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Living in Iceland: Cost of Living, Healthcare and What to Know About Living in Iceland | Expat Exchange
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Living in Iceland

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By Joshua Wood, LPC

Last updated on Jan 10, 2024

Summary: People often describe life in Iceland as peaceful, beautiful, and unique. Expats love the stunning natural beauty of the country, the friendly people, and the excellent quality of life. The average cost of living for an expat is around $2,500 per month, depending on lifestyle. The population of Iceland is approximately 364,134 people, and the largest cities are Reykjavik, Kópavogur, Hafnarfjörður, and Akureyri. The cons of living in Iceland include the high cost of living, the cold weather, and the limited job opportunities. Additionally, the language barrier can be a challenge for some expats.

What do I need to know about living in Iceland?

When we asked people what advice they would give someone preparing to move to Iceland, they said:

"Before retiring in Iceland, expats should be aware of the cost of living, which is higher than in many other countries. They should also be aware of the weather, which can be cold and unpredictable. Additionally, expats should research the healthcare system and the availability of medical services. It is also important to research the local culture and customs, as well as the language, to ensure a smooth transition. Finally, expats should be aware of the visa and residency requirements for living in Iceland," wrote one member in Iceland.

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How do I meet people in Iceland?

When we asked people living in Iceland about club and activities where newcomers can meet others, they responded:

"Expats in Iceland often join clubs and activities such as sports teams, language classes, and cultural events. Expats can also meet people by attending local festivals, joining meetup groups, or attending events hosted by the Icelandic-American Association. Additionally, many expats find it helpful to join online forums and social media groups to connect with other expats living in Iceland," said one expat who made the move to Iceland.

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Relocating abroad soon? Make your move with AGS! AGS Worldwide Movers is a leader in the international moving industry. Our experience and expertise allows us to guarantee our clients the best quality moving services.

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What is life like in Iceland?

When we asked people living in Iceland what life is like and how people spend their time, they said:

"Life for expats and digital nomads in Iceland can be quite rewarding. The country is known for its stunning natural beauty, with glaciers, volcanoes, and hot springs, as well as its vibrant culture and friendly people. Expats and digital nomads can take advantage of the country's excellent infrastructure, with reliable internet access and a wide range of services and amenities. The cost of living is relatively high, but the quality of life is generally good. Expats and digital nomads can also benefit from Iceland's generous visa policies, which make it easy to stay in the country for extended periods of time," commented one expat who made the move to Iceland.

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Is there a lot of crime in Iceland?

We asked people if there is a lot of crime. They answered:

"Iceland is generally considered to be a very safe country, with low levels of crime. Violent crime is rare, and property crime is relatively low. However, there has been an increase in drug-related crime in recent years, as well as a rise in white-collar crime," said one expat who made the move to Iceland.

Is there a lot of diversity? Are people in Iceland accepting of differences?

"Iceland is a diverse country with a population that is accepting of differences. The country is home to people from many different backgrounds, including those of European, African, and Asian descent. Icelanders are known for their open-mindedness and tolerance of different cultures, religions, and lifestyles. This acceptance of diversity has been a part of Icelandic culture for centuries, and continues to be a defining characteristic of the country today," commented one expat who made the move to Iceland.

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What are the schools in Iceland like?

"Look into homeschooling. Even if you do decide to send you child to this school you'll be doing a lot of supplemental teaching at home. This is our kids fourth international school so far and it hasn't been a good experience for them. We can't wait to leave. Love the country but hate the school," said one expat in Reykjavik with children at International School of Iceland.

"I would hiighly recommend this school to families moving to Iceland. The staff are fabulous people that have the best interests of the children at heart. It is a small school and as such chiidren are given a greater degree of individualized attention. I have had a wonderful ecperience having both my children attend for a combined three years," remarked one parent with kids at The International School of Iceland in Garðabær.

"The Reykjavik International School (RIS) is one of the best international schools in Iceland. Located in the capital city of Reykjavik, RIS offers a comprehensive education for students from pre-kindergarten to grade 12. The school follows the International Baccalaureate (IB) curriculum, which is designed to develop students’ critical thinking and problem-solving skills. RIS also offers a variety of extracurricular activities, such as sports, music, and art. The Reykjavik Bilingual School (RBS) is another excellent bilingual school in Iceland. RBS offers a bilingual education in both English and Icelandic, with a focus on developing students’ language skills. The school follows the Icelandic National Curriculum, which is designed to prepare students for higher education. RBS also offers a variety of extracurricular activities, such as sports, music, and art. The Akureyri International School (AIS) is a top-rated international school in Iceland. Located in the northern city of Akureyri, AIS offers a comprehensive education for students from pre-kindergarten to grade 12. The school follows the International Baccalaureate (IB) curriculum, which is designed to develop students’ critical thinking and problem-solving skills. AIS also offers a variety of extracurricular activities, such as sports, music, and art," explained one expat living in Iceland.

