Can I Use Euro In Iceland? No, you cannot directly use the Euro in Iceland, as the official currency is the Icelandic Króna (ISK). However, at eurodripusa.net, we understand the importance of being well-prepared for your travels. While credit and debit cards are widely accepted, understanding Iceland’s currency will help you manage your expenses effectively and avoid unfavorable exchange rates. By choosing eurodripusa.net, you equip yourself with the knowledge and resources to navigate currency matters smoothly, ensuring a delightful journey while optimizing your financial planning and enjoying the benefits of drip irrigation systems.
1. Understanding Iceland’s Currency: The Icelandic Króna (ISK)
The Icelandic Króna (ISK) is Iceland’s official currency, abbreviated as ISK and displayed as “kr.” It is issued by the Central Bank of Iceland in both coins and banknotes.
1.1 Banknotes and Coins in Circulation
Icelandic coins include kr1, kr5, kr10, kr50, and kr100, while banknotes include kr500, kr1000, kr2000, kr5000, and kr10000. One important note is that Iceland uses a decimal point instead of a comma when writing about currencies. For example, 1,000 is written as 1.000, and 5,000 is written as 5.000. This understanding will help you avoid confusion when dealing with local prices and transactions.
2. Why the Euro Isn’t Widely Accepted in Iceland
Iceland is not part of the European Union, and therefore, the Euro is not widely accepted.
2.1 The Limited Acceptance of Foreign Currencies
While some establishments, especially those catering to tourists, might accept foreign currencies like USD, it is generally not recommended due to unfavorable exchange rates. Paying in ISK is the most cost-effective method.
2.2 Recommendations for Currency Usage
It’s best to exchange your foreign currency for Icelandic Króna at certified financial institutions to get a good exchange rate. Paying with a debit or credit card and choosing to pay in ISK when prompted is another good way to avoid unfavorable exchange rates. This way, you always get the best possible deal.
Enjoying an Iceland trip with currency of Iceland
Alt text: Tourists smiling with Icelandic Króna during their Iceland vacation, showcasing the importance of understanding local currency.
3. Converting Your Currency: ISK Exchange Rates
Understanding the exchange rates between ISK and other currencies like USD and EUR can help you make informed decisions about when and how to exchange your money.
3.1 Current Exchange Rates
Exchange rates fluctuate based on market conditions. As of 2025, 1 USD ranges between 135-140 ISK, while 1 EUR typically sits around 143-155 ISK. It’s a good idea to check the current rates before exchanging money or using an ATM in Iceland.
3.2 Tools for Staying Updated
Use a live currency converter or download a currency converter app to stay updated on the latest exchange rates. Icelandic bank websites like Landsbankinn and Arion Banki also provide current exchange rates. Having these tools at your fingertips will ensure you always know the current value of your money.
3.3 Hertz Iceland Currency Converter
Hertz Iceland provides a currency converter during the booking process for your reference.
4. Cash vs. Card: Payment Options in Iceland
Credit, debit, and prepaid cards are widely used in Iceland, so carrying a lot of cash is not necessary.
4.1 Widespread Card Acceptance
Cards are accepted in nearly every store and restaurant in Iceland. You may need cash for flea markets or unmanned booths.
4.2 Recommendations for Cash Usage
Exchanging a small amount of Icelandic krona is recommended if you feel unsafe without cash. Assuming that foreign currency will not be accepted is always a good idea.
5. Exchanging Currency: When and Where
It is not necessary to exchange currency before visiting Iceland, but it is an option.
5.1 Card-Friendly Environment
Iceland is very card-friendly, with even small local stores accepting card payments. Most locals also pay with cards.
5.2 Situations Where Cash Is Needed
Cash is needed for public restrooms, local buses, and flea markets. Rental cars may also require card payments.
currency of Iceland apple pay
Alt text: Contactless payment using Apple Pay in Iceland, highlighting the convenience of cashless transactions.
iceland currency exchange apple pay
Alt text: A variety of credit cards accepted in Iceland, emphasizing the prevalence of card payments.
5.3 Currency Exchange Locations
If you want to exchange currency in Iceland, Keflavik International Airport has a currency exchange booth in the arrivals hall and a desk in the departures area. Banks in Reykjavik also offer currency exchange services. Exchanging currency before leaving Reykjavik is recommended since banks are scarce in remote areas.
