Cost of Living in Iceland
Q: I’ve recently been offered a job in Iceland and have been looking into the cost of living, which is quite high compared to many other European countries. Is a salary of ISK 700,000 (USD 5,330, EUR 4,940) a month enough to cover the basics?
A: According to Iceland Statistics, the average wage in Iceland is ISK 415,000 (US 3,160 EUR 2,930) before tax per month, so the offer you received is well above that. Income tax is 37.3 percent for most people, but higher for the highest earners. For more on taxation, visit rsk.is.
The average rent for a one-bedroom apartment in Reykjavík is ISK 130,000 (USD 990, EUR 920) per month. This website offers information on the cost of renting an apartment. The figures show the price per square meter in various parts of the country.
A single person can expect to spend ISK 137,000 (USD 1,050, EUR 970) a month on food, clothes, medical services, recreation, transport, communication, and other services. For comparable figures for families check this website.
Here is the website of Statistics Iceland that shows average household expenditure.
Based on these figures, you can accept the job offer, knowing that you’ll have much more money to spare than the average person in Iceland.