How Much Does It Cost to Live in Iceland?

Introduction

When considering a move to a new country, it’s important to consider the cost of living. The cost of living is defined as the amount of money needed to sustain a certain standard of living in a given place. It includes the costs of goods and services, like housing, food, healthcare, transportation, and entertainment. When comparing one country to another, it’s important to take into account currency exchange rates, as well as the cost of goods and services. In this article, we will explore how much it costs to live in Iceland.

Comparing Cost of Living in Iceland to Other Countries

When comparing the cost of living in Iceland to other countries, it’s important to look at both general rankings and specific costs. According to Numbeo’s cost of living index, which compares the cost of living in major cities around the world, Reykjavik, the capital of Iceland, ranks as the 22nd most expensive city in the world. This ranking takes into account the cost of goods and services, as well as currency exchange rates. For example, the US dollar is worth about 125 Icelandic krona (ISK).

Cost of Goods & Services in Iceland

The cost of goods and services in Iceland is generally higher than in other countries. For example, a meal at an inexpensive restaurant costs about $25 USD, while a three-course meal for two at a mid-range restaurant costs about $90 USD. A cup of coffee costs about $6 USD, while a bottle of wine costs around $20 USD. Additionally, a one-way ticket on public transportation costs about $3.50 USD.

Cost of Housing in Iceland

Housing costs vary depending on location, size, and amenities. The average rental price for a one-bedroom apartment in Reykjavik is about $1,050 USD per month. For a three-bedroom apartment, the average rental price is about $2,100 USD per month. Homeownership costs are also high in Iceland, with the average price for a two-bedroom home costing around $450,000 USD. Additional expenses such as property taxes and insurance can add up to thousands of dollars per year.

Grocery Shopping Costs in Iceland

Grocery shopping costs in Iceland are generally higher than in other countries. Common food items such as eggs, milk, bread, and cheese cost more than they do in the United States. For example, a dozen eggs costs about $5 USD, while a liter of milk costs around $3 USD. However, there are some bargains to be had, such as fresh fruits and vegetables, which tend to be cheaper than in other countries.

Utilities & Transportation Costs in Iceland

Utilities costs in Iceland are generally higher than in other countries. Electricity, gas, and water bills can add up to hundreds of dollars per month. Public transportation in Iceland is reliable and efficient, but it is more expensive than in other countries. A one-way ticket costs about $3.50 USD, while a monthly pass costs around $80 USD. Car ownership and maintenance costs are also high in Iceland, due to the high cost of gasoline and car parts.

Entertainment & Dining Out Expenses in Iceland

Entertainment and dining out expenses are also higher in Iceland than in other countries. Movie tickets cost about $17 USD, while concert tickets typically range from $30-60 USD. Restaurants and bars are also more expensive than in other countries, with the average price for a meal ranging from $15-30 USD. Alcoholic beverages are also more expensive, with a pint of beer costing around $10 USD.

Average Monthly Cost of Living in Iceland

The average monthly cost of living in Iceland is about $3,500 USD. This includes expenses for housing, groceries, utilities, transportation, and entertainment. Renting a one-bedroom apartment in Reykjavik costs about $1,050 USD per month, while a three-bedroom apartment costs around $2,100 USD. Grocery shopping costs average around $200 USD per month, while utilities, transportation, and entertainment expenses total about $400 USD per month. Other expenses, such as health insurance, clothing, and miscellaneous items, can add up to several hundred dollars per month.

Conclusion

Living in Iceland can be expensive, but it has its rewards. From stunning landscapes to friendly locals, there’s something for everyone in this beautiful Nordic country. If you’re considering a move to Iceland, it’s important to factor in the cost of living before making a decision. With careful planning and budgeting, living in Iceland can be an enjoyable experience.