As we all know Iceland is one of the most expensive countries in the whole world but somehow it attracts many tourists. Some of them are rich and doesn’t care how much do they pay for hotel. Other ones are not so rich and tries to find cheap places to stay. In this post I will introduce cheapest places to stay during your visit in Iceland.

I would say there are 3 options to stay as cheap as possible in Iceland :

1. Stay in the tent

“Icelandic laws on nature preservation covers where you are allowed to camp in Iceland if you find yourself away from registered campsites. In residential areas, you are allowed to stay in uncultivated land for one night only if there is no campsite in the area. ” This means that you can camp almost anywhere in Iceland. Just buy a tent before coming to Iceland because in here they are way too expensive. I recommend cheap options from amazon :


2. Rent or buy a car

Renting or buying a car in Iceland allows you to sleep in it what lets you to save money on accommodation while you travel.

There are 2 main websites where you can buy a used car in Iceland :

And few facebook groups for cheap cars :

Ódýrir bílar til sölu undir 150.000kr

Òdýrir Bílar Til Sölu Undir 400.000.-

There are a lot of car rental websites in Iceland but I believe this one is cheapest :


3. Stay in cheap hostels

You can stay in cheap hostels or try your luck in couchsurfing. But couchsurfing in Iceland is not working so good as in other countries..

Thats the 5 cheapest hostels I found in Iceland :

Reykjavík Hostel Village  – in Reykjavik. 2326 ISK per night for one person in a dorm.

The Capital-Inn – in Reykjavik. 2326 ISK per night for one person in a dorm.

Havarí Hostel in Karlsstadir. 3060 ISK per night for one person in a dorm.

Base Hotel by Keflavik Airport in Keflavik. 3150 ISK per night for one person in a dorm.

Grábrók Hotel and Holiday Homes in Borgarnes. 3419 ISK per night for one person in a dorm.

Good luck staying cheap 🙂

If you are interested in finding place where to live long time in Iceland check this article How to find where to live in Iceland.

If you have any questions or suggestions you can always contact me 🙂



Cheapest ways to stay in Iceland