A Complete Guide to Shopping In Iceland

Shopping in East Iceland

East Iceland is a land of dramatic fjords, rugged mountains, and small villages where local artistry and craftsmanship thrive. Though the region is sparsely populated, its hidden gems make it a rewarding destination for those seeking authentic Icelandic goods. Whether you're looking for handcrafted souvenirs, fresh local produce, or high-end designer pieces, the shops and markets scattered throughout East Iceland offer something truly special. 

Djupivogur – A Cultural Haven

Continuing north along Route 1, the fishing village of Djupivogur is one of East Iceland’s most artistic destinations. The town’s creative spirit is reflected in its famous “Eggs of Merry Bay” outdoor sculptures and the historic Langabud Cultural Center, which hosts art exhibitions and showcases local heritage.

Stop by JFS Handcrafts, which specializes in jewelry crafted from Icelandic stones, making it a perfect place to pick up an elegant, nature-inspired keepsake.

Stodvarfjordur – A Village in Cultural Transformation

Nestled within a narrow fjord, the tiny village of Stodvarfjordur is undergoing an artistic revival. Once a historic fish factory, the Cultural Centre now serves as a creative hub, hosting art workshops, live performances, and a recording studio. Local artisans display their work at the Salthussmarkadur Art and Craft Market, where visitors can find everything from handmade Icelandic sweaters to contemporary crafts emerging from this flourishing creative community.

Vallanes – Organic Farm & Sustainable Foods

For travelers seeking fresh, organic Icelandic produce, Vallanes Farm is a must-visit destination open from May to October. Located just outside Egilsstadir, the largest settlement in East Iceland, Vallanes produces over 100 varieties of crops and a wide range of barley products, teas, oils, cereals, breads, and sweet pickled vegetables. Sold under the brand Modir Jord (Mother Earth), these products can be found throughout Iceland, including at organic markets in Reykjavik.

Egilsstadir – East Iceland’s Shopping Hub

As the central hub of East Iceland, Egilsstadir offers the most diverse shopping experience in the region. The Hus Handanna Art and Design Shop is a treasure trove of wool-wear, ceramics, paintings, jewelry, and handmade furniture, making it the perfect place to find an authentic Icelandic souvenir.

Seydisfjordur – Art & Handicrafts

A 30-minute drive east of Egilsstadir along Route 93 leads to Seydisfjordur, a picturesque town renowned for its rich art scene. Here, visitors can explore a selection of handicraft shops, featuring local artwork, textiles, and unique Icelandic designs. After shopping, you can enjoy a meal at Nord Austur Sushi, where fresh Icelandic ingredients meet world-class sushi craftsmanship.

Craving more great food? Check out the best restaurants in East Iceland, including local favorites like Nord Austur.

Borgarfjordur Eystri – Lava Rock Creations

For a truly off-the-beaten-path shopping experience, follow Route 94 north from Egilsstadir to Borgarfjordur Eystri, a remote settlement surrounded by breathtaking landscapes. At the Alfacafe, you’ll find charming handcrafted goods made from lava rock, including candleholders and clocks, all crafted by local artisans.

East Iceland: Uncovering Glacial Treasures

While you're discovering the hidden gems of East Iceland, why not add a little adventure to your itinerary? After all, the best souvenirs aren’t just the ones you can pack — they’re the experiences that stay with you.

• Relaxing 2-Hour Kayaking Tour in Eastfjords from Djupivogur – Paddle beneath the striking peak of Bulandstindur on this peaceful two-hour kayaking tour. Enjoy calm waters, stunning coastal views, and a fresh perspective on the Eastfjords' natural beauty.

• Vok Baths Admission near Egilsstadir in East Iceland – Soak in warm, geothermally heated pools that float on Lake Urridavatn. With stunning views and a serene atmosphere, Vok Baths offer a perfect East Iceland retreat.

• 3-Hour Horse Riding Wilderness Tour in the Countryside of East Iceland – Ride through scenic valleys and along mountain trails on this guided tour with friendly Icelandic horses. A peaceful and memorable way to experience the quiet beauty of East Iceland. 

Shopping in North Iceland

North Iceland is a vast and breathtaking region, where most of the population is concentrated in Akureyri, the unofficial capital of the North, while smaller fishing villages dot the dramatic coastline. Despite its remoteness, the region has a thriving market for local crafts, art, and unique Icelandic souvenirs. Whether you’re exploring the volcanic landscapes of Lake Myvatn, the whale-watching town of Husavik, or the charming streets of Akureyri, you’ll find plenty of opportunities to pick up authentic Icelandic goods.

