Reykjavik, Iceland

Visa Requirements

• Tourist Visa
  Citizens of the EU/EEA do not require a visa to visit Iceland, while most non-EU citizens will need a Schengen visa to enter. The tourist visa allows stays of up to 90 days within a 180-day period.
• Visa on Arrival (VOA)
  Iceland, as part of the Schengen Area, does not offer a visa on arrival. Visitors must apply for a visa in advance through their nearest Icelandic embassy or consulate.
• Digital Nomad Visa
  Iceland does not currently offer a digital nomad visa. However, remote workers may use a tourist visa for short stays. Iceland’s relatively high cost of living may deter long-term nomadic stays, but it’s a great location for short-term stays with access to adventure activities.

For visa information, visit the Icelandic Directorate of Immigration.

Cost of Living

• Accommodation
  Reykjavik’s cost of living is relatively high, especially when it comes to accommodation. Renting a one-bedroom apartment in the city center will typically cost between $1,200-2,000 per month, while options in suburban areas can be more affordable at around $800-1,500.
• Food
  Dining out can be expensive, with a meal at an inexpensive restaurant costing between $20-30. A three-course meal at a mid-range restaurant can cost around $50-70. Grocery prices are also high, with monthly food costs for a single person averaging around $350-500.
• Transportation
  Public transportation is efficient in Reykjavik, with bus fares starting at $3 per ride. Many locals use bikes or walk to get around, especially in the city center. Reykjavik is a compact city, so owning a car is not always necessary.

Healthcare
Iceland has a well-developed healthcare system that is funded through taxes. Visitors and expats with residence permits will have access to healthcare services, though private health insurance might be a good option. A typical doctor’s visit costs about $50-80, and health insurance typically costs between $50-150 per month for expats.

Climate & Weather

Reykjavik experiences a subarctic climate, with mild winters and cool summers.

• Winter (November to March): Cold temperatures, often below freezing, with snow and ice.
• Spring (April to June): Temperatures rise, but the weather can still be unpredictable, with occasional snowfall.
• Summer (June to August): The warmest months, with average temperatures around 10-15°C (50-59°F). The city experiences the Midnight Sun, where the sun barely sets.
• Autumn (September to October): A mix of rain, wind, and cooler temperatures, but often beautiful with autumn foliage.

Landscape

Reykjavik is surrounded by striking natural landscapes. The city itself is located by the Faxaflói Bay, with views of nearby mountain ranges and volcanoes. The surrounding area includes geothermal hot springs, lava fields, and glaciers, making it an ideal spot for outdoor activities. The Golden Circle route, which includes Þingvellir National Park, the Geysir hot springs, and the Gullfoss waterfall, is easily accessible from Reykjavik.

Things to Do

• Heritage Sites
  • Hallgrímskirkja: Reykjavik’s iconic church, offering panoramic views of the city.
  • National Museum of Iceland: Explore Iceland’s history and cultural heritage.
  • Harpa Concert Hall: A modern architectural masterpiece that also hosts concerts and cultural events.
• Adventure Activities
  • Whale Watching: Iceland is a great place for whale watching, with many tours departing from Reykjavik’s harbor.
  • Geothermal Pools: Reykjavik has several natural hot springs, including the famous Blue Lagoon just outside the city.
  • Northern Lights: In winter months, Reykjavik is an excellent base for seeing the Aurora Borealis.
• Nightlife
  Reykjavik has a vibrant nightlife scene, with many bars, clubs, and live music venues, especially in the city center. The nightlife is known for being laid-back, with locals enjoying a drink and music after work.
• Wellness Retreats
  Reykjavik is home to several wellness retreats, offering yoga, spas, and geothermal baths. The city’s spas and hot springs offer unique relaxation experiences.
• Shopping
  Reykjavik has a number of shops selling Icelandic wool products, handmade jewelry, and art. Laugavegur Street is the main shopping street in the city, filled with boutique stores.

Lifestyle

Reykjavik is a very safe and clean city with excellent infrastructure. The pace of life is relaxed compared to other major European cities, but it is also dynamic, with a strong focus on sustainability, creativity, and outdoor activities.

