If you’ve listened to this podcast for a while or reading my posts, you’ve probably heard me mention that Iceland is one of the safest countries in the world—and that’s absolutely true in many ways. Violent crime is incredibly rare, and the sense of community and trust is deeply woven into Icelandic society.

But today, we need to talk about a growing concern—something that’s caught many tourists off guard: a rise in pickpocketing incidents, particularly in the south of Iceland, including well-traveled areas like Reykjavík, Þingvellir, Geysir, Gullfoss, and even inside churches like Hallgrímskirkja.

Let me be clear: Iceland remains a safe place to travel. But just like anywhere that attracts large numbers of tourists, it’s not immune to the realities of opportunistic crime. And recently, we’ve seen a sharp increase in reports of pickpocketing—specifically targeting visitors at popular natural landmarks.

Police in South Iceland have been investigating what appears to be a well-organised group—possibly ten individuals—who are blending into crowds at major tourist sites. These aren’t random thieves. According to local authorities and park rangers, they use a highly coordinated strategy, working in teams to distract and steal from unsuspecting tourists.

Let’s take the geyser Strokkur in the Haukadalur Valley. When it erupts, hundreds of people gather to witness the spectacle—it’s loud, dramatic, and absolutely worth seeing. But as your eyes are glued to the steam and water shooting into the sky, pickpockets might be watching you.

They blend into the crowd, posing as fellow tourists. Some act as lookouts, some distract by chatting or even offering to take photos, and others use the distraction to reach into backpacks, pockets, or crossbody bags.

Stolen items—mostly cash in euros, dollars, pounds, or krónur—are passed quickly to accomplices, making it hard to trace who took what.

And this isn’t just happening at Strokkur. Similar reports have come from Gullfoss, Þingvellir, and even Reykjavík’s iconic Hallgrímskirkja church. In fact, the church recently posted warning signs at its entrance after a string of thefts occurred inside during visiting hours.

So, what can you do to avoid being targeted?

Here are some practical, simple things you can do to stay safe:

And one more thing: if the worst does happen and you are robbed, call 112—Iceland’s emergency services number. Also, make sure you have digital copies of your documents in a secure, password-protected folder, ideally emailed to yourself or saved in cloud storage.

According to park rangers and local authorities, these organised pickpocket groups tend to appear in February, March, and July—timing their activities around peak tourism periods. They often arrive early in the morning, scout areas like Þingvellir’s Hakið viewpoint above the Almannagjá gorge, and move on from site to site in a very methodical way.

This isn’t just some random occurrence—it’s a planned effort by individuals who know exactly what they’re doing and how to blend in. However, when and where they can do it might change so it is best to protect your belongings at all times.

If you’re traveling with friends or family, look out for one another. And if you’re a tour guide or part of a travel group, report anything suspicious immediately to local police. The more reports that are filed, the better chance authorities have to stop these incidents before they escalate.

I’ll also include links in the show notes to recent news articles and official resources so you can stay informed and take proactive steps during your visit.

While this isn’t the most fun topic to cover, I believe it’s important to be honest and help you travel smart. Iceland is a stunning, unforgettable place—and I want you to enjoy every breathtaking waterfall, moss-covered lava field, and cultural experience without the stress of losing your wallet or passport.

Petty crime in Iceland has been around for a long time but it mostly involved locals being targeted. A good example is bike thefts that have happened over the years.

Vasaþjólfur – pickpocket

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.    

Summer in Iceland is just around the corner, so I’m diving into a topic that comes up a lot—how to dress and pack for summer in Iceland.

Whether you’re planning to explore glaciers, wander lava fields, hike to waterfalls, or just soak in the geothermal goodness, dressing right for Iceland’s unpredictable summer weather is key to staying warm, dry, and comfortable.

First things first, let’s talk about when summer happens in Iceland. While summer technically runs from June through August, things start to warm up by mid-May and stay fairly mild through early September.

But don’t let the word “summer” fool you. Unlike tropical destinations, Icelandic summer is more about long daylight hours than high temperatures.

On average, summer temperatures in Iceland range from 45°F to 60°F (that’s about 7°C to 15°C). On sunny days, it can feel warmer—especially if you’re hiking or layering correctly—but the wind and rain can sneak up on you. So, the key word here is layers!

If you’re not familiar with the concept of layering clothes, here’s a quick breakdown below with my recommendations:

Essentials and non-essentials to pack for your summer adventure. In addition are my favorite summer pieces from 66 North and a 10% to save on that brand & more.

This is your first layer, the one closest to your skin. It should be moisture-wicking, meaning it pulls sweat away from your body so you stay dry. Think lightweight wool or synthetic materials—not cotton. A good base layer helps regulate your body temperature, even when you’re active.

My recommendation for a Base Layer:

The mid layer provides insulation. It traps heat to keep you warm, and you can add or remove this layer depending on the temperature. Fleece, wool sweaters, or insulated vests work great here. Think of this as your “cozy” layer.

My recommendations for a Mid Layer:

This layer protects you from the elements—wind, rain, or even sleet (yes, even in summer). A high-quality shell jacket and weather-resistant pants will block wind and repel water, helping you stay dry no matter what Iceland throws your way.

My recommendations for an Outer Layer:

If you’d like to save 10% on 66°North clothing—including the items I just mentioned—use this link. To see my favorite summer pieces from 66 North sold via Aktiv Style, use this link.

What’s extra awesome is that the link takes you to Aktiv Style, a U.S.-based company in Denver. They’re the only U.S. retailer with exclusive rights to sell 66°North clothing. That means you can shop your favorite Icelandic outerwear and get faster shipping—no need to wait weeks for it to arrive from Iceland.

All of my summer faves and much more are in my free Ultimate Checklist for Summer in Iceland. It also includes the discount link, and a discount code to save 10% on 66 North and all other brands on Aktiv Style’s website.

There are so many wonderful hiking trails to explore during summer in Iceland. Having sturdy hiking boots with great ankle support and grip are a must.

My favorite hiking boots are from Aku and they have been incredible on glaciers, in the highlands, and on long distance trails. They have also lasted me for years.

