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

By Joshua Wood, LPC

Last updated on Aug 09, 2024

Summary: Expats, digital nomads and retirees discuss what it is like to live in Keflavik, Iceland: Cost of living, Finding a home, Meeting People and more.

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What do I need to know before moving to Keflavik?

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

"Before moving to Keflavik, expats should know that the official language is Icelandic, but English is widely spoken and understood. The cost of living in Keflavik is relatively high, with groceries and dining out being particularly expensive. The climate in Keflavik is subarctic, meaning it has cool summers and cold winters, so appropriate clothing is necessary. Expats should be aware that the healthcare system in Iceland is of a high standard, but it is advisable to have comprehensive health insurance. The education system in Iceland is also of a high standard, with compulsory education from the ages of 6 to 16. Public transportation in Keflavik is reliable, but many residents prefer to own a car for convenience. Expats should also be aware that the crime rate in Keflavik, like the rest of Iceland, is very low, making it a safe place to live. Icelandic people are known for their friendliness and hospitality, but they also value their privacy and personal space. The culture in Keflavik is deeply rooted in Icelandic traditions, with a strong emphasis on family, nature, and sustainability. Expats should also know that the job market in Keflavik is competitive, so it may be beneficial to secure employment before moving. Lastly, it's important to note that the process of getting a residence permit in Iceland can be lengthy and requires various documents, so it's advisable to start this process well in advance of the planned move," remarked one expat who made the move to Keflavik.

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

"A typical expat home or apartment in Keflavik, is often modern and well-insulated to withstand the harsh Icelandic weather. These homes are usually equipped with central heating, often powered by the country's abundant geothermal energy. The interior design tends to be minimalist, reflecting the Icelandic love for simplicity and functionality. Living rooms are often spacious and bright, with large windows to let in as much natural light as possible during the short winter days. The kitchen is usually fully equipped with modern appliances, and open-plan layouts are common, allowing for easy interaction between the kitchen, dining, and living areas. Bedrooms in these homes are typically cozy, with ample storage space. Bathrooms are usually modern and functional, often featuring heated floors for extra comfort. Many apartments in Keflavik also come with a balcony or a small garden, providing a private outdoor space. Despite being in a city, it's not uncommon to have a view of the surrounding natural landscapes, such as the ocean or mountains. In terms of location, expat homes are often situated close to amenities like shops, restaurants, and schools. Despite this, the city maintains a peaceful and quiet atmosphere, allowing residents to enjoy a relaxed lifestyle. In general, homes and apartments in Keflavik are designed to be comfortable and efficient, providing a warm and welcoming living environment for expats," remarked one expat who made the move to Keflavik.

What is the average cost of housing in Keflavik?

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

"The average cost of housing in Keflavik can vary greatly depending on the size and location of the property. However, as of recent data, it is generally observed that the price for a single-family home in Keflavik can range from moderately expensive to very expensive. For apartments, the cost can be somewhat more affordable but still considered high compared to many other locations. It's important to note that these prices can fluctuate based on the real estate market conditions," wrote a member in Keflavik.

Where should I setup a bank account in Keflavik?

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

"Expats considering retirement in Keflavik should be aware of the high cost of living, which is one of the highest in the world. The weather in Iceland is very unpredictable and can change rapidly, so it's important to be prepared for all types of weather conditions. The official language is Icelandic, but English is widely spoken, especially by younger generations. Healthcare in Iceland is of a high standard, but it's important to have comprehensive health insurance as medical costs can be high. The crime rate in Iceland is very low, making it a safe place to live. Iceland has a unique culture and traditions that expats should respect and try to understand. The country is known for its stunning natural beauty, including geysers, waterfalls, and the Northern Lights, which can be a major draw for retirees. Public transportation in Keflavik is reliable, but many people choose to own a car for convenience. The food in Iceland is heavily based on fish and lamb, and dining out can be expensive. Icelanders are known for their love of outdoor activities, so there are plenty of opportunities for hiking, fishing, and exploring the natural landscape. Lastly, it's important to understand the tax implications of retiring in Iceland, as the country has a progressive income tax system," remarked one expat who made the move to Keflavik.

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

"Expats in Keflavik often appreciate the local culture for its strong sense of community and camaraderie. They admire the locals' resilience and adaptability in dealing with the harsh weather conditions. The Icelandic tradition of storytelling is also something that expats find fascinating, as it provides a deep insight into the country's history and folklore. Many expats also appreciate the locals' respect for nature and their efforts to preserve the environment. The local cuisine, particularly seafood, is another aspect of the culture that expats enjoy. Lastly, the local music scene, which is vibrant and diverse, is something that many expats in Keflavik find appealing," said one expat who made the move to Keflavik.

What do expats find most challenging?

"Expats in Keflavik often find the language barrier to be the most challenging aspect of the local culture. Icelandic is a complex language with unique phonetics and grammar, making it difficult for foreigners to learn and understand. Another challenge is the weather. The harsh and unpredictable climate, especially during the winter months, can be a significant adjustment for those not used to such conditions. The high cost of living in Iceland can also be a challenge for expats. Everything from groceries to housing tends to be more expensive compared to other countries. The cultural emphasis on independence and self-reliance can also be difficult for some expats. Icelanders value their personal space and privacy, which can sometimes come across as aloofness to newcomers. Lastly, the slower pace of life and the lack of hustle and bustle that one might be used to in larger cities can be a challenge for some expats. This, coupled with the long, dark winters, can sometimes lead to feelings of isolation and loneliness," wrote one member in Keflavik.

Is there a lot of crime in Keflavik?

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

"Keflavik, generally has a low crime rate, similar to the rest of the country. Violent crime is particularly rare, and petty crime such as theft is not common either. The town is considered safe for both residents and tourists. However, like any place, it is always advised to take basic precautions to ensure personal safety. The local police force is efficient and responsive, contributing to the overall sense of security in the community," explained one expat living in Keflavik, Iceland.

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.

SJB Global
SJB Global

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.
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SJB GlobalSJB Global

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.
Learn More

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