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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

Universal Tax Professionals
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By Joshua Wood, LPC

Last updated on Mar 03, 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 are the pros and cons of living in Iceland?

Expats, digital nomads and retirees living in Iceland responded:

"Despite my earlier comment about criminal activity, Reykjavik is a wonderful place to grow up and also to raise up children. The education system is great for even the smallest of children. However, as an adult, needing to work, due to language barriers a lot of jobs are not available to me due to the level of Icelandic written and spoken that is needed to get hired. Food is expensive and the national food is not very appealing outside of the dairy products. ," said one expat in Reykjavik.

"Expats and digital nomads often appreciate the natural beauty of Iceland, with its stunning landscapes, geothermal pools, and majestic waterfalls. They also enjoy the country's vibrant culture, with its unique music, art, and cuisine. Additionally, Iceland is known for its friendly people and safe environment, making it a great place to live. On the other hand, some expats and digital nomads may find the cost of living in Iceland to be quite high, as well as the weather, which can be quite cold and unpredictable," remarked one expat in Iceland.

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What type of social life can someone expect in Iceland?

When we asked expats and global nomads about their social experiences in Iceland, they replied:

"Expats, retirees and digital nomads living in Iceland typically have an active social life. They often join local clubs and organizations, attend cultural events, and explore the country's many outdoor activities. They also have the opportunity to meet other expats, retirees and digital nomads from around the world, creating a diverse and vibrant social circle. Additionally, Iceland's capital city, Reykjavik, is home to a thriving nightlife, with plenty of bars, clubs and restaurants to explore," explained one expat living in Iceland.

"The social scene in Iceland is vibrant and welcoming. There are plenty of opportunities to meet new people, whether it be through joining a club or attending a local event. Icelanders are known for their hospitality and are always willing to help out a newcomer. There are also plenty of bars, restaurants, and cafes to explore, as well as outdoor activities like hiking, skiing, and snowmobiling. Iceland is a great place to make friends and create lasting memories," said one expat in living in Iceland.

What are medical services in Iceland like?

When we asked expats and global nomads about the quality of medical care in Iceland, they replied:

"Iceland has a comprehensive healthcare system that provides high quality medical services to its citizens. The country has a universal healthcare system that is funded by taxes and provides free healthcare to all citizens. Medical services in Iceland are provided by both public and private hospitals and clinics, and the country has a well-developed network of primary care physicians. Iceland also has a number of specialized medical centers that provide specialized care for a variety of conditions. In addition, Iceland has a number of medical research centers that are dedicated to researching and developing new treatments and technologies," explained 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," remarked one expat in Iceland.

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Is the cost of living in Iceland high?

We asked people about the cost of living in Iceland, they wrote:

"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," explained one expat living 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," remarked one expat in Iceland.

Why do people move to Iceland?

When we asked people why foreigners move to Iceland, they responded:

"Iceland is an attractive destination for expats due to its stunning natural beauty, vibrant culture, and excellent quality of life. The country is known for its breathtaking landscapes, including glaciers, volcanoes, geysers, and hot springs. Iceland also offers a safe and secure environment, with a low crime rate and a high standard of living. Additionally, the country has a strong economy and a high level of economic freedom, making it an attractive place to live and work. Finally, Iceland is a great place to learn a new language, as English is widely spoken and the country has a rich cultural heritage," explained one expat living in Iceland.

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," said one person in Iceland.

What do I need to know before moving to Iceland?

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

"Iceland is a beautiful and unique country with a lot to offer, but there are a few things expats should be aware of before moving there. The weather in Iceland can be unpredictable, so it is important to be prepared for all kinds of weather conditions. Additionally, Iceland is an expensive country, so expats should be prepared to budget accordingly. It is also important to note that the language spoken in Iceland is Icelandic, so it is beneficial to learn some of the language before moving. Finally, Iceland is a very safe country, but it is still important to be aware of your surroundings and take necessary precautions," remarked one in Iceland.

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How do I find a place to live in Iceland?

