Reykjavik on a Budget
Iceland’s capital city of Reykjavik is a 273 square kilometer of vibrant city vibes. As the northernmost capital of the world, Reykjavik has plenty to offer travelers. Unfortunately, Iceland is notorious for being expensive, but it doesn’t have to break the bank. We spent five days exploring Reykjavik and the surrounding area. While some of the things we did cost a pretty penny (i.e. visiting the Blue Lagoon), there are plenty of free things to do in Reykjavik. Here’s your guide to cheap things to do in Reykjavik. If you’re looking to get out of the city, check out this five-day Iceland itinerary.
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How to get to Reykjavik
Before you actually start exploring the city of Reykjavik, you have to get there. Flights arrive at Keflavik airport which many people do not realize is a 45-minute drive away from the city center. This is important to know if you’re planning a long layover.
You could just take a taxi from the airport, but that’s going to cost you around 200 Euro for a one-way trip! Uber is still illegal in Iceland so that isn’t an option. Your best way to get a transfer from Keflavik to Reykjavik is through a shared shuttle. There are a number of budget options available, like this one for $25!
Fun Fact: The word Reykjavik means “smokey bay.” It is Old Norse in origin – Reykja means “smoke” and vik means “bay.”
Free things to do in Reykjavik
Walk around Reykjavik Harbor
The city is surrounded by the Atlantic Ocean and the harbor is a beautiful place to wander around (even in winter!). Mountains surround the harbor – Mount Esja is on the east as Akrafjall is on the west. If you’re doing a guided tour of the city or a hop-on-hop-off bus, they typically start at the harbor.
Take a Free Walking Tour
A walking tour is a great way to get acclimated to a new city! You’ll see the main sights, learn about the history of the area, and learn about the culture. Plus, you’ll be guided by a local expert to ask questions and get recommendations from!
There are two companies right in Reykjavik that provide free walking tours – CityWalk and Free Walking Tours Reykjavik!
Of course, you can always splurge for a paid tour. I recommend Get Your Guide. They have a ton of tours offered, so there’s something to fit your budget and interests!
Travel Tip: For another free thing to do in Reykjavik – you can climb Mount Esja! It’s about 10km outside the city, and you can get there via bus. There are a number of trails varying in difficulty.
Solfar Sun Voyager Sculpture
Designed by Jon Gunnar Arnason, the Solfar Sun Voyager is a stunning steel structure located by the harbor. This is an icon of the city. The voyager is an ode to the sun and signifies the promise of new, unknown territory. For amazing photos, visit at sunrise or sunset.
Travel Tip: Downtown Reykjavik is very walkable. Wear comfortable shoes so you can save money. If you’re traveling in winter, the public bus system is very reliable.
Kolaportid – Reykjavik’s Flea Market
Also located near the harbor, Kolaportid is Iceland’s only flea market. The market is only open on weekends from 11:00 am to 5:00 pm. Don’t be turned off by the awkward smell, it’s fermented sharks and other snacks. Aside from fermented goods, the flea market sells old books, vintage clothes, and a variety of handmade objects (perfect for souvenirs!). Don’t be afraid to haggle a bit here – you can’t anywhere else in Iceland! Even if you don’t buy anything, window shopping here is one of the best free things to do in Reykavik because of the unique finds.
Enjoy the Local Entertainment
There are a lot of Icelandic poets, writers, musicians, and painters – probably due to them being indoors much of the year. There are plenty of places to find local entertainment for free or only with a cover charge. Some of those places are KEX Hostel, HI Loft Hostel, Drunk Rabbit Irish Pub, Hlemmur Square Hostel, and Cafe Rosenberg. Honestly, just keep an ear out when you’re walking around the city and hop in to anywhere with live music.
Hofdi House
Also near the waterfront, the Hofdi House is a unique piece of modern history that is worth a visit. The house was the location of the meeting between President Mikhail Gorbachev of Russia and President Ronald Reagen to end the Cold War. It has welcomed numerous political leaders from around the world since then. You can’t go inside, but be sure to stop by to take in this great piece of history.
Visit Grótta Lighthouse
In the winter, you may be able to see the Northern lights on a clear winter day. In the summer, you may see wildlife nearby since it is a nature preserve area. You can take a long walk to get here for free as well. Research when tide times are since it is only accessible at low tide.
