Cost of Living Comparison Between Iceland and United Kingdom Cost of Living Comparison Between Iceland and United Kingdom

Name: United Kingdom
Address: GB

Monthly Cost of Living

A single person spends $1,713 per month in Iceland vs $2,363 in United Kingdom, rent included.

A couple spends around $2,544 per month in Iceland vs $3,471 in United Kingdom, rent included.

A family of three spends $3,375 per month in Iceland vs $4,579 in United Kingdom, rent included.

The cost of living in Iceland is roughly 28% lower than in United Kingdom on average – the gap runs across housing, groceries, transport, and services.

Both Iceland and United Kingdom are pricier than the global median – Iceland by 28%, United Kingdom by 77%.

Meal at Budget Restaurant

$26.73 ISK 3,331

$20.23 £15.04

32.13%

Three-Course Dinner for Two, Mid-Range

$129 ISK 16.1K

$88.3 £65.6

46.46%

Fast Food Meal (McDonalds, etc)

$19.72 ISK 2,457

$10.35 £7.69

90.53%

Cappuccino

$6.00 ISK 748

$4.77 £3.55

25.79%

Coke/Pepsi/Fanta/Sprite (0.33 liter bottle)

$3.30 ISK 412

$2.44 £1.82

35.25%

Water (0.33 liter bottle)

$2.64 ISK 329

$1.73 £1.29

52.60%

Local Beer (0.5 liter draught)

$12.00 ISK 1,495

$6.85 £5.09

75.18%

Imported Beer (0.33 liter bottle)

$10.46 ISK 1,304

$6.52 £4.84

60.43%

Milk (1 liter)

$1.96 ISK 244

$1.66 £1.23

18.07%

White Bread (500g)

$4.14 ISK 516

$1.71 £1.27

142.11%

Rice (white) (1kg)

$3.48 ISK 434

$2.21 £1.64

57.47%

Eggs

$6.59 ISK 821

$4.09 £3.04

61.12%

Local Cheese (1kg)

$18.61 ISK 2,319

$9.52 £7.08

95.48%

Chicken Fillets (1kg)

$24.58 ISK 3,063

$9.02 £6.71

172.51%

Beef Round Steak (1kg)

$43.45 ISK 5,414

$14.18 £10.54

206.42%

Apples (1kg)

$3.02 ISK 377

$2.96 £2.20

2.03%

Banana (1kg)

$2.48 ISK 309

$1.68 £1.25

47.62%

Oranges (1kg)

$2.87 ISK 358

$2.84 £2.11

1.06%

Tomato (1kg)

$4.93 ISK 614

$3.41 £2.53

44.57%

Potato (1kg)

$3.61 ISK 449

$1.69 £1.26

113.61%

Onion (1kg)

$2.21 ISK 276

$1.58 £1.17

39.87%

Lettuce (1 head)

$3.16 ISK 393

$1.12 £0.84

182.14%

Water (1.5 liter bottle)

$2.21 ISK 275

$1.53 £1.14

44.44%

Cigarettes 20 Pack (Marlboro, Camel)

$14.04 ISK 1,749

$20.16 £14.99

-30.36%

Wine (Bottle)

$21.88 ISK 2,726

$10.47 £7.78

108.98%

Local Beer (0.5 liter bottle)

$3.78 ISK 470

$2.87 £2.14

31.71%

Imported Beer (0.33 liter bottle)

$3.05 ISK 379

$3.30 £2.45

-7.58%

One-way Ticket (Public Transport)

$5.37 ISK 669

$3.33 £2.48

61.26%

Public Transport Monthly Pass (Regular Price)

$84.5 ISK 10.5K

$96.3 £71.6

-12.23%

Taxi Start (Normal Tariff)

$6.28 ISK 782

$5.53 £4.11

13.56%

Taxi (Normal Tariff) (1km)

$2.25 ISK 281

$1.60 £1.19

40.62%

Taxi 1hour Waiting (Normal Tariff)

$86.0 ISK 10.7K

$27.51 £20.45

212.50%

Gasoline (1 liter)

$2.53 ISK 315

$1.90 £1.41

33.16%

Midsize Hatchback 1.4l (Volkswagen Golf, Toyota Prius, Honda Civic, etc)

