19 Tips on How to Save Money in Iceland

When planning your trip to Iceland, one thing you might not think about is the price of alcohol. Iceland has some of the highest alcohol prices in Europe, so if you’re looking to buy drinks during your stay, it’s important to know where to get the best deal.

The best place to buy alcohol in Iceland is at Keflavik Airport right when you arrive. The duty-free shop there offers significantly lower prices than in stores around the country, so it’s the ideal spot to stock up on beverages for your trip.

You can find a wide selection of spirits, wine, beer, and even Icelandic craft brews. Be sure to take advantage of the opportunity when you land, as it’s the most cost-effective way to purchase alcohol in Iceland.

• See more: The Ultimate Guide to Icelandic Liquor and Spirits
• See also: The 13 Best Cheap Things to Do in Reykjavik

Choose Cheaper Groceries

When it comes to grocery shopping in Iceland, it’s easy to get caught off guard by the high prices, but there are ways to save. One of the best tips is to shop at budget-friendly supermarkets like Krónan, where you’ll find more affordable prices on your essentials.

Krónan offers a wide selection of products, from fresh produce to pantry staples, all at reasonable rates. Whether you’re stocking up for a full meal or just picking up a few items, it’s one of the best options for keeping your food budget in check.

On the other hand, avoid shopping at more expensive convenience stores like 10-11. While they may be convenient, their prices are so much higher, especially for basics like snacks, drinks, and household goods. Some items may even be triple the price of a location like Krónan!

If you're planning a road trip, plan ahead and pick up your groceries before heading to more remote areas of Iceland. This way, you’ll avoid paying the more premium prices of the countryside. You can find many Krónan stores around the capital region and even throughout Iceland, so stock up and keep your budget in control!

• Learn all about Shopping for Groceries in Iceland

Never Buy Bottled Water in Iceland

The best drink in Iceland runs free of charge from every faucet, which means that by buying bottled water, you are falling victim to one of the worst tourist traps in Iceland.

The quality of Icelandic tap water is incredible, and you can ask for free water practically everywhere. You should, therefore, never have to buy water in Iceland unless you are in dire need of a container to fill up for free for the remainder of your vacation. Just let the cold water run; it's the same water that is being bottled!

Save your money and reduce your environmental impact by enjoying Iceland's fantastic tap water throughout your trip.

 Keep An Eye Out for Happy Hours

Alcohol is very expensive in Iceland, so if you want to go out for a few drinks, make sure to take advantage of happy hour at bars. They usually run in the late afternoon to early evening, but times can vary, so it's always a good idea to check ahead!

If you've booked with Guide to Iceland, you're in for an even better deal. Through your VIP Club access, you enjoy exclusive discounts at many of the best bars in Reykjavik, so don't forget to claim your offers to save.

Some bars even offer happy hour prices throughout the evening for VIP members. Get a beer for 1000 ISK until 11 PM at popular spots like Kaldi Bar, English Pub, Irishman Pub, and Den Danske Kro, or enjoy award-winning cocktails at Kokteilbarinn with a 15% discount, so going out doesn't have to break the bank!

• Check out Happy Hour | Reykjavik's Cheapest Bars
• See also Best Bars in Reykjavik: The Ultimate Guide

Visit the Public Pools in Iceland

While the Blue Lagoon and Sky Lagoon offer incredible experiences you can't get anywhere else, the entry is pretty pricy. That doesn't mean you have to miss out! Instead, plan a visit to one of Iceland’s public swimming pools! They're much more affordable and provide a more authentic taste of everyday life in Iceland.

Visiting them gives you the chance to relax just like a local. Icelanders love their pools so much that the Icelandic swimming culture is even being considered for UNESCO's list of Intangible Cultural Heritage!

With over 120 public pools across the country, you’ll find well-maintained, heated waters perfect for unwinding after a long day of sightseeing. Most pools also offer hot tubs and saunas, adding to the relaxing experience!

