Money in Iceland
Iceland uses the Icelandic Króna (ISK). It's expensive, nearly cashless, and card payments are universally accepted. Here's everything you need to know.
🇮🇸 The Icelandic Króna (ISK)
Iceland uses the Icelandic Króna — no EUR, USD or other currencies are officially accepted, though some tourist businesses may take EUR as a convenience. Always pay in ISK to get the correct price and avoid unfavourable conversion rates.
Approximate Exchange Rates (April 2026)
| Currency | 1 Unit → ISK |
|---|---|
| 🇺🇸USD($) | ~145 ISK |
| 🇪🇺EUR(€) | ~160 ISK |
| 🇬🇧GBP(£) | ~183 ISK |
| 🇨🇦CAD(C$) | ~107 ISK |
| 🇩🇰DKK(kr) | ~21 ISK |
| 🇳🇴NOK(kr) | ~14 ISK |
| 🇸🇪SEK(kr) | ~13 ISK |
| 🇨🇭CHF(Fr) | ~169 ISK |
| 🇯🇵JPY(¥) | ~0.98 ISK |
| 🇨🇳CNY(¥) | ~20 ISK |
| 🇦🇺AUD(A$) | ~96 ISK |
🏧 ATMs — Where to Find Cash
While Iceland is nearly cashless, ATMs dispense ISK for the rare occasions you need it (some markets, very remote guesthouses).
Iceland's largest bank — ATMs at all branches and many convenience stores nationwide.
📍 Reykjavík (multiple), Akureyri, Selfoss, Keflavík Airport, Egilsstaðir
Often has ATMs inside and outside branches
landsbankinn.is →Good ATM coverage including Keflavík Airport arrivals hall.
📍 Reykjavík (multiple), Keflavík Airport, Akureyri, Selfoss, Ísafjörður
ATMs accept all Visa, Mastercard and Maestro cards
islandsbanki.is →Third major bank with ATMs at branches and shopping centres.
📍 Reykjavík (multiple), Kringlan mall, Akureyri, Selfoss, Höfn
Kringlan mall branch open during shopping centre hours
arionbanki.is →💰 Iceland Price Guide 2026
Iceland is consistently among the most expensive countries in Europe. Budget accordingly.
| Item | Price (ISK) |
|---|---|
| ☕ Coffee (café latte) | 700–900 ISK |
| 🍕 Meal — fast food/hot dog (N1) | 750–1,500 ISK |
| 🍽️ Meal — casual restaurant | 3,500–6,000 ISK |
| 🍽️ Meal — mid-range restaurant | 6,000–12,000 ISK |
| 🥂 Fine dining (per person) | 15,000–30,000 ISK |
| 🍺 Beer (pub pint, 500ml) | 1,500–2,200 ISK |
| 🏨 Hostel dorm bed | 4,500–7,500 ISK |
| 🏨 Guesthouse (double) | 18,000–30,000 ISK |
| 🏨 City hotel (double, 3-star) | 30,000–55,000 ISK |
| ⛽ Petrol (95-octane/litre) | 280–340 ISK |
| ♨️ Blue Lagoon entry | 11,990–19,990 ISK |
| 🏊 City swimming pool | 1,100–1,400 ISK |
| 🚌 City bus (single) | 560 ISK |
| 🚕 City taxi (central) | 2,000–4,000 ISK |
| 🛒 Groceries (weekly, 1 person) | 15,000–25,000 ISK |
🛒 Supermarket Guide — Save Money on Food
Bónus
Iceland's cheapest — yellow/pink pig logo. Limited stock but excellent value for basics.
bonus.is →Nettó
Mid-price with wide selection including international products.
Víðir / Hagkaup
Higher price but best selection — useful for specialty items.
🤝 Tipping in Iceland
Iceland has no tipping culture — service charge is included in all prices by law. Tips are never expected but are always appreciated at tourist-facing businesses.
Restaurants
0–10%Not traditionally expected in Iceland. Service charge is included in all prices by law. However, rounding up or leaving 5–10% at upscale restaurants is becoming more common and always appreciated.
Bars & Cafés
0–5%No obligation. If you've had excellent service, rounding up to the nearest 500 or 1,000 ISK is fine. Tip jars are common.
Taxi / Rideshare
Round upNot customary — rounding up is sufficient. Taxis are metered and fares include service.
Tour guides
OptionalOn glacier hikes, whale watching, and multi-day tours, tipping a guide who went above and beyond is appreciated but not required. 1,000–3,000 ISK per person is generous.
Hotels
Not expectedNo tipping tradition in Iceland hotels. Some boutique hotels may have a tip envelope system but it's not expected.
🧾 VAT Refund for Tourists
Who qualifies: Non-EU residents visiting Iceland
How to claim your refund:
- 1.Request a tax-free form at the point of sale
- 2.Ensure goods are unused and sealed
- 3.Get customs stamp at Keflavík Airport before check-in
- 4.Claim refund at the tax refund desk (Planet Payment / Global Blue) in departures
- 5.Refund can be cash (ISK/EUR) or back to card
💡 Smart Money Tips for Iceland
- 🃏 Iceland is effectively cashless — you can pay by card almost everywhere, including market stalls and coffee trucks.
- 💵 There is no need to bring foreign cash to exchange. Your card will get a better rate than airport exchange offices.
- 📱 Google Pay and Apple Pay work on Strætó buses and at most terminals — contactless up to 10,000 ISK without PIN.
- 🏧 ATMs dispense ISK only. Your bank will convert at interbank rate — usually better than bureau de change.
- 🔔 Notify your bank before travelling — some cards block Icelandic transactions as suspicious due to the remote/cold climate pattern.
- 💱 Avoid changing currency at Keflavík Airport exchange desks — poor rates. Use ATMs instead.
- 🐷 Shop at Bónus supermarkets to save significantly on food — eating in is far cheaper than dining out.
- ☕ Get your coffee to-go from petrol station N1 Verslun — cheaper than cafés and surprisingly good.
Related Travel Guides
🚐 Getting Around Iceland
Airport Transfers & Sightseeing Rides
Pre-book a private transfer from Keflavík Airport to Reykjavík, or explore Iceland by private sightseeing ride. Fixed prices, professional local drivers, instant confirmation.