I’ve created My Ultimate Summer Packing List for Iceland, which includes everything you need—from layers to accessories, plus my personal favorites from 66°North in the Aktiv Style store are linked. I’ll drop the link in the show notes so you can easily check it out.

When I first moved to Iceland in June of 2016, I was not accustomed to the cooler temperatures, especially coming from the higher temperatures in NYC. A high of 55 degrees was chilly to me.

While I was walking around with a sweater and jacket, Icelanders were wearing shorts and a t-shirt. I never thought I would get accustomed to this type of summer weather but after almost 9 years of living here, 55 degrees Fahrenheit feels warm to me.

Sumarföt – summer clothes

Packing for Iceland in summer doesn’t have to be stressful. Stick to smart layers, quality outerwear, and versatile accessories, and you’ll be ready for whatever this magical country throws your way.

Check out the Ultimate Packing Checklist for Summer in Iceland, and don’t forget to use my discount link to grab 10% off some of the best outerwear for Icelandic weather.

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

Whether you’re a fan of classical, experimental, indie rock, jazz, or even Cuban-inspired grooves, Iceland’s capital offers a surprising variety of venues catering to every musical taste. Today, I’m taking you on a virtual tour of some of the most beloved — and sometimes overlooked — places to catch a live performance in and around Reykjavík.

So, let’s crank up the volume and dive in!

Let’s start with the crown jewel of Reykjavík’s music venues: Harpa. This stunning glass building by the harbor is not just an architectural icon — it’s a world-class concert hall. Harpa is home to the Iceland Symphony Orchestra and Icelandic Opera, so it’s your go-to for classical music, opera, and large-scale productions.

But don’t be fooled — Harpa also hosts jazz nights, electronic music events, and international artists across genres. The acoustics here are unmatched, and the setting? Simply magical.

A short walk from Harpa is Gamla Bíó, or “The Old Cinema.” This historic venue has been transformed into a cozy concert hall with vintage charm. Expect indie rock, folk, pop, and the occasional orchestral ensemble. It’s an intimate setting with incredible sound, perfect for catching Icelandic artists and touring international acts in a space that feels like a hidden gem.

Now, let’s talk about one of my personal favorites: Hús Mál og Menningar, right on Laugavegur, Reykjavík’s main shopping street. This bookstore-slash-bar is a cultural hub, and the upstairs stage is often alive with acoustic sets, singer-songwriter sessions, jazz, and even spoken word. The vibe here is chill, creative, and unmistakably Icelandic — it’s where you can sip a drink, browse books, and hear something totally unexpected, all in one evening.

If you’re into avant-garde, experimental, or contemporary classical music, Mengi is the place. Located in a small venue on Óðinsgata, this artist-run space regularly features performances by composers, interdisciplinary artists, and improvisational musicians. It’s intimate, forward-thinking, and always pushing the boundaries of what live music can be.

And just a short ride outside Reykjavík in Kópavogur is Salurinn, a beautiful, acoustically rich concert hall often hosting classical, jazz, and world music.

And here’s something you won’t want to miss: On May 31st, Icelandic musician Halli Guðmunds will be performing live at Salurinn with a six-piece band. What makes this show special? The group will be playing Cuban-inspired music and original tunes, blending Latin rhythms with Icelandic flair.

It promises to be a night of danceable beats, sophisticated arrangements, and pure joy. If you’re anywhere near Reykjavík at the end of May — mark your calendar. You’ll be treated to a one-of-a-kind musical journey.

Click here for tickets for Club Cubano.

On the edgier side, we have Lemmy, Reykjavík’s go-to bar for rock, punk, and metal fans. The energy here is high-octane, the drinks are flowing, and the crowd is passionate. It’s the kind of place where you go to let loose and discover bands that might just blow your mind. Lemmy is carrying the torch for Reykjavík’s hard rock community — gritty, loud, and unapologetically fun.

Gaukurinn, one of Reykjavík’s key underground venues, is temporarily closed for renovations. When open, it’s a haven for alternative music, from hardcore and punk to drag shows and open mics. We’ll be watching closely for its return because this venue has long been a platform for some of the boldest, rawest talent in the country.

If you’re craving classic rock vibes with a cozy, old-school atmosphere, Dillon is the place. Nestled in a wooden house near Laugavegur, Dillon has a great whiskey selection, a rustic upstairs stage, and a lineup of bluesy rock, acoustic, and local acts. It’s the kind of venue where the walls feel like they’ve soaked up every riff and chorus played there. Expect unpretentious fun and some real gems in the lineup.

Now, 12 Tónar isn’t your typical music venue — it’s a legendary record store that doubles as a cultural space. Tucked away in a charming yellow house near the Reykjavík Art Museum, it regularly hosts free, intimate concerts by Icelandic musicians. It’s a cozy place where you can discover local talent, sip espresso, and flip through vinyl all at once. Music lovers, this is your sanctuary.

So whether you’re looking for a symphony under stunning architecture, an underground rock show, an intimate acoustic set in a bookstore, or Cuban rhythms in Kópavogur — Reykjavík’s live music scene has something for everyone.

As always, I’ll include links to each venue and the upcoming show at Salurinn in the show notes. Be sure to check them out and support these incredible artists and spaces keeping Iceland’s musical spirit alive and thriving.

The Guardian wrote an article last year titled “Torn down for hotel rooms: Iceland’s famous music venues swallowed by tourism”

Reykjavík’s once-thriving live music scene is under pressure as the city grapples with the effects of a booming tourism industry. With more visitors arriving each year, demand for hotels and short-term accommodations has surged. In response, several beloved music venues have been closed or repurposed to make way for new developments — including Kex Hostel, Sirkus, Nasa, and Faktory — spaces that once played a vital role in launching and supporting Icelandic music talent.

This shift has sparked concern among local musicians and cultural advocates who worry that the closure of small to mid-sized venues could damage the ecosystem that helps new artists grow. These smaller spaces have long served as stepping stones for creatives before they reach larger stages.

Recognizing the issue, Icelandic authorities are beginning to implement policies and provide funding to help preserve what’s left of the local music infrastructure. The hope is to find a balance between economic gains from tourism and protecting Reykjavík’s cultural identity, especially its globally admired music scene.

