Are you planning a trip to Iceland and wondering about the currency situation? You’re not alone! Many travelers ask, “Do Iceland Take Euros?” The official currency of Iceland is the Icelandic Króna (ISK), but while some tourist establishments might accept Euros, it’s generally not recommended due to unfavorable exchange rates. At eurodripusa.net, we understand the importance of being well-prepared for your travels, and that includes understanding the local currency and payment options. To help you make the most of your trip, we’ll explore the currency of Iceland, and how you can save money.
1. What is the Currency in Iceland?
Iceland uses the Icelandic Króna (ISK), abbreviated as “kr” or ISK. The Central Bank of Iceland issues it, and it comes in coins and banknotes.
The Icelandic Króna is the official currency. Familiarizing yourself with it ensures smooth transactions. Let’s explore the coins and banknotes you’ll encounter:
1.1. Bank Notes and Coins in Iceland
Common coins include kr1, kr5, kr10, kr50, and kr100, while banknotes are kr500, kr1000, kr2000, kr5000, and kr10000. Keep in mind that Iceland uses a decimal point instead of a comma to denote thousands. For example, 1,000 is written as 1.000.
Navigating Icelandic currency requires knowing which denominations are in use. Here’s a quick guide:
| Coin | Banknote |
|---|---|
| kr1 | kr500 |
| kr5 | kr1000 |
| kr10 | kr2000 |
| kr50 | kr5000 |
| kr100 | kr10000 |
This table provides a quick reference for identifying and using Icelandic currency.
1.2. Why Iceland Uses the Króna Instead of the Euro
Iceland is not a member of the European Union (EU) and therefore does not use the Euro. According to a report by the Central Bank of Iceland in 2024, maintaining an independent currency allows Iceland to control its monetary policy and respond effectively to economic fluctuations.
Using the Icelandic Króna enables Iceland to maintain economic independence. Here’s why it matters:
- Monetary Policy Control: Iceland can adjust interest rates and manage inflation independently.
- Economic Stability: The Króna allows Iceland to respond to economic shocks unique to its economy.
- National Identity: The currency is a symbol of Iceland’s sovereignty and cultural identity.
Adopting the Euro would mean relinquishing control over these key aspects of Iceland’s economy.
2. Can You Use Euros in Iceland?
While the official currency is the Icelandic Króna, some establishments that cater to tourists might accept Euros. However, this is generally not recommended. You’re always better off paying in ISK, regardless of whether other currencies are accepted. Restaurants, hotels, and tour operators in tourist hotspots might accept USD or EUR, but the exchange rate will likely be unfavorable.
While some places may accept Euros, it’s best to use ISK. Here’s why:
- Unfavorable Exchange Rates: You’ll likely get a worse exchange rate than at a bank or ATM.
- Hidden Fees: Some establishments may add extra fees for converting currencies.
- Inconvenience: Paying in Euros can slow down transactions.
To avoid these issues, stick to using Icelandic Króna whenever possible.
Alt text: Happy travelers enjoying their trip to Iceland, highlighting the importance of understanding local currency for a smooth travel experience.
3. What is the Exchange Rate of Iceland Currency to USD and Other Currencies?
The exchange rate between the Icelandic Króna (ISK) and other currencies like USD and EUR fluctuates constantly due to market conditions. As of 2025, 1 USD typically ranges between 135-140 ISK, although it has previously peaked at 145 ISK. Similarly, 1 EUR usually sits around 143-155 ISK. Because these rates vary, it’s a good idea to check them before exchanging money or using an ATM in Iceland.
Staying updated on exchange rates is crucial. Here are some resources:
- Live Currency Converter: Use online tools for the most current rates.
- Currency Converter Apps: Download apps like My Currency Converter & Rates or XE Currency Converter.
- Icelandic Bank Websites: Check sites like Landsbankinn or Arion Banki.
Bookmark a converter or download an app to easily check rates during your trip.
4. Do I Need To Pay With Cash in Iceland?
You don’t have to prepare any cash when travelling in Iceland. Credit cards (or debit cards/prepaid cards) and contactless payment methods are widely used. You can pay with your card in almost every store and restaurant. The only situation where you might have to use cash might be if you are shopping in a flea market or buying food at some unmanned booth. But usually, you will find a POS to pay with a card.
While cards are widely accepted, having some cash can be useful. Here’s why:
- Small Vendors: Flea markets and unmanned booths may prefer cash.
- Emergencies: Having cash on hand can be helpful in unexpected situations.