• Try the Best Swimming Pools in Reykjavik
• See also: Best Swimming Pools in Iceland
• Check out: Blue Lagoon vs. Sky Lagoon: Which One Should You Visit?

Rent a Campervan for Road Trips

If you're considering summer self-drive tours in Iceland, one of the best ways to save on costs is by renting a campervan. They're generally more expensive than renting a small car, but in return, you literally bring your own accommodation with you!

This option gives you the flexibility to explore Iceland at your own pace while cutting down on costs. You also won't have to deal with the hassle of checking in and out of different accommodations and re-packing your luggage each time.

We mostly recommend this during the summer months as the weather is warmer. If you're dreaming of winter self-drive adventures with plenty of opportunities to observe the northern lights, then it's better to plan a stay in proper accommodations because of the more challenging weather conditions.

• Learn about Camping in Iceland
• Check out: Driving in Iceland: The Ultimate Guide to Road Trips
• See also: Northern Lights in Iceland - When & Where To See the Aurora

Book a Bus Transfer from Keflavik Airport

Photo from Airport Direct Transfer from Keflavik Airport to Your Accommodation in Reykjavik

If you're not picking up a rental car at Keflavik Airport, the very best way to get to and from Reykjavik is to book an airport transfer. It’s far more affordable than a taxi and just as convenient!

These bus transfers operate in sync with flight schedules, and you'll find your bus waiting just by the airport exit after landing. Depending on your choice, you can be dropped off or picked up directly at major hotels in Reykjavik or at nearby bus stops. This makes it the most convenient and easy way to travel between Iceland's capital and Keflavik International Airport!

• Learn more about Airport Transfers Between Keflavik and Reykjavik: The Complete Guide

Cook Your Own Meals in Iceland

Photo from Rey Apartments in Reykjavik.

When choosing accommodation for your trip to Iceland, one of the smartest decisions you can make is to opt for places with a kitchen, like holiday apartments, hostels, or cottages. This small change can significantly impact your budget and overall experience.

Having access to a kitchen allows you to prepare your own meals, which can save you a lot of money compared to eating out for every meal. It also gives you the chance to try local ingredients and Icelandic recipes while keeping costs low!

Get a Reykjavik City Card

If you want to enjoy the many cultural experiences Reykjavik has to offer, then getting a Reykjavik city card is the very best bang for your buck. You can get city cards that are valid for 24 hours, 48 hours, or 72 hours, depending on your needs.

The Reykjavik City Card provides free admission to many of the best museums in Reykjavik, all the public swimming pools in Reykjavik, free public bus fare within the capital region (except airport bus), and gives discounts at select shops and services!

You can easily make the most of your visit to Iceland's capital with the benefits of the Reykjavik City Card, so don't forget to pick one up before your day of exploring!

• Check out the Top 10 Museums in Reykjavik | History, Culture & Vikings!
• Also, visit the Top 12 Art Museums and Galleries in Reykjavik

Always Book Well in Advance

Always remember that the best way to get affordable rental cars, flights, and hotels in Iceland is to book well in advance. Prices tend to rise as you get closer to your departure date, so taking care of everything with good notice can save you a great deal of money and stress!

By planning ahead, you'll have access to a wider range of options, ensuring you can create your ideal itinerary without being limited by availability. This way, you can focus on enjoying your adventure rather than worrying about last-minute arrangements!

• See also: Top 10 Cheap Places to Stay In Iceland

Book Cheaper Experiences

One of the best ways to experience Iceland without overspending is by choosing the right activities. If you're planning to rent a car, you're in luck, as there are so many incredible natural attractions you can see for free.

When on a self-drive tour, you can include additional experiences, such as trying geothermal rye bread baked in the ground in the Golden Circle area or visiting the Vatnshellir lava cave on the Snaefellsnes peninsula!

If you don't have a rental car, you don't have to miss out. You can still experience some of Iceland's most famous locations without breaking the bank, like with this classic 8-hour Golden Circle tour, which includes a stop at the Kerid crater.

