Cost of Living Comparison Between Keflavik and Mexico City Cost of Living Comparison Between Keflavik and Mexico City

Monthly Cost of Living

Monthly costs for one person with rent: $2,853 in Keflavik versus $1,472 in Mexico City.

Estimated couple costs with rent: $4,401 in Keflavik versus $2,359 in Mexico City.

Monthly costs for a family of three with rent: $5,949 in Keflavik versus $3,245 in Mexico City.

Living in Keflavik is roughly 94% more expensive than in Mexico City, driven mainly by Groceries & Markets.

Both cities are pricier than the global median: Keflavik 114% above, Mexico City 11% above.

Meal at Budget Restaurant

$23.97 ISK 2,962

$13.14 MX$227

82.42%

Three-Course Dinner for Two, Mid-Range

$143 ISK 17.7K

$53.5 MX$926

167.14%

Fast Food Meal (McDonalds, etc)

$20.29 ISK 2,508

$9.33 MX$161

117.47%

Cappuccino

$3.95 ISK 488

$3.70 MX$64.0

6.76%

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

$3.18 ISK 393

$1.60 MX$27.76

98.75%

Water (0.33 liter bottle)

$2.52 ISK 312

$1.12 MX$19.34

125.00%

Local Beer (0.5 liter draught)

$7.95 ISK 983

$3.14 MX$54.3

153.18%

Imported Beer (0.33 liter bottle)

$8.18 ISK 1,011

$4.85 MX$83.9

68.66%

Milk (1 liter)

$1.87 ISK 231

$1.65 MX$28.61

13.33%

White Bread (500g)

$4.18 ISK 517

$2.71 MX$46.96

54.24%

Rice (white) (1kg)

$2.37 ISK 293

$1.91 MX$33.03

24.08%

Eggs

$6.43 ISK 795

$2.59 MX$44.81

148.26%

Local Cheese (1kg)

$18.22 ISK 2,252

$9.81 MX$170

85.73%

Chicken Fillets (1kg)

$24.11 ISK 2,980

$8.43 MX$146

186.00%

Beef Round Steak (1kg)

$42.82 ISK 5,292

$11.93 MX$206

258.93%

Apples (1kg)

$2.35 ISK 291

$2.95 MX$51.1

-20.34%

Banana (1kg)

$2.44 ISK 302

$1.74 MX$30.10

40.23%

Oranges (1kg)

$2.36 ISK 291

$2.04 MX$35.38

15.69%

Tomato (1kg)

$4.00 ISK 494

$2.06 MX$35.64

94.17%

Potato (1kg)

$3.06 ISK 378

$2.15 MX$37.20

42.33%

Onion (1kg)

$2.01 ISK 249

$2.26 MX$39.02

-11.06%

Lettuce (1 head)

$3.17 ISK 392

$1.39 MX$23.97

128.06%

Water (1.5 liter bottle)

$1.93 ISK 239

$1.12 MX$19.31

72.32%

Cigarettes 20 Pack (Marlboro, Camel)

$13.80 ISK 1,706

$4.22 MX$73.0

227.01%

Wine (Bottle)

$15.90 ISK 1,965

$17.51 MX$303

-9.19%

Local Beer (0.5 liter bottle)

$3.74 ISK 462

$1.71 MX$29.58

118.71%

Imported Beer (0.33 liter bottle)

$2.82 ISK 349

$3.63 MX$62.8

-22.31%

One-way Ticket (Public Transport)

$3.67 ISK 454

$0.35 MX$6.10

948.57%

Public Transport Monthly Pass (Regular Price)

$74.3 ISK 9,183

$19.32 MX$334

284.58%

Taxi Start (Normal Tariff)

$6.37 ISK 787

$1.38 MX$23.80

361.59%

Taxi (Normal Tariff) (1km)

$2.26 ISK 279

$0.28 MX$4.77

707.14%

Taxi 1hour Waiting (Normal Tariff)

$86.4 ISK 10.7K

$5.28 MX$91.3

1535.80%

Gasoline (1 liter)

