Last update: Oct 2026

Cost of Living Comparison Between Reykjavik and Palermo

For one person, living is cheaper in Palermo: $1,303 a month against $4,002 in Reykjavik, rent and utilities included – about $32,400 less a year. Rent and utilities account for most of the difference.

193

Cost of Living Index in Reykjavik
Learn more

Reykjavik Living Index
61

Cost of Living Index in Palermo
Learn more

Palermo Living Index

Jump to prices

Reykjavik

🇮🇸 Iceland

$4,002

/mo nomad

Palermo

🇦🇷 Argentina

$1,303

/mo nomad

Monthly Cost of Living

How much you'll spend in Reykjavik and in Palermo

Real prices from locals and on-the-ground checks – rent, groceries, transit and the daily extras. Here's what a month in Reykjavik and in Palermo actually costs, broken down by who's living it.

A single person spends $4,002 per month in Reykjavik vs $1,303 in Palermo, rent included.

Reykjavik $4,002
Palermo $1,303

A couple spends around $5,705 per month in Reykjavik vs $2,186 in Palermo, rent included.

Reykjavik $5,705
Palermo $2,186

A family of three spends $7,407 per month in Reykjavik vs $3,068 in Palermo, rent included.

Reykjavik $7,407
Palermo $3,068

Reykjavik costs about 207% more than Palermo, and outside of rent the biggest gap is in groceries.

Reykjavik sits 196% above the global median, while Palermo is 3% below – they fall on opposite sides of the world average.

Meal at Budget Restaurant

$31.56 ISK 3,828

$16.14 ARS 24.5K

95.54%

Three-Course Dinner for Two, Mid-Range

$122 ISK 14.8K

$56.3 ARS 85.5K

117.16%

Fast Food Meal (McDonalds, etc)

$26.86 ISK 3,258

$12.93 ARS 19.6K

107.73%

Cappuccino

$6.81 ISK 827

$3.84 ARS 5,822

77.34%

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

$3.39 ISK 411

$2.27 ARS 3,438

49.34%

Water (0.33 liter bottle)

$3.20 ISK 388

$1.95 ARS 2,965

64.10%

Local Beer (0.5 liter draught)

$14.14 ISK 1,715

$4.03 ARS 6,120

250.87%

Imported Beer (0.33 liter bottle)

$12.31 ISK 1,493

$4.05 ARS 6,141

203.95%

Milk (1 liter)

$2.10 ISK 255

$1.33 ARS 2,019

57.89%

White Bread (500g)

$4.19 ISK 508

$2.27 ARS 3,444

84.58%

Rice (white) (1kg)

$3.72 ISK 451

$1.82 ARS 2,759

104.40%

Eggs

$7.05 ISK 856

$2.74 ARS 4,162

157.30%

Local Cheese (1kg)

$21.56 ISK 2,615

$10.61 ARS 16.1K

103.20%

Chicken Fillets (1kg)

$24.68 ISK 2,993

$7.88 ARS 12.0K

213.20%

Beef Round Steak (1kg)

$42.19 ISK 5,117

$11.81 ARS 17.9K

257.24%

Apples (1kg)

$3.23 ISK 392

$2.75 ARS 4,180

17.45%

Banana (1kg)

$2.73 ISK 331

$2.27 ARS 3,446

20.26%

Oranges (1kg)

$3.17 ISK 384

$1.57 ARS 2,389

101.91%

Tomato (1kg)

$6.61 ISK 802

$2.59 ARS 3,935

155.21%

Potato (1kg)

$3.85 ISK 467

$1.10 ARS 1,671

250.00%

Onion (1kg)

$1.66 ISK 201

$0.98 ARS 1,485

69.39%

Lettuce (1 head)

$3.80 ISK 461

Water (1.5 liter bottle)

$1.75 ISK 212

$1.78 ARS 2,694

-1.69%

Cigarettes 20 Pack (Marlboro, Camel)

$13.71 ISK 1,662

$3.79 ARS 5,756

261.74%

Wine (Bottle)

$24.21 ISK 2,937

$4.89 ARS 7,418

395.09%

Local Beer (0.5 liter bottle)

$3.53 ISK 428

$2.13 ARS 3,238

65.73%

Imported Beer (0.33 liter bottle)

$3.32 ISK 402

$3.80 ARS 5,768

-12.63%

One-way Ticket (Public Transport)

$5.75 ISK 697

$0.98 ARS 1,494

486.73%

Public Transport Monthly Pass (Regular Price)

$93.8 ISK 11.4K

Taxi Start (Normal Tariff)

$6.61 ISK 802

$1.52 ARS 2,301

334.87%

Taxi (Normal Tariff) (1km)

$2.90 ISK 352

$0.83 ARS 1,262

249.40%

Taxi 1hour Waiting (Normal Tariff)

$79.2 ISK 9,602

$10.07 ARS 15.3K

686.10%

Gasoline (1 liter)

$2.09 ISK 253

$1.24 ARS 1,877

68.55%

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

$51.0K ISK 6.2M

$24.5K ARS 37.1M

108.47%

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

$53.3K ISK 6.5M

$34.1K ARS 51.7M

56.36%

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

$95.3 ISK 11.6K

$126 ARS 191.2K

-24.39%

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

$32.35 ISK 3,923

$17.38 ARS 26.4K

86.13%

Internet (50+ Mbps, Unlimited Data)

$87.5 ISK 10.6K

$25.86 ARS 39.2K

238.52%

Gym Membership (Monthly)

$102 ISK 12.4K

$31.12 ARS 47.2K

227.31%

Tennis Court (1 Hour on Weekend)

$50.1 ISK 6,074

Cinema Ticket

$19.88 ISK 2,412

$9.51 ARS 14.4K

109.04%

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

$1,194 ISK 144.8K

$262 ARS 398.2K

355.01%

International Primary School, 1 Child (Yearly)

