Practical travel information on Money and costs in Iceland

Money & costs

Contents

Costs
Money

Costs

Tipping

As service and VAT are always included in prices, tipping isn’t required in Iceland.

Money

Icelandic VAT is included in the prices of goods. However, if you spend over Ikr4000 in a shop offering ‘Iceland Tax-Free Shopping’, you can claim back up to 15%. Shop staff will give you a tax-refund form: hand it in at the tourist office, the airport or the ferry terminal for a rebate. If you spend over Ikr40, 000, take your forms and goods to customs before checking in.

Also see for general information about using your debit cards and ATMs abroad.

^ Back to top

ATMs

You can draw cash from any bank using MasterCard or Visa; and from Íslandsbanki using Diners Club. Exchange rates for ATM cards are usually good.

^ Back to top

Credit cards

MasterCard and Visa are accepted everywhere; Diners Club and American Express are less commonly used. Icelanders use cards for grocery shopping and other small purchases.

^ Back to top

Moneychangers

Travellers cheques in foreign denominations, postal cheques and banknotes may be exchanged for Icelandic currency at banks for a small commission (commission-free at Landsbanki Íslands). Beware of using other exchange offices; commissions can reach 8.75% and exchange rates are lower. Any leftover krónur may be exchanged for foreign currency before departure.

^ Back to top