- Tipping: While not always required, cash is appreciated for certain services.
Exchanging a small amount (1000 to 5000 ISK) can provide peace of mind.
5. Do You Need To Exchange Currency Before Visiting Iceland?
It’s not necessary to exchange currency before visiting Iceland. Most of Iceland is extremely card-friendly. Even small local stores will typically accept card payments, so you won’t need to rely on cash. Most locals pay with card as well. There are a few instances where you will need cash, including to use public bathrooms, take the local buses and pay vendors for items at flea markets. There may even be places where you must pay by card, such as for rental cars in Iceland.
Exchanging currency before your trip isn’t essential. Here’s what to consider:
- Card Acceptance: Most places accept credit and debit cards.
- Local Preference: Many Icelanders prefer using cards for transactions.
- Convenience: Relying on cards can simplify your travel experience.
For specific situations like public transport or flea markets, a small amount of cash might be useful, but it’s not a necessity.
currency of Iceland apple pay
Alt text: Contactless payment in Iceland is popular, showing that the use of credit and debit cards is accepted nationwide.
iceland currency exchange apple pay
Alt text: Card payments are widely accepted in Iceland, making it convenient to travel without carrying large amounts of cash.
6. Where is an Iceland Currency Exchange?
If you do want to exchange currency in Iceland, you can still do so once you arrive. You won’t see many specific money exchange shops in the towns of Iceland, not even in Reykjavik. So, the best option is to exchange your money at Keflavik International Airport when you arrive. There is an currency exchange booth in the arrivals hall and also a desk in the departures area. Alternatively, you can exchange currency at any of the banks in Reykjavik. We recommend exchanging any currency before leaving Reykjavik, as banks are few and far between when you’re travelling in the more remote areas of Iceland.
If you prefer to exchange currency upon arrival, here are your options:
- Keflavik International Airport: Currency exchange booths are available in the arrivals and departures areas.
- Banks in Reykjavik: You can exchange currency at any bank in the capital.
- Avoid Remote Areas: Exchange your money before leaving Reykjavik, as banks are scarce in rural Iceland.
Planning ahead ensures you have access to Icelandic Króna when you need it.
7. Paying for Fuel/Gas in Iceland
If you’re travelling in Iceland, you’re likely doing so with a rental car. It’s hands down the best way to get around the island and visit all the attractions you want to see on your trip.
If you’re driving, then you’ll need to refuel. If you’re stopping in bigger towns like Reykjavik or Akureyri, you will have no trouble finding regular gas stations with attendants where you can pay in either cash or card.
But many of the gas stations in Iceland are unmanned. These self-service stations are very common in Iceland, especially in more rural areas, and you’ll need a card with a pin number to pay.
When refueling your rental car, consider these tips:
- Staffed Stations: In larger towns like Reykjavik and Akureyri, you can pay with cash or card at staffed stations.
- Unmanned Stations: Rural areas often have self-service stations that require a card with a PIN.
- Card Requirement: Ensure your card has a PIN for use at unmanned stations.
Being prepared with the right payment method ensures a smooth journey across Iceland.
Currency of Iceland driving a rental car
Alt text: Using a rental car in Iceland offers freedom and flexibility to explore the scenic routes, emphasizing the need to understand local payment methods for fuel.
8. Is Food Expensive in Iceland?
Food in Iceland tends to be more expensive than in other European countries as many food products are imported, which can drive the price up. Both dining out and purchasing from grocery stores can seem pricey compared to what you’re used to at home, depending on where you’re from.
A meal at an inexpensive restaurant will run you between 2700 – 4100 KR (20 – 30 USD), while a three-course dinner for two at a mid-range restaurant will cost about 10000 – 16000 KR (about 75 – 120 USD).
You’ll pay about 440 KR (3 USD) at the shops for a loaf of bread and 1824 KR (12.70 USD) for 1kg of local cheese. These prices are just to give you an idea of what to expect.
Plan your food expenses accordingly. Here are some price ranges:
- Inexpensive Meal: 2700 – 4100 KR (20 – 30 USD)
- Mid-Range Dinner (for two): 10000 – 16000 KR (75 – 120 USD)
- Loaf of Bread: 440 KR (3 USD)
- 1kg Local Cheese: 1824 KR (12.70 USD)
These estimates help you budget for meals and groceries during your stay.
what does Icelandic people eat
Alt text: Exploring Icelandic cuisine can be expensive, underlining the importance of budgeting and knowing the local currency.
