Iceland Holidays Guide: Regions, Costs and When to Go

Iceland is an island of 396,500 people in the North Atlantic, just south of the Arctic Circle, and planning a trip here starts with two decisions: which season, and whether you hire a car. Iceland uses the króna (ISK), not the euro, runs almost entirely on renewable energy, has no army and no railway, and is genuinely expensive. This guide covers the eight regions, how to get there and around, what to eat, when to go, what things cost and what to pack.

Iceland is the least densely populated country in Europe, a member of the European Economic Area and of NATO, and one of the few countries in the world with no standing army. The nickname is the Land of Fire and Ice, and it is literal: volcanoes under glaciers, geothermal water in the taps, and a coastline you drive round in a week.

Iceland at a glance

The facts most trip planning starts from are set out below.

Two of those have practical consequences. If your devices do not take type C or F plugs, bring a universal adapter. And because the cold tap runs straight off springs, a reusable water bottle will save you real money in a country where bottled water is priced like everything else. The hot tap is geothermal and smells faintly of sulphur, which is normal.

Want more of the country in one place? Our post on facts about Iceland runs to 45 of them.

The eight regions of Iceland

Reykjavík and the south coast take most of the visitors, and the other six regions are why you come back. They are set out below, clockwise from the capital.

1. Capital Region

The Capital Region is the southwest corner containing Reykjavík and its neighbouring municipalities, and it holds nearly two-thirds of everyone in Iceland. Reykjavík is where almost every tour in the country departs from, and where the museums are.

Hallgrímskirkja is the landmark, an expressionist church that took 41 years to build and holds a 15 m (49 ft) organ. The National Museum and Harpa concert hall between them cover the past and the present. Our guide to Reykjavík lists 24 things to do and marks which ones are free.

2. Southern Peninsula (Reykjanes)

The Reykjanes peninsula is where you land, since Keflavík Airport is on it, and it has been volcanically active since 2021. Eruptions at Sundhnúkagígar have closed roads at short notice, the town of Grindavík was evacuated in November 2023 and remains largely uninhabited, and evacuation protocols for the town and the Blue Lagoon stay in force even during quiet periods. Check the Icelandic Met Office before you plan anything here.

What is on it: the Blue Lagoon, now advance-booking only with timed entry and no walk-ins; the Gunnuhver geothermal field of mud pools and steam vents; the Bridge Between Continents; the Museum of Rock ‘n’ Roll and Viking World at Reykjanesbær. The peninsula is a UNESCO Global Geopark.

3. Western Region

The Western Region is the nearest properly wild part of the country to Reykjavík, and it holds the Snæfellsnes peninsula, often called Iceland in miniature. Grábrók is a 170 m (558 ft) volcanic crater with a staircase to the rim, and Víðgelmir is one of the largest lava tubes in the country, visited on a guided walk.

Hraunfossar is the waterfall to see: not a single drop but a kilometre of water seeping out of the edge of a lava field into the river, with the churning Barnafoss two minutes upstream. Stykkishólmur, on Snæfellsnes, is the town to sleep in.

4. Westfjords

The Westfjords are the remotest inhabited part of Iceland and the region fewest visitors reach, which is the whole argument for going. Dynjandi is the waterfall, a 100 m (328 ft) fan of white water in a series of steps, and Bolafjall above Bolungarvík gives you one of the great viewpoints in the country from a road you can drive up.

The Westfjords are also where to see puffins in Iceland, at Látrabjarg, the largest bird cliff in Europe, where the birds are not hunted and colonies nest within a few metres of the path in summer. Roads here are long, largely gravel and largely shut in winter.

5. Northwestern Region

The Northwestern Region is farming country with a coastline, and its largest town, Sauðárkrókur, has about 3,000 people. Kolugljúfur is the set piece, a narrow ravine with the Kolufossar waterfalls dropping into it, reached on a short walk from the road.

