Iceland is an island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom. The climate is temperate, moderated by the North Atlantic Current, with mild, windy winters and damp, cool summers. 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. Icelanders are generally non-confrontational, preferring to reach decisions through consensus, which may entail lengthy discussion. An Icelander's surname is their father's name, followed by 'son' or 'dottir', respectively. The telephone directory is listed by first name. Expatriate business dress is usually fashionable and conservative. The security risk for expatriates in Iceland is low. The largest risk for expatriates are the extreme climatic conditions. The currency of Iceland is the Iceland Krona (ISK). Credit cards are widely used. Icelandic Kronur are available through banks and cash machines in Iceland. Some banks may require advance notice before allowing debit or credit cards to be used in Iceland. The standard of healthcare in Iceland is good, however costs of treatment for expatriates from outside the EU can be high. The population of Iceland is 348,600 (2019 est.), while the inflation rate (CPI) is 2.8% for Iceland as at October 2019. Xpatulator Hypothetical Tax for Iceland is based on the current personal income tax rates which are a combination of progressive National tax (22.50% and 31.80%) and Municipal tax (13.7% - 14.52%) with a total progressive of between 36.94% and 46.24%. Within Iceland we also cover Reykjavik.
Cost Of Living
The cost of living for expatriates / professional migrants in We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Iceland is as follows: Iceland as at 1 November 2019 is very high in comparison to other places in the world. 1) Alcohol and/or Tobacco: for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1000 in New York costs USD$1010. Average price in a store for a midrange bottle of wine is USD$19.96, domestic/local beer (500ml) USD$2.70, imported/international beer (330ml) USD$2.72 and a pack of 20 cigarettes is USD$11.10. 2) Clothing: for items such as business, casual and children's clothing and footwear. A basket costing USD$1000 in New York costs USD$1250. Average price for an international brand of mens jeans is USD$113, a quality international brand of running shoes USD$144, mens leather shoes suitable for office wear USD$190 while a medium size international summer dress from a global chain store is USD$52. 3) Communication: for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$228. Average price for a monthly standard plan internet subscription is USD$67, while the benchmark mobile tariff is USD$0.17 per minute. 4) Education: for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30000 in New York costs USD$25500. Average annual private international school fee (excluding extras) USD$16,524 for Primary School, and USD$18,388 for High School. 5) Furniture & Appliances: for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2500 in New York costs USD$1800. Average price for a 6kg front loader Washing Machine is USD$656, and USD$563 for a 46+'' LED UHD TV. 6) Groceries: for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1000 in New York costs USD$810. Average grocery prices in a major international retail store for 1 kg apples is USD$2.37, 1 kg oranges USD$2.43, 1 head lettuce USD$2.30, 1 kg potatos USD$2.18, 1 kg boneless, skinless, chicken breast USD$15.54, 1 kg cheddar cheese USD$13.16, 1 dozen large eggs USD$4.94, 500g loaf white bread USD$2.71, 1 L full cream milk USD$1.25, and 1.5 L water USD$1.74. 7) Healthcare: for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1000 in New York costs USD$640. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$52, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$1,603. 8) Household Accommodation: for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5000 in New York costs USD$3100. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$3,211 in a central location, and USD$2,174 in a suburban location, per month, excluding utilities. 9) Miscellaneous: for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$525. Average price for dry cleaning (1 mens 2 pc suit) is USD$10.19, while an international newspaper is USD$3.14. 10) Personal Care: for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$310. Average cost for a mens haircut and blow dry is USD$25, while a womens hair colour, cut and blow dry - medium length is USD$125. 11) Recreation & Culture: for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$500. Average price for a latest release international cinema ticket (average of on and off peak where applicable) for one adult is USD$12.38, and an international fitness, recreation or sports club membership cost for one adult is USD$60 per month. 12) Restaurants Meals Out and Hotels: for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1000 in New York costs USD$960. Average cappuccino price (regular, medium) is USD$4.41, coke/pepsi (330ml) USD$2.44, burger meal (international franchise or similar) USD$12.60, and a mid-range international restaurant meal for 2 USD$99.80. 13) Transport: for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1000 in New York costs USD$1320. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$1.78, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$28,363. Iceland is 8.9% more expensive than USA for groceries, 16.4% more expensive for household costs than UK, and 234.4% more expensive for transport costs than India. The hardship premium for Iceland for an expat from Australia, is for example 20%, i.e. host location (Iceland) premium of 30% minus home (Australia) location premium of 10%. Iceland is ranked as a high degree of hardship location. Want to know more about cost of living, hardship (quality of living) or expat salary in Iceland? Register subscribe to your home location and Iceland and run your personalised reports.