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Is the cost of living in Iceland high?

We asked people how much they someone comfortably live on in Iceland, they wrote:

"The cost of living in Iceland is generally higher than in other European countries. Prices for basic goods and services, such as food, housing, transportation, and utilities, are all more expensive than in many other countries. Eating out and entertainment can also be costly, and the cost of alcohol is particularly high. However, wages in Iceland are also higher than in many other countries, so the overall cost of living is still manageable," remarked one expat living in Iceland.

"The cost of living in Iceland is generally high compared to other countries. The capital city of Reykjavik is the most expensive place to live in Iceland, with prices for goods and services being higher than in other parts of the country. The rental price for a nice 1 bedroom apartment in Reykjavik is around $1,500 USD per month, while a nice 2 bedroom apartment is around $2,000 USD per month. Eating dinner at a moderately priced restaurant in Reykjavik can cost around $30 USD per person," wrote one expat living in Iceland.

What type of recreational facilities are in Iceland?

When we asked people living in Iceland about recreational activities, they mentioned:

"Iceland offers a variety of recreational facilities for its residents to enjoy. Popular activities include hiking, camping, fishing, and horseback riding. There are also many opportunities for bird watching, whale watching, and other wildlife viewing. For those looking for a more leisurely activity, there are plenty of hot springs, geothermal pools, and spas to relax in. Iceland also has a vibrant nightlife, with many bars, clubs, and restaurants to explore. Additionally, there are numerous museums, galleries, and cultural centers to visit," mentioned one expat inIceland.

What is the weather like in Iceland?

"The weather in Iceland is often unpredictable and can change quickly. It is usually cool and windy, with temperatures ranging from mild to cold. Rain and snow are common, and the northern regions of the country can experience long periods of darkness during the winter months. Despite the cold temperatures, Iceland is known for its beautiful landscapes and stunning natural wonders," mentioned one expat inIceland.

Are there good restaurants in Iceland?

"One of Iceland's most popular restaurants is Dill, located in Reykjavik. Dill is a Michelin-starred restaurant that specializes in modern Icelandic cuisine, using local ingredients to create unique dishes. The restaurant has a cozy atmosphere and a menu that changes seasonally. Another popular restaurant is Fish Market, located in Reykjavik. Fish Market is a seafood restaurant that serves up fresh, local seafood dishes. The restaurant has a relaxed atmosphere and a menu that changes daily. For a more traditional Icelandic experience, try the Icelandic Fish and Chips restaurant in Reykjavik. This restaurant serves up traditional Icelandic fish and chips, as well as other Icelandic dishes. Finally, the Grillmarkadurinn restaurant in Reykjavik is a great place to try Icelandic barbecue. The restaurant has a relaxed atmosphere and a menu that features a variety of grilled meats and vegetables," remarked one expat in Iceland.

Where will I buy groceries and do other shopping in Iceland?

"People living in Iceland typically buy groceries and do other shopping at supermarkets, convenience stores, and specialty stores. Many people also shop online for groceries and other items. Additionally, there are farmers' markets and flea markets where people can buy fresh produce and other items," said an expat in Iceland.

What are the visa & residency requirements in Iceland?

"In order to visit Iceland, foreign nationals must obtain a visa from the Icelandic Directorate of Immigration. The process of applying for a visa involves submitting an application form, providing a valid passport, and providing proof of sufficient funds to cover the duration of the stay. In order to obtain residency in Iceland, foreign nationals must submit an application to the Directorate of Immigration. The application must include a valid passport, proof of sufficient funds to cover the duration of the stay, and a valid residence permit. Additionally, applicants must provide proof of employment or a valid study permit, and must demonstrate that they have a valid health insurance policy," said one expat living in Iceland.

Are healthcare and health insurance expensive in Iceland?

"Healthcare in Iceland is generally considered to be of high quality and is provided free of charge to all citizens and legal residents. Health insurance is also available in Iceland, but it is not mandatory. The cost of health insurance depends on the type of coverage chosen, but it is generally considered to be quite expensive compared to other countries," wrote one expat living in Iceland.

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Relocating abroad soon? Make your move with AGS! AGS Worldwide Movers is a leader in the international moving industry. Our experience and expertise allows us to guarantee our clients the best quality moving services.

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Relocating abroad soon? Make your move with AGS! AGS Worldwide Movers is a leader in the international moving industry. Our experience and expertise allows us to guarantee our clients the best quality moving services.

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About the Author

Joshua Wood Joshua Wood, LPC joined Expat Exchange in 2000 and serves as one of its Co-Presidents. He is also one of the Founders of Digital Nomad Exchange. Prior to Expat Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.

Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.

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