10 Tips for Visiting Iceland on a Budget: How to Save Money While Exploring the Land of Fire and Ice
Yes, Iceland is known as one of the most expensive countries in Europe. But fear not, there are numerous ways to experience the breathtaking beauty of this land without emptying your wallet. Explore these tips to visit Iceland on a budget, from enjoying free geothermal baths to smart grocery shopping and more.
Are you ready?
1. Take Advantage of Free Geothermal Baths
While Iceland boasts luxurious geothermal spas like the Blue Lagoon, there are also natural hot springs waiting to be explored—for free! One hidden gem is the Reykjadalur Hot Spring Thermal River. Embark on a scenic hike through Reykjadalur valley and unwind in the warm embrace of nature’s own hot tubs.
And the best part – it’s totally free. Maybe except for the parking area but definitely not in the price of the most popular paid geothermal spa – Blue Lagoon – where the cheapest tickets cost around USD 95 (as for mid 2024).
2. Use what Iceland gives you and Skip Buying Water
You can bring a reusable water bottle with you or buy one in the country – the point is, the water quality everywhere is excellent. You don’t have to worry about drinking it straight from the tap or a river. Some streams smell funny – there’s nothing wrong with them, it’s just that they have higher amount of sulphur. My advice is to skip this one and refill your stocks when you find a water source without the smell 😉
3. Shop Smart at Discount Supermarkets
You can buy groceries everywhere: the point is to know which shops to choose and which to avoid in order to save some money. The most expensive store in Iceland is 10-11. Comparing to cheap supermarkets, the prices there can be up to 50% higher!
So which shops to pick? The best ones are Bónus, Nettó and Krónan. Even if they might not be as common as 10-11, they’re located around the whole country – choose them and your wallet will definitely thank you!
Cheap supermarkets locations (links to Google map pins)
4. Say No to Overpriced Alcohol
Or to any alcohol. And if you really have to – buy it at a duty free. The tax Iceland put on alcoholic beverages is huge – it’s one of the most expensive things in the country. So if you want a chance to skip it, go to the duty free zone at the airport and buy drinks that are much cheaper than anywhere else in the country.
5. Consider Renting a Campervan
Usually seeing an entire country would require you to pay for renting a car AND for accommodation every single day. Renting a campervan gives you 2-in-1. This method of travelling is very common in Iceland (and is the way I decided to travel. Fully recommended!).
Watch a video with me talking about our campervan in Iceland
Take into consideration that wild camping is strictly forbidden in Iceland (there are a few exceptions like having a permission from the land’s owner but let’s be realistic, it’s not always – if ever – going to be possible) so you’ll have to pay for a camping ground. But the cost is minimal compared to a price you’d pay for a room in a hotel. In summer you can find some camping sites that are totally free too!
Some of the most popular campervan rental companies: Go Campers, KuKu Campers, Indie Campers, Happy Campers and Cozy Campers.
6. Beware of Misleading Discounts
There are special discount cards you can buy (!) to save some money. And they’re great but only if you hit certain conditions. One example, if you’re going camping (van or tent), you might want to buy a Camping Card. The catch here is it’s not valid for all the campsites around the country (although it covers the majority) + it’s only going to save you money if you’re travelling for around (or more than) 2 weeks. Moreover, although the card allows you to stay at select campsites around the country for free, you’ll still have to pay an overnight tax (USD 2,50 per person). Not a lot but worth calculating for your specific trip.
As the card is valid for 30 days, some people try to sell it to newcomers at the airport when they leave – I haven’t tried it so you’ll need to do some more research in this field! Visit the Camping Card’s official website here.
7. Prepare Your Own Meals
Iceland has some incredible original dishes – I honestly recommend you not to skip trying them. But if you’re willing to spare some money, don’t dine in a fancy restaurant every single day: rather buy groceries in one of the cheap supermarkets mentioned above and prepare your own meal!
If you went for a campervan option, your car will surely be equipped with a gas stove, pots and pans – everything you need to prepare something delicious on a budget.
If you want to taste local food out, try asking locals where they’d buy some authentic Icelandic cuisine. We did that in Reykjavik and skipped all the fancy, expensive restaurants in the city – instead we entered a small (and so crowded!) place that didn’t even have a menu – because everything in there was so fresh. In summary, you could literary go to a fridge and pick which fish that they caught on the day you’d want to eat and how. And top advice you’ll read here: try their lobster soup! It’s the most delicious thing I’ve eaten in my entire life and I keep having dreams about it!
If you want to enjoy cheap food and drinks, many people recommend visiting gas stations. And I confirm, especially N1 has incredible coffee with a lot of stuff you can add to it for free (not only milk and sugar but also numerous syrups like a chocolate one!). Some people decide to visit banks and other public places that often offer coffee and tea for free – if you’re ok with going there just to pick the freebies and leave, give it a go!
8. Claim Your Tax Refund
Before you fly home, there’s a booth inside Keflavik Airport where you can get a small tax refund. Of course, some conditions apply: you have to have purchased over 6,000 ISK of goods (~USD 45,50) and live outside of Iceland.
But going back to saving you some money: to get the refund, you need to show at the airport booth with the goods, the receipts (so keep them all!) and your passport.
9. Explore Shared Camping Areas
Camping sites and campervan offices often have “shared camping areas” full of other travelers’ leftover food and other supplies, like charcoal for BBQs, paper towels, or books. Spending 5 minutes digging through the shelves can help you save a bit of money at the supermarket. Things that you’ll usually find are rice, pasta, canned food, and useful things like oil, salt, and pepper that you wouldn’t really want to buy anyway. But be careful, some places don’t usually go through the shelves so you might find food which is far from good to eat… Once we saw one bowl we didn’t want to open not to disturb the new civilizations that emerged in there.
10. Utilize Petrol Discount Tags
There is a good chance that if you are renting a car or campervan, that your keys will come with a discount card or discount key fob. When you pick up the camper, attached to the key is a little N1 discount tag. When you fill up with petrol, all you need to do is swipe this tag first at the pump, and you’ll receive a small discount. It’s not much, but every little bit helps when you’re trying to save money in Iceland. The average cost of a full tank of petrol for the Go Smart Camper 2-pax is between 6000–7000 ISK. Petrol is one of the biggest expenses during a campervan trip through Iceland.
Bonus tip: Use Airalo for cheaper internet!
Airalo revolutionizes travel connectivity. If you can use eSIM card on smartphones, you’ll be able to activate a cheaper Internet data package and save lots of money. Bonus for the bonus tip: If you use my affiliate code, you’ll get $3 off on your first purchase! Just write KATARZ4115 in the app and enjoy!
Example: 1GB for 7 days in Airalo would cost you $4.5 ($1.5 if you use my code!)
If you want more apps that can help you save money, check out this post!
So… Can you visit Iceland on a budget?
With careful planning and savvy strategies, experiencing Iceland’s natural wonders doesn’t have to break the bank. From soaking in geothermal baths to savoring local cuisine, embrace these budget-friendly tips for an unforgettable Icelandic adventure without compromising on quality or comfort. Happy travels!
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