Are you trying to figure out how to travel to Iceland on a budget?
I am here to help!
Iceland is one of the most amazing destinations. From chasing the Northern Lights, soaking in hot springs, and exploring otherworldly landscapes in Iceland, you will never be bored here. But there’s this tiny hurdle when visiting: the not-so-budget-friendly reputation that comes with it.
To help you have the most epic adventure without spending a fortune, let’s take a look at the best ways to visit Iceland on a budget.
Is Iceland cheap to visit?
Iceland is different from what you’d call a budget-friendly destination. While the land of fire and ice is undeniably spectacular, its price tag can easily put most travelers off.
From accommodation and meals to activities and transportation, costs can easily pile up if you’re not mindful. However, with careful planning and a bit of budget-savvy maneuvering, you can have an amazing trip to Iceland without saving for years.
The key is preparation. Iceland has so much to do that the expenses can quickly become overwhelming. It’s important to set a budget and stick to it. It is also super helpful to do your research and find hacks that will keep your costs low.
18 Top Ways To Visit Iceland On A Budget
1. Visit During Iceland’s Shoulder Season
To save money before you even arrive in Iceland, you should consider setting your travel dates during the shoulder seasons. These periods can be a game-changer for your budget!
Booking your Icelandic adventure during the shoulder seasons, which fall in spring (April to June) and fall (September to October), offers some great benefits.
First off, you avoid the peak tourist crowds, giving you a more intimate experience with the breathtaking landscapes and attractions. If you want to take some amazing photos, this is the peak time to do it!
But the best part is the amount of money there is to save. Not only are accommodations and activities more available, but they often come at cheaper prices.
2. Be Flexible When Flying
When traveling to Iceland on a budget, flexibility can help. If you are open to shifting your travel dates you can get some super cheap options, thanks to flight comparison sites like Skyscanner.
Airlines adjust their prices based on demand, the day of the week, and even the time of day. By using platforms like Skyscanner, you can easily compare and get some amazing deals. You can even look at which airports near you offer the cheapest deals!
3. Book Everything In Advance
For anyone trying to figure out how to travel to Iceland on a budget, booking everything in advance is key. Â Whether it’s hotels, tours, or car rentals, locking in your plans ahead of time can massively help your budget.Â
Booking in advance not only guarantees your spot but they are often at discounted prices, as some companies offer early-bird specials.
This is super important for any tours as they fill up fast. The last thing you want is the disappointment of discovering that the once-in-a-lifetime tour you’ve been dreaming of is fully booked
4. Avoid Alcohol
Alcohol in Iceland is expensive, and your budget might take an unexpected hit if you’re not careful. Iceland’s strict regulations and high taxes on alcohol contribute to its high price tags.
Whether you’re in the mood for a local brew or a sip of something stronger, you might find yourself contemplating the cost of that drink versus another excursion. This is why most visitors tend to avoid alcohol if they want to budget.
But if you want a drink during your trip, the cheapest way is to buy it on the way out of the airport at Duty-Free!
5. Don’t Always Eat Out
When it comes to saving money in Iceland, one of the golden rules is not to dine out for every meal. Dining out and even ordering takeaways in Iceland are often on the pricey side, and those restaurant bills can add up quickly.
However, this doesn’t mean you cannot still enjoy the great cuisine Iceland has to offer. The best budget-friendly way to eat is to get accommodation with cooking facilities and shop at the local supermarkets.
Another popular option is to buy the hot dogs at a service station. Not only are they fairly cheap but taste delicious and will leave you full for a while!
6. Shop At The Cheaper Stores
if you’re serious about saving your Icelandic króna during your trip but still want to relish the taste of Iceland, shop at the cheaper supermarkets. The best budget option recommended by travelers and locals is Bonus.
Whether you’re planning a picnic beneath the Northern Lights or looking to stock up on meals for a week, Bonus has got you covered. It’s the perfect spot to assemble your budget-friendly feast without compromising on flavor or variety!
7. Take The Bus
There are multiple ways for you to get around Iceland. But for those searching for one of the most cost-effective ways, use the public bus service.
Whether you’re planning to explore the Golden Circle, traverse the Ring Road, or venture into the remote highlands, bus tickets are generally more budget-friendly than other transportation options.
For a single ticket, you are looking at paying around 470 kr ($ 3.40) which makes doing day trips a lot cheaper!
8. Rent A Car
One of the most popular ways to get around Iceland is to hire a car. Having your own vehicle has so many benefits and one of them is it can save you some serious money.
While shuttle services and taxis can eat into your budget, having a rental car waiting at the airport is not just convenient but a fantastic money-saving move.
When you are finally out and exploring Iceland, you will find renting a car not only offers the flexibility to tailor your itinerary but also ensures you’re not shelling out for every excursion. Guided tours are always an option but often come with a hefty price tag.
9. Avoid Taxis
Icelandic taxis are notorious for their steep fares. Whether you’re hopping from your hotel to a nearby attraction or venturing across town, the cost of a taxi ride can add up quickly, leaving you with fewer króna to spend on the experiences that make Iceland truly extraordinary.
