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

Monthly Cost of Living

Monthly costs for one person with rent: $3,869 in Reykjavik versus $1,456 in Mexico City.

Estimated couple costs with rent: $5,475 in Reykjavik versus $2,361 in Mexico City.

Monthly costs for a family of three with rent: $7,081 in Reykjavik versus $3,266 in Mexico City.

Living in Reykjavik is roughly 166% more expensive than in Mexico City, driven mainly by Groceries & Markets.

Both cities are pricier than the global median: Reykjavik 190% above, Mexico City 9% above.

Meal at Budget Restaurant

$27.43 ISK 3,418

$13.07 MX$229

109.87%

Three-Course Dinner for Two, Mid-Range

$142 ISK 17.7K

$53.8 MX$940

164.48%

Fast Food Meal (McDonalds, etc)

$22.54 ISK 2,809

$9.68 MX$169

132.85%

Cappuccino

$6.05 ISK 754

$3.74 MX$65.4

61.76%

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

$3.22 ISK 402

$1.62 MX$28.25

98.77%

Water (0.33 liter bottle)

$2.52 ISK 314

$1.16 MX$20.31

117.24%

Local Beer (0.5 liter draught)

$12.93 ISK 1,611

$3.23 MX$56.4

300.31%

Imported Beer (0.33 liter bottle)

$11.39 ISK 1,420

$4.74 MX$82.9

140.30%

Milk (1 liter)

$1.89 ISK 235

$1.65 MX$28.80

14.55%

White Bread (500g)

$4.19 ISK 522

$2.75 MX$48.15

52.36%

Rice (white) (1kg)

$3.54 ISK 441

$1.87 MX$32.77

89.30%

Eggs

$6.31 ISK 786

$2.50 MX$43.72

152.40%

Local Cheese (1kg)

$18.00 ISK 2,243

$10.20 MX$178

76.47%

Chicken Fillets (1kg)

$24.46 ISK 3,048

$8.25 MX$144

196.48%

Beef Round Steak (1kg)

$41.94 ISK 5,226

$11.82 MX$207

254.82%

Apples (1kg)

$3.33 ISK 415

$3.01 MX$52.6

10.63%

Banana (1kg)

$2.40 ISK 300

$1.81 MX$31.67

32.60%

Oranges (1kg)

$3.03 ISK 377

$2.00 MX$34.96

51.50%

Tomato (1kg)

$5.13 ISK 639

$2.00 MX$34.89

156.50%

Potato (1kg)

$3.66 ISK 455

$2.08 MX$36.45

75.96%

Onion (1kg)

$2.42 ISK 302

$2.27 MX$39.72

6.61%

Lettuce (1 head)

$3.17 ISK 394

$1.46 MX$25.47

117.12%

Water (1.5 liter bottle)

$1.93 ISK 241

$1.08 MX$18.82

78.70%

Cigarettes 20 Pack (Marlboro, Camel)

$13.76 ISK 1,714

$4.35 MX$76.0

216.32%

Wine (Bottle)

$22.67 ISK 2,825

$16.99 MX$297

33.43%

Local Beer (0.5 liter bottle)

$3.75 ISK 467

$1.73 MX$30.31

116.76%

Imported Beer (0.33 liter bottle)

$3.26 ISK 406

$3.58 MX$62.5

-8.94%

One-way Ticket (Public Transport)

$5.30 ISK 661

$0.39 MX$6.77

1258.97%

Public Transport Monthly Pass (Regular Price)

$88.2 ISK 11.0K

$18.69 MX$327

372.02%

Taxi Start (Normal Tariff)

$6.51 ISK 811

$1.33 MX$23.18

389.47%

Taxi (Normal Tariff) (1km)

$2.57 ISK 321

$0.28 MX$4.89

817.86%

Taxi 1hour Waiting (Normal Tariff)

$86.4 ISK 10.8K

$5.25 MX$91.8

1546.10%

Gasoline (1 liter)

$2.52 ISK 314

$1.34 MX$23.37

88.06%

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

$47.7K ISK 5.9M

$19.4K MX$339.4K

145.94%

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

$51.8K ISK 6.5M

$23.8K MX$416.7K

117.55%

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

$87.1 ISK 10.9K

$40.69 MX$712

114.06%

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

$27.13 ISK 3,380

$26.87 MX$470

0.97%

Internet (50+ Mbps, Unlimited Data)

$85.4 ISK 10.6K

$30.51 MX$534

179.91%

Gym Membership (Monthly)

$84.0 ISK 10.5K

$52.8 MX$923

59.21%

Tennis Court (1 Hour on Weekend)

$38.12 ISK 4,750

$26.65 MX$466

43.04%

Cinema Ticket

$17.35 ISK 2,162

$6.51 MX$114

166.51%

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

$319 ISK 39.8K

$428 MX$7,485

-25.43%

International Primary School, 1 Child (Yearly)

$30.7K ISK 3.8M

$10.5K MX$183.6K

192.18%

Jeans (Levis 501 Or Similar)

$138 ISK 17.1K

$57.3 MX$1,001

140.21%

Summer Dress (H&M, Zara, etc)

$62.8 ISK 7,821

$45.50 MX$796

37.96%

Sport Shoes (Adidas, Nike)

$182 ISK 22.7K

$104 MX$1,819

75.01%

Men's Leather Business Shoes

$269 ISK 33.5K

$108 MX$1,885

149.55%

1-bedroom Apartment, City Center (Monthly)

$2,254 ISK 280.8K

$1,003 MX$17.5K

124.62%

1-bedroom Apartment, Outside City Center (Monthly)

$2,008 ISK 250.2K

$623 MX$10.9K

222.41%

3-bedroom Apartment, City Center (Monthly)

$3,231 ISK 402.6K

$2,109 MX$36.9K

53.21%

3-bedroom Apartment, Outside City Center (Monthly)

$2,756 ISK 343.4K

$1,218 MX$21.3K

126.30%

Buy Apartment in City Center (m2)

$7,955 ISK 991.2K

$3,885 MX$67.9K

104.79%

Buy Apartment Outside City Center (m2)

$6,156 ISK 767.1K

$2,033 MX$35.5K

202.88%

Average Monthly Net Salary (After Tax)

$4,438 ISK 553.0K

$1,038 MX$18.1K

327.68%

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 Reykjavik: July 11, 2026

Last update for Mexico City: July 13, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,254 in Reykjavik and $1,003 in Mexico City. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 328% 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: $142 in Reykjavik vs $54.0 in Mexico City for a mid-range dinner for two. Groceries echo the gap at $593 vs $292 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

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

Reykjavik and Mexico City differ by about 166% in total monthly costs ($3,869 vs $1,456 including rent). Mexico City is meaningfully more affordable – a gap that matters a lot on a fixed or modest income.

Average pay runs 328% higher in Reykjavik, 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: $2,254 in Reykjavik versus $1,003 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 372% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $319 in Reykjavik versus $428 in Mexico City. Over years of preschool, even a modest monthly gap compounds into a major financial factor for families.

At $1,456 in Mexico City versus $3,869 in Reykjavik, a $2,000 budget is realistic in Mexico City but tight or insufficient in Reykjavik. The gap between the two cities makes Mexico City the clear choice for anyone on this budget.

Both cities offer a good standard of living with different trade-offs. Neither is objectively better – the right pick depends on what matters most: affordability, career, cultural scene, or climate.

Safety-wise, Reykjavik 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 166% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.