Enjoy Reykjavík on a Budget

Iceland is often labelled as an expensive destination, but visiting Reykjavík on a budget is possible. With a little planning, you can explore the city's rich culture, stunning nature, and unique attractions without breaking the bank. This handy guide will help you save money while making the most of your trip to Iceland’s gorgeous capital city.

1. Make the Most of the Reykjavík City Card

If you're looking to save money while exploring Reykjavík, the Reykjavík City Card is a game-changer with many benefits. It provides: Unlimited public transport within the city Free entrance to public swimming pools, including the popular Laugardalslaug Access to top museums, such as the National Museum of Iceland Discounts on various attractions, restaurants, and tourist shops Pro Tip: If you plan to visit multiple museums, take public transport, or go for a swim, the Reykjavík City Card pays for itself in just a day or two.

What Exactly is the Reykjavík City Card?

The Reykjavík City Card is a tourist pass designed to help travellers save money while experiencing the city’s museums, pools, public transport, and cultural attractions. It’s available for 24, 48, or 72 hours, making it flexible for different travel plans, whether you’re in the capital city for a day or longer. It’s an option worth considering.

How does it work?

Purchase your card at tourist information centres or online. Activate the card on your first use. Familiarise yourself with the benefits. Show your card at participating locations for free entry or discounts.

2. Explore Reykjavík on Foot (or by Bus)

Reykjavík is a small city, making it easy to explore without renting a car. Downtown Reykjavík is straightforward to navigate, and walking through the colourful streets is one of the best ways to experience its charm.

Join a Free Walking Tour

There are several walking tours available in Reykjavík that cater to different tastes. For instance, City Walk offers free walking tours covering Reykjavík’s history, street art, and quirky facts. While the tour is free, tipping the guide is encouraged if you enjoyed yourself.

Use Public Transportation

If you're travelling outside the city centre, Reykjavík's public bus system (Strætó) is an affordable way to get around. Again, the City Card gives you unlimited access. If you choose not to purchase a Reykjavík City Card, you can still pay the bus fare in cash or with a credit card. For more information about bus routes, timetables, and costs, download the Klappið app.

3. Visit Free & Budget-Friendly Attractions

Reykjavík has plenty of free or low-cost attractions, allowing you to see the city without spending a fortune. And there’s something for everyone whether it’s art, pools, or outdoor installations.

Free Things to Do in Reykjavík

• Take a stroll downtown - The most famous attractions and landmarks include Hallgrímskirkja Church, the Sun Voyager and Harpa Concert Hall.
• Hellisgerði - This urban park in Hafnafjörður is a perfect place to admire volcanic rock, caves and trees. The park also has a great playground and is within walking distance to downtown Hafnarfjöður City Area.
• Tjörnin Pond – Stroll around this picturesque lake, home to swans and ducks, right in the heart of the city. It’s a lovely spot any time of year.
• Heiðmörk - A natural reserve on the outskirts of reykjavík. Take a hike, walk or run around this green, open public space. It's the perfect place to spend the afternoon.
• Walk up to Grótta Lighthouse – Head to the tip of the Seltjarnarnes peninsula for a scenic walk with ocean views, birdlife, and even a small foot-soaking hot pool. It’s especially magical at sunset or when northern lights are out.
• Visit the Reykjavík Botanical Garden – Located in Laugardalur, this peaceful garden is perfect for a relaxing stroll among native and foreign plant species, especially during summer bloom.
• Hike to Rauðhólar (Red Hills) – These striking red volcanic pseudo-craters just east of the city are a short drive or bike ride away and offer a fascinating glimpse into Iceland’s volcanic past.
• Relax in Nauthólsvík Geothermal Beach – Dip your toes in the (slightly) warm sea, lounge in the golden sand, or enjoy the free hot tubs during the summer season.
• Climb Öskjuhlíð Hill and visit Perlan’s forest trails – Wander the wooded paths around Perlan for panoramic views over Reykjavík, perfect for a relaxing walk or quick hike.
• Attend a free event at Harpa Concert Hall – While shows usually cost, Harpa often hosts free cultural events, exhibitions, or public rehearsals—plus, the architecture alone is worth the visit.

Budget-Friendly Attractions

• Gerðasafn Art Museum - Gerðarsafn is a vibrant and progressive museum in the heart of Kópavogur, offering an exciting mix of modern and contemporary art from both Icelandic and international artists (free with the Reykjavík City Card).
• Volcano Express – Unlike pricey volcano tours, this affordable new attraction provides an immersive experience of Iceland’s volcanic history.
• Árbær Open Air Museum – A charming historical museum showcasing old Icelandic homes, wide open spaces, and a church (free with the Reykjavík City Card).
• Viðey Island—In the summertime, this is a perfect afternoon trip; take a ferry trip to experience unspoiled nature and Icelandic history. A trip to Viðey is also included in the Reykjavík City Card.

4. Experience Reykjavík’s Hot Springs & Pools

Iceland is famous for its hot springs, but the high-end lagoons and hot springs can be pricey. Instead, visit one of Reykjavík’s public geothermal pools for a more authentic and budget-friendly experience. 

Best Affordable Swimming Alternatives: 

• Laugardalslaug – Reykjavík’s largest public pool with multiple hot tubs and a sauna.
• Kópavogslaug – A spacious and family-friendly pool complex with multiple hot tubs, a steam bath, waterslides, and a stunning view over the capital area—perfect for relaxing or splashing around.
• Dalslaug – One of Reykjavík’s newest and sleekest geothermal pools, nestled in a quiet valley with modern facilities, soothing hot tubs, and a tranquil vibe that’s ideal for unwinding.
• Lágafellslaug – A favourite in Mosfellsbær, this pool offers a fantastic mix of fun and relaxation with great slides for kids, cosy hot pots, and beautiful mountain views in the background.

Pro Tip: Public pools in Reykjavík cost only a few dollars, and many of them are included with the Reykjavík City Card.

5. Eat & Drink on a Budget

Food in Reykjavík can be expensive, but with a few wise choices, you can eat well without overspending—whether you’re grabbing a quick bite or preparing your own meals.

Supermarkets & Self-Catering: Shop at Bónus and Krónan, Iceland’s most affordable supermarkets, where you’ll find ready-made meals, sandwiches, and snacks.

Pro tip: Tap water in Iceland is pure, safe, and free everywhere. You can just bring a reusable bottle instead of buying bottled water.

6. Watch the Northern Lights for Free

Seeing the northern lights in Reykjavík is a highlight for many visiting Iceland. The northern lights can be seen from mid-August to the end of April. Watching the lights dance in the dark skies is a breathtaking experience. And it doesn’t have to cost a thing. Instead of booking an expensive tour, simply head to these dark-sky locations: 

• Grótta Lighthouse – Just minutes from downtown Reykjavik, this is one of the best spots for aurora viewing as it’s in a remote spot.
• Hvaleyravatn in Hafnafjörður is a fantastic location to see the northern lights, as it is away from the city lights. 

Reykjavík doesn’t have to be expensive—with the proper planning, you can enjoy Iceland’s capital on a budget. Happy travels!