Tónlist – music

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

I’m taking you on a journey back in time to uncover the story behind how Iceland got its name. This tale involves three adventurous Norsemen who each left their mark on this rugged island, but only one name endured through history.

To hear the whole story about the first two Vikings that named this country, I have included that in The Savvy Traveler’s Guide to Iceland.

I created The Savvy Traveler’s Guide to Iceland, a comprehensive 8-module video guide that walks you through everything you need to know before visiting. I even have a whole module dedicated to Icelandic History in a Nutshell, where I talk about how Iceland was formed, settlement, the transition from paganism to Christianity, and tons more.

Not only that, but when you get the guide, you’ll have lifetime access, bonus itineraries to make planning easier, and access to my free and private Facebook group, where I share specially curated Iceland travel posts and do a live Q&A each month!

If you want to feel completely confident and stress-free about your trip, you can check out The Savvy Traveler’s Guide to Iceland

In 868 AD, a Viking named Flóki Vilgerðarson set sail from Norway with the full intention of settling in Iceland. He wasn’t just any Viking—he was known as Hrafna-Flóki or “Raven Flóki.” He got this nickname because he brought three ravens with him to help navigate the open seas.

Once he reached the Faroe Islands, Flóki released his ravens one by one. The first flew back toward the Faroes, the second circled and returned to the boat, and the third flew northwest and never came back. Flóki, believing this meant land was nearby, followed the third raven—and sure enough, he reached Iceland.

Flóki and his companions settled in Vatnsfjörður in the Westfjords. The summer was warm and full of fish, so they focused all their efforts on fishing instead of preparing for the harsh winter ahead. When the cold finally set in, disaster struck. Without enough hay, all their livestock perished. By spring, they had no choice but to leave.

Before departing, Flóki climbed a mountain and looked out over the fjords. He saw thick ice covering the waters and, in his frustration, named the land Ísland—Iceland. Unlike the previous names, this one stuck, and the island has been called Iceland ever since.

What’s fascinating is that when Flóki returned to Norway, he had nothing good to say about Iceland. He believed it was a harsh, uninhabitable land. However, one of his crew members, Thorólf, disagreed.

He spread rumors that Iceland was so abundant that butter dripped from every blade of grass! This contrasting view sparked curiosity, and soon, more settlers followed, leading to the beginning of permanent Norse settlement in Iceland.

Beyond the Viking Names: Ultima Thule & Nordic Identity Before Iceland had an official name, ancient Roman and Greek texts referred to mysterious lands in the far north as Ultima Thule, meaning “the farthest place beyond the known world.”

In the Middle Ages, some maps labeled Iceland as Thule and Greenland as Ultima Thule. Interestingly, by the 19th century, people started associating Thule with Norway instead.

While Iceland’s name may have been given by a frustrated Viking, the settlers who followed developed a strong sense of identity as Íslendingar—people of Iceland. Despite their ties to the greater Nordic world, they wanted to maintain their distinct culture, which still thrives today.

Áfram Ísland – Let’s go Iceland!

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

I’m diving into an important yet often overlooked aspect of driving in Iceland—the unique rules of two-lane roundabouts. Even if you are from Europe, there is a good chance that Iceland does two-lane roundabouts a little different than what you expect.

Before we get into that, I want to give a shout-out to our amazing sponsors, Go Car Rental Iceland and Go Campers. If you’re planning a trip and need a reliable rental car from a company with great customer service, use my code Iceland10 to save 10% with Go Car Rental Iceland.

And if you’re looking for the ultimate camper van experience, Go Campers has you covered! Use my code Iceland7 to save 7% and get two free duvets with your camper rental.

Roundabouts exist in many countries, but Iceland’s two-lane roundabouts come with specific rules that often catch foreign drivers off guard. If you’ve ever rented a car in Iceland or plan to, knowing these rules will save you a lot of confusion—and possibly a fender bender!

The key thing to know about Iceland’s two-lane roundabouts is that the inner lane (the one closest to the center) has the right of way. This is different from many other countries where the outer lane might have priority. Here’s how it works:

The first image shows two cars entering a two-lane roundabout in Iceland. The orange car is in the inside lane (left) and the pink car is in the outer land (right).

Below shows the the exits that the pink car (outer lane) can take.

And here are the exits that the orange car (inner lane) can take.

This example is showing if the orange car is entering the two-lane roundabout in the inner lane on the bottom and the pink car is coming from the right in t he outerlane.

As a reminder, the pink car can either go to the first or second exit. In this example, it will be going to the second exit.

Since the pink car and the orange car are in close proximity to each other, the pink car is the one that gives the right of way, since the orange car is in the inner lane.

The pink car (outer lane) must stop and let the orange car (inner lane) exit before continuing on to its second exit.

Iceland’s road system is designed to keep traffic flowing smoothly, and roundabouts play a big role in that. However, every year, rental car companies report minor accidents in roundabouts because of misunderstandings about these rules. The last thing you want is to start your Iceland adventure with an accident or a costly insurance claim!

Whether it’s your first time visiting Iceland or you have been several times before, this guide will help you explore Iceland like a local.

The Savvy Traveler’s Guide to Iceland I created The Savvy Traveler’s Guide to Iceland, a comprehensive 8-module video guide that walks you through everything you need to know before visiting. I even have a whole module dedicated to getting around Iceland, covering types of transportation, car rentals, road rules, and so much more.

Not only that, but when you get the guide, you’ll have lifetime access, bonus itineraries to make planning easier, and access to my free and private Facebook group, where I share specially curated Iceland travel posts and do a live Q&A each month!

You might notice that as you venture outside of the downtown Reykjavík area, that you will see less traffic lights, occasionally roundabouts, and long stretches of road. One of the many things I enjoy about the Icelandic countryside is that traffic lights are not necessary.

Roundabouts are used, when necessary, at intersections to slow vehicles down and allow for cars to head in different directions.

Hringtorg – roundabout

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

If you’ve ever dreamed of exploring Iceland but felt overwhelmed with all the planning, or you’re just not sure how to make the most of your time here, then you’re in luck because I have the perfect solution.

The Savvy Traveler’s Guide to Iceland is officially live! And in today’s episode, I’m going to break down exactly how this brand-new video guide can help you experience Iceland like a local, save time and money, and remove the guesswork from your trip.