Tjornin – aka Reykjavik Pond
One of the best free things to do in Reykjavik is right in the heart of the city! Tjornin, meaning “mountain lake” is actually made up of five different small bodies of water. In the winter, the lake freezes so you may see some ice skaters. We stumbled upon this park without expecting and really enjoyed our time exploring. Enjoy the colorful houses and bird watching that the park has to offer.
Travel tip: While visiting the Reykjavik Pond (or “the Pond” as locals call it) keep an eye out for the Free Church of Reykjavik. Built in the 19th century, the white and mint green church is a great photo opportunity.
Reykjavik City Hall
A little-known destination, the Reykjavik city hall is a great place to learn about Icelandic history. The exhibits rotate throughout the year and are free! City hall is located near the pond and is open from 8:00 am to 8:00 pm daily.
Go to the Beach
Check out the Nauthólsvík Geothermal Beach where the hot tubs are warm enough to relax in even on Reykjavik’s coldest days! If you don’t want to brave the chilly water, there are heated and unheated swimming pools or hot tubs. Bonus – if you’re visiting in the summer, it’s free!
Travel Tip: Get the Reykjavik City card for even more discounts!
Admire the Street Art
Reykjavik is a colorful city – everything from the houses to the graffiti is full of color. Instead of treating street art as property abuse, the murals add a lively feel to the city.
Bonus: Rent a car and do a self-drive Golden Circle tour and save money!
Cheap things to do in Reykjavik
Not everything can be free – so here are some ideas for cheap things to do in Reykjavik – all costing under $25!
Visit the Hallgrimskirkja
This iconic church of Reykjavik is also an affordable sightseeing option. The church is still a place of worship for 7,000 people. Enjoy the iconic lava-stone architecture on the outside of the church, the stained-glass windows at the front of the church, then head up the 73-meter (240 feet) tall church for awesome aerial views of Reykjavik. Entrance to the church is free, but the entrance to the top is 1,000 ISK (about $8), children only cost 100 ISK. The tower is closed on Sundays for service.
Travel Tip: While the church doesn’t open til 9:00 am, the best time to photograph the church without crowds is around 8:00 am.
Einar Jonsson Art Museum & Sculpture Gardens
Reykjavik is filled with museums to meet any traveler’s interest. The Einar Jonnson Art Museum costs only 1000 ISK (about $10) and is home to some of Iceland’s most famous works. The museum is open Tuesday through Sunday from 10:00 am to 5:00 pm. The garden is open all year round and the entrance is free! There are 26 sculptures in the garden to enjoy.
Soak in nature at the Laugardalur
Laugardalur is home to a few things that can interest travelers including Reykjavik’s botanical gardens, recreation area, a swimming pool (950ISK for adults, 150 ISK for kids, children under 5 are free), and a small zoo (860K for adults, 650 ISK for children, and children under 5 are free). This is a great cheap thing to do in Reykjavik for families. In the summer, there is a cafe that features dishes made with herbs and spices grown on site!
Have a hot dog – possibly the best in the world!
We visited Bæjarins Beztu Pylsur due to its reputation and my absolute love of hot dogs. There are several locations in Iceland, but the iconic red stall is by the waterfront in Reykjavik. It’s been said that this is the best hot dog in the world – and it only costs 450 ISK! Talk about cheap eats.
Find more cheap places to eat in Reykjavik.
Bike Around the Coast
If you don’t feel like walking near the waterfront, you can rent a bike! You can stop at the Nauthólsvík Geothermal Beach and the Seltjarnarnes Peninsula. If you prefer not to bike on your own, you can always take a bike tour!
For a budget-friendly way to see the Golden Circle, check out this tour!
Visit the Reykjavik Punk Museum
Visiting the Punk Museum is an experience in itself since it’s housed in an old underground public bathroom (no, I am not joking). The museum is dedicated to punk but also features how many of Iceland’s famous musical performers (like Bjork) started their musical journeys with punk. The museum is open M-F 10 am-10 pm and on weekends from 12 pm-10 pm. Admission is 1,000 ISK (about $10) for adults and free for kids 15 & under. Honestly, this is probably one of the best cheap things to do in Reykjavik.
Travel tip: Save more money by limiting your alcohol intake and cooking your own food for some meals. Due to taxes, alcohol is very expensive in Iceland. Even trying to eat cheaply in Iceland can be expensive at $15/meal.
