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: $3,883 in Reykjavik versus $1,467 in Mexico City.

Estimated couple costs with rent: $5,535 in Reykjavik versus $2,371 in Mexico City.

Monthly costs for a family of three with rent: $7,188 in Reykjavik versus $3,274 in Mexico City.

Living in Reykjavik is roughly 165% more expensive than Mexico City, driven mainly by Groceries & Markets.

Both cities are pricier than the global median: Reykjavik 190% above, Mexico City 10% above.

Meal at Budget Restaurant

$27.17 ISK 3,346

$13.18 MX$228

106.15%

Three-Course Dinner for Two, Mid-Range

$144 ISK 17.7K

$53.9 MX$934

166.29%

Fast Food Meal (McDonalds, etc)

$22.42 ISK 2,761

$9.42 MX$163

138.00%

Cappuccino

$6.19 ISK 763

$3.55 MX$61.5

74.37%

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

$3.28 ISK 405

$1.62 MX$28.03

102.47%

Water (0.33 liter bottle)

$2.53 ISK 311

$1.11 MX$19.31

127.93%

Local Beer (0.5 liter draught)

$13.11 ISK 1,615

$3.12 MX$54.1

320.19%

Imported Beer (0.33 liter bottle)

$11.43 ISK 1,408

$4.63 MX$80.2

146.87%

Milk (1 liter)

$1.94 ISK 239

$1.70 MX$29.48

14.12%

White Bread (500g)

$4.29 ISK 528

$2.72 MX$47.10

57.72%

Rice (white) (1kg)

$3.72 ISK 458

$1.91 MX$33.13

94.76%

Eggs

$6.53 ISK 804

$2.54 MX$43.94

157.09%

Local Cheese (1kg)

$17.88 ISK 2,202

$10.03 MX$174

78.27%

Chicken Fillets (1kg)

$24.10 ISK 2,968

$8.09 MX$140

197.90%

Beef Round Steak (1kg)

$42.88 ISK 5,281

$11.62 MX$201

269.02%

Apples (1kg)

$3.35 ISK 412

$2.97 MX$51.4

12.79%

Banana (1kg)

$2.51 ISK 309

$1.81 MX$31.30

38.67%

Oranges (1kg)

$3.13 ISK 385

$2.01 MX$34.88

55.72%

Tomato (1kg)

$4.89 ISK 602

$2.03 MX$35.26

140.89%

Potato (1kg)

$3.71 ISK 457

$2.12 MX$36.82

75.00%

Onion (1kg)

$2.32 ISK 285

$2.27 MX$39.32

2.20%

Lettuce (1 head)

$3.07 ISK 378

$1.40 MX$24.26

119.29%

Water (1.5 liter bottle)

$1.99 ISK 246

$1.13 MX$19.59

76.11%

Cigarettes 20 Pack (Marlboro, Camel)

$13.85 ISK 1,705

$4.27 MX$74.0

224.36%

Wine (Bottle)

$23.47 ISK 2,891

$15.56 MX$270

50.84%

Local Beer (0.5 liter bottle)

$3.62 ISK 446

$1.76 MX$30.44

105.68%

Imported Beer (0.33 liter bottle)

$3.38 ISK 416

$3.60 MX$62.3

-6.11%

One-way Ticket (Public Transport)

$5.10 ISK 628

$0.38 MX$6.64

1242.11%

Public Transport Monthly Pass (Regular Price)

$85.4 ISK 10.5K

$19.18 MX$332

345.05%

Taxi Start (Normal Tariff)

$6.28 ISK 773

$1.38 MX$23.84

355.07%

Taxi (Normal Tariff) (1km)

$2.57 ISK 317

$0.28 MX$4.79

817.86%

Taxi 1hour Waiting (Normal Tariff)

$85.8 ISK 10.6K

$5.45 MX$94.4

1473.76%

Gasoline (1 liter)

$2.52 ISK 310

$1.30 MX$22.60

93.85%

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

$47.2K ISK 5.8M

$18.7K MX$323.8K

152.45%

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

$51.8K ISK 6.4M

$23.1K MX$400.8K

124.02%

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

$86.9 ISK 10.7K

$40.86 MX$708

112.56%

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

$26.94 ISK 3,317

$26.81 MX$465

0.48%

Internet (50+ Mbps, Unlimited Data)

$85.9 ISK 10.6K

$29.96 MX$519

186.78%

Gym Membership (Monthly)

$83.4 ISK 10.3K

$52.0 MX$901

60.36%

Tennis Court (1 Hour on Weekend)

$37.54 ISK 4,623

$26.84 MX$465

39.87%

Cinema Ticket

$17.53 ISK 2,159

$6.30 MX$109

178.25%

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

$321 ISK 39.5K

$436 MX$7,558

-26.45%

International Primary School, 1 Child (Yearly)

$30.2K ISK 3.7M

$10.4K MX$180.5K

189.55%

Jeans (Levis 501 Or Similar)

$140 ISK 17.2K

$56.7 MX$982

146.88%

Summer Dress (H&M, Zara, etc)

$60.6 ISK 7,456

$44.38 MX$769

36.44%

Sport Shoes (Adidas, Nike)

$181 ISK 22.3K

$103 MX$1,784

75.68%

Men's Leather Business Shoes

$263 ISK 32.4K

$106 MX$1,829

149.65%

1-bedroom Apartment, City Center (Monthly)

$2,175 ISK 267.8K

$1,022 MX$17.7K

112.81%

1-bedroom Apartment, Outside City Center (Monthly)

$2,023 ISK 249.2K

$631 MX$10.9K

220.72%

3-bedroom Apartment, City Center (Monthly)

$3,139 ISK 386.6K

$2,136 MX$37.0K

46.98%

3-bedroom Apartment, Outside City Center (Monthly)

$2,738 ISK 337.1K

$1,243 MX$21.5K

120.27%

Buy Apartment in City Center (m2)

$8,022 ISK 987.9K

$3,903 MX$67.6K

105.54%

Buy Apartment Outside City Center (m2)

$6,223 ISK 766.3K

$2,064 MX$35.8K

201.44%

Average Monthly Net Salary (After Tax)

$4,441 ISK 546.9K

$1,115 MX$19.3K

298.28%

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: May 30, 2026

Last update for Mexico City: May 31, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,175 in Reykjavik and $1,022 in Mexico City. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 298% 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: $144 in Reykjavik vs $54.0 in Mexico City for a mid-range dinner for two. Groceries echo the gap at $599 vs $288 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 165% in total monthly costs ($3,883 vs $1,467 including rent). Mexico City is meaningfully more affordable – a gap that matters a lot on a fixed or modest income.

Reykjavik pays 298% more on average, 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: $2,175 in Reykjavik versus $1,022 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 345% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $321 in Reykjavik versus $436 in Mexico City. Over years of preschool, even a modest monthly gap compounds into a major financial factor for families.

At $1,467 in Mexico City versus $3,883 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 165% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.