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The Daily Insight

What is the best currency to use in Iceland?

Author

Michael King

Updated on March 15, 2026

Currency. The currency used in Iceland is the Icelandic Krone (pronounced “krona”), ISK. Euro/Mastercard and Visa credit and debit cards are widely used. In larger towns and airports it is easy to withdraw cash through ATMs (cash machines).

What's the best currency to take to Iceland?

Dollars. Thanks in advance for any advice. Use your credit card and take out some ISK from an ATM in Iceland. That's the most agreed upon way of having money/cash in Iceland.

Is it better to use cash or card in Iceland?

What is this? From roadside restaurants to gas stations and souvenir shops, the majority of the country utilizes cash currency in Iceland. That being said, we still recommend bringing a debit card when traveling in Iceland just in case you do need to take out some Icelandic money!

Can you pay with Euro in Iceland?

The only legal currency is Icelandic Krona. An occasional restaurant, coffee-house or guesthouse might accept Euro or USD but probably at a worse rate. Any vending machine will accept ISK or credit/debit card.

Can we use US dollars in Iceland?

Money. Currency: The currency in Iceland is the Icelandic króna (ISK). Many places (restaurants, bars, tourist attractions) will take US dollars, Canadian dollars, Euros, Norwegian, Swedish and Danish currencies. Payment: Icelanders usually pay for everything by credit or debit card.

Iceland Travel Tips - Let's Talk Money!

How much cash should I bring to Iceland?

In general, you should count about 100 USD per night for a 2-person room in a mid-range hotel in rural Iceland, and 150-200 USD in the more popular places and in Reykjavik. Of course, there are many more expensive options and also some budget accommodations.

How much is a cup of coffee in Iceland?

How much is a cup of coffee in Iceland? You may want to consider it an odd treat instead of a daily buy. A cup of latte or cappuccino goes for around 5 USD, tea at about 3 USD (usually with free hot water refills), and a regular black coffee goes for anything from 1.50 USD to 4 USD.

What should you not wear in Iceland?

What Not to Wear in Iceland

  • Light layers. Iceland's climate is milder than you'd expect, considering its location in the Arctic circle. ...
  • Non–waterproof coats and jackets. Do not wear jackets and coats that will not protect you from the rain. ...
  • Thin socks. ...
  • Slippery shoes. ...
  • Fancy clothing. ...
  • Jeans.

Do and don'ts in Iceland?

The Do's and Don'ts to Traveling Mindfully in Iceland

  • Do's. Please be considerate and mindful of the locals. Be open-minded and don't yuck their yum. Rent a car! Walk around the city of Reykjavik.
  • Don't. Do not be an ugly tourist and stay safe. DO NOT hike glaciers without a guide. Don't assume their horses are ponies.

Should I take cash to Iceland?

Iceland is an almost cashless society, with nearly every purchase made by credit and debit cards. You won't need much cash at all for your trip.

How much is a glass of wine in Iceland?

A beer or a glass of house wine costs between 1000 and 1500 ISK if it's not happy hour, and 650 to 750 ISK during happy hour. Cocktails cost around 2300 to 2600 ISK outside of happy hour and 1200 to 1600 ISK during happy hour.

What credit cards work in Iceland?

Credit cards & travellers cheques

  • Credit cards. VISA and MasterCard are the major credit cards in Iceland: both are serviced by all banks in the country. ...
  • Debit cards. Electron and Maestro cards are commonly accepted.
  • ATMs. ATMs are widely available in Iceland and require a PIN.

Do they speak English in Iceland?

English is taught as a second language in Iceland and almost every Icelander speaks the language fluently. And more so, most Icelanders speak several other languages including Danish, German, Spanish and French and welcome the opportunity to practice their language skills. Hope to see you soon in Reykjavík.

Can you drink alcohol in Iceland?

You can't just walk into the supermarket and pick up a bottle of wine as you can in most countries. Except for low-alcohol beer, you have to go to special shops called Vinbudin to buy alcohol. The state runs these liquor stores, and they are typically open from 11 am to 6 pm.

Are clothes expensive in Iceland?

Kringlan meets all your homeware, clothes, food, hardware and electronic needs. A frequently asked question is 'what are Iceland's supermarket prices like? '. Iceland is known for having quite expensive prices compared to America and Europe.

Will my credit card work in Iceland?

Absolutely! Icelanders in general don't use much cash, so both major credit cards and debit cards are widely accepted in Iceland, from taxis to restaurants and shops to petrol stations. Just keep an eye out for the credit card stickers on the doors.

Should you tip in Iceland?

Tipping isn't mandatory or customary in Iceland, but it is always appreciated. The standard rate of tax on Icelandic products is 24%, with some products and services, including books, food and accommodation, taxed at a reduced rate of 11%.

Is it OK to drink tap water in Iceland?

Yes, it is safe to drink the tap water and 95% of all water in Iceland comes from springs. It is in fact one of the cleanest and most delicious drinking water in the world. Unlike in many neighbouring countries, the Icelandic water is free of chlorine, calcium, and nitrate.

What should I buy in Iceland?

10 Best Iceland Souvenirs | What to Bring Home

  • Icelandic Candy. In the category, edible souvenirs, Icelandic candy surely takes the win. ...
  • Icelandic Fashion. ...
  • Icelandic Skin Products. ...
  • Icelandic Liquor. ...
  • Traditional Icelandic Lopapeysa. ...
  • Icelandic Literature. ...
  • Icelandic Wool Blankets. ...
  • Hand Carved Birds or Furry Sheep.

How many days do you need in Iceland?

8-12 days is an ideal amount of time to spend in Iceland as it means you can explore different regions. You could drive around the Ring Road in a full circle to reach the diverse corners of Iceland, from the South Coast to eastern fjords, around North Iceland and over to the Snæfellsnes peninsula.

What is a typical Icelandic breakfast?

Hearty is the name of the game when it comes to breakfast: One of the items most central to an Icelandic breakfast is hafragrautur, or oatmeal, according to Serious Eats. To make the dish, oats are simply cooked with water or milk in a pot.