Plus, if you act fast, there are exclusive bonuses available until March 1st—One of those bonuses in particular can potentially save you hundreds of dollars. So let’s get into it!”

I often hear from my followers on social media and from the hundreds of people that I have personally helped plan a trip to Iceland via my private consultations, that  planning a trip to Iceland can be overwhelming.

There’s so much information out there, and it’s hard to know what’s actually useful. Should you rent a car or book tours? What’s the best time to visit? How do you budget for food, fuel, and attractions? And then there’s the weather—unpredictable, wild, and capable of changing in an instant.

I created The Savvy Traveler’s Guide to Iceland because I’ve seen firsthand how travelers struggle with these exact questions. I have been living in and traveling around Iceland for 8.5 years, and I’ve taken my experience and knowledge and distilled it into this guide so  you can skip the overwhelm and enjoy creating a trip of a lifetime.

Over the years, I’ve shared tons of tips on this podcast, on my website, and through my social media, but there is still so much that I haven’t shared. Plus, I wanted to take my ability to help travelers to the next level and create a single, comprehensive resource that answers all these questions—and more.”

It’s an easy-to-follow, self-paced video course broken down into eight in-depth modules that cover everything you need to know to plan your Iceland adventure. Let me walk you through them:

Each module is packed with practical tips, real-world insights, and things I’ve learned from living in Iceland and interacting with thousands of travelers over the years.

Included with those 8 modules is a private Facebook Group with likeminded travelers where I will post curated content and doing monthly group Q&A’s. There are also very detailed sample itineraries for 5-days, 7-days and 10-days, so you don’t have to start from scratch when it comes to making a travel plan. You can add or subtract from these itineraries in any way that suits you.

“Now, here’s the part you don’t want to miss. Because The Savvy Traveler’s Guide to Iceland has just launched, I’m offering some amazing bonuses for those who sign up before March 1st! These bonuses include:

These bonuses will disappear after March 1st, so if you’re planning a trip in 2024 or beyond, now is the perfect time to grab the guide!”

You might be wondering—why should you choose The Savvy Traveler’s Guide to Iceland over just Googling information?

Here’s the thing: Iceland is a unique destination, and standard travel advice doesn’t always apply here. This guide isn’t just generic information—it’s real, actionable advice from someone who has helped countless travelers navigate Iceland with confidence. No more wasting hours piecing together conflicting advice from blogs and YouTube videos. Everything you need is in one place!

Alright, so how do you get access? It’s super easy. Just go to The Savvy Traveler’s Guide (link in the description and in the Trip Planning help tab sin the main navigation to sign up. Once you sign up, you’ll get instant access to all the modules and bonuses.

And remember—if you sign up before March 1st, you’ll also get access to those exclusive launch bonuses.

I want you to feel excited about your trip to Iceland, not stressed out by all the logistics. This guide is your key to experiencing Iceland like a local, making the most of your time, and avoiding the common mistakes that so many travelers make.

There are over 50 videos and more than 12 hours of content spread across the 8 in-depth modules of the Savvy Travelers Guide to Iceland. You will see me onscreen in the videos and using visuals to showcase stunning places around the country, what to pack, types of accommodations and so much more.

leiðarvísir – guide

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

Whether you’ve visited Iceland before or you’re planning your dream trip, you’ve likely noticed that prices here are higher when compared to many other countries. From groceries and restaurants to accommodations and activities, Iceland’s cost of living and travel expenses can be a shock to the wallet. But why is that the case?

I’ll break down the key reasons behind Iceland’s high prices, including geographic isolation, the dominance of a few large companies, high taxes and import duties, a small population, and the impact of tourism.

Plus, I’ll be sharing details on my upcoming live webinar, “Iceland on a Budget: 30 Ways to Spend Less and Travel Smart,” where I’ll give you actionable tips to help you maximize your experience in Iceland without breaking the bank. Let’s get into it!

Iceland’s remote location in the North Atlantic significantly impacts its economy. With no land connections to other countries, all goods must be transported by air or sea. This means higher shipping costs, which are passed on to consumers. Everyday essentials like food, clothing, and electronics come at a premium because of the logistics involved in getting them to the island.

For example, grocery stores like Bónus and Krónan import a large percentage of their products, leading to higher-than-average food prices compared to mainland Europe or the U.S. A simple item like a gallon of milk can cost around 900 ISK ($6.99 USD).

The cost of fuel is also steep and can be as high as 330 ISK ($2.33 USD) per liter or about $8.85 a gallon, partly due to import costs and high taxes. This geographic isolation extends to supply chains for restaurants and retail, where prices reflect these transportation challenges.

Iceland has some of the highest taxes in the world, and these contribute significantly to the high cost of goods and services. The standard Value Added Tax (VAT) rate is 24%, with a reduced rate of 11% on certain goods like food and books.

However, even with the reduced VAT, prices remain high. Import duties on certain items, such as clothing and electronics, add even more costs. For example, a pair of Levi’s jeans that might cost $60 in the U.S. can easily be $120 in Iceland due to taxes and import fees.

Cars are also heavily taxed, with import duties, VAT, and registration fees sometimes doubling the cost compared to other countries. This means that even everyday expenses like transportation, dining out, and shopping feel significantly more expensive.

Iceland’s small economy means that a handful of companies dominate key industries, limiting competition and keeping prices high. The food retail sector, for instance, is primarily controlled by Hagar, which owns Bónus, Hagkaup, and other supermarkets.

This lack of competition can result in inflated grocery prices. Similarly, the telecommunications industry is led by Síminn, Nova, and Vodafone, all of which maintain relatively high service costs. The same goes for banking—Arion Bank, Íslandsbanki, and Landsbankinn dominate the financial sector, and their fees for everyday banking services can be steep compared to other countries.

The lack of competition in these critical industries means that consumers have limited options, and businesses have little incentive to lower prices. Even in tourism, major players like Icelandair control air travel, which can keep flight prices elevated, especially during peak seasons.

If you are not sure how to get the most bang for your buck in Iceland, I have something that will help you out. I’m hosting a free live webinar and you won’t want to miss it! This webinar is packed with practical, money-saving strategies to help you explore Iceland without spending a fortune.

