Is Iceland One of the Most Expensive Countries in the World?
Discover why Iceland ranks among the world’s most expensive countries—and why it’s still worth every króna for travelers and adventure seekers.
Is Iceland One of the Most Expensive Countries in the World? What You Should Know Before You Go
When planning a trip to Iceland, one question often comes up:
“Is Iceland really that expensive?”
The short answer is: Yes—but for good reason. Iceland is consistently ranked among the top 5 most expensive countries in the world, according to global cost of living indexes like Numbeo and Statista. But behind the high price tag is a nation offering world-class safety, incredible natural beauty, and exceptional quality of life.
Blue Lagoon, Iceland – Luxury in the Land of Fire and Ice
Soaking in the warm, mineral-rich waters of the Blue Lagoon is one of Iceland’s most iconic (and pricey) experiences. A perfect example of how Iceland combines natural beauty with high-end relaxation.
Where Iceland Ranks in Global Cost of Living
According to recent 2025 data from Numbeo and other sources:
Iceland ranks #3 among the most expensive countries globally, just after Switzerland and Bermuda.
Basic goods, restaurant meals, accommodations, and transport are all priced higher than the European average.
A coffee in Reykjavík may cost around $5, while a casual dinner for two can easily reach $70 or more.
So yes, the price point is high—but what do you get for it?
Reykjavík from Above – A Colorful Capital with a High Cost of Living
A stunning aerial view of Iceland’s charming capital, where beauty meets some of the highest living costs in the world.
What Makes Iceland Worth the Cost?
Despite the prices, Iceland delivers unmatched value in terms of lifestyle, services, and safety.
✅ 1. One of the Safest Countries in the World
Iceland is ranked as the #1 safest country for over a decade by the Global Peace Index. With virtually zero crime, you can explore the country freely and confidently—whether you're hiking glaciers or walking Reykjavík’s streets late at night.
✅ 2. High-Quality Public Services
Clean tap water (some of the purest in the world)
Top-tier healthcare system
Excellent infrastructure, even in rural areas
Fast, reliable internet—perfect for digital nomads or remote workers
✅ 3. Sustainable and Modern Lifestyle
From eco-friendly energy to socially progressive policies, Iceland offers a clean, modern, and inclusive way of living. It’s a country where nature and innovation go hand in hand.
✅ 4. Incredible Nature and New Adventures
Where else can you...
Soak in natural hot springs under the Northern Lights?
Walk between two tectonic plates?
Visit black sand beaches, volcanoes, glaciers, and waterfalls—all in one trip?
Is Iceland Worth Visiting Despite the High Costs?
Absolutely. The real value of Iceland is not just in what you spend—but in what you experience.
From luxury travelers to budget backpackers, many visitors say that Iceland was one of the best trips of their lives, regardless of the cost.
Travel smart:
Look for guesthouses or Airbnb options
Buy groceries instead of eating out daily
Use public buses or rent a car with friends
There are always ways to manage your budget while still enjoying everything Iceland has to offer.
Reykjavík at Night – Quiet Luxury in the Heart of Iceland
A calm, beautifully lit cityscape showcasing the clean, safe, and modern charm of one of the world’s most expensive capitals.
Final Thoughts
Iceland may be one of the most expensive countries in the world, but it’s also one of the most rewarding. Whether you're looking for adventure, peace, safety, or a deep connection with nature—Iceland delivers a once-in-a-lifetime experience that’s truly worth the price.
