Pros And Cons Of Living In Iceland (2023 Guide)

It’s hardly news to say that the Land of Fire and Ice is a stunning place to live, full of natural wonders with affordable education and healthcare.

That being said, Iceland is notoriously expensive and has one of the highest costs of living in Europe. So, while you can be surrounded by geysers, hot springs, and the Aurora Borealis, this natural wonderland definitely comes at a premium.

So, with that in mind, let’s dive into the pros and cons of living in Iceland!

A Quick Overview & Comparison

Pros of Living in Iceland	Cons of Living in Iceland
Gorgeous natural beauty	Cost of living
Hot springs	Availability of items
Education level	Icelandic attitudes toward expats
Equal pay	Winter Weather
Walkability	Public Transport
Health care	Travel options

The Pros of Living in Iceland

1. Gorgeous Natural Beauty

From the Aurora Borealis, or Northern Lights, to the black sand beaches of Vik, to the Golden Circle waterfalls and geysers, there’s no getting away from the fact that Iceland is jam-packed full of natural beauty and wonders.

Whether you love wandering around on windswept beaches, surfing the icy coastline, scuba diving between tectonic plates, cycling through the rugged countryside, or being surrounded by rushing waterfalls, and even spotting whales, Iceland is the place for you. Let’s be honest, the natural wonders of Iceland are what’s put Iceland on the map for so many tourists.

2. Hot Springs

Being an island that’s just bursting with geothermal energy, Icelanders have made the most of this abundance of energy by keeping their energy sources pretty green and reliable, however, there is another popular use of this geothermal goldmine.

There are warming, soothing, and picturesque hot springs all around Iceland. The most famous ones are definitely the Blue Lagoon and the Secret Lagoon which are both tourist favorites, but there are over 45 different hot springs around the island to choose from.

3. Education

With some of the highest investment in education and the highest literacy rates in Europe, Iceland doesn’t mess around when it comes to education. In fact, around 35% of people in Iceland have completed tertiary education which includes university, college, or trade-based vocational courses.

As universities and colleges in Iceland are free, except for a small registration fee, there are minimal financial barriers to higher education, meaning that more people attend and complete university in Iceland each year.

4. Equal Pay

Unlike many countries, Iceland announced in 2018 that businesses with over 25 people have to show proof that they pair both men and women fairly and keep the pay scale equal. This was a huge step forward for gender equality in the workplace and helped to keep the gender pay gap in check.

As a result, many Icelandic businesses and corporations are really transparent about pay scales and what different roles entail. Considering how taboo talking about pay is in a lot of countries, this is really refreshing, and has a huge positive impact on Icelandic society!

5. Walkability

There might not be a ton of different towns and cities in Iceland, but within each one, walkability is key. With many areas of Reykjavik being completely pedestrianized and there nearly always being a super wide pavement, it’s an ideal place if you want to walk from place to place.

Even if you’re in the capital, Reykjavik, it never seems like it takes too long to walk to any place within the city center. As the towns and cities are relatively compact, there’s a big emphasis on walking over driving which also keeps everyone as healthy as possible!

6. Healthcare

While healthcare in Iceland isn’t entirely free, the state healthcare system does heavily subsidize the cost to keep payments low. This works through a capped system. There is a maximum amount you can pay each month for healthcare and any other treatment over that amount is free. In fact, if you’re a child, over 67, or disabled, your monthly cap is automatically lower.

It’s worth noting that you’ll only have access to the socialized healthcare system in Iceland after you’ve lived there as a resident for six months. So, up until that point, you might want to invest in some private health insurance to cover the shortfall.

The Cons of Living in Iceland

1. Cost of living

Okay, anyone who’s visited Iceland on vacation will be able to tell you that it can be really expensive, costing over $10 for a domestic beer in Reykjavik. When you’re actually living in Iceland you need to adjust to the high cost of living.

An average one-bed apartment in Reykjavik, where most expats live, is around $1,550 per month outside of the city center. This is without utilities or any other costs. It’s estimated that you need around $1,500 as a single person to comfortably live in Reykjavik without including rent, so you’re looking at spending around $3,000 per month as a solo person in Iceland.

2. Availability of Items

Being an island a few hours away from both Europe and North America, it takes a long time for any imported items to get to Iceland – and the majority of goods in Iceland have to be imported from overseas.

This often means that many of your comfort food favorites might not be readily available in Icelandic supermarkets or on menus in restaurants around the country. You might have to say goodbye to some of your favorite spices or ingredients, or – if legally allowed – bring them in your suitcase!

3. Icelandic Attitudes Toward Expats

Now, on the whole, Icelanders are friendly people as long as you treat them and their country with respect. Sounds fair, right? Well, some expats have experienced rudeness or just flat out being ignored by locals, mostly for not speaking Icelandic as someone who now calls the country their home,

Although Icelandic isn’t a common language that’s taught around the world, if you’re planning on living in Iceland, you need to make a concerted effort to learn the language before you move. Of course, you will acquire the language much quicker when you get there but you at least need to know all of the basics before you arrive.

4. Winter weather

Given Iceland’s northern location, the winter weather can be intense for some expats. With average temperatures that hover around 0°C (32°F), you’ll need to wrap up warm throughout winter and prepare yourself for snowy and icy conditions.

In terms of snowfall, Reykjavik does get a little bit but it doesn’t normally stick around for too long. If you’re looking for a snowy wonderland, head to Akureyri in the north, where you can ski and snowboard.

5. Public Transport

Realistically, because so many Icelandic towns and cities are walkable, there are next to no public transport services around Iceland. While you might see a lot of buses, most of these are tourist tour buses that are heading out in search of the Northern Lights or going out to the geysers.

Getting between different towns and cities in Iceland on public transport can be tricky and confusing which is why most people choose to drive around Iceland’s ring road. Even getting to and from the airport in Keflavik can be a headache if you don’t book ahead.

6. Travel Options

On the topic of airports and travel options, realistically, if you want to get anywhere outside Iceland, you need to fly at least two-three hours. There are international airports in both Akureyri and Keflavik (the closest one to Reykjavik), and they tend to connect Iceland to Europe, the US, and Canada.

While there are ferries that go from Denmark to Iceland via the Faroe Islands, it takes two days in total to get there. It does mean you can bring your car with you but it’s still not a short or cheap way to get to or from Iceland.

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