With a population of about 370,000 people, Iceland has a tiny consumer base. This makes it difficult for businesses to achieve economies of scale, which would normally help lower prices. In many industries, goods are produced or imported in small quantities, leading to higher per-unit costs.

This issue affects everything from groceries to household goods. Additionally, because the market is small, international companies may find it unprofitable to operate here, further limiting competition. For example, while fast food chains like McDonald’s thrive in most countries, the franchise left Iceland in 2009 due to the high costs of operation after the economic crash in 2008. Many products that are considered everyday essentials in larger countries are treated as premium items in Iceland due to the cost of importing and distributing them.

Iceland has some of the highest wages in Europe, with average salaries well above those in many neighboring countries. While this supports a high standard of living, it also drives up labor costs for businesses.

Higher wages mean that everything from restaurant meals to hotel stays comes with a premium price tag. In addition, inflation has been a persistent issue, causing prices to rise even further.

Iceland’s labor market is also influenced by strong unions, which negotiate higher wages and benefits, further contributing to increased costs for goods and services. Over time, these factors compound to make Iceland an expensive place to live and visit.

The boom in Icelandic tourism over the past decade has led to an increase in prices for housing, accommodations, and services. The rise of Airbnb rentals has had a significant impact, as many property owners choose to rent to tourists rather than long-term tenants.

This has driven up housing prices and made it difficult for locals to find affordable accommodations. For example, the average rent for a one-bedroom apartment in downtown Reykjavik can be upwards of 250,000 ISK ($1,750 USD) per month.

Beyond housing, the demand from tourists has also pushed up prices for restaurants, excursions, and even groceries, as businesses cater more to visitors than to locals. The cost of a simple meal at a casual restaurant can easily exceed 3,500 ISK ($25 USD), and a cup of coffee might be 800 ISK ($6 USD).

While tourism has been a major economic driver, it has also contributed to inflation and the rising cost of living in Iceland.

Iceland’s harsh climate and small land area limit agricultural and industrial production. As a result, the country relies heavily on imports for food and essential goods. This reliance increases costs, especially when global supply chain disruptions occur.

Locally produced food, such as dairy and lamb, can be costly due to the high costs of farming in Iceland’s challenging environment. The need for imports means Icelandic consumers pay premium prices for even basic necessities.

Iceland is undoubtedly an expensive place to live and visit, but understanding the reasons behind these high costs can help you plan better and make more informed decisions.

If you want to learn how to experience Iceland without breaking the bank, don’t forget to sign up for my live webinar, Iceland on a Budget: 30 Ways to Spend Less and Travel Smart.

For some good news, Iceland’s Central Bank lowered its key interest rate by 50 basis points to 8.0%, in line with market expectations, following a drop in inflation to 4.6% in January.

Underlying inflation reached its lowest level in three years, and policymakers indicated that further disinflation is expected in the coming months. Fingers crossed that decreases continue to happen.

Dýr – expensive

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.

Whether you’re planning your first trip to Iceland or you’ve visited before, knowing the do’s and don’ts can make your experience smoother and more enjoyable. Iceland is a breathtaking country with unique cultural norms, unpredictable weather, and natural wonders that demand respect and preparation.

I’ll walk you through essential travel tips—things you should absolutely do to get the most out of your visit, as well as common mistakes to avoid. From driving safely on Iceland’s rugged roads to experiencing the hot springs like a local, these insights will help you navigate your adventure like a pro. Let’s dive into the essential do’s and don’ts for traveling in Iceland!

Iceland’s bathing culture is such a big part of life here and it’s lovely to relax in a geothermally warmed hot tub. Most people think that when I say local pool that I mean some run of the mill uninteresting place but in Iceland, the local pools are lovely and budget friendly.

One of the most important etiquette rules in Iceland is showering thoroughly, without a swimsuit, before entering a pool, lagoon, or hot tub. Iceland’s geothermal pools and hot springs are an essential part of the culture, and maintaining their cleanliness is taken very seriously.

Due to the country’s limited use of chlorine in pools, washing with soap beforehand helps keep the water hygienic for everyone. Most public swimming areas have strict signage explaining the showering protocol, and some even have attendants ensuring compliance.

Skipping this step is considered disrespectful to locals, and you might be asked to leave. Icelanders grow up with this rule, so while it might feel unfamiliar to visitors, it is essential for keeping the pools enjoyable for all.

Iceland is much more than Reykjavik and the Golden Circle. While the capital offers vibrant culture, history, and nightlife, venturing beyond reveals breathtaking landscapes, unique geological formations, and local experiences that make a trip unforgettable.

The South Coast is home to stunning waterfalls like Seljalandsfoss and Skógafoss, black sand beaches, and the Jokulsarlon Glacier Lagoon. The Westfjords, a lesser-visited gem, offers dramatic fjords, bird cliffs, and remote hot springs. The North, particularly Akureyri and Mývatn, provides volcanic landscapes, geothermal baths, and excellent whale watching.

The Eastfjords offer charming fishing villages and rugged mountains, while the Snæfellsnes Peninsula is often called “Iceland in Miniature” due to its diverse natural beauty. Expanding your itinerary ensures you experience the true essence of Iceland.

While Reykjavik is a fantastic city with a lively atmosphere, it should not be the sole focus of your trip, especially if you’re staying for more than three days. Iceland’s main allure is its untouched nature, and the best way to experience it is by exploring different regions.

Spending all your time in the capital means missing out on towering waterfalls, lava fields, glaciers, geothermal hot springs, and the charming coastal villages that define the Icelandic experience. Even a short trip outside the city, such as the Golden Circle or South Coast, will showcase Iceland’s dramatic landscapes.

If you have a week or more, consider driving the Ring Road or visiting the Westfjords for an off-the-beaten-path adventure. Diversifying your trip will leave you with richer memories and a deeper appreciation for Iceland’s raw beauty.

Iceland is a haven for nature lovers, with vast landscapes that are free to explore. You can hike to breathtaking waterfalls, walk along black sand beaches, or marvel at volcanic craters without spending a dime.

