Cost of living · Europe · Eurostat HICP 2023
🇮🇸 Cost of living in Iceland
Iceland runs pricier than most of the EU-27 across rent, groceries and transport - see where the gap is widest and how far local income actually stretches.
- Cost index (EU-27=100)
- 153
- Rent index
- 120
- Median net income
- €36,500
- Cost-adjusted income
- €23,856
Iceland sits at 153 on the 0-200 scale shown above.
Key takeaways
- Overall cost of living is 53% above the EU-27 average (index 153, EU-27 = 100).
- Most expensive category: restaurants at index 158.
- Cheapest category: utilities at index 95.
- A typical income of €36,500 is worth about €23,856 in EU-average purchasing power.
Cost by category in Iceland
Iceland - price level by category (EU-27 = 100)
In Iceland, restaurants is the most expensive category and utilities the least.
What the Iceland cost-of-living data shows
Iceland's overall consumer price level is 53% above the EU-27 average. (How this index is built →)
Eating out is where Iceland really outpaces the EU average: restaurants top the category chart at index 158, ahead of utilities at index 95.
That price gap bites hard into real purchasing power here: Iceland's prices run well above the EU average, so the headline income of €36,500 is worth only about €23,856 once translated into EU-27-average terms - a steep discount.
Countries with a similar cost of living
Frequently asked questions
Is Iceland expensive to live in?▼
Iceland's overall cost of living is 53% above the EU-27 average (index 153). Restaurants is the priciest category and utilities the cheapest.
What does it cost to rent in Iceland?▼
Iceland's rent and housing price index is 120, above the EU norm.
How does income compare to costs in Iceland?▼
That price gap bites hard into real purchasing power here: Iceland's prices run well above the EU average, so the headline income of €36,500 is worth only about €23,856 once translated into EU-27-average terms - a steep discount.
Source: Eurostat, Harmonised Index of Consumer Prices (HICP) and comparative price levels Eurostat, Harmonised Index of Consumer Prices (HICP) and comparative price levels Price-level indices, EU-27 = 100, 2023. Income: Eurostat/OECD median equivalised net income.
Important: these figures are official Eurostat averages for general information and comparison, they are not personal financial advice. Your own cost of living depends on your city, housing and lifestyle, so treat this as a starting point and check current local prices before making any relocation or budget decision.
Read our methodology - how these indices are sourced and computed.