Lake Myvatn – Handicrafts in a Volcanic Wonderland

Located in the heart of North Iceland, Lake Myvatn is renowned for its otherworldly landscapes, rich birdlife, and geothermal wonders. It’s also home to Dyngjan Gallery and Market, a small but excellent shop located next to the Tourist Information Centre. Open during the summer months, this market features handmade crafts and artworks by local artists.

For a larger selection, the Myvatn Market at Dimmuborgir offers additional Icelandic gifts, though visitors should be aware that some of the items lean toward the more touristy side.

Husavik – Handcrafted Goods & Unique Souvenirs

A short drive north from Myvatn along Route 87, the town of Husavik is world-famous for being the whale-watching capital of Europe. Beyond its incredible marine wildlife, the town also has a vibrant handicrafts scene.

The best place to shop here is Kadlín, a boutique filled with handmade jewelry, Icelandic wool sweaters, homegrown teas, and locally produced jams. For those looking for something truly one-of-a-kind, the shop also stocks animal bones found on Iceland’s beaches — a peculiar yet fascinating gift option for those with a taste for the unusual.

Akureyri – The Capital of the North

As North Iceland’s largest town, Akureyri is the best place to find boutiques, galleries, and specialty stores. Most of the city’s shopping is concentrated along Hafnarstraeti, the town’s main street, and in the Glerartorg mall.

• Rammagerdin – One of the oldest gift stores in Iceland, offering handmade wool sweaters, Icelandic crafts, and art pieces.

• Systur & Makar – A stylish boutique featuring home décor, clothing, and jewelry, though not all items are Icelandic-made, so check labels if you're seeking local craftsmanship.

• Linda Ola Studio and Gallery – A working artist’s studio where you can watch Linda Ola create stunning acrylics, oil paintings, etchings, candles, and sculptures, all available for purchase. Visitors are even welcome to browse when she’s present, even outside of regular opening hours.

All three of these shops are located downtown, with Rammagerdin (Hafnarstraeti 94) and Linda Ola Studio (Hafnarstraeti 97) right next to each other, and Systur & Makar a short walk away at Strandgata 9.

The Christmas House – A Year-Round Winter Wonderland

Just a 10-minute drive south of Akureyri, you’ll find The Christmas House and Garden (Jolahusid), where the festive spirit lasts all year. This magical shop sells Christmas decorations, holiday sweets, and trinkets from around the world, with a special selection of handmade Icelandic ornaments and crafts.

North Iceland – Shop Local, Then Dive into Exploration

When you’re not busy shopping for local treasures in North Iceland, get ready for some epic adventures! There’s no shortage of experiences to match the unique finds you’ll discover.

• Whale Watching Tour with Transfer from Akureyri — Whale watch from the ‘capital of the North’, Akureyri, and witness the unbelievable wealth of marine life in Eyjafjordur

• The Geosea Geothermal Baths in Husavik — Take a revitalizing dip into naturally heated seawater in the Geosea Sea Baths. 

• Lake Myvatn Sightseeing & Hot Springs Tour from Akureyri — Hop across the unique landscapes of Iceland with stops at Lake Myvatn and Godafoss Waterfall.

Shopping in West Iceland

West Iceland is home to stunning landscapes, charming villages, and rich cultural traditions. While most of the population resides in Reykjavik, there are several settlements across the Westfjords, Snaefellsnes Peninsula, and Borgarfjordur Fjord where travelers can find authentic Icelandic crafts, woolen goods, and unique souvenirs.

Isafjordur – The Cultural Hub of the Westfjords

The Westfjords is Iceland’s most remote region, with tiny villages often inaccessible during winter. Shopping for local crafts and handmade Icelandic goods here can be challenging, but Isafjordur, the largest settlement, has many lovely boutiques, including the following.

• Karitas - This charming shop in the heart of Isafjordur features a curated selection of locally made clothing, accessories, and home goods, with a focus on quality craftsmanship and Icelandic design. It’s a great place to find something stylish, practical, and truly local.

Reaching Isafjordur from Akureyri requires a seven-hour drive via Route 1 to Route 68 to Route 60, so plan accordingly.

Stykkisholmur – Artisanal Treasures

The picturesque town of Stykkisholmur on the Snaefellsnes Peninsula, known for its rich folklore and artistic community, is an excellent stop for those looking to explore Icelandic craftsmanship. Located about 170 miles (275 kilometers) from Reykjavik, it can be reached via Route 1 to Route 54, or about five hours from Isafjordur by following Route 61 to Route 60 to Route 54.

• Smavinir – Now located inside the Norwegian House Museum, this charming woodcraft studio is run by artist Lára Gunnarsdóttir, who specializes in hand-carved and painted figurines made from Icelandic birch. Her whimsical creations—ranging from horses and birds to angels—make for truly delightful, one-of-a-kind souvenirs.