However, some activities require professional guidance for safety and conservation reasons. Glacier hiking, ice cave tours, and highland trekking should always be done with an experienced guide. These adventures take you deep into Iceland’s rugged wilderness and offer insights into its unique geology and history.

Horseback riding on Icelandic horses is another must-do experience, offering a connection to the country’s Viking heritage. Whether you’re on a budget or seeking an adrenaline-filled excursion, Iceland provides an incredible mix of free and guided experiences that make your visit truly special.

Iceland is known for being an expensive destination, so proper budgeting is essential to avoid financial surprises. Accommodation costs range from budget-friendly hostels and guesthouses to luxury hotels. Car rentals, while often necessary for exploring, can be pricey, especially with insurance and fuel costs. Dining out is also expensive, with even casual meals adding up.

To save money, consider grocery shopping and cooking some meals, opting for budget accommodations, and prioritizing free outdoor activities. Guided tours and adventure excursions can be costly, so research and book in advance to find the best deals. Setting a realistic budget ensures you can enjoy Iceland’s beauty without unnecessary stress.

If you are not sure how to get the most bang for your buck in Iceland, I have something that will help you out. I’m hosting a free live webinar and you won’t want to miss it! This webinar is packed with practical, money-saving strategies to help you explore Iceland without spending a fortune.

Driving in Iceland offers an unparalleled sense of freedom and adventure. With well-maintained roads, stunning scenery, and minimal traffic outside major tourist spots, self-driving is an excellent way to explore the country at your own pace.

Renting a car allows flexibility to stop at hidden gems and take detours when something catches your eye. However, driving in Iceland requires preparation. Winter driving can be challenging, especially from mid-December to early March, when roads can be icy, and storms are common.

If traveling in winter, stick to the South Coast, West Iceland, and Reykjavik, where roads are more frequently maintained. During other seasons, the Ring Road and more remote areas become accessible, providing breathtaking landscapes that make the journey as rewarding as the destination.

Speeding in Iceland is not only dangerous but also strictly enforced with frequent speed cameras and hefty fines. Many roads are narrow, winding, and often covered in loose gravel, making high speeds risky. Wildlife, such as sheep, frequently wander onto roads, adding another hazard.

Driving conditions can change rapidly due to sudden weather shifts, so sticking to speed limits ensures safety for yourself and others. Additionally, respecting speed limits helps preserve Iceland’s delicate environment. Take your time, enjoy the stunning views, and drive responsibly to make the most of your Icelandic road trip.

Iceland’s weather is famously unpredictable, and conditions can shift rapidly, especially in winter. Before setting out, always check the Icelandic Meteorological Office (vedur.is) for weather updates and road.is for road conditions. High winds, snowstorms, and heavy rain can create hazardous driving conditions, particularly in the highlands and remote areas.

Even in summer, fog and sudden rain can impact visibility. Planning ahead and being aware of conditions ensures a safer and more enjoyable trip. Packing appropriate clothing and gear based on the forecast is equally important, as temperatures can vary significantly throughout the day.

Ignoring weather warnings and road closures can be extremely dangerous in Iceland. The country experiences powerful storms, sudden snowfalls, and high winds that can make driving treacherous or even impossible. Road closures are put in place for safety, and attempting to bypass them can result in getting stuck or even requiring costly rescue operations.

Many travelers underestimate Iceland’s extreme weather, but locals take it seriously for a reason. If a storm warning is issued, adjust your plans accordingly and wait until conditions improve. Safety should always come first when exploring Iceland’s wild landscapes.

My free live webinar is packed with practical, money-saving strategies to help you explore Iceland without spending a fortune. If you can’t make it live, don’t worry—you’ll still get access to the recording. But for those who do attend live, I have a very special bonus that will definitely come in handy for getting the most bang for your buck in Iceland. Don’t miss out!

Speaking of weather warnings. It’s only the beginning of February and we have already had two major storms. The last one earlier this week was a red warning for most of the country. There were wind gusts expected at up to 70 miles per hour.

Authorities advised against people even traveling to work in the city, so you know that travel in the countryside was absolutely not happening. There is widespread damage to some homes and building  because of the storm. There were also some power outages in remote areas. Thankfully, no one was seriously injured because people heeded the warning and stayed in their homes.

Ekki – don’t

Ekki gera það – don´t do that

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In this captivating episode, I sat down with Christian Legère, the visionary behind Emerald Skies of Iceland, to delve into the mesmerizing world of the Northern Lights. As a seasoned expert, Christian has dedicated his career to guiding enthusiasts and travelers through the ethereal dance of the aurora borealis across Iceland’s night skies.

Christian’s journey began with a profound fascination for the natural wonders of the Arctic. This passion led him to establish Emerald Skies, a platform that offers real-time Northern Lights forecasts, comprehensive aurora activity information, and invaluable insights for both novice observers and seasoned chasers. His commitment is to demystify the aurora borealis, making it accessible to all who venture to witness its beauty.

Throughout our discussion, Christian shares his extensive knowledge on the optimal times and locations to experience the Northern Lights in Iceland. He emphasizes the importance of understanding solar activity, weather patterns, and the significance of minimal light pollution. Listeners will gain practical tips on how to enhance their aurora viewing experience, whether embarking on a guided tour or setting out independently.

A highlight of the conversation is Christian’s explanation of the tools and resources available on the Emerald Skies website. From detailed solar wind data to magnetometer readings, he illustrates how these instruments can predict aurora activity, ensuring that observers are well-prepared to catch a glimpse of this celestial phenomenon.

Moreover, Christian addresses common misconceptions about the Northern Lights and provides guidance on capturing the perfect aurora photograph. His insights are not only informative but also inspire a deeper appreciation for the natural wonders that Iceland offers.

The best way to contact Christian about the northern lights is via his website Emerald Skies of Iceland.

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Reykjavík has a reputation for being an expensive city. Whether you’re planning your first trip to Iceland or you’re a return visitor, this episode will highlight 15 fantastic activities you can enjoy at no cost while soaking up the unique atmosphere of the city.

I’ve crafted this list with both locals and travelers in mind, ensuring you get a taste of Reykjavík’s history, culture, and natural beauty without spending a single krona. If you’re someone who loves walking, taking photos, or simply enjoying the simple pleasures of travel, this episode is perfect for you.