$2.43 ISK 300

$1.36 MX$23.50

78.68%

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

$47.5K ISK 5.9M

$19.1K MX$330.5K

148.72%

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

$52.0K ISK 6.4M

$23.6K MX$408.4K

120.27%

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

$86.6 ISK 10.7K

$40.53 MX$701

113.55%

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

$27.84 ISK 3,441

$27.38 MX$474

1.68%

Internet (50+ Mbps, Unlimited Data)

$86.2 ISK 10.7K

$30.38 MX$526

183.77%

Gym Membership (Monthly)

$52.2 MX$903

Tennis Court (1 Hour on Weekend)

$26.48 MX$458

Cinema Ticket

$17.61 ISK 2,177

$6.19 MX$107

184.49%

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

$318 ISK 39.3K

$425 MX$7,355

-25.19%

International Primary School, 1 Child (Yearly)

$29.7K ISK 3.7M

$10.7K MX$185.7K

176.88%

Jeans (Levis 501 Or Similar)

$141 ISK 17.4K

$58.3 MX$1,009

142.02%

Summer Dress (H&M, Zara, etc)

$62.8 ISK 7,766

$44.57 MX$771

40.97%

Sport Shoes (Adidas, Nike)

$180 ISK 22.3K

$103 MX$1,791

74.02%

Men's Leather Business Shoes

$188 ISK 23.2K

$109 MX$1,881

72.65%

1-bedroom Apartment, City Center (Monthly)

$1,829 ISK 226.0K

$1,014 MX$17.5K

80.38%

1-bedroom Apartment, Outside City Center (Monthly)

$1,350 ISK 166.8K

$623 MX$10.8K

116.70%

3-bedroom Apartment, City Center (Monthly)

$2,442 ISK 301.8K

$2,119 MX$36.7K

15.20%

3-bedroom Apartment, Outside City Center (Monthly)

$2,007 ISK 248.1K

$1,223 MX$21.2K

64.06%

Buy Apartment in City Center (m2)

$3,792 MX$65.6K

Buy Apartment Outside City Center (m2)

$2,110 MX$36.5K

Average Monthly Net Salary (After Tax)

$3,712 ISK 458.9K

$1,052 MX$18.2K

252.84%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.63

11.34

-15.08%

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

Last update for Keflavik: July 26, 2026

Last update for Mexico City: July 25, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $1,829 in Keflavik and $1,014 in Mexico City. Housing cost is often the main lever when comparing two cities.

Keflavik pays 253% more on average. The extra income cushions the higher costs, though housing choices and lifestyle decide how much of the gap is truly closed.

Dining out: $143 in Keflavik vs $54.0 in Mexico City for a mid-range dinner for two. Groceries echo the gap at $560 vs $293 per month, with Mexico City cheaper across the board.

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

Keflavik vs Mexico City: Cost of Living - Frequently Asked Questions

Mexico City wins on cost – living expenses run 94% lower than in Keflavik. Housing and daily spending are where you'll feel the difference most, making Mexico City the obvious pick if budget is a priority.

Average pay runs 253% higher in Keflavik, which matters when comparing affordability. Whether that higher income actually nets you more depends on your spending habits and housing choices.

Rent for a central apartment: $1,829 in Keflavik versus $1,014 in Mexico City. Housing is usually the single largest factor when comparing overall living costs between the two.

A monthly transit pass in Mexico City runs roughly 285% less than in Keflavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $318 in Keflavik versus $425 in Mexico City. Over years of preschool, even a modest monthly gap compounds into a major financial factor for families.

At $1,472 in Mexico City versus $2,853 in Keflavik, a $2,000 budget is realistic in Mexico City but tight or insufficient in Keflavik. The gap between the two cities makes Mexico City the clear choice for anyone on this budget.

Both work as nomad bases, but Mexico City delivers better value – similar infrastructure at $1,472 monthly. If stretching your runway or maximizing savings is the goal, the price difference makes Mexico City hard to pass up.

Safety-wise, Keflavik and Mexico City are on par. Petty crime is typical for cities this size, and most residents feel comfortable going about their daily routines in either place.

Expats usually find Mexico City gentler on the wallet – expenses run 94% less than in Keflavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.