So if you are on a budget, make sure you avoid using taxes and opt for cheaper transport options.
10. Visit The Free Thermal Pools
For anyone wondering how to travel to Iceland on a budget but still experience the thermal pools, this is the best tip.
Skip the Blue Lagoon and opt for the free thermal pools scattered around the country!
Popular spots like the Secret Lagoon in Flúðir or the Reykjadalur Hot Springs in Hveragerði are much better alternatives to save you money. These lesser-known hot springs not only have free admission but also an authentic Icelandic experience with breathtaking views.
11. Use A Water Bottle
Buying bottled water on any trip is a guaranteed way to stay healthy during your trip. But you really should skip the bottled water in Iceland and opt for tap. Not only is it free, but it’s also hailed as some of the best quality in the world.
Iceland’s pristine water sources, fed by glaciers and filtered through volcanic rock, result in water that’s not only delicious but also safe to drink straight from the tap.
You will be surprised how much money you save from using the free tap water around the country and it is such an easy way to help keep to your budget.
12. Research The Tours You Book
Before you hit that “book now” button for your dream Icelandic tour, do your research. Not all tours are created equal, and a little pre-booking investigation can go a long way in ensuring you get the most value for money.
Some tours might include not only transportation but also a packed lunch, the services of a photographer, and visits to multiple spots. On the other hand, others might leave you with just a glimpse of the experience for the same price.
13. Take A Free Tour
If you’re on the hunt for a budget-friendly yet authentic Icelandic experience, consider going on a free tour.
Free tours, often led by knowledgeable and passionate locals, provide a more intimate and personal perspective on the beauty of Iceland.
Also, one of the perks of these tours is that they operate on a tip-based system, allowing you to decide what you can contribute based on your budget.
14. Keep Accommodation Basic
If your goal is to stretch your budget while exploring Iceland, consider opting for basic accommodation. When you’re out adventuring amidst glaciers, waterfalls, and lava fields, the truth is, you probably won’t be spending much time in your room.
Basic accommodation, such as guesthouses, hostels, or budget hotels, typically offers a clean and comfortable place to rest your head without the frills. Not only will this save you a significant amount of money but will give you a chance to meet local hosts.
15. Try Camping
While camping might not be everyone’s cup of tea and not an option for the winter months, it’s a great way to save money in the warmer months.
Iceland’s campgrounds often offer basic amenities like restrooms, showers, and cooking facilities, making it a comfortable and budget-friendly choice for those who prefer the simplicity of camping life. Also, many campsites are strategically located near popular attractions making getting around super easy.
16. Visit The Free Attractions Around Iceland
To keep your travels budget-friendly indulge in the wealth of free attractions that this stunning country has to offer. Iceland is full of amazing places to visit and many of its most captivating sites won’t cost you a single króna.
The best part is that most of the free attractions in Iceland are the most recommended ones by locals and other tourists. So save your money for a great meal or some souvenirs instead!
17. Don’t Base Yourself In Reykavik
To save you money during your Iceland trip, consider not using Reykjavik as your primary base. While the capital city is undeniably vibrant and culturally rich, the cost of accommodation and dining can be notably higher compared to other regions in Iceland.
Beyond the expenses within Reykjavik itself, there’s a practical consideration—travel costs.
Commuting between Reykjavik and the attractions scattered across the country can quickly add up, even if you have the convenience of a rental car. To keep your budget intact, book accommodation as you move around the country.
18. Claim Your VAT Back
You will find so many unique shops in Iceland, but did you know you can claim your VAT back at the end of your trip?
Claiming VAT back at the airport is a straightforward process that can result in significant savings, especially if you’ve made substantial purchases during your trip.
Simply go to Arion Bank at the airport before you go through security and the friendly staff will help you get your VAT return. However, there are a few things you will need to be aware of before you do:
- The purchase price of the goods, including VAT, must be at least ISK 12,000
- Ask the shops to give you a VAT certificate when purchasing your items
- You must have receipts and ID with you when making the claim
- You need to fill in the tax-free form
Many travelers forget about this hack at the end of their trip but it’s a great way to keep your budget intact!
How To Travel To Iceland On A Budget Final Thoughts
Iceland is renowned for being one of the most expensive travel destinations. With its high alcohol taxes and living costs, it can easily put visitors off booking a trip here. But it really shouldn’t!
From embracing the simplicity of basic accommodations and tapping into the free attractions to making smart choices when it comes to transportation, dining, and even tapping into VAT refunds, you can easily have a cost-effective yet unforgettable getaway.
To help you have a budget-friendly journey through the amazing landscapes of Iceland, use these 18 hacks to save you your well-earned cash!
Author’s Bio: Lowri is the creator of the European road trip blog, Many Other Roads. Originally from Wales, you will now find Lowri exploring Europe with her border collie Scout, sharing in-depth knowledge and tips for those wanting to hit the road! You can follow her on social media on Instagram & Facebook.