Reykjavík’s streets are alive with color and creativity, thanks to the city’s vibrant street art scene. Murals, graffiti, and sculptures can be found on walls, buildings, and even sidewalks throughout the city. Many works are commissioned by local businesses or created during festivals like the Reykjavík Art Festival, showcasing the talents of both Icelandic and international artists.

These artworks often tell stories about Icelandic culture, folklore, or social issues, adding a layer of depth to your exploration. Walking through areas like Laugavegur, Hlemmur, and Grandi, you’ll discover a mix of playful, thought-provoking, and visually stunning pieces.

The ever-changing nature of street art ensures that no two visits to Reykjavík will be the same. Whether you’re a fan of contemporary art or simply enjoy stumbling upon surprises, the city’s street art is sure to leave an impression.

Hallgrímskirkja is one of Reykjavík’s most recognizable landmarks, drawing visitors from all over the world. This towering church, named after the Icelandic poet and clergyman Hallgrímur Pétursson, is an architectural marvel designed to resemble Iceland’s basalt lava flows. The striking exterior is a tribute to the country’s unique natural landscapes, and it stands as a symbol of Reykjavík’s skyline.

While the tower requires a fee to access its panoramic views, entering the main hall is free of charge. Inside, the church’s simplicity and minimalist design create a serene and spiritual atmosphere. The massive pipe organ, built by Johannes Klais of Bonn, is a highlight of the interior.

Visitors are often treated to organ recitals that fill the space with mesmerizing sounds. Outside the church, don’t miss the statue of Leif Erikson, a gift from the United States commemorating the Norse explorer’s discovery of North America. Whether you’re a history buff, an architecture enthusiast, or just looking for a peaceful spot, Hallgrímskirkja is a must-visit destination.

The Einar Jónsson Sculpture Garden, located near Hallgrímskirkja, is a hidden gem that art lovers won’t want to miss. This open-air garden features a collection of works by Einar Jónsson, Iceland’s first sculptor, whose art is deeply influenced by Icelandic folklore, mythology, and spirituality.

The sculptures, crafted in bronze and stone, range from dramatic and thought-provoking to serene and whimsical. As you wander through the garden, you’ll gain insight into Iceland’s cultural heritage and the artist’s unique perspective. The peaceful setting, combined with the stunning views of the city, makes this garden a perfect spot for reflection and inspiration.

Best of all, access to the garden is completely free, allowing visitors to enjoy world-class art without spending a penny. The Einar Jónsson Sculpture Garden is a testament to Reykjavík’s vibrant art scene and its commitment to making culture accessible to all.

The Sun Voyager, or Sólfarið, is a striking steel sculpture located along Reykjavík’s scenic waterfront. Designed by artist Jón Gunnar Árnason, it symbolizes exploration, progress, and the eternal hope of discovering new horizons.

The sculpture, resembling a Viking ship, is often mistakenly thought to be a historical representation, but it is actually a modern work of art. Its sleek design contrasts beautifully with the backdrop of Mount Esja and Faxaflói Bay. Visiting the Sun Voyager is not only an opportunity to take stunning photos but also a chance to reflect on Iceland’s seafaring heritage and its deep connection to nature.

Sunset and sunrise are particularly magical times to visit, as the soft light enhances the sculpture’s contours and creates a dreamlike ambiance. A visit here is a moment of serenity amid the city’s bustling pace.

Grab my early bird offer and save big on this comprehensive video guide that helps you explore Iceland like a local.

Reykjavík’s main shopping street, Laugavegur, is a vibrant hub of activity and culture. This historic street has evolved over the years from being a practical path for travelers to one of the city’s most iconic and colorful areas. Laugavegur is lined with charming boutiques, cozy cafes, and eye-catching street art that reflects the city’s creative spirit.

Walking along the street is like exploring a gallery under the open sky, where murals and graffiti tell stories of Icelandic culture, history, and contemporary life. Visitors can also enjoy window shopping or stepping into quirky stores that sell everything from handmade Icelandic wool sweaters to unique souvenirs.

The lively atmosphere, combined with the picturesque backdrop of colorful houses, makes it an ideal spot for leisurely strolling, people-watching, and photography. In summer, the street often comes alive with outdoor music performances, while in winter, festive lights add a magical touch. Even without spending a penny, Laugavegur offers an enriching experience that captures the essence of Reykjavík.

Harpa Concert Hall, situated by Reykjavík’s old harbor, is a stunning example of modern Icelandic architecture. Its glass facade, designed by Danish-Icelandic artist Ólafur Elíasson, is inspired by basalt columns and reflects the dynamic interplay of light and color.

The building’s exterior is as captivating during the day as it is at night, when the glass panels light up in a mesmerizing display. Inside, Harpa offers a spacious and welcoming environment, with areas open to the public for free exploration. You can marvel at the intricate design details, take in the harbor views through the expansive windows, or simply relax in its tranquil atmosphere.

Occasionally, free events such as art exhibits, film screenings, or live music performances are hosted in the open areas. Even without attending a concert, Harpa provides a unique opportunity to experience Iceland’s thriving cultural scene and appreciate its innovative approach to architecture.

Tjörnin, often referred to as “The Pond,” is a tranquil oasis in the heart of Reykjavík. Surrounded by colorful houses and lush greenery, this serene spot is perfect for a leisurely stroll or a quiet moment of reflection.

The pond is home to an array of bird species, including ducks, swans, and geese, making it a favorite destination for birdwatchers and families. In winter, the pond often freezes over, transforming into an ice-skating rink for locals and visitors alike.

During warmer months, it becomes a vibrant gathering place, with people enjoying picnics, yoga, or simply soaking up the sun. Nearby, you’ll find Hljómskálagarður Park and Reykjavík City Hall, both worth exploring. Tjörnin is more than just a body of water—it’s a beloved part of Reykjavík’s community and a picturesque spot to unwind.

Located on the edge of Tjörnin Pond, Reykjavík City Hall is an architectural gem that combines functionality with beauty. The building’s modern design seamlessly integrates with its natural surroundings, featuring large windows that offer stunning views of the pond.

