Cost of Living in Iceland: Updated Prices, Other Countries Comparison

Students arriving in Iceland for higher education should plan a budget to manage their cost of living in Iceland effectively. Iceland, known for its stunning landscapes, unique culture, and high-quality education, is an attractive destination for international students. But how much does it cost to live in Iceland for a student?

If you are curious about the essential costs to consider when calculating the average cost of living in Iceland, and how to manage them effectively, then in this blog, we will explore the average monthly cost of living in Iceland and compare it to other cities in Germany and Europe. Read on to find out more!

Cost of Living in Iceland

The cost of living in Iceland includes transportation costs, restaurant expenses, accommodation expenses, utility expenses, and entertainment expenses incurred. On average the cost of living in Iceland for international students is around ISK 179,758 per month excluding rent. If we consider rent for a one-room apartment ranges from ISK 219,844 to ISK 320,000 per month. However, the living expenses may vary based on the lifestyle they choose as well.

Iceland is the 9th most expensive country in the world. Due to its location, several products need to be imported. Before travelling abroad, students can estimate the expenses to create a budget plan. For your convenience, we have accumulated some essential expenses categories that contribute to the cost of living in Iceland. Here is a detailed overview of the average costs across various categories for those considering a move to Iceland:

Also Read: Cost of Living in Wales: A Comprehensive Guide on Wales’s

Cost of Transportation in Iceland

Iceland has a broad network of public transportation. Travelling in Iceland is fast and safe. For example, Bus routes, taxis, ferry boats, and local airports all provide comfortable transportation to students. However, ticket prices are among the highest in the world.

For example, a monthly ticket will cost ISK 9,300. Similarly, in Iceland, it is better to rent a car than to buy one. Public transportation can be expensive to get around Iceland, but one should consider this cost in the average cost of living in Iceland. To give you an idea, here’s a breakdown of the average cost.

Transportation	Approx Cost
Local transportation one way ticket	ISK 570.00
Monthly Pass (Regular Price)	ISK 9,300.00
Taxi Start (Normal Tariff)	ISK 730.00
Taxi 1km (Normal Tariff)	ISK 324.00
Gasoline (1 liter)	ISK 311.66

Cost of Food in Iceland Restaurants 

Iceland’s food scene is delicious. From casual eats to sit-down meals, there’s something to satisfy every craving. Restaurants in Iceland are quite expensive. A decent meal at an inexpensive restaurant can cost around ISK 3,000 in places like Reykjavik.

However, meals for 2 people in mid-range restaurants and three-course meals cost a minimum of ISK 16,482. However, the amount doesn’t include drinks or dessert. It is better to cook at your own expense than to eat meals out because dining out can affect your cost of living in Iceland. Here is the average food cost at the restaurants in Iceland. Please have a look.

Restaurant	Approx Cost
Meal, Inexpensive Restaurant	ISK 3,000
McMeal at Mcdonald’s (or Equivalent Combo Meal)	ISK 2,299.00
Meal for 2 People, Mid-range Restaurant, Three-course	ISK 16,482.00
Cappuccino (regular)	ISK 685.00
Coke/Pepsi (0.33-litre bottle)	ISK 400.00
Water (0.33-litre bottle)	ISK 299

Cost of Accommodation in Iceland

Similar to other expenses, the cost of accommodation in Iceland is expensive. It covers a major portion of the cost of living in Iceland. A one-room rent in the city centre area equals ISK 247,153 a month. The rate is similar to accommodation costs in London or Paris. 

However, a single room or a studio apartment can cost around ISK 218,875 per month outside the city centre. Buying housing in the City Centre is also expensive. The rate is ISK 795,961 per square meter. 

Accommodation	Approx Cost
Monthly rent for 1 bedroom apartment in a city area	ISK 247,153
Monthly rent for 1 bedroom apartment outside the city area	ISK 219,844
Monthly rent for 3 bedroom apartment in city area	ISK 348,694
Monthly rent for 3 bedroom apartment outside the city area	ISK 317,794

Also Read: Cost of Living in Rotterdam: A Guide on Expected Expenses

Cos of Utility Bills in Iceland

Utility expenses in Iceland are moderate. In fact, the prices of heating, cooling, and cleaning management are ISK 13,793 per month. However, the internet connection is much more expensive than in other European countries.

These costs vary with the size of the home and seasonal usage. For your convenience, we have already counted the cost of utilities to the cost of living in Iceland. In the following table, utility costs in Irvine are given for your reference:

Utility	Approx Cost
Utilities 1 month (heating, electricity, gas …) for 2 people in an 85m2 flat	ISK 13,793
Internet 60 Mbps (1 month) unlimited data	ISK 9,843
40” flat screen tv	ISK 165,479
laundry detergent (3 l. ~ 100 oz.)	ISK 3,317
Microwave 800/900 watt (bosch, Panasonic, LG, sharp, or equivalent brands)	ISK 49,096
Hourly rate for cleaning help	ISK 11,734

Cost of Entertainment in Iceland

Entertainment in Iceland can be quite an expense due to the high cost of living in Iceland. In addition, there are other expenses that you should be aware of before relocating to Iceland because, after some time you will need them in Iceland apart from study and job in extra time.

