Iceland on a Budget: The Ultimate Guide for Solo Travellers

Solo travelling through Iceland is an adventure like no other — particularly when you’re navigating it solo and embracing your main character era. After leaving my corporate job after four years in December, I traded KPIs for mountains and 1:1s for dreamy landscapes. If you’re dreaming of solo travel in Iceland, this guide has your back — practical tips, personal stories, and a little bit of magic from my journey.

Accommodation

If you’re looking for a remarkable experience, or simply travelling on a budget, house-sitting is a great option to look into. It allows you to immerse yourself in local cultures and communities while providing the owners peace of mind that their home and pets are in good hands. Whether you’re a seasoned traveller or just starting your journey, house-sitting gives you the chance to explore new places without the hefty price tag of traditional accommodations.

If you’re a keen solo traveller, TrustedHousesitters and MindMyHouse have (completely free!) opportunities all around the world, featuring various types of homes and pets to care for, and are two reliable websites that connect homeowners with responsible sitters eager for new adventures. Personally, I explored several places in Europe before realising that Iceland was the ideal choice for me. I was incredibly fortunate to connect with a wonderful family through a Facebook housesitting group who were looking for a sitter for their pets.

Old fishing huts at Ægisíðu (my morning view!)

Spending two weeