Reykjavík is the capital and largest city of Iceland. Reykjavík is the only metropolitan area in Iceland. As a highly modernized capital of one of the most developed countries in the world, its inhabitants enjoy a first-class welfare system and city infrastructure. Iceland is an island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom. Temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers. Mostly plateau interspersed with mountain peaks, ice fields; coast deeply indented by bays and fiords. The official language is Icelandic. Most people, particularly the younger generation, also speak English and Danish. The main religion is Christianity. The economy of Iceland is a small mixed economy with high levels of free trade and government intervention and subject to high volatility. The security risk for expatriates in Iceland is low. The largest risk for expatriates are the extreme climatic conditions. The population in Reykjavik is 0.202 Mil (2014 est.), while the inflation rate is 2.4% (2014 est.).
Cost Of Living
The cost of living for expatriates in Reykjavik as at 1 October 2015 is very high in comparison to other places in the world. In Reykjavik, the cost of each basket, based on local prices, compared to the international average in USD, is categorized follows: 1) Alcohol (where available) & Tobacco: Very High 2) Clothing: Very High 3) Communication: Low 4) Education: Average 5) Furniture & Appliances: Average 6) Groceries: Very High 7) Healthcare: Average 8) Household Accommodation: High 9) Miscellaneous: Very High 10) Personal Care: Very High 11) Recreation & Culture: Very High 12) Restaurants Meals Out and Hotels: Very High 13) Transport: Very High Reykjavik is for example 28.1% more expensive than Montevideo for groceries, 7.7% more expensive for household costs than Durban, and 53.7% more expensive for transport costs than Athens. Reykjavik is ranked as a high degree of hardship location. Hardship (also know as quality of living) refers to the degree of hardship an expatriate and their family are likely to experience in the host location. Hardship pay is compensation to encourage people to move, in particular to less desirable locations. In determining the amount of hardship premium payable, factors such as economic, political, religious, infrastructure, environment/climate, personal safety, health, education, and transportation factors are considered. The hardship premium for Reykjavik for an expat from Zurich is for example 20%, i.e. host location (Reykjavik) premium of 30% minus home (Zurich) location premium of 10%. Xpatulator.com has been created to assist subscribers calculate expatriate pay using the online calculators and extensive database of cost of living and hardship indexes, for 780 international locations. Want to know more about cost of living, hardship or expat pay in Reykjavik? Register subscribe to your home location and Reykjavik and run your personalised reports.