We have included a range of information about other expenses in Iceland, like sports, and entertainment. Please review the table below; you can include these in your budget for living expenditures.

Sports And Leisure	Approx Costs
Fitness Club, Monthly Fee for 1 Adult	ISK 8,906
Cinema, International Release, 1 Seat	ISK 2,000
Tennis Court Rent (1 Hour on Weekend)	ISK 4,469

Average Tuition Fees in Iceland

The tuition fees in Iceland vary on the basis of the university. In total Iceland has seven universities. It includes the University of Iceland which comes under the Shanghai Academic Ranking of World Universities in year 2020. No tuition fees are charged at public universities.

However, students might have to pay some application fee of ISK 58652. Private universities, on the other hand, charge fees per semester. Average tuition fees in Iceland universities are given below, please have a look.

University	Tuition Fees per semester
Public universities	No fees are charged
Private university fees for undergraduate students	ISK 288,000
Private university fees for postgraduate courses	ISK 424,000- ISK 481,000

Cost of Living in Iceland Compared to Other Countries

Iceland is renowned for its stunning landscapes and unique culture, but it also has one of the highest costs of living in the world. Compared to the cost of living in other countries, Iceland sits significantly higher, Individuals need to thoroughly research to determine how affordable it is to align their financial goals with their lifestyle in Iceland.

For your reference, we have given the cost of living in Iceland compared to other cities like the USA, Canada, South Africa, the UK, Ireland, Australia, Switzerland, Norway and Sweden. So to give you an idea of ​​how affordable it is to live in Irvine to pursue higher education compared to other cities. Please have a look:

Cost of living city-wise	Approx Costs	Comparison Cost of Living in Iceland
Cost of Living in the USA	ISK 160756	Lower than Iceland
Cost of Living in Canada	ISK 145916	Lower than Iceland
Cost of Living in South Africa	ISK 80396	Lower than Iceland
Cost of Living in the UK	ISK 143062	Lower than Iceland
Cost of Living in Ireland	ISK 147476	Lower than Iceland
Cost of Living in Australia	ISK 153830	Lower than Iceland
Cost of Living in Switzerland	ISK 227231	Higher than Iceland
Cost of Living in Norway	ISK 168933	Lower than Iceland
Cost of Living in Sweden	ISK 134695	Lower than Iceland

Why Study in Iceland?

Along with high living standards, an amazing environment and a standard cost of living in Iceland, it is a beautiful country with thriving arts and culture. Moreover, students can enjoy eco-friendly living and have lots of personal space for themselves. There are plenty of reasons why you should consider studying in Iceland.

• As per the Social Progress Index 2015, Iceland ranks fourth in social progress. The country is committed to gender equality, and religious tolerance, and is known for progressive laws.
• The universities in Iceland offer modern and up-to-date information. In fact, the oldest institution in Iceland was started in 1911.
• Universities in Iceland offer courses in different disciplines. For example, Agricultural University is known for offering courses in agriculture and environmental sciences 

Things to Consider Before Moving to Iceland 

Every country comes with its own set of challenges and perks. Here are a few things you need to consider before moving to Iceland.

• Iceland has cold weather. Hence, it is best to pack warm clothes. However, during the hottest times in the summer, a jacket will be sufficient.
• Staying in Reykjavik is beneficial as walking is convenient. For travelling longer distances it is best to have a car/motorcycle of your own. Not many city buses are available for local travel. Hence, having a personal vehicle is useful.
• Those with connections are likely to get a part-time job in Iceland. The reason is, that Iceland businesses prefer to hire locals.
• Sometimes it is hard to find fresh fruits and vegetables. 
• A lively ex-pat community can be found in Iceland. It is easier to make both local and international friends.

Relevant Reads:

Cost of Living in Lithuania: A Comprehensive Guide on Lithuania’s Expenses	Cost of Living in Wales: A Comprehensive Guide on Wales’s Expense
Cost of Living in Helsinki: A Comprehensive Guide on Helsinki’s Expense	Cost of Living in Brussels: A Guide on Expected Expenses
Cost of Living in Rotterdam: A Guide on Expected Expenses	Cost of Living in Stuttgart: A Comprehensive Guide on Stuttgart’s Expense

FAQs on Cost of Living in Iceland

So, this was all about the cost of living in Iceland. Many Indian students dream of pursuing education in foreign nations due to the exposure and career growth they offer. Consider joining a free counselling session with Leverage Edu if you plan to study abroad.