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: $4,048 in Reykjavik versus $1,646 in Mexico City.

Estimated couple costs with rent: $5,736 in Reykjavik versus $2,613 in Mexico City.

Monthly costs for a family of three with rent: $7,424 in Reykjavik versus $3,580 in Mexico City.

Living in Reykjavik is roughly 146% more expensive than in Mexico City, driven mainly by Eating Out.

Both cities are pricier than the global median: Reykjavik 195% above, Mexico City 20% above.

Meal at Budget Restaurant

$30.26 ISK 3,667

$12.11 MX$206

149.88%

Three-Course Dinner for Two, Mid-Range

$135 ISK 16.4K

$52.2 MX$887

159.37%

Fast Food Meal (McDonalds, etc)

$26.29 ISK 3,186

$10.90 MX$185

141.19%

Cappuccino

$6.95 ISK 842

$4.05 MX$68.8

71.60%

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

$3.30 ISK 400

$1.72 MX$29.13

91.86%

Water (0.33 liter bottle)

$3.35 ISK 406

$1.38 MX$23.40

142.75%

Local Beer (0.5 liter draught)

$14.06 ISK 1,704

$3.47 MX$58.9

305.19%

Imported Beer (0.33 liter bottle)

$12.60 ISK 1,527

$5.81 MX$98.7

116.87%

Milk (1 liter)

$2.10 ISK 254

$1.85 MX$31.48

13.51%

White Bread (500g)

$4.47 ISK 542

$3.22 MX$54.7

38.82%

Rice (white) (1kg)

$3.59 ISK 436

$2.09 MX$35.42

71.77%

Eggs

$7.13 ISK 865

$2.91 MX$49.41

145.02%

Local Cheese (1kg)

$21.34 ISK 2,586

$12.49 MX$212

70.86%

Chicken Fillets (1kg)

$24.37 ISK 2,953

$10.11 MX$172

141.05%

Beef Round Steak (1kg)

$42.10 ISK 5,102

$15.89 MX$270

164.95%

Apples (1kg)

$3.35 ISK 406

$3.31 MX$56.3

1.21%

Banana (1kg)

$2.82 ISK 341

$2.13 MX$36.12

32.39%

Oranges (1kg)

$3.21 ISK 389

$2.19 MX$37.20

46.58%

Tomato (1kg)

$6.24 ISK 756

$2.45 MX$41.57

154.69%

Potato (1kg)

$4.01 ISK 487

$2.19 MX$37.18

83.11%

Onion (1kg)

$1.70 ISK 206

$1.90 MX$32.35

-10.53%

Lettuce (1 head)

$3.83 ISK 464

$1.62 MX$27.44

136.42%

Water (1.5 liter bottle)

$1.78 ISK 216

$1.35 MX$22.92

31.85%

Cigarettes 20 Pack (Marlboro, Camel)

$13.75 ISK 1,666

$5.43 MX$92.1

153.22%

Wine (Bottle)

$24.28 ISK 2,942

$17.59 MX$299

38.03%

Local Beer (0.5 liter bottle)

$3.79 ISK 460

$2.07 MX$35.12

83.09%

Imported Beer (0.33 liter bottle)

$3.45 ISK 418

$4.75 MX$80.6

-27.37%

One-way Ticket (Public Transport)

$5.81 ISK 704

$0.34 MX$5.77

1608.82%

Public Transport Monthly Pass (Regular Price)

$92.7 ISK 11.2K

$21.58 MX$366

329.70%

Taxi Start (Normal Tariff)

$6.84 ISK 829

$2.04 MX$34.65

235.29%

Taxi (Normal Tariff) (1km)

$2.90 ISK 352

$0.58 MX$9.82

400.00%

Taxi 1hour Waiting (Normal Tariff)

$74.5 ISK 9,033

$5.97 MX$101

1148.58%

Gasoline (1 liter)

$2.00 ISK 242

$1.62 MX$27.44

23.46%

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

$50.6K ISK 6.1M

$22.8K MX$387.4K

121.67%

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

$53.4K ISK 6.5M

$26.7K MX$452.8K

100.37%

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

$89.6 ISK 10.9K

$65.2 MX$1,108

37.31%

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

$33.11 ISK 4,013

$29.87 MX$507

10.85%

Internet (50+ Mbps, Unlimited Data)

$85.1 ISK 10.3K

$36.55 MX$621

132.94%

Gym Membership (Monthly)

$99.0 ISK 12.0K

$61.0 MX$1,036

62.26%

Tennis Court (1 Hour on Weekend)

$50.3 ISK 6,100

$26.70 MX$453

88.54%

Cinema Ticket

$19.43 ISK 2,354

$6.85 MX$116

183.65%

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

$1,173 ISK 142.1K

$453 MX$7,700

158.68%

International Primary School, 1 Child (Yearly)

$31.2K ISK 3.8M

$13.4K MX$227.1K

133.71%

Jeans (Levis 501 Or Similar)

$161 ISK 19.5K

$75.0 MX$1,273

114.65%

Summer Dress (H&M, Zara, etc)

$65.1 ISK 7,890

$55.3 MX$939

17.76%

Sport Shoes (Adidas, Nike)

$183 ISK 22.2K

$114 MX$1,929

61.21%

Men's Leather Business Shoes

$249 ISK 30.2K

$123 MX$2,083

103.19%

1-bedroom Apartment, City Center (Monthly)

$2,506 ISK 303.7K

$1,134 MX$19.3K

121.08%

1-bedroom Apartment, Outside City Center (Monthly)

$2,092 ISK 253.5K

$712 MX$12.1K

193.75%

3-bedroom Apartment, City Center (Monthly)

$3,408 ISK 413.0K

$2,571 MX$43.7K

32.59%

3-bedroom Apartment, Outside City Center (Monthly)

$2,752 ISK 333.5K

$1,311 MX$22.3K

109.90%

Buy Apartment in City Center (m2)

$7,972 ISK 966.1K

$3,993 MX$67.8K

99.67%

Buy Apartment Outside City Center (m2)

$6,354 ISK 770.0K

$2,095 MX$35.6K

203.26%

Average Monthly Net Salary (After Tax)

$4,606 ISK 558.1K

$1,047 MX$17.8K

339.96%

20-Year Fixed Mortgage Interest Rate (Annual %)

8.88

11.3

-21.42%

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

Last update for Reykjavik: August 29, 2026

Last update for Mexico City: August 29, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,506 in Reykjavik and $1,134 in Mexico City. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 340% 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: $135 in Reykjavik vs $52.0 in Mexico City for a mid-range dinner for two. Groceries echo the gap at $625 vs $345 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 146% in total monthly costs ($4,048 vs $1,646 including rent). Mexico City is meaningfully more affordable – a gap that matters a lot on a fixed or modest income.

Average pay runs 340% 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: $2,506 in Reykjavik versus $1,134 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 330% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $1,173 in Reykjavik versus $453 in Mexico City. Over years of preschool, even a modest monthly gap compounds into a major financial factor for families.

At $1,646 in Mexico City versus $4,048 in Reykjavik, a $3,000 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 146% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.