The Icelandic Seal Center at Hvammstangi runs the seal-watching on the Vatnsnes peninsula, where Hvítserkur, a sea stack that looks like a drinking animal, stands offshore. Grettislaug, a stone-built geothermal pool on the coast at Reykir, stays warm year round and is named for an outlaw from the sagas.

6. Northeastern Region

The Northeastern Region holds Akureyri, Iceland’s second city, and the string of sights that make up the Diamond Circle. Dettifoss is the most powerful waterfall in Europe by volume of water, and it is deliberately undeveloped: there are no platforms on the eastern side, just rock and spray.

Goðafoss, the horseshoe waterfall, is beside Route 1. Ásbyrgi, a horseshoe-shaped canyon in what is now Vatnajökull National Park, is the other. Guides written before 2008 call this area Jökulsárgljúfur National Park; it was merged into Vatnajökull National Park that year. Lake Mývatn, with its pseudocraters, lava formations and nature baths, is the region’s centre.

7. Eastern Region

The Eastern Region is the furthest from Reykjavík and the least visited part of the ring road, which is precisely its appeal. The East Fjords are a series of deep inlets with small fishing villages at the head of each, and driving them is slow, empty and among the finest roads in the country.

Hengifoss, the third highest waterfall in Iceland, falls against a cliff striped with red clay layers between basalt, and you will often have it to yourself. Seyðisfjörður, where the ferry from Denmark arrives, has the rainbow street and the blue church.

8. Southern Region

The Southern Region is the largest and the one most visitors see, because the Golden Circle and the south coast are both in it. The Golden Circle runs Þingvellir, Geysir and Gullfoss in a 300 km (186.4 mi) loop from Reykjavík, and the south coast continues east past Seljalandsfoss, Skógafoss, Reynisfjara, Vík, Skaftafell and Jökulsárlón.

Reynisfjara, the black beach at Vík, is dangerous. Sneaker waves there have killed visitors and there is now a warning light and flag system at the entrance. Read it, stay well back and never turn your back on the sea.

We put all of this into a one-week road trip in Iceland in winter, and the towns worth sleeping in are covered in our guide to destinations in Iceland.

How to travel to Iceland

Entry requirements

Iceland is in the Schengen Area, so EU and EEA citizens enter freely and US, Canadian, UK, Australian and most other passport holders can stay up to 90 days without a visa. Your passport should be valid for at least three months beyond your intended departure.

By plane

Flying is how almost everyone arrives, into Keflavík International Airport, about 50 km (31.1 mi) southwest of Reykjavík. Dozens of airlines fly direct from across Europe and North America, and Iceland’s position in the middle makes it a common stopover on transatlantic routes, which is why so many people see it on a two-day layover. Compare flight options and prices to Iceland across airlines before fixing your dates.

Airport coaches run to Reykjavík in time with arriving flights and take 45 to 50 minutes.

By ferry

The Smyril Line runs a car ferry from Hirtshals in Denmark via Tórshavn in the Faroe Islands to Seyðisfjörður in eastern Iceland. It sails weekly from spring to autumn and less often the rest of the year, and the crossing takes two to three days. It is a plan for people who want to bring their own vehicle, not a shortcut.

How to travel around Iceland

There is no railway in Iceland. That single fact shapes every trip here: you drive, you take a bus, or you fly domestically.

Most visitors hire a car and drive, because the stops that make Iceland worth the airfare are between the towns rather than in them. Look at rental car options and prices as soon as your dates are fixed, because Icelandic fleets are small and summer sells out. Get a 4×4 unless you are certain you will stay on Route 1 in summer, and understand the insurance before you sign: gravel damage and sand and ash damage are separate covers here for good reason. Our guide to driving in Iceland in winter goes through all of it.

Without a car, Strætó runs scheduled buses between the larger towns and there are hop-on hop-off tourist services along the popular routes. Domestic flights link Reykjavík’s city airport with Akureyri, Egilsstaðir and Ísafjörður in well under an hour, which is worth it if your time is short and your destination is far.

What to pack for Iceland

Iceland is cold whenever you go, and it is the wind that does it rather than the temperature. Summer highs rarely pass 16°C (61°F), you can find snow in June at altitude, and you will spend most of your time outdoors. Layers, a properly waterproof and windproof shell, and boots with grip cover most of it.

For summer: layers, a packable warm jacket, a waterproof shell, hiking boots, trainers, sunglasses, sunscreen, a reusable water bottle, a warm scarf and something to sleep in the light with, because in June and July it never gets dark.

For winter: everything above plus thermal base layers, waterproof trousers for the waterfall spray, and microspikes, which turn an iced-over path from a hazard into a walk and are the single most useful thing in the bag. We have a full list in our guide to what to pack for Iceland in winter.

The best time to visit Iceland

May to September is the season for weather, roads and daylight; September to April is the season for the northern lights. They barely overlap, so the honest answer is that you choose one.

Summer gives you the midnight sun, which means around 24 hours of usable light near the solstice, every road and mountain track open, all the ferries and museums running full hours, and puffins on the cliffs from roughly April to August. It also gives you the crowds and the highest prices.

Winter gives you the aurora, ice caves, which only exist and are only safe from about November to March, and a country with far fewer people in it. The cost is daylight: four to five hours a day in late December, and driving conditions that are a subject in their own right.

For the northern lights specifically, February, March, September and October are the sweet spot: long enough nights for darkness, without the worst of midwinter’s weather.

What to eat in Iceland

Icelandic food comes from a place with no grain, little fuel and a lot of sheep and fish, and that history is still on the menu. The dishes worth seeking out are below.

• Skyr: thick, high-protein and legally a cheese rather than a yoghurt, though it tastes like one.
• Kjötsúpa: lamb and vegetable soup, the everyday winter dish, and the thing to order when you are cold.
• Pylsa: the Icelandic hot dog, mostly lamb, ordered ein með öllu, with ketchup, sweet mustard, raw and fried onion and remoulade.
• Slow-roasted lamb: Icelandic sheep graze free on highland pasture, which is what makes the meat taste of something.
• Harðfiskur: wind-dried haddock or cod, torn and eaten with butter. The national snack and a good thing to have in the car.
• Rúgbrauð: dark rye bread baked underground by geothermal heat, sweet and dense, eaten with butter and smoked lamb.
• Hákarl: fermented Greenland shark, cured for months because it is toxic fresh. Eaten at midwinter feasts, not daily.
• Brennivín: caraway schnapps, literally “burning wine”, nicknamed svarti dauði. The chaser for hákarl.
• Svið: a singed sheep’s head, served whole. A traditional dish rather than a dare.
• Hrútspungar: pressed ram’s testicles set in whey jelly, from the same midwinter table.

More in our guide to typical Icelandic food.

Festivals and public holidays

Iceland’s calendar is worth timing a trip around, and the main events are listed below in the order they fall.

1. Þorrablót (January or February): the midwinter feast, and the one occasion when hákarl, svið and hrútspungar are actually eaten.
2. Reykjavík Arts Festival (May and June): visual art, music, design and literature across the city.
3. Independence Day (17 June): parades and street celebrations for the founding of the republic.
4. Summer solstice (around 21 June): the day the sun does not set.
5. Þjóðhátíð í Eyjum (August): the Westman Islands festival, the largest outdoor event in the country.
6. Reykjavík Pride (August).
7. Menningarnótt, Culture Night (August): art, music and theatre across Reykjavík, ending with fireworks.
8. Reykjavík International Film Festival (September or October).

Public holidays are New Year’s Day, Maundy Thursday, Good Friday, Easter Monday, the First Day of Summer on the first Thursday after 18 April, Labour Day on 1 May, Ascension Day, Whit Monday, Independence Day on 17 June, Commerce Day on the first Monday in August, Christmas Day and Boxing Day, with Christmas Eve and New Year’s Eve treated as half-days from midday. Most of the Easter dates move with the calendar, so check them against the year you are travelling.

Money, cards and tipping in Iceland

Iceland uses the Icelandic króna, ISK, and not the euro. In September 2026 the European Central Bank’s reference rate put €1 at about 140 ISK, which makes 1,000 ISK roughly €7, $8 or £6. Learning that conversion is the most useful thing you can do before landing, because Iceland is expensive and the numbers on the price tags are large.

You will barely touch cash. Cards are taken everywhere, including in swimming pools, on buses, at car parks and at unattended rural fuel pumps. Bring a card with a PIN, because the fuel pumps are PIN-only and that is the one place a signature-only card leaves you stranded.

Tipping is not expected. Service is included in the bill. Nobody will object if you round up for something exceptional, and nobody expects it. Our guide to tipping in Iceland has the detail.

Phones, data and WiFi in Iceland

Iceland is in the EEA, so EU roaming rules apply here. An EU or EEA SIM works at domestic rates for calls, texts and data within your plan’s fair-use limit, and no surcharge applies until you pass it.

That leaves two cases where an eSIM is worth buying: if you are travelling from outside Europe, where roaming rates on an Icelandic network are punishing, or if you expect to run through your fair-use allowance on maps, weather and road conditions, which is easy to do on a driving trip here. Check out Airalo for day passes and monthly plans, and use the code HARRY5578 for €3 off a first eSIM. It installs before you travel, so you land with data already working.

WiFi is near universal in hotels, cafés and petrol stations, and mobile coverage is good along the ring road and thin in the highlands and parts of the Westfjords.

Where to stay in Iceland

Iceland runs from hostels and guesthouses with shared bathrooms through farm stays to a small number of design hotels, and outside Reykjavík the choice in any given place is thin. Book earlier than you think, especially anywhere on the south coast, and prioritise somewhere with its own restaurant if you are driving in winter, because the alternative is going out again in the dark.

Compare rooms and filter by area when you look for somewhere to stay in Iceland. For an apartment or a house with a kitchen, which is how you take the edge off Icelandic food prices, Vrbo is the better search.

Do not forget travel insurance

Travel insurance covers what planning cannot, and in Iceland that means cancelled tours, weather-grounded flights, and injuries on ice. European health cards cover EEA residents for treatment here but not for cancellation, theft or repatriation, so a policy is still worth having. Check out SafetyWing if you have none. Their plans can be started once you are already travelling, and they were the first travel insurer to cover COVID.

Safety in Iceland

Iceland has very little crime, and the things that hurt visitors here are weather, water and terrain. You can walk anywhere in Reykjavík at any hour. What you cannot do is treat the outdoors casually.

The four real hazards are listed below.

1. Sneaker waves, particularly at Reynisfjara, which arrive without warning and have killed people. Watch the warning system and stay back from the water.
2. Wind, which is strong enough to take a car door off its hinges and to make driving genuinely dangerous. Park facing into it and hold the door.
3. Weather that closes roads, often with no notice. Check umferdin.is for road conditions and en.vedur.is for weather before you drive, every day.
4. Glaciers and ice caves, which you never enter or walk on without a guide and crampons.

Register a travel plan with safetravel.is if you are going anywhere remote, and the emergency number is 112.

Some Icelandic worth knowing

English is spoken almost everywhere, so a few words of Icelandic are courtesy rather than necessity. The most useful are below, with rough pronunciation.

Two letters make Icelandic names readable: þ is the th of “thing” and ð is the th of “the”. So Þingvellir is Thingvellir, and Goðafoss is Gothafoss.

Cultural things to know

Iceland is informal, and the informality has rules. People are addressed by their first name, including the president and including in formal settings, because Icelanders do not have family surnames: the second name is a patronymic built from a parent’s first name plus -son or -dóttir.

The one custom a visitor must observe is the swimming pool. You shower naked, with soap, before entering the water. Pools and lagoons are only lightly chlorinated because the water is geothermal, so the hygiene rule is enforced, there are diagrams on the wall, and many showers have no doors. Men and women change separately. Do it without fuss.

Otherwise, ordinary good manners cover it. Take your shoes off indoors, do not feed bread to birds, and stay on marked paths, because Icelandic moss takes decades to recover from a footprint.

A short history of Iceland

Iceland was settled by Norse and Celtic people from the late 9th century, and the Alþingi, founded at Þingvellir in 930, is the oldest surviving parliament in the world. Christianity was adopted by decision of that assembly in the year 1000, and the sagas written in the 13th century are still readable by modern Icelanders because the language has changed so little.

Internal feuding ended the Commonwealth, and Iceland came under the Norwegian crown in the 13th century and the Danish crown thereafter. The Reformation, a Danish trade monopoly and the Laki eruption of 1783 to 1784, which killed roughly a fifth of the population through the famine that followed, made the following centuries hard ones.

The recovery came late and fast. The University of Iceland was founded in 1911, women won the vote in 1915, Iceland became a sovereign state in personal union with Denmark in 1918, and the republic was declared on 17 June 1944, which is why that is the national day. In 1980 Vigdís Finnbogadóttir became the first woman in the world elected head of state by direct vote, and served sixteen years.

Frequently asked questions

Is Iceland expensive?

Yes, particularly food and alcohol. The offsets are real though: tap water is free and excellent, every town has a cheap geothermal swimming pool, the supermarket chain Bónus is a fraction of café prices, and around half the country’s headline sights, most waterfalls among them, cost nothing to see.

What currency does Iceland use?

The Icelandic króna (ISK). Euros are not accepted. In September 2026 €1 bought about 140 ISK, so 1,000 ISK was roughly €7, $8 or £6. Cards are taken almost everywhere.

How many days do you need in Iceland?

Four days covers Reykjavík, the Golden Circle and the start of the south coast. A week reaches Jökulsárlón and back comfortably. Ten days to two weeks circles the ring road, and that is realistic only in summer.

Do you need a 4×4 in Iceland?

Not for Route 1 in summer, and yes for almost everything else. F-roads into the highlands legally require one and are closed outside summer, and in winter a 4×4 buys you margin rather than access. Ask the hire desk which tyres the car is on.

When can you see the northern lights in Iceland?

From roughly September to April, on a clear night away from town lights. February, March, September and October combine long dark nights with weather you can still drive in. They are invisible in summer no matter how strong the activity, because it never gets dark.

WonderfulWanderings Pro Tips

Four things will do more for an Icelandic trip than a longer guide will.

1. Bring a card with a PIN. Rural Icelandic petrol stations are unattended and PIN-only, and a signature-only card will leave you with a tank you cannot fill.
2. Check umferdin.is and en.vedur.is every morning. Road conditions and weather here change within hours, both sites are in English, and the road service line is 1777.
3. Swim in a town pool instead of a lagoon. Every settlement has a heated outdoor pool with hot tubs, it costs a local entry ticket rather than a tourist price, and it is where Icelanders actually are. Shower naked first; it is not optional.
4. Pack microspikes for a winter trip. They cost very little, fit over any boot, and turn the iced paths at Gullfoss, Skógafoss and Seljalandsfoss from a real risk into an ordinary walk.

About the author. This guide is written and maintained by the Wonderful Wanderings editorial team. Wonderful Wanderings was founded in 2012 by Sofie Couwenbergh, and the first-hand notes across our Iceland coverage come from her week driving the south coast in winter and from the trips made by her father, the photographer Hans Couwenbergh, who road-tripped the country over three weeks. The team covers Iceland for independent travellers, including the car hire, accommodation and tours worth booking, and updates this page when prices, rules and volcanic conditions change.