9. Tax-Free Shopping in Iceland
Don’t forget to ask for a tax-free receipt when shopping in Iceland! Your purchases may be eligible for a tax rebate, and with such high VAT in Iceland, you can get quite a bit of money back.
VAT is currently 24% (although it’s less on some specialized goods). If you purchase items, like souvenirs, gifts or clothes, that cost more than 6000 KR, you can get the taxes back when you leave the country (this does not apply to food or drinks).
Just ask for a tax-free receipt from the cashier when you make purchases and save the receipts.
When you leave Iceland, take your receipts to the customs office at KEF airport and then they will provide you with your refund.
Maximize your savings with tax-free shopping:
- VAT Rate: Standard rate is 24% (lower for some goods).
- Eligibility: Purchases over 6000 KR (excluding food and drinks).
- Procedure: Request a tax-free receipt and present it at customs at KEF airport for a refund.
Taking advantage of this opportunity can significantly reduce your expenses.
how to shop tax free in Iceland
Alt text: Shopping tax-free in Iceland is a great way to save money. Remember to ask for a tax-free receipt when making a purchase.
10. Duty-Free in Iceland
Typically, you’ll only find duty-free shops in the departures area of an airport, enabling you to purchase products without taxes on your way out of a country.
But at Keflavik International Airport, there is a duty-free shop in both the departures and arrivals areas. This gives you an excellent opportunity to save some money on goods like alcohol and tobacco that you need for your time in Iceland. In Iceland, you can only purchase alcohol from Vínbúðin, a licensed liquor store.
You can’t purchase alcohol from anywhere else except duty-free in the airport, and you need to be 20 years old or older. It’s much cheaper to buy your alcohol from duty-free on your way into the country than to buy it all from the liquor stores, so we recommend buying as much as you think you’ll need when you land.
Benefit from duty-free shopping at Keflavik International Airport:
- Arrivals and Departures: Duty-free shops are available in both areas.
- Savings: Purchase alcohol and tobacco without taxes.
- Alcohol Purchases: Only available at Vínbúðin stores or duty-free; must be 20 or older.
Buying alcohol at the airport duty-free shop is significantly cheaper than at local liquor stores.
Alt text: Keflavik International Airport offers duty-free shopping in both arrivals and departures, providing opportunities to save money on essential items.
11. Currency of Iceland: Money-Saving Tips
Iceland may be notoriously more expensive than other travel destinations, but there are many ways that you can cut costs and save some extra money. Here are some insider tips to help you save money when travelling in Iceland.
- Do your grocery shopping at Krónan, Bónus, or Nettó. Avoid 10-11, which is much more expensive than other grocery stores in Iceland.
- Avoid bottled water. Iceland has some of the cleanest, purest natural freshwater in the world, thanks to the glaciers. Don’t waste your money on bottled water when tap water is just as safe and pure.
- Try to limit how often you go out to eat since eating out is the fastest way to blow through your budget. Dining out is incredibly expensive in Iceland, so try to avoid it by packing your own lunches for long drives and choosing accommodation that has kitchen facilities available.
- 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, as there is less demand during this time.
- Avoid taking taxis. Renting a car is always the best way to explore Iceland. Taking taxis will add up incredibly fast, with a 10-minute cab ride costing over 1400 ISK or about 10 USD (and 10 minutes won’t get you very far in Iceland!)
- Purchase your alcohol from the airport’s duty-free shop.
- Take advantage of the public Wi-Fi around Reykjavik to reduce roaming charges.
- Visiting free attractions, such as some of the more remote Icelandic hot springs, a free walking tour of Reykjavik or hiking.
- If you do visit in the summer, consider camping.
Here are some insider tips to help you save money when travelling in Iceland:
| Tip | Description |
|---|---|
| Shop at Discount Grocers | Choose Krónan, Bónus, or Nettó for groceries instead of the pricier 10-11. |
| Drink Tap Water | Iceland’s tap water is pure and safe; avoid buying bottled water. |
| Limit Eating Out | Pack your own lunches and choose accommodations with kitchen facilities to reduce dining expenses. |
| Travel Off-Season | Visit during fall, winter, or spring for cheaper rental cars, accommodations, and tours. |
| Rent a Car, Avoid Taxis | Renting a car is more economical than taking taxis, which can be very expensive. |
| Buy Alcohol Duty-Free | Purchase alcohol at the airport’s duty-free shop to save money. |
| Use Public Wi-Fi | Take advantage of free Wi-Fi in Reykjavik to reduce roaming charges. |
| Explore Free Attractions | Visit free attractions like remote hot springs, take a free walking tour of Reykjavik, or go hiking. |
| Consider Camping in Summer | Camping can be an affordable accommodation option during the summer months. |
Following these tips can help you enjoy Iceland without breaking the bank.