6. Paying for Fuel: Card Requirements
When traveling in Iceland with a rental car, knowing how to pay for fuel is important.
6.1 Gas Stations in Iceland
You can pay with cash or card at regular gas stations with attendants in Reykjavik and Akureyri.
6.2 Unmanned Gas Stations
Many gas stations in Iceland are unmanned self-service stations, especially in rural areas. These stations require a card with a pin number to pay.
6.3 Additional Resources
Check out Iceland gas station guide and guide to gas prices in Iceland for more information about paying for fuel in Iceland.
Currency of Iceland driving a rental car
Alt text: Exploring Iceland in a rental car, emphasizing the need to understand local currency and payment methods for fuel.
7. Managing Food Expenses: What to Expect
Food in Iceland tends to be more expensive than in other European countries due to the importation of many food products.
7.1 Cost of Dining Out
A meal at an inexpensive restaurant costs between 2700 – 4100 KR (20 – 30 USD), while a three-course dinner for two at a mid-range restaurant costs about 10000 – 16000 KR (about 75 – 120 USD).
7.2 Grocery Prices
You can expect to pay about 440 KR (3 USD) for a loaf of bread and 1824 KR (12.70 USD) for 1kg of local cheese.
what does Icelandic people eat
Alt text: Variety of Icelandic foods, highlighting the cost considerations for dining and groceries in Iceland.
8. Tax-Free Shopping: Saving Money on Purchases
When shopping in Iceland, you may be eligible for a tax rebate on your purchases.
8.1 VAT in Iceland
The VAT is currently 24%, though it may be less on certain goods.
8.2 Eligibility for Tax Rebate
If you buy souvenirs, gifts, or clothes costing more than 6000 KR, you can get the taxes back when you leave the country (this does not apply to food or drinks).
8.3 How to Claim Tax Refund
Ask for a tax-free receipt from the cashier when you make your purchases and save the receipts. Take your receipts to the customs office at KEF airport when you leave Iceland, and they will provide your refund.
how to shop tax free in Iceland
Alt text: Tax-free shopping in Iceland, illustrating the process of claiming VAT refunds at Keflavik Airport.
9. Duty-Free Shopping: Where to Find It
Duty-free shops are typically found in the departures area of an airport, but Keflavik International Airport has a duty-free shop in both the departures and arrivals areas.
9.1 Duty-Free at Keflavik Airport
This offers an opportunity to save money on goods like alcohol and tobacco. You can only buy alcohol from Vínbúðin, a licensed liquor store, or duty-free in the airport.
9.2 Savings on Alcohol
It is much cheaper to buy alcohol from duty-free on your way into the country than from liquor stores, so buying as much as you think you’ll need upon arrival is recommended.
Iceland international airport Iceland currency
Alt text: Duty-free shop at Keflavik International Airport, emphasizing the opportunity to save on alcohol and tobacco purchases.
10. Saving Money: Practical Tips
Iceland can be expensive, but there are many ways to cut costs and save money.
10.1 Grocery Shopping
Do your grocery shopping at Krónan, Bónus, or Nettó. Avoid 10-11, which is much more expensive.
10.2 Hydration
Avoid bottled water. Iceland has some of the cleanest, purest natural freshwater in the world.
10.3 Dining Habits
Try to limit how often you go out to eat, as it is the fastest way to spend your budget. Pack your own lunches for long drives and choose accommodations with kitchen facilities.
10.4 Travel Timing
Visit in the off-season. Everything, from rental cars to accommodation and tours, will be cheaper in the fall (Sep & Oct), winter (Nov – Mar), and spring (April & May) months.
10.5 Transportation
Avoid taking taxis. Renting a car is always the best way to explore Iceland.
10.6 Alcohol Purchases
Purchase your alcohol from the airport’s duty-free shop.
10.7 Connectivity
Take advantage of the public Wi-Fi around Reykjavik to reduce roaming charges.
10.8 Free Activities
Visit free attractions, such as remote Icelandic hot springs, a free walking tour of Reykjavik, or hiking.
10.9 Camping
Consider camping if you visit in the summer.
