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 $1,803 per month in Iceland vs $2,405 in United Kingdom, rent included.

A couple spends around $2,687 per month in Iceland vs $3,520 in United Kingdom, rent included.

A family of three spends $3,570 per month in Iceland vs $4,635 in United Kingdom, rent included.

The cost of living in Iceland is roughly 25% 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 31%, United Kingdom by 74%.

Meal at Budget Restaurant

$28.87 ISK 3,477

$21.52 £15.90

34.15%

Three-Course Dinner for Two, Mid-Range

$122 ISK 14.7K

$88.0 £65.0

38.72%

Fast Food Meal (McDonalds, etc)

$23.81 ISK 2,867

$10.89 £8.05

118.64%

Cappuccino

$6.49 ISK 781

$4.92 £3.64

31.91%

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

$3.32 ISK 400

$2.59 £1.91

28.19%

Water (0.33 liter bottle)

$3.15 ISK 379

$1.84 £1.36

71.20%

Local Beer (0.5 liter draught)

$12.32 ISK 1,484

$6.91 £5.11

78.29%

Imported Beer (0.33 liter bottle)

$12.38 ISK 1,492

$6.86 £5.07

80.47%

Milk (1 liter)

$2.05 ISK 247

$1.67 £1.23

22.75%

White Bread (500g)

$4.00 ISK 482

$1.67 £1.23

139.52%

Rice (white) (1kg)

$3.61 ISK 435

$2.20 £1.63

64.09%

Eggs

$6.98 ISK 841

$4.19 £3.10

66.59%

Local Cheese (1kg)

$20.45 ISK 2,463

$9.98 £7.38

104.91%

Chicken Fillets (1kg)

$25.49 ISK 3,070

$9.47 £7.00

169.17%

Beef Round Steak (1kg)

$41.73 ISK 5,027

$15.41 £11.39

170.80%

Apples (1kg)

$3.16 ISK 380

$3.02 £2.23

4.64%

Banana (1kg)

$2.79 ISK 336

$1.70 £1.25

64.12%

Oranges (1kg)

$3.09 ISK 372

$2.92 £2.16

5.82%

Tomato (1kg)

$5.95 ISK 716

$3.38 £2.50

76.04%

Potato (1kg)

$3.89 ISK 469

$1.84 £1.36

111.41%

Onion (1kg)

$1.94 ISK 234

$1.58 £1.17

22.78%

Lettuce (1 head)

$3.75 ISK 452

$1.26 £0.93

197.62%

Water (1.5 liter bottle)

$1.94 ISK 234

$1.70 £1.26

14.12%

Cigarettes 20 Pack (Marlboro, Camel)

$14.21 ISK 1,712

$24.21 £17.90

-41.31%

Wine (Bottle)

$23.35 ISK 2,812

$11.00 £8.13

112.27%

Local Beer (0.5 liter bottle)

$3.75 ISK 452

$2.98 £2.21

25.84%

Imported Beer (0.33 liter bottle)

$3.38 ISK 407

$3.39 £2.51

-0.29%

One-way Ticket (Public Transport)

$5.71 ISK 688

$3.43 £2.53

66.47%

Public Transport Monthly Pass (Regular Price)

$94.5 ISK 11.4K

$105 £77.9

-10.37%

Taxi Start (Normal Tariff)

$6.59 ISK 794

$5.36 £3.96

22.95%

Taxi (Normal Tariff) (1km)

$2.87 ISK 346

$2.37 £1.75

21.10%

Taxi 1hour Waiting (Normal Tariff)

$74.2 ISK 8,933

$27.55 £20.36

169.18%

Gasoline (1 liter)

$2.29 ISK 276

$1.93 £1.43

18.65%

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

$50.4K ISK 6.1M

$39.7K £29.3K

26.88%

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

$55.2K ISK 6.7M

$40.7K £30.1K

35.82%

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

$99.0 ISK 11.9K

$321 £238

-69.21%

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

$32.11 ISK 3,867

$18.67 £13.80

71.99%

Internet (50+ Mbps, Unlimited Data)

$87.1 ISK 10.5K

$43.93 £32.47

98.27%

Gym Membership (Monthly)

$89.8 ISK 10.8K

$46.56 £34.41

92.89%

Tennis Court (1 Hour on Weekend)

$51.5 ISK 6,207

$18.71 £13.83

175.47%

Cinema Ticket

$19.34 ISK 2,329

$13.53 £10.00

42.94%

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

$958 ISK 115.4K

$1,739 £1,285

-44.89%

International Primary School, 1 Child (Yearly)

$31.6K ISK 3.8M

$22.7K £16.7K

39.36%

Jeans (Levis 501 Or Similar)

$157 ISK 18.9K

$90.9 £67.2

72.59%

Summer Dress (H&M, Zara, etc)

$49.70 ISK 5,986

$47.40 £35.04

4.85%

Sport Shoes (Adidas, Nike)

$171 ISK 20.6K

$105 £77.8

62.52%

Men's Leather Business Shoes

$239 ISK 28.8K

$101 £74.9

135.67%

1-bedroom Apartment, City Center (Monthly)

$2,439 ISK 293.8K

$1,382 £1,022

76.46%

1-bedroom Apartment, Outside City Center (Monthly)

$1,988 ISK 239.5K

$1,095 £809

81.61%

3-bedroom Apartment, City Center (Monthly)

$3,409 ISK 410.6K

$2,216 £1,638

53.83%

3-bedroom Apartment, Outside City Center (Monthly)

$2,698 ISK 325.0K

$1,814 £1,341

48.78%

Buy Apartment in City Center (m2)

$7,754 ISK 933.9K

$5,730 £4,235

35.30%

Buy Apartment Outside City Center (m2)

$6,360 ISK 766.1K

$4,515 £3,337

40.87%

Average Monthly Net Salary (After Tax)

$4,935 ISK 594.4K

$3,329 £2,461

48.23%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.3

5.32

74.81%

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

Last update for Iceland: September 6, 2026

Last update for United Kingdom: September 5, 2026

Cost Breakdown

Average rent: $559 in Iceland vs $1,285 in United Kingdom. For reference, capital cities sit at $2,489 in Reykjavik and $2,926 in London.

Average salary: $5,043 in Iceland vs $3,292 in United Kingdom. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 130% higher in United Kingdom.

Public transport is 353% more expensive in United Kingdom.

Salaries are 53% 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 35% 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 35% 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.