11.1. Most Importantly: Book Your Rental Car in Advance
The best way to get a good deal on a rental car in Iceland is by booking in advance and at opportune times of the year. Car rental prices in Iceland are cheapest during February, March and November, so visiting during these times is the best way to reduce the amount of Iceland currency you spend. Regardless, you can check out the different rental cars available and enter the dates you’d like to visit to get a quote for how much it might cost you.
Alt text: Renting a 4WD car in Iceland gives you the freedom to explore the rugged terrain. Booking in advance is best way to save.
Alt text: A mid-sized rental car hire in Iceland offers a balance of economy and comfort for exploring Iceland’s attractions.
12. Fun Facts About the Icelandic Bank Note: Who Are the Figures on Iceland Currency Bills?
Icelandic banknotes feature prominent figures from the country’s history and culture. Here’s a brief look at who they are:
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.
12.5. 10,000 ISK – Jónas Hallgrímsson
Jónas Hallgrímsson is one of Iceland’s cherished poets, best known for his contributions to Icelandic literature and for authoring the famous Passion Hymns.
Here’s a quick reference to the figures on Icelandic banknotes:
| Banknote | Figure | Significance |
|---|---|---|
| 500 ISK | Jón Sigurðsson | Leader in Iceland’s independence movement |
| 1,000 ISK | Brynjólfur Sveinsson | Lutheran bishop known for preserving Norse mythology and sagas |
| 2,000 ISK | Jóhannes Kjarval | Painter renowned for depictions of Icelandic landscapes |
| 5,000 ISK | Ragnheiður Jónsdóttir | Skilled seamstress and teacher, the only woman featured on Iceland’s banknotes |
| 10,000 ISK | Jónas Hallgrímsson | Poet known for his contributions to Icelandic literature |
These figures represent the rich history and culture of Iceland.
500 ISK bank note
Alt text: The Icelandic 500 ISK banknote features Jón Sigurðsson, a key leader in Iceland’s independence movement.
- 000 ISK bank note 2.000 ISK Banknote
Alt text: The Icelandic 5000 ISK banknote features Ragnheiður Jónsdóttir, a skilled seamstress and teacher, who is the only woman on Iceland’s banknotes.
- 000 ISK bank note 10.000 ISK bank note
13. Iceland currency FAQs
Here are some frequently asked questions about currency in Iceland:
13.1. Are there ATMs in Iceland?
Yes, ATMs are widely available in Iceland, especially in Reykjavik and other major towns. They dispense Icelandic Króna (ISK).
13.2. Can I use my credit card in Iceland?
Yes, credit cards are widely accepted in Iceland. Visa and Mastercard are the most commonly used.
13.3. Is it customary to tip in Iceland?
Tipping is not customary in Iceland. Service charges are often included in the bill at restaurants and bars.
13.4. What should I do with leftover Icelandic Króna?
You can exchange leftover Icelandic Króna back to your home currency at the airport or at banks in Reykjavik before you leave.
13.5. 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.
13.6. Is it better to exchange money before I go to Iceland?
No, it’s generally not necessary to exchange money before you go to Iceland. Credit and debit cards are widely accepted, and ATMs are readily available for withdrawing Icelandic Króna.
13.7. Can I use Apple Pay or Google Pay in Iceland?
Yes, Apple Pay and Google Pay are accepted in many places in Iceland, especially in urban areas and larger establishments.
13.8. Is it safe to use ATMs in Iceland?
Yes, it is generally safe to use ATMs in Iceland. However, as with any country, it’s always wise to be aware of your surroundings and take basic safety precautions.
13.9. What is the best way to get Icelandic currency?
The best way to get Icelandic currency is usually by withdrawing it from ATMs upon arrival. This typically offers a better exchange rate than exchanging money at currency exchange booths.
13.10. Can I pay in USD in Iceland?
While some tourist-oriented businesses may accept USD, it is not common and the exchange rate may not be favorable. It’s best to use Icelandic Króna for transactions.
Understanding currency matters is crucial for a seamless travel experience. While Iceland does not officially take Euros, being prepared with Icelandic Króna and knowing your payment options will help you make the most of your trip. At eurodripusa.net, we’re dedicated to providing you with the information and resources you need for successful and enjoyable travels.
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