Did you know that Iceland has one of the most lenient visa policies in Europe, making it easier than ever for budget backpackers to explore its stunning landscapes and vibrant culture? Understanding the visa requirements can save you time and money, allowing you to focus on the incredible sights that Iceland has to offer.
Iceland is a member of the Schengen Area, which means that travelers from many countries can enter without a visa for short stays of up to 90 days. Citizens of the United States, Canada, Australia, New Zealand, and many other countries can enjoy this benefit. If you’re from a country that requires a visa, such as India or Nigeria, you’ll need to apply for a Schengen Visa before your trip.
The application process for a Schengen Visa typically involves filling out an application form, providing a valid passport, proof of accommodation, travel insurance, and evidence of sufficient funds. The visa fee is €80 (approximately $85 USD) for adults, while children between 6 and 12 pay €40 ($43 USD). It’s advised to apply at least 15 days before your departure, but you can submit your application up to six months in advance.
Most international flights arrive at Keflavík International Airport (KEF), located about 50 kilometers (31 miles) from Reykjavík. Budget airlines like WOW air and Icelandair often offer competitive pricing, so keep an eye out for deals. A round-trip flight can range from $350 to $600, depending on the season and how far in advance you book. For the cheapest options, consider flying during the off-peak months of late autumn or early spring.
To get from the airport to Reykjavík, take the Flybus, which costs about 3,900 ISK (approximately $28 USD) for a one-way trip. The bus departs every 30-60 minutes and connects to major hotels and the city center, making it a budget-friendly option for transportation. If you’re planning to travel around the country, consider renting a car; prices start around 8,000 ISK ($58 USD) per day for a compact car, which gives you the flexibility to explore at your own pace.
Finding affordable accommodation in Iceland can be challenging, but with some research, you can find great options. Hostels are a popular choice for backpackers, with places like Kex Hostel in Reykjavík offering dormitory beds starting at around 4,500 ISK ($33 USD) per night. Not only is Kex affordable, but it also features a bar and live music, perfect for meeting fellow travelers.
Another budget-friendly option is Airbnb, where you can find private rooms in local homes starting from 6,000 ISK ($44 USD) a night. If you're looking for unique experiences, consider camping; many campsites throughout Iceland charge around 1,500-2,500 ISK ($11-$18 USD) per night for a tent pitch. Just make sure to research which campsites are open, as some are only available during the summer months.
Iceland is known for its high cost of living, but there are ways to enjoy local cuisine without breaking the bank. One of the best budget-friendly meals can be found at Noodle Station in Reykjavík, where you can grab a bowl of delicious ramen for about 2,200 ISK ($16 USD). For a taste of traditional Icelandic fare, visit Bæjarins Beztu Pylsur, a famous hot dog stand where you can enjoy a hot dog topped with fried onions, raw onions, ketchup, and remoulade for just 480 ISK ($3.50 USD).
For budget-conscious travelers, grocery stores like Bonus and Krónan offer reasonably priced food options. A basic grocery haul with items such as bread, cheese, and yogurt may cost you around 2,500 ISK ($18 USD). Consider making your own meals while staying in hostels with kitchen facilities to save even more money. Don't forget to try some Icelandic yogurt, or skyr, which is not only delicious but also a healthy snack option!
Traveling in Iceland can be expensive, but with some practical tips, you can stretch your budget further.
| Item | Cost | Notes |
|---|---|---|
| Flybus from KEF to Reykjavík | 3,900 ISK | Approx. $28 USD, frequent departures. |
| Hostel dorm bed at Kex Hostel | 4,500 ISK | Approx. $33 USD, social atmosphere. |
| Hot dog at Bæjarins Beztu Pylsur | 480 ISK | Approx. $3.50 USD, highly recommended. |
| Basic grocery haul | 2,500 ISK | Approx. $18 USD, cook your own meals. |
| Reykjavík City Card | 4,900 ISK | Approx. $36 USD, unlimited public transport and attractions. |
| Car rental per day | 8,000 ISK | Approx. $58 USD, great for exploring. |
| Campsite pitch | 1,500-2,500 ISK | Approx. $11-$18 USD, budget accommodation option. |
If you are from a Schengen Area country or one of the visa-exempt countries like the US, you do not need a visa for stays up to 90 days. However, travelers from countries that require a visa must apply for a Schengen Visa beforehand.
To save money in Iceland, consider cooking your own meals, taking advantage of free outdoor activities like hiking, and using public transport or renting a car. Look for budget accommodation like hostels or campsites, and consider buying a Reykjavík City Card for access to attractions and transport.
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