Currency & Payment

Iceland uses the Icelandic króna (ISK, kr). The subunit, the eyrir, is no longer used in practice, so prices are in whole krónur. Iceland is one of the most expensive countries in the world, so budget carefully. It is also highly cashless, and cards work almost everywhere.

Because Iceland is almost entirely cashless, you rarely need to exchange money at all. Cards are accepted everywhere, so most travellers never handle cash. If you do want some, withdrawing from a bank ATM usually gives a reasonable rate. There are few situations where cash is really needed.

Iceland is one of the most cashless societies in the world, and cards work virtually everywhere, even for tiny purchases. Visa and Mastercard are universally accepted and contactless is the norm. A working card is essential rather than optional; occasionally a PIN is required, for example at unattended fuel pumps.

ATMs exist in Iceland but you will rarely need them, since cards are used for almost everything. If you do withdraw cash, use a bank ATM, watch for foreign-card fees, and always decline dynamic currency conversion (DCC) so you are charged in ISK for a better rate.

Mobile payments are widespread in Iceland, in line with its highly cashless culture. Apple Pay and Google Pay are widely accepted wherever contactless is available, which is almost everywhere. Adding your card to a phone or watch is a convenient, secure way to pay for most purchases.

Visitors who live outside the EEA can usually claim a VAT (Tax Free) refund on eligible goods taken home, provided the purchase meets a minimum amount and is made at participating shops. Keep your receipts and the tax-free form, and complete the refund process at the airport when you leave. Check the current minimum and rules before you shop.