If you'd like to experience the beautiful South Coast, this excellent 10-hour sightseeing tour from Reykjavik is a good option, but there are many more cheap bus tours to choose from!

With just a little research, you can find amazing tours that let you experience the best of Iceland at a reasonable price. Check out the selection of tours in Iceland to find the best one for your itinerary and budget.

• Discover the Ultimate Guide to Iceland's Golden Circle
• Check out the Ultimate Guide to Iceland's South Coast
• See also: Iceland on a Budget | 7 Affordable Days of Adventure

Look for Combo or Package Deals

To really maximize the experiences you book, check out the selection of combo deals. These tours bundle multiple activities together, allowing you to enjoy more of what Iceland has to offer at a lower price!

See some of Iceland's most famous areas with this family-friendly bundled discount tour, which includes the Golden Circle, the South Coast, and a whale-watching experience. It's more affordable than booking each experience separately, helping you save on your trip.

If you're visiting Iceland in winter, this popular 4-day northern lights winter tour is an excellent and budget-friendly option. It includes a trip to the Golden Circle, the South Coast, and the Snaefellsnes peninsula, along with an incredible ice-caving experience in the Vatnajokull glacier.

There are all sorts of deals to choose from, whether it's shorter tours or multi-day experiences, so make sure to see what's available when planning your tours!

• Learn more with the Ultimate Guide to Ice Caves in Iceland

Explore Nature Around Reykjavik

Photo from Elliðaárdalur - A hidden gem in Reykjavík

If you're spending a few days in Reykjavik and have your mind set on experiencing Icelandic nature but do not have the means to book a guided tour, then you have some nice options! You can take the public bus to Ellidaardalur valley, a popular recreational area featuring lush trees, winding walking paths, and lovely waterfalls. You may even spot some rabbits!

Another great spot is Grotta, a nature reserve near Reykjavik, known for its picturesque lighthouse and stunning ocean views, especially at sunset. If you're visiting during the colder months, know that it's also one of the most popular spots for northern lights hunting within city limits.

If you have a rental car, even more opportunities open up. You can hike Mount Esja, a popular spot for incredible views over Reykjavik and the surrounding area. For a more expansive experience, head to Heidmork Nature Reserve, where you’ll find lava fields, forests, and peaceful picnic spots. Take the chance to visit the Raudholar red hills, beautiful pseudocraters known for their vibrant color!

• Check out the Best Places to See the Northern Lights in Reykjavik

Choose the Right Outerwear

Iceland's rugged landscapes and unpredictable weather demand thoughtful packing to ensure a great travel experience. It can be worth it to save on luggage costs on your way to Iceland by simply picking up outerwear when you arrive!

It’s worth noting that investing in high-quality outdoor gear can really pay off in the long run. There's nothing worse than having your enjoyment of nature ruined by the freezing cold, thanks to bad-quality clothing! Although it costs more upfront, durable and well-crafted pieces will last you a lifetime, keeping you comfortable and safe in Iceland's unpredictable conditions.

One of the best options for reliable outdoor wear in Iceland is 66 North, a trusted local brand known for its exceptional quality. Their clothing is even used by Icelandic sailors out on the cold Atlantic Ocean!

If you're a Guide to Iceland customer, you get a 20% discount on 66 North clothing through your VIP Club access, which can really make a difference when investing in outdoor gear that will keep you warm for decades!

For items like hiking boots, tents, and sleeping bags, you can also really save money by considering camping equipment rentals. These rentals can supply you with different things you'll need and can help you lower luggage costs.

• See more: What To Pack for Iceland for All Seasons
• Also, learn about the History of 66°North: Keeping Iceland Warm for a Century

Check Your Bank's Service Charges

Photo from Flickr, by A.Currell

One of the easiest things to overlook when traveling is your bank’s service charges, so make sure you’re prepared before your trip. Familiarizing yourself with these fees can save you from unexpected costs and help you budget more effectively.

