how much does it cost to move to iceland

Daniel Parker

3 min read

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19-01-2025

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Moving to a new country is a significant undertaking, and Iceland, with its stunning landscapes and unique culture, is a popular choice for many. However, the cost of relocating can vary greatly depending on your individual circumstances. This comprehensive guide breaks down the key expenses to expect when moving to Iceland.

Initial Costs: Getting Settled

1. Visa and Immigration:

• Application Fees: The cost of applying for an Icelandic visa depends on your nationality and the type of visa required. Research the specific fees for your situation on the Icelandic Directorate of Immigration website. Expect to pay several hundred USD or EUR, at minimum.
• Legal Fees (if applicable): If you need legal assistance with your visa application or immigration process, factor in additional costs, ranging from several hundred to thousands depending on the complexity.

2. Flights and Travel:

• Flights: The cost of your flights to Iceland will depend on your origin and the time of year. Book in advance for better deals, but expect to pay anywhere from a few hundred to over a thousand dollars per person, one-way.
• Transportation from Airport: Consider the cost of getting from Keflavík International Airport (KEF) to your accommodation in Reykjavik or elsewhere. This can range from a few tens of dollars for a Flybus transfer to hundreds for a private taxi.

3. Accommodation:

• Short-Term Rental: Secure short-term accommodation (e.g., Airbnb) for your initial weeks while you search for a permanent home. Expect to pay between $50-$200+ per night, depending on location and amenities.
• Security Deposit: When you find a long-term rental (apartment or house), you’ll need a security deposit, typically equivalent to one or two months’ rent.
• First Month's Rent: Rent in Iceland is relatively high. Expect to pay anywhere from $1,000 to $3,000+ per month for a modest apartment in Reykjavik, potentially less in smaller towns.

4. Setting Up Utilities:

• Electricity: Set up electricity service; expect an initial connection fee and then ongoing monthly bills. Costs vary.
• Water: Water is often included in rent, but confirm this with your landlord.
• Internet: High-speed internet is essential. Expect to pay around $30-$60 per month for a decent plan.

Ongoing Monthly Expenses: Living in Iceland

1. Rent/Mortgage: As mentioned above, housing costs are a significant expense in Iceland.

2. Food: Groceries are expensive in Iceland. Expect to spend at least $500-$1000+ per month on food, depending on your diet and eating habits. Shopping at discount stores can help manage costs.

3. Transportation:

• Public Transport: Reykjavik has a decent public transportation system. Consider a monthly pass for cost-effectiveness.
• Car Ownership: Owning a car is convenient but expensive, considering the cost of purchasing, insuring, and maintaining a vehicle, as well as high fuel prices.
• Driving License Exchange: If you need to exchange your driving license for an Icelandic one, factor in associated costs and time required.

4. Healthcare:

• Health Insurance: Iceland has a universal healthcare system, but you might want supplemental private health insurance for broader coverage. Costs depend on the policy.

5. Taxes: Income tax in Iceland is progressive and can be substantial.

6. Other expenses:

• Clothing: Be prepared for all types of weather; investing in warm clothing is essential.
• Entertainment and Leisure: Iceland offers many activities, but these can be costly. Budget accordingly.

How Much to Save Before Moving?

The total cost of moving to Iceland varies significantly. A realistic budget should include at least $10,000 - $20,000 per person for initial setup costs, including flights, short-term housing, and essential items. However, you'll need significantly more for ongoing living expenses, ideally 6-12 months' worth of living expenses saved before moving. This amount will depend on your lifestyle and choice of accommodation.

Tips for Reducing Costs:

• Travel during the off-season: Flights and accommodation are often cheaper outside of peak tourist season.
• Find roommates: Sharing an apartment can drastically reduce your housing costs.
• Shop smart: Take advantage of discount grocery stores and look for deals.
• Utilize public transport: Avoid the expense of owning a car, if possible.

Moving to Iceland is an exciting adventure, but thorough planning and a realistic budget are crucial for a smooth transition. This guide provides a starting point; research your specific circumstances and needs to create a personalized cost estimate. Remember to factor in unexpected expenses.