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Money & currency

Money in Iceland

Updated 2026-08-15

Money & Currency
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Icelandic Króna (ISK)

Currency code: ISK

Practical Money Tips

Iceland is virtually cashless — cards work everywhere

Iceland is one of the most cashless societies on Earth. Visa and Mastercard (including contactless, Apple Pay, and Google Pay) are accepted at virtually every business — restaurants, petrol stations, hot-dog stands, remote highland huts, campsite showers, public toilets, and even unmanned farm stalls. Many visitors spend an entire trip without handling a single banknote. There is no practical need to carry cash in Iceland. If you do want a small cash reserve, withdraw ISK from an ATM on arrival — but expect to use your card for 99% of transactions.

The Icelandic Króna — a small, volatile currency

Iceland's currency is the Icelandic Króna (ISK), plural krónur. Banknotes come in 500, 1,000, 2,000, 5,000, and 10,000 ISK denominations; coins run from 1 to 100 ISK. The króna is a floating currency and can fluctuate significantly, so check the current rate rather than relying on a remembered one. Exchanging currency before arrival is unnecessary — just use your card. At card terminals and ATMs, always choose to pay in ISK and decline the “pay in your home currency” option (dynamic currency conversion), which lets the merchant's processor set the exchange rate instead of your own bank and costs you a noticeable margin every time.

ATMs available but rarely needed

ATMs are found at Keflavík airport, in Reykjavik, Akureyri, and in most towns. The major banks — Landsbankinn, Íslandsbanki, and Arion Bank — operate ATMs that accept Visa and Mastercard. Withdrawal fees vary by your home bank; Icelandic ATMs themselves rarely charge a separate fee. Given how universally cards are accepted, most visitors never need to withdraw cash at all. If you do, take out only a small amount — enough to cover the rare cash-only moment rather than a working budget, since you will struggle to spend it.

No tipping culture — prices include service

Iceland has no tipping culture. Service charges are built into prices at restaurants, hotels, and taxis. Leaving a tip is not expected and not customary — staff are paid fair wages. If you receive exceptional service, rounding up or leaving a small amount is appreciated but never anticipated. At bars, cafés, and tour operators, tipping is equally uncommon. This is one less expense to budget for, which is welcome given Iceland's high prices.

Note: Always check current exchange rates before traveling. Currency exchange is available at airports, banks, and authorized money changers.

Common Money Questions

What is the currency of Iceland?

The Icelandic Króna (ISK), plural krónur, abbreviated kr. Iceland is not an EU member and does not use the Euro. Banknotes: 500, 1,000, 2,000, 5,000, and 10,000 ISK. Coins: 1, 5, 10, 50, and 100 ISK. The króna is a freely floating currency.

Do I need cash in Iceland?

Almost certainly not. Iceland is one of the world's most cashless countries. Cards (Visa, Mastercard, contactless) are accepted at effectively every business, including rural farm stands, campsite showers, and unmanned service points. Many visitors complete entire trips without using cash. A small ISK withdrawal covers rare exceptions like certain flea-market vendors.

Can I pay with Euros or US Dollars in Iceland?

No. Iceland uses the Icelandic Króna exclusively. Euros and US Dollars are not accepted at shops, restaurants, or services. The duty-free shop at Keflavík airport accepts some foreign currencies, but everywhere else it is ISK or card only. There is no need to bring foreign cash — your bank card handles everything.

How expensive is Iceland?

Very — Iceland sits consistently among the world's most expensive countries for visitors, and the gap is widest on anything involving staff: restaurant meals, drinks in bars, and hotel rooms. Check current prices when budgeting rather than working from figures in an older guide, since both the króna and Icelandic prices move. The relative picture is the more useful thing to plan around, and it is stable: eating out costs a large multiple of cooking the same meal yourself, so supermarkets — Bónus with its pink pig logo, along with Krónan and Nettó — are how most budget-conscious visitors manage food; fuel becomes a serious line item on a Ring Road trip because of the distances rather than the pump price; and accommodation is the single largest cost outside the shoulder seasons. Camping, self-catering, and guesthouses with shared kitchens cut daily spending substantially, which is why so many visitors travel that way here despite the weather.

Should I tip in Iceland?

No. Tipping is not part of Icelandic culture. Service is included in all prices. Restaurant staff, taxi drivers, hotel porters, and tour guides do not expect tips. If you receive truly exceptional service, a small gesture is appreciated but never required or anticipated.

What is the best way to pay in Iceland?

Use your Visa or Mastercard debit card for everything. Contactless payment (tap-to-pay) works everywhere. Always choose to pay in ISK at card terminals — declining dynamic currency conversion lets your own bank handle the exchange at a better rate. Travel cards with no foreign transaction fees (Wise, Revolut, N26, or similar) offer the best rates. There is no need to exchange currency in advance.

Are there currency import or export limits?

Iceland follows EEA rules. If you are carrying the equivalent of EUR 10,000 or more in any currency (including ISK) when entering or leaving Iceland, you must declare it to customs. In practice, given Iceland's cashless economy, very few visitors carry significant amounts of physical currency.

Entry rules, visa types and practical notes live on the Iceland overview.

This overview comes from Visaja's worldwide missions database (visaja.com), checked against official government sources; for binding answers, the mission itself always has the final word.