When visiting Iceland, a good travel-friendly credit or debit card is your best friend. Cards are accepted almost everywhere in Iceland, from restaurants to gas stations, so you won’t need much cash. Just make sure your card has a PIN.

Before your trip, check if your bank offers a card with low or no international transaction fees so you won't come home to an unpleasant card usage bill.

If a travel-friendly card isn’t an option, cash is still a good alternative. Just remember to exchange your Icelandic krona (ISK) before you leave, as not all foreign banks carry this currency.

• Learn more with the Guide to the Icelandic Krona (with a currency converter!)

Get a Local SIM Card

Avoiding expensive roaming charges is one of the easiest ways to keep your travel budget in check, so you'll really want to consider picking up a local SIM card or eSIM when visiting Iceland. With a local SIM, you'll have reliable mobile data and connectivity for navigation, staying in touch, and accessing important travel information.

A great option is a Vodafone prepaid SIM card, which offers excellent internet coverage throughout Iceland. It’s simple to top up online as needed, and you can even get a prepaid Icelandic phone number for making local calls.

You can pick up your SIM card on the Vodafone website before your trip, at Keflavik International Airport upon arrival, or at gas stations and service centers across the country. If you’ve booked a flight with Icelandair, you can conveniently purchase a Vodafone starter pack during your flight, and it means that you won't be greeted by an unwelcome bill when you get back home!

• Learn more with SIM Cards in Iceland: The Ultimate Guide

Find Souvenirs in Thrift Shops

A great way to find unique and authentic Icelandic souvenirs is to skip the overpriced tourist shops and explore local thrift stores instead. Many of the so-called "Puffin Shops" sell mass-produced items with little connection to Icelandic culture, often at steep prices.

For something truly special, visit the Kolaportid flea market near the Old Harbour, open on weekends, or one of the many Red Cross thrift stores in Reykjavik. These places often feature secondhand Icelandic lopapeysa wool sweaters, handmade crafts, and other treasures that carry a genuine Icelandic touch.

Shopping at thrift stores not only helps you find meaningful keepsakes but also supports sustainability and offers a glimpse into local life. Plus, you're sure to have something really unique without breaking the bank!

• Check out the Top 10 Souvenirs from Iceland
• See also: Lopapeysa: Ultimate Guide to Traditional Icelandic Sweaters and Wool

Get Advice From Fellow Traveles!

Connecting with other travelers is a great way to enhance your trip planning, and social media groups make it easy. As Iceland is a hugely popular destination, many travelers are in the same boat, planning their visit and seeking budget-friendly tips.

Joining groups focused on travel in Iceland allows you to ask questions, share experiences, and discover authentic advice. A great starting point is the Iceland Travel Tips Facebook group, a very active community of travelers and locals ready to help.

Whether you’re seeking recommendations for affordable accommodations, advice on spotting the northern lights, or tips for exploring Iceland by rental car, you’ll find plenty of insights and inspiration. It's a great tool for planning a trip to Iceland, so we highly recommend making the most of this resource to enhance your travel experience!

Summary of Saving Money in Iceland

Traveling to Iceland doesn’t have to drain your wallet. With a little planning and some smart decisions, you can explore its stunning landscapes and unique culture while keeping costs manageable!

Find cheaper activities, buy groceries, and take advantage of discounts from Guide to Iceland's VIP Club during your stay. Visit bars during happy hour, and plan your itinerary well in advance to lock in the best deals.

By focusing on cost-effective choices and making the most of what’s available, you can enjoy an unforgettable trip to Iceland without overspending. With its incredible natural beauty and endless opportunities for adventure, Iceland proves that an extraordinary journey doesn’t always require an extraordinary budget!

Will you visit Iceland this year? Which tips are most helpful? Have you visited Iceland before? Are there more cost-saving ideas that we should include? Share your thoughts and experience in the comment section below!