Icelanders are known for being friendly and welcoming. Social life revolves around family, friends, and community gatherings. Reykjavik’s residents enjoy outdoor activities, and the social life includes music festivals, art events, and theater performances.

Other Important Locations in Iceland

• Golden Circle: A popular tourist route featuring Þingvellir, Geysir, and Gullfoss.
• Akureyri: Iceland’s second-largest city, located in the north.
• Vik: A coastal town known for its black sand beaches and cliffs.
• Jokulsarlon Glacier Lagoon: A beautiful glacial lagoon known for its floating icebergs.

Rental Accommodations

• Budget: Shared apartments or simple housing can range from $800-1,200 per month.
• Mid-Range: A one-bedroom apartment in a central location will typically cost around $1,200-1,800 per month.
• Luxury: Luxury apartments or homes can cost between $2,000-3,500 per month.

Co-Working Facilities and Costs

Reykjavik has several co-working spaces, catering to freelancers, entrepreneurs, and digital nomads. Monthly rates for a hot desk typically range from $200-350, with private offices available for around $500-800 per month.

Connectivity

• WiFi: Reykjavik has excellent WiFi connectivity, with free public WiFi available in cafes, hotels, and even some streets. Coworking spaces and accommodations offer high-speed internet.
• SIM: Prepaid SIM cards from Siminn or Nova are easy to buy at airports, convenience stores, or retail shops. Plans include generous data options, and network coverage is reliable across Iceland.

Volunteering Opportunities

Reykjavik has many volunteering opportunities, especially in areas like environmental conservation, wildlife protection, and social services. Many international NGOs operate in Iceland, and locals are often involved in community projects related to sustainability and education.

Local Employment Options

• Tourism jobs in guiding or hospitality.
• Renewable energy and environmental roles.
• IT or tech-related positions.

Real Estate Investment Options

The Icelandic real estate market is relatively small, but Reykjavik offers potential for residential and commercial investments. As a popular tourist destination, properties for short-term rentals are in high demand, particularly near the city center or near key attractions like the Blue Lagoon. Investment opportunities also exist in retail and office spaces, as the city continues to grow as a business hub.

Start-Up Ecosystem

Reykjavik has a growing start-up scene, with a focus on industries like tech, renewable energy, and tourism. The city is known for its innovation centers and support for sustainable ventures. Entrepreneurs benefit from a low corporate tax rate and easy access to government grants for start-ups.

Business Setup Process for Expats in Reykjavik

Starting a business in Reykjavik involves the following steps:

1. Choose Your Business Structure: Options include private limited company or sole proprietorship.
2. Register with the Directorate of Internal Revenue (RSK): All businesses must register with the RSK to obtain a tax identification number.
3. Register Your Company: Companies must be registered with the Icelandic Company Registry.
4. Obtain Necessary Licenses: Depending on the business type, you may need additional permits (e.g., health regulations for food businesses).
5. Set Up Accounting: You must keep accurate financial records and hire an accountant if necessary.
6. Open a Bank Account: Businesses must have a local Icelandic bank account for transactions.
7. Hire Employees: If hiring, you must register employees with the Icelandic Social Insurance and comply with Icelandic labor laws.

Business Opportunities in Reykjavik

• Technology and Innovation: Startups in renewable energy, tech development, and green technologies are on the rise.
• Tourism Services: As a major tourist hub, businesses in tourism agencies, adventure activities, and hospitality are in high demand.
• Creative Industries: Iceland has a thriving art and music scene, offering opportunities in design, film production, and art galleries.
• Renewable Energy: Iceland is a global leader in geothermal energy, offering opportunities in energy consulting, geothermal energy installations, and sustainable construction.
• Retail: The growing population and tourist influx make e-commerce and retail stores profitable, especially those selling local handicrafts or sustainable products.
• Food and Beverage: Iceland’s food scene is growing, with opportunities in organic food, restaurants, and catering.
• Health and Wellness: Spas, yoga studios, and fitness centers are becoming more popular as wellness tourism increases.