Experience the Icelandic Phallological Museum
I say experience it because it is quite the experience. It’s a very weird museum and is not entirely sexual. It was created as a joke, but has turned into so much more. With a wide array of penises from various species around the world, you’ll learn a lot about how species procreate. It’s a small museum, so you’ll only need about an hour to explore. The museum is open daily from 10 am-6 pm. Admission is 1500 ISK for adults, 1000 ISK for seniors, and free for kids 15 & under.
Explore a cozy cafe in the city
While walking around Reykjavik, keep an eye out for cozy cafes. The city is filled with them, and it’s one of the best cheap things to do in Reykjavik. These are the perfect places to take a break, recharge, and people-watch. We visited Prikið, the oldest restaurant/cafe in Iceland. It’s pretty much a straight shot from the Hallgrimskirkja Church to Prikið downtown.
See the National Gallery of Iceland
If you’re a fan of modern art, then the National Gallery of Iceland is a must-visit. The museum focuses on the diversity in Iceland’s art scene and is focused on Icelandic artwork from the 19th and 20th centuries. Admission is 1500 ISK for adults, 750 ISK for seniors and persons with disabilities. Also – their ticket is valid for the Sigurjón Ólafsson Museum, and the Ásgrímur JónssonCollection – making it perfect for visiting Reykjavik on a budget.
Árbæjarlaug Swimming Pool
Located just outside Reykjavik, this huge plaza is a budget-friendly option for travelers who would rather skip the touristy Blue Lagoon. It has indoor and outdoor pools, water slides, hot tubs, a sauna, a thermal steam bath, and even beach volleyball courts! Admission is 900ISK for adults, but admission is included in the Reykjavik City Card.
If your trip goes beyond Reykjavik, here are tips for Iceland on a budget.
Find Reykjavik Accommodation
Booking.comMore Reading on Iceland:
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Visiting the Blue Lagoon in Iceland
15+ Must Visit Natural Landmarks in Iceland
Visiting the DC-3 Plane Wreck in Iceland
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I would love to go to iceland! It’s great to know that there are so many free things to do right in the city. All of the tips are also so helpful. Thank you. Had to PIN
I was intimidated by Iceland when everyone said it was expensive – so I was also glad to find free things to do! Not everything has to be expensive.
Awesome list thanks for sharing! My partner and I are planning to do Iceland in 2021 and have been nervous about how much it will cost, so knowing there are free things to do is a relief. Keeping this pinned for our trip planning.
Oh awesome! We were also planning on going in 2021 but since our trip this year was rescheduled, I’m not sure if that will happen.
Thank you for sharing these awesome tips!
That’s very useful, thank you for sharing.
Wow! I have always wanted to visit Iceland so Reykjavik is for sure on the list . Free and Cheap is right up my alley! May have to pass on the Phallological Museum. But who knows when in Reykjavik, right ?
I had no idea that Iceland was known for being expensive! I always assumed that because it was such a small country it would be cheap! Thanks for these amazing tips!
They’re expensive because they have to import a lot to the island. They are working on becoming more self-sustaining, but it will take a bit to get there.
I absolutely loved Iceland but have to admit I didn’t spend long in Reykjavik, I should definitely go back! So many fun things to do also in the city!
Iceland is on our short list of places to visit and we hope to get there in the next couple of years. I’ve definitely heard it’s one of the more expensive countries to visit, so it’s good to know that there are some ideas out there to enjoy it without breaking the bank. Thanks for the tips!
I love Iceland and Reykjavik! I was genuinely surprised by the number of inexpensive and free things to do in the city considering how expensive many things in Iceland can be. I loved Hallgrimskirkja and the street art. The city has such a great vibe.
While Iceland has long been on my travel bucket list, I’ve never been. I have heard that it’s a pretty pricey destination, though, so this list of free and inexpensive things to do is a great resource!
Boy did I wish I had this guide when I went! I spent more in 2 days in Reykjavik than I did in 6 days around the ring road haha Such a pricey city!
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[…] $3,000, or you can take a free hike. And just about everything in between. There are also plenty of free things to do in Reykjavik […]
omg yum!! That caramel cake looks so good. I went to Iceland in 2018 but I didn’t get to see as much as I would have liked so I certainly need to go back!
Reykjavík is one of my all-time favorite destinations! Don’t miss the Icelandic Phallological Museum, the Reykjavik Art Museum, and the Northern Lights.