$47.5K ISK 5.9M

$38.1K £28.3K

24.59%

Compact Sedan 1.6l (Toyota Corolla, Mazda3, Kia K4, Hyundai Elantra, etc)

$53.4K ISK 6.7M

$41.0K £30.5K

30.21%

Utilities for 2 People in 2-bedroom Apartment (Heating, Electricity, Gas, Water, Garbage) (85m2)

$89.9 ISK 11.2K

$326 £242

-72.43%

SIM Card Monthly Plan (Calls and 10GB+ Data)

$27.33 ISK 3,406

$17.18 £12.77

59.08%

Internet (50+ Mbps, Unlimited Data)

$86.2 ISK 10.7K

$42.96 £31.94

100.61%

Gym Membership (Monthly)

$81.5 ISK 10.2K

$45.94 £34.15

77.49%

Tennis Court (1 Hour on Weekend)

$37.90 ISK 4,723

$15.87 £11.80

138.82%

Cinema Ticket

$17.71 ISK 2,207

$13.80 £10.26

28.33%

Preschool or Kindergarten, Full Day, Private, 1 Child (Monthly)

$345 ISK 43.0K

$1,723 £1,281

-79.96%

International Primary School, 1 Child (Yearly)

$30.3K ISK 3.8M

$20.9K £15.5K

45.35%

Jeans (Levis 501 Or Similar)

$140 ISK 17.4K

$90.3 £67.1

54.89%

Summer Dress (H&M, Zara, etc)

$64.7 ISK 8,064

$44.39 £33.00

45.80%

Sport Shoes (Adidas, Nike)

$172 ISK 21.5K

$103 £76.7

67.20%

Men's Leather Business Shoes

$251 ISK 31.3K

$103 £76.3

144.98%

1-bedroom Apartment, City Center (Monthly)

$2,180 ISK 271.6K

$1,419 £1,055

53.65%

1-bedroom Apartment, Outside City Center (Monthly)

$2,031 ISK 253.1K

$1,143 £850

77.64%

3-bedroom Apartment, City Center (Monthly)

$3,177 ISK 395.8K

$2,298 £1,708

38.24%

3-bedroom Apartment, Outside City Center (Monthly)

$2,700 ISK 336.4K

$1,873 £1,392

44.15%

Buy Apartment in City Center (m2)

$7,642 ISK 952.2K

$5,728 £4,258

33.42%

Buy Apartment Outside City Center (m2)

$6,054 ISK 754.3K

$4,339 £3,226

39.51%

Average Monthly Net Salary (After Tax)

$4,559 ISK 568.0K

$3,264 £2,427

39.65%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.88

5.75

71.83%

CityCost data is based on AI and user input – minor inaccuracies may occur.

Last update for Iceland: July 11, 2026

Last update for United Kingdom: July 13, 2026

Cost Breakdown

Average rent: $531 in Iceland vs $1,266 in United Kingdom. For reference, capital cities sit at $2,254 in Reykjavik and $2,937 in London.

Average salary: $4,859 in Iceland vs $3,192 in United Kingdom. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 138% higher in United Kingdom.

Public transport is 384% more expensive in United Kingdom.

Salaries are 52% higher in Iceland, and purchasing power comes out stronger in Iceland.

City Median Internet Speeds Comparison (Updated April 2026)

The chart highlights the Precision Threshold for mobile and fixed broadband internet speeds, updated quarterly.

Digital Nomad Cost of Living Index

Iceland vs United Kingdom: Cost of Living - Frequently Asked Questions

Iceland is the cheaper option – living costs run roughly 44% lower on average. The gap is consistent across housing, groceries, transport, and entertainment.

Housing costs more in United Kingdom, and the gap is biggest in capital cities. Regional towns show less difference, but United Kingdom consistently has higher rents.

Groceries, transport, and utilities all cost less in Iceland, contributing to the overall 44% price gap. The savings show up everywhere – from supermarket receipts to monthly bills.

$3,000 buys a comfortable lifestyle in Iceland, but in United Kingdom it only works with careful planning outside the capital. Same money, very different lives.

Iceland is the budget-friendly choice for expats – lower housing and daily costs. But cost isn't everything: visa policies, language, healthcare quality, and job markets all weigh in too.