10.10 Eurodripusa.net: Efficient Irrigation Solutions
At eurodripusa.net, we recognize the value of efficient solutions, whether in managing travel expenses or optimizing agricultural practices. Consider the implementation of drip irrigation systems to conserve water, reduce operational costs, and increase crop yields, echoing the cost-saving strategies essential for travel in Iceland.
11. Securing Your Ride: Booking Rental Cars in Advance
Booking your rental car in advance is the best way to get a good deal.
11.1 Best Times to Book
Car rental prices in Iceland are cheapest during February, March, and November.
11.2 Exploring Available Options
Check out the different rental cars available and enter your travel dates to get a quote.
4WD rental cars in Iceland with Iceland currency
Alt text: New 4WD rental cars available in Iceland, highlighting the importance of advance booking for cost savings.
Medium size rental car hire in Iceland
Alt text: Medium-sized rental cars available in Iceland, emphasizing affordable transportation options for travelers.
12. Cultural Insights: Figures on Iceland Currency
The figures on Iceland currency bills provide insight into the nation’s history and culture.
12.1 500 ISK – Jón Sigurðsson
Jón Sigurðsson is celebrated as a key leader in Iceland’s movement for independence, symbolizing Icelandic pride and resilience.
12.2 1,000 ISK – Brynjólfur Sveinsson
Brynjólfur Sveinsson, a Lutheran bishop at Skálholt, is known for his dedication to preserving Iceland’s Norse mythology and sagas, securing a vital part of Icelandic heritage.
12.3 2,000 ISK – Jóhannes Kjarval
Jóhannes Kjarval, one of Iceland’s beloved painters, is renowned for his depictions of Icelandic landscapes.
12.4 5,000 ISK – Ragnheiður Jónsdóttir
Ragnheiður Jónsdóttir, the only woman featured on Iceland’s banknotes, was a skilled seamstress and teacher who played a unique role in Icelandic history.
12.5 10,000 ISK – Jónas Hallgrímsson
Jónas Hallgrímsson is one of Iceland’s cherished poets, best known for his contributions to Icelandic literature.
500 ISK bank note 
icelandic 5000 isk bank note5.000 ISK bank note 10.000 ISK bank note
13. Frequently Asked Questions About Iceland Currency
Understanding the nuances of Iceland’s currency can enhance your travel experience. Here are some frequently asked questions to guide you.
13.1 Are there ATMs in Iceland?
Yes, ATMs are available in Iceland, especially in urban areas and Keflavik International Airport. They dispense Icelandic Króna (ISK), allowing you to withdraw cash as needed.
13.2 Can I use credit cards for most transactions?
Yes, credit cards are widely accepted in Iceland, including Visa, Mastercard, and American Express. Using credit cards is common for transactions in hotels, restaurants, gas stations, and shops.
13.3 What should I do if my card is lost or stolen?
If your card is lost or stolen, immediately contact your bank to cancel the card and prevent unauthorized use. You should also report the incident to the local police.
13.4 Are there any fees for using my card in Iceland?
While Icelandic merchants typically do not charge extra fees for card usage, your home bank may impose foreign transaction fees. It’s advisable to check with your bank before traveling to understand any potential charges.
13.5 Is it customary to tip in Iceland?
Tipping is not customary in Iceland, as service charges are often included in the bill. However, you can tip for exceptional service if you wish.
13.6 Can I exchange currency at my hotel?
Some hotels may offer currency exchange services, but the exchange rates may not be as favorable as those at banks or currency exchange offices. It’s best to use official exchange services for better rates.
13.7 What is the best way to handle currency exchange?
The best way to handle currency exchange is to use ATMs upon arrival for cash withdrawals or exchange currency at reputable banks or exchange offices. Avoid exchanging money at unofficial locations.
13.8 Are traveler’s checks accepted in Iceland?
Traveler’s checks are not widely accepted in Iceland. It’s better to rely on credit cards or cash for transactions.
13.9 What are the banking hours in Iceland?
Banking hours in Iceland typically run from 9:00 AM to 4:00 PM, Monday through Friday. Banks are generally closed on weekends and public holidays.
13.10 What emergency contacts should I have?
In case of emergencies, dial 112 for police, fire, or ambulance services. Keep your bank’s contact information handy for reporting lost or stolen cards.
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