We asked expats how they chose their neighborhood and found a place to live. They answered:

"One of the best ways to find a place to live in Iceland is to use online resources such as websites and social media. Websites such as Leigulistinn, Bylgjan, and Airbnb are great resources for finding apartments, houses, and other rental properties. Additionally, social media sites such as Facebook and Instagram can be used to search for rental properties and connect with potential landlords. Additionally, it is possible to find rental properties through local newspapers and real estate agents," explained one expat living in Iceland.

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What is a typical expat home or apartment like in Iceland?

"Expat homes and apartments in Iceland tend to be modern and comfortable, with plenty of natural light and often spectacular views of the surrounding landscape. Many expat homes and apartments come with amenities such as a fully-equipped kitchen, a washing machine, and a dryer. Expats can also expect to find a variety of modern furniture, as well as access to high-speed internet and cable television. Expat homes and apartments in Iceland are typically well-insulated and heated, making them comfortable and cozy even during the coldest winter months," explained one expat living in Iceland.

What is the average cost of housing in Iceland?

If you are thinking about moving to Iceland, cost of living in probably a key consideration. Expats commented about the cost of housing:

"The cost of housing in Iceland is generally quite high, with the average price of a one-bedroom apartment in Reykjavik being around €1,500 per month. Prices for larger apartments and houses can be significantly higher, depending on the location and size," replied an expat in Iceland.

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Click connect to have our partner contact you via e-mail and/or phone.

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SJB-Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model. Our clients benefit from their country’s most favorable tax environment by utilizing the efficient investment vehicles we offer. Our commitment to quality service is reflected in our stellar reviews, with over 300 testimonials boasting 95% five-star ratings.
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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 a person living in Iceland.

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What should I bring when moving to Iceland?

People living in Iceland were asked what three things they wish they had brought and three they wish they had left behind. They wrote:

"When moving to Iceland, it is important to pack warm and waterproof clothing, as the weather can be unpredictable. A good pair of walking boots is also essential, as Iceland is known for its rugged terrain. It is also a good idea to bring a good supply of sunscreen, as the sun is very strong in Iceland. Additionally, it is important to bring a good supply of medication, as some medications may not be available in Iceland. Finally, it is important to bring a good supply of cash, as some places may not accept credit cards," remarked one expat in Iceland.

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Where should I setup a bank account in Iceland?

We asked expats in Iceland what banks they use and there advice about banking. They advised:

"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," explained one expat.

Will I be able to find a job in Iceland?

When we asked people about industries and career opportunities in Iceland, they reponded:

"Foreigners often have jobs in Iceland in the hospitality industry, such as working in hotels, restaurants, and bars. They may also work in the fishing industry, as well as in construction, manufacturing, and other manual labor jobs. Additionally, many foreigners work in the tourism industry, providing services such as guiding tours, working in souvenir shops, and providing transportation services," remarked one expat in Iceland.

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," said one expat in Iceland.

What do expats in Iceland appreciate most about the local culture?

"Expats in Iceland appreciate the country's strong sense of community and the welcoming attitude of the locals. They also enjoy the stunning natural beauty of the country, with its majestic mountains, glaciers, and geothermal hot springs. Additionally, they appreciate the unique culture of Iceland, with its rich history, vibrant music and art scene, and delicious cuisine. Finally, expats in Iceland appreciate the country's commitment to sustainability and its efforts to protect the environment," said a person living in Iceland.

What do expats find most challenging?

"Expats in Iceland often find the language barrier to be one of the most challenging aspects of the local culture. Additionally, the cost of living in Iceland can be quite high, making it difficult for expats to adjust to the local economy. Furthermore, the weather in Iceland can be unpredictable and harsh, making it difficult for expats to adjust to the climate. Finally, the cultural norms in Iceland can be quite different from those of other countries, making it difficult for expats to adjust to the local customs," said a person living in Iceland.

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 in 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," replied an expat in Iceland.

What are the schools in Iceland like?

"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," said one parent with children at in .

"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," commented one expat when asked about International School of Iceland in Reykjavik.

"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," explained one expat in Garðabær, Iceland with kids at The International School of Iceland.

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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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