Inside, you’ll find a variety of exhibits and displays that provide insight into Iceland’s culture and history. One of the main attractions is the 3D map of Iceland, a detailed and interactive representation of the country’s diverse landscapes. The building also hosts art installations, photography exhibits, and public events, many of which are free to attend.

Beyond its cultural offerings, City Hall is a great place to relax and enjoy a cup of coffee while taking in the views. It’s a peaceful retreat that combines learning with leisure, making it a worthwhile stop on your Reykjavík itinerary.

Hljómskálagarður Park is a tranquil green space situated near Tjörnin Pond, making it an ideal spot to unwind and enjoy Reykjavík’s natural beauty. This park is perfect for picnics, leisurely walks, or simply lying on the grass and soaking in the serene surroundings.

The park is home to several sculptures, including the statue of Iceland’s famous poet Tómas Guðmundsson, which adds a cultural touch to your visit. During summer, the park becomes a lively hub for locals and tourists alike, hosting events, outdoor yoga sessions, and music performances.

In autumn, the trees display vibrant hues, creating a picturesque setting for a relaxing afternoon. The park’s proximity to the city center makes it a convenient escape from the urban bustle. Whether you’re looking to enjoy a quiet moment in nature or explore its artistic elements, Hljómskálagarður Park offers a peaceful retreat in the heart of Reykjavík.

Austurvöllur Square is a vibrant public space located in the heart of Reykjavík, surrounded by historic buildings, cafes, and restaurants. This square is a favorite gathering spot for locals, especially during sunny days when the grass is filled with people relaxing, picnicking, or catching up with friends.

At the center of the square stands a statue of Jón Sigurðsson, a prominent figure in Iceland’s struggle for independence. The square’s historical significance and lively atmosphere make it an essential stop for visitors. In summer, the square often hosts cultural events, markets, and live music performances, adding to its charm.

During winter, festive lights and decorations transform it into a cozy and inviting space. Whether you’re looking to people-watch, enjoy a coffee from a nearby cafe, or simply take in the surroundings, Austurvöllur Square is a delightful spot to experience Reykjavík’s community spirit.

Reykjavík’s old harbor is a charming and picturesque area that offers a glimpse into the city’s maritime heritage. The harbor is lined with colorful buildings, fishing boats, and modern vessels, creating a lively and photogenic setting.

It’s a great place to take a leisurely walk, breathe in the fresh sea air, and watch the comings and goings of the boats. The area is also home to a variety of attractions, including the Maritime Museum and the Whales of Iceland exhibition, though these require an entry fee. For those on a budget, simply wandering around the harbor and enjoying the views is a delightful experience.

The nearby Grandi district is also worth exploring, with its mix of old industrial buildings and trendy cafes, restaurants, and art spaces. The old harbor is a perfect blend of history, culture, and natural beauty.

Nauthólsvík Geothermal Beach is a unique attraction in Reykjavík, offering a mix of natural beauty and geothermal warmth. The beach features golden sand and a man-made lagoon heated by geothermal water, creating a comfortable spot for swimming even in cooler months.

While the hot tubs and changing facilities may require a small fee, access to the beach itself is free. The beach is a popular spot for locals who enjoy cold-water swimming, a traditional Icelandic pastime believed to have health benefits. Visitors can also relax on the sand, take a dip in the sea, or enjoy a scenic walk along the coastal paths. The surrounding area is ideal for picnics or simply taking in the stunning views of the Atlantic Ocean.

Nauthólsvík is a testament to Iceland’s innovative use of geothermal energy and its commitment to creating spaces where people can connect with nature. Whether you’re seeking relaxation or a bit of adventure, this geothermal beach offers a unique experience in Reykjavík.

Öskjuhlíð Hill is a forested area in Reykjavík that offers a refreshing escape into nature. Located near Perlan, a popular museum and observation deck, the hill features winding trails that are perfect for walking, jogging, or cycling.

As you make your way through the trees, you’ll come across hidden gems like old bunkers from World War II and scenic viewpoints that offer stunning vistas of the city and surrounding mountains. The area is especially popular in autumn, when the leaves turn vibrant shades of red and gold, creating a picturesque setting.

At the top of the hill, you’ll find Perlan’s iconic glass dome, which you can admire from the outside for free. The combination of natural beauty and historical intrigue makes Öskjuhlíð Hill a unique and rewarding destination for outdoor enthusiasts.

Laugardalur Valley, often referred to as Reykjavík’s “Valley of Leisure,” is a recreational haven that offers a variety of activities and attractions. One of its highlights is the Reykjavík Botanic Garden, a peaceful retreat showcasing a diverse collection of native and international plants.

Strolling through the garden’s well-maintained paths, you’ll encounter vibrant flower beds, tranquil ponds, and informative displays about Iceland’s unique flora. The garden is also home to a small cafe, where you can enjoy a cup of coffee surrounded by nature. Beyond the garden, Laugardalur features open spaces for picnics, playgrounds for children, and scenic walking trails.

The area is also home to the Laugardalslaug swimming pool, though access to the pool requires a fee. Whether you’re a nature enthusiast or simply looking for a quiet escape, Laugardalur Valley offers a refreshing break from the city’s hustle and bustle.

Located on the western edge of Reykjavík, Grótta Lighthouse is a serene and scenic destination that offers breathtaking views of the ocean and surrounding landscapes. The lighthouse is situated on a small peninsula that becomes an island during high tide, adding an element of adventure to your visit.

The area is popular among locals for walking, birdwatching, and enjoying the tranquility of nature. On clear nights, it’s one of the best spots in Reykjavík to view the northern lights, making it a must-visit destination in winter. Sunset is another magical time to visit, as the sky transforms into a palette of warm colors.

The journey to Grótta is just as enjoyable as the destination, with a coastal path that offers stunning views and fresh sea air. It’s a peaceful retreat that feels worlds away from the hustle and bustle of the city.

Menningarnótt or culture night in Reykjavík is usually the last Saturday in August. All the museums in Reykjavík are free to explore. There are also free events happening all over the city that day, like lots of musical performances, exhibitions, free classes such as yoga or dance. There is a huge concert in the evening and the night concludes with fireworks.

Ókeypis – free

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Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.