$25.4K ISK 3.1M

Jeans (Levis 501 Or Similar)

$149 ISK 18.1K

$108 ARS 163.6K

38.26%

Summer Dress (H&M, Zara, etc)

$66.6 ISK 8,080

$69.3 ARS 105.2K

-3.87%

Sport Shoes (Adidas, Nike)

$180 ISK 21.8K

$116 ARS 176.2K

54.92%

Men's Leather Business Shoes

$253 ISK 30.7K

$126 ARS 191.0K

101.18%

1-bedroom Apartment, City Center (Monthly)

$2,549 ISK 309.2K

$509 ARS 772.0K

401.07%

1-bedroom Apartment, Outside City Center (Monthly)

$2,056 ISK 249.4K

$364 ARS 552.7K

464.46%

3-bedroom Apartment, City Center (Monthly)

$3,498 ISK 424.2K

$1,085 ARS 1.6M

222.47%

3-bedroom Apartment, Outside City Center (Monthly)

$2,764 ISK 335.2K

$931 ARS 1.4M

196.85%

Buy Apartment in City Center (m2)

$8,120 ISK 984.9K

Buy Apartment Outside City Center (m2)

$6,254 ISK 758.5K

Average Monthly Net Salary (After Tax)

$4,573 ISK 554.6K

20-Year Fixed Mortgage Interest Rate (Annual %)

8.81

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

Last update for Reykjavik: October 12, 2026

Last update for Palermo: October 12, 2026

Monthly budget structure

Share of the monthly basket for one person, rent included.

Accommodation & Living

Reykjavik

$2.1K 51.4%

Palermo

$364 28% 82.3% $1.7K

Groceries & Markets

Reykjavik

$623 15.6%

Palermo

$262 * 20.1% 57.9% $360

Eating Out

Reykjavik

$536 13.4%

Palermo

$259 19.9% 51.7% $277

Clothing & Footwear

Reykjavik

$292 7.3%

Palermo

$189 14.5% 35.4% $103

Monthly Utilities & Internet

Reykjavik

$215 5.4%

Palermo

$169 13% 21.3% $46

Sport & Entertainment

Reykjavik

$142 3.5%

Palermo

$50 3.9% 64.6% $91

Getting Around

Reykjavik

$138 3.5%

Palermo

$9.6 * 0.7% 93% $128

Categories marked with * are only partly priced – their share counts the items that do have prices.

Cost Breakdown

A central one-bedroom costs $2,549 in Reykjavik versus $509 in Palermo. Rent is usually the largest line item in a monthly budget, so the gap here sets the tone for the overall comparison.

A mid-range dinner for two costs $122 in Reykjavik versus $56.0 in Palermo. Monthly groceries follow the same trend: $623 vs $262 – making Palermo the more affordable choice for daily food spending.

Good to know

🇮🇸 Reykjavik

🇦🇷 Palermo

🕒 Local time

01:28 1:28 AM

22:28 10:28 PM

3 h behind Reykjavik

🌤 Weather

👥 Population

136,894 Capital

57,000

💱 Currency

Icelandic Króna ISK kr

Argentine Peso ARS $

📈 Exchange rate

1,000 ISK = 8.24 USD

1,000 ISK = 7.33 EUR

10,000 ARS = 6.59 USD

10,000 ARS = 5.86 EUR

Exchange rates and currency converter

ARS, USD, EUR to ISK – Icelandic Króna Converter

🇺🇸 United States Dollar ($)

🇮🇸 Icelandic Króna (kr)

Icelandic Króna exchange rates as of October 19, 2026: 1 USD = 121 ISK (1,000 ISK = 8.24 USD). 1 EUR = 136 ISK (1,000 ISK = 7.33 EUR).

Argentine Peso exchange rates as of October 19, 2026: 1 USD = 1,517 ARS (10,000 ARS = 6.59 USD). 1 EUR = 1,706 ARS (10,000 ARS = 5.86 EUR).

USD to ISK in detail →

On the map

Lowest

Highest

Between locations

Reykjavik Palermo 11,430 km ≈ 15 h nonstop flight

From you

Reykjavik
Palermo

Distances are measured in a straight line. Your location is detected approximately.

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 Palermo: Cost of Living - Frequently Asked Questions

Reykjavik costs about 207% more than Palermo, and outside of rent the gap comes mainly from groceries. That's enough to noticeably affect everyday spending and lifestyle for anyone choosing between the two.

For a comfortable life, plan on about $6,003 per month in Reykjavik and $1,955 in Palermo. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Rent is clearly cheaper in Palermo, especially for central apartments. Housing is actually the single biggest factor behind the overall cost gap between these two cities.

Monthly expenses with rent come to $4,002 in Reykjavik and $1,303 in Palermo. That's a gap of about 207%.

Kindergarten costs $1,194 per month in Reykjavik and $262 in Palermo. For families with young kids, this one expense can tip the scales when choosing between the two cities.

A $1,000 monthly budget goes further in Palermo, where all-in costs run around $1,303, than in Reykjavik at $4,002. In Palermo it covers expenses comfortably, while in Reykjavik it requires careful planning or may not stretch far enough.

For digital nomads, it depends on budget. Palermo costs $1,303 versus $4,002 in Reykjavik. Both have workable remote work infrastructure, but the cost gap matters when income varies month to month.

Both have safer and rougher neighborhoods, but overall safety is comparable to other large cities. Neighborhood choice matters more than the city-level comparison – central, well-trafficked areas feel secure in both.

If budget matters most, go with Palermo. If higher salaries, better infrastructure, or specific career opportunities are the priority, Reykjavik makes more sense. Both are solid long-term options with distinct trade-offs.