting during your stay.

Best Happy Hour in Reykjavik: Find Cheap Beers & Bars in Iceland’s Capital

Brennivin, an Icelandic unsweetened schnapps, literally translates to ‘burned wine’ and, in many respects, has such an effect. Otherwise called ‘Black Death,’ the liquor bottle’s label was designed to put Icelanders off consuming the product.

However, this had quite the opposite effect, and today, the drink is one of Iceland’s most popular distilled liquors. It is normally accompanied by the fermented shark delicacy, Hakarl.

Tip: Try it out on this 1-hour Eimverk Distillery tour with tastings of Icelandic whiskey, gin, and Brennivin for the best experience.

The drink has also leaked its way into pop culture; the Foo Fighters mention it in their song "Skin and Bones," Michael Madsen sips at it in Tarantino's "Kill Bill: Volume II," and late-night host Jimmy Fallon picked it as the drink of choice to toast his engagement.

Surprisingly, beer was banned in Iceland from 1918 until 1989! To celebrate its return, locals created a beer day in Iceland on March 1st. Today, beer is Iceland's favorite drink and you should make sure to check out Iceland's top bars for craft beers. Popular beers include Gull, Brio, Viking Lager, Einstok White Ale, Skadi Farmhouse Ale, Garun Imperial Stout, Leifur Nordic Saison, Ulfur, Mori, Viking Stout, and Kaldi Lager.

Reykjavik is a great place for a cheap drink.

We suggest purchasing a beer platter; that way, nothing will be missed. So, a toast to your successes, the adventures ahead, and happy hour itself! 

From Happy Hour to Drink Tours: The Best Way To Enjoy Reykjavik

Exploring happy hour in Reykjavik is a great way to enjoy the city’s nightlife while saving money. There's something for every taste, with a mix of cozy pubs, lively bars, and stylish cocktail lounges. 

Taking advantage of happy hour deals makes for the perfect way to unwind after a day of sightseeing tours. For a deeper dive into Iceland’s drink scene, consider food and drink tours. 
We recommend the microbrewery and distillery tour with tastings and a behind-the-scenes look at brewing and distilling processes. 

For a private tasting, check out this microbrewery, distillery, and beer-tasting tour from Reykjavik with experiences at Malbygg Microbrewery and RVK Brewing, two of the best breweries in Iceland. 

These tours provide a fun, guided experience to taste authentic Icelandic drinks while learning about the country’s brewing traditions.

Have you experienced happy hour in Reykjavik before? Which bars would you recommend to fellow travelers? Share your thoughts in the comments below, and let us know your favorite spots!

FAQs About Happy Hour in Reykjavik

What time is happy hour in Reykjavik?

Most happy hours in Reykjavik start around 15:00 and end by 19:00, but exact times vary from one bar to the next. Some places kick things off a little earlier or stretch them later into the evening, so it's worth checking each spot individually if you're planning a bar crawl.

What is the Happy Hour app in Iceland?

The Appy Hour app is a popular tool for finding happy hour deals in Reykjavik. It lists bars offering discounts on drinks, shows current prices, and helps you track which places have deals running in real-time. It’s especially handy if you're bar hopping or looking to spend less while exploring the city’s nightlife.

Can I wear jeans to happy hour in Reykjavik?

Absolutely. Most bars in Reykjavik have a relaxed, casual vibe, and jeans are totally fine for happy hour. You won’t need to dress up unless you’re heading somewhere a bit more upscale later in the night.

What are the best happy hour bars in Reykjavik?

Some of the best bars for happy hour in Reykjavik include Lebowski Bar for a retro vibe and great deals, Kaldi Bar for craft beer lovers, The English Pub for a lively atmosphere with live music, and Kiki’s for a fun environment. 

Each offers unique discounts, making them perfect for an affordable night out in Reykjavik.

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