• Galleri Lundi – A collective gallery and boutique showcasing a wide variety of handmade crafts from artists across the Snaefellsnes Peninsula; it is open daily from mid-May until late September, and on request.

Borgarnes – Community-Driven Shopping

On the way back to Reykjavik, a stop in Borgarnes — just over an hour south of Stykkisholmur — is well worth it. Follow Route 54 to Route 56 to Route 54 to reach this charming town, which has some of the best artisan markets in West Iceland.

• Haafell Goat Farm – This welcoming heritage farm is home to Iceland’s only goat herd and offers a fun, hands-on visit where you can pet the goats and browse a selection of farm-made products, including goat cheese, sausages, herbal creams, jams, and handcrafted goods. It’s a delicious and heartwarming stop for animal lovers and foodies alike.

• Ljomalind Farmer’s Market – A community-run market where every item is locally produced and carefully curated by a local committee. The selection includes:

  • Ceramics & handcrafted ornaments

  • Traditional Icelandic sweaters & clothing

  • Paintings & locally made souvenirs

  • Food items such as jams, teas, produce, and Icelandic meat products

West Iceland – Adventures Await

West Iceland offers the perfect mix of shopping and adventure, just waiting for you to explore. When you’re not discovering the local treasures, embark on one of many exciting tours to experience the region.

• Horse Riding Tour through Lava Fields – Explore one of Iceland’s largest lava caves on this guided horse riding tour through Vidgelmir. Walk beneath ancient lava formations and colorful rock walls as you learn about the island’s volcanic history.

• 2-Day West Coast & Snaefellsnes Peninsula with Lava Caving & Northern Lights Tour –Discover waterfalls, black sand beaches, lava fields, and the iconic Kirkjufell mountain on this scenic two-day adventure. Perfect for travelers who want to explore the highlights of West Iceland without the hassle of driving.

• Spectacular 2-Day Sightseeing & Northern Lights Tour of the Snaefellsnes Peninsula from Reykjavik – Experience the dramatic coastlines, volcanic craters, and charming villages of the Snaefellsnes Peninsula by day, and search for the northern lights by night. This two-day tour includes guided sightseeing and an overnight stay in West Iceland.

Local Icelandic Products

Iceland’s design and craftsmanship are deeply influenced by the country’s natural landscapes, cultural traditions, and harsh climate. There are many ways to bring home a piece of your trip, from innovative fashion to Icelandic music. 

Local Clothing Brands

• 66°North – Iceland’s most famous outerwear brand, offering high-performance jackets, parkas, and fleece layers that withstand extreme weather.

• Farmers Market – A sustainable brand blending traditional Icelandic wool craftsmanship with modern Scandinavian design.

• Kormakur & Skjoldur – A Reykjavik-based menswear brand offering tailored suits, wool coats, and elegant accessories.

• Inklaw – A minimalist streetwear brand, internationally recognized for its modern, avant-garde approach to fashion.

• Kiosk – A co-operative boutique run by Icelandic designers, featuring handmade, high-quality garments and accessories that you won’t find anywhere else. This is a great spot for supporting local talent.

• Spuutnik – Reykjavik’s most popular vintage clothing store, offering an eclectic mix of second-hand treasures, from classic Icelandic wool sweaters to retro streetwear finds.

• Hildur Yeoman – A Reykjavík-based fashion brand known for its ethereal prints, feminine silhouettes, and collections inspired by Icelandic nature and folklore.

• Tira – A handcrafted accessories brand creating original designs inspired by Icelandic tradition, patterns, and heritage.

• Kron – An Icelandic design store best known for its iconic footwear, blending bold style with timeless craftsmanship.

These boutiques and designer stores are mostly located in downtown Reykjavik, particularly along Laugavegur and Skolavordustigur, making it easy to explore them all in a single shopping trip.

• Curious about Iceland’s most iconic outerwear brand? Discover the story behind 66°North

Jewelry Inspired by Nature

Icelandic jewelers craft unique, high-quality pieces that reflect the country’s raw and untamed beauty. Many incorporate materials such as lava stones, Icelandic minerals, volcanic ash, and even Arctic gemstones, while others draw inspiration from Viking heritage and Norse mythology.

• Hildur Hafstein – A designer creating modern, minimalist jewelry influenced by Iceland’s glaciers and lava fields.

• Orrifinn Jewelry – A dark and edgy jewelry brand that merges Icelandic folklore with a contemporary aesthetic, using raw silver, gold, and unpolished stones.

• Vera Design – Famous for using lava beads, obsidian, and basalt, creating bold yet elegant pieces.

• Aurum – A contemporary Icelandic jewelry brand crafting elegant, nature-inspired pieces using sustainable materials and thoughtful design.

• Mjoll – A Reykjavík-based brand offering timeless, sustainably made clothing with clean lines and subtle nods to Icelandic aesthetics.

These handcrafted designs make for beautiful, meaningful souvenirs that carry a piece of Iceland’s history, nature, and energy.

Design and Homeware Stores

Icelandic homeware and interior design are known for their minimalist, Nordic aesthetic, often featuring natural materials and functional yet artistic designs.

• Hrim – A beautifully curated store offering Icelandic and Nordic homeware, ceramics, textiles, and decor. It’s an ideal place to find locally crafted tableware, candles, and stylish home accessories.

• Epal – Specializing in Scandinavian design, featuring Icelandic and international brands that highlight modern and sustainable craftsmanship.

• Anna Thorrunn – Known for intricate, nature-inspired designs, often incorporating runic symbols and Norse mythology.

Frequently Asked Questions about Shopping in Iceland

Do you still have lingering questions about shopping in Iceland? Check out these answers to some of the most commonly asked questions. 

1. What are the typical store hours in Reykjavik and other towns?

Most stores in Reykjavik follow these general hours:

• Monday–Friday:

  • Boutiques & specialty stores: 10:00 AM – 6:00 PM

  • Shopping malls: 10:00 AM – 7:00 PM

  • Supermarkets: 9:00 AM – 8:00 PM (some open until 11:00 PM)

• Saturday–Sunday:

  • Boutiques & specialty stores: 11:00 AM – 5:00 PM (Saturday), limited hours or closed on Sunday

  • Shopping malls: 11:00 AM – 6:00 PM (Saturday), 12:00 PM – 6:00 PM (Sunday)

  • Supermarkets: 9:00 AM – 8:00 PM

In smaller towns, stores may have shorter hours and most, including stores on Laugavegur Street, are often closed on Sundays.

2. Are stores open on holidays in Iceland?

Most stores close on major holidays such as Christmas Eve, Christmas Day, and New Year’s Day. On other holidays like Easter and Icelandic public holidays, hours may be shortened.

3. Can tourists get a VAT refund when shopping in Iceland?

Yes. Visitors can receive a VAT refund of up to 14% on eligible purchases in most stores.

To qualify:

• Spend at least 6,000 ISK (~$44 USD) in one transaction at a tax-free store.

• Request a Tax-Free Cheque at the time of purchase.

• Take the unused goods out of Iceland within three months.

4. How do I claim my VAT refund at the airport?

• Bring your tax-free forms, receipts, and purchased goods to a Tax-Free Refund Office (available at Keflavik Airport and select locations in Reykjavik).

• A customs officer may inspect your purchases before approving the refund.

• Receive your refund in cash, credit card reimbursement, or bank transfer.

5. Can I use credit cards in Iceland, or do I need cash?

Credit and debit cards are widely accepted throughout Iceland, even in small villages. However, some public toilets and parking meters require contactless payments or an app, and if you plan to shop at flea markets or smaller locations, it's a good idea to carry a bit of cash just in case.

6. What should I know about buying Icelandic wool products?

Icelandic wool, known as lopi, is lightweight, warm, and water-resistant. The best places to buy authentic lopapeysur (traditional Icelandic wool sweaters) are:

• Handknitting Association of Iceland (Reykjavik) – Known for high-quality, handmade wool products.

• UNA Local Product – Offers moder, locally made wool goods that blend traditional Icelandic materials and styles

7. What are the best souvenirs to bring home from Iceland?

Popular authentic Icelandic souvenirs include:

• Lopapeysa sweaters – Hand-knitted from Icelandic wool.

• Local artwork and handicrafts – Pottery, carvings, and paintings inspired by Icelandic nature.

• Jewelry made from lava rock – Unique pieces featuring Icelandic stones and minerals.

• Icelandic music and books – Vinyl records, literature, and poetry from local artists.

• Skyr – A traditional Icelandic dairy product, though it has a short shelf life.

Bring a Piece of Iceland Home with You 

Iceland offers unique shopping experiences, no matter where you’re headed in the country, and you’re sure to find something to treasure along the way. From Reykjavik to remote villages, there are many opportunities to support local artisans and bring home authentic souvenirs. When considering what to buy in Iceland, you’ll encounter everything from handcrafted garments to inspirational art.

Whether you’re visiting for a short stay or an extended trip, let your feet wander into the markets and boutiques that make shopping in Iceland unforgettable. From handcrafted souvenirs to locally designed fashion, you’ll discover unique finds to bring home, keeping your memories of Iceland alive for years to come.
What’s the best thing you’ve ever bought while traveling? Do you have a favorite Icelandic brand or shop? Share your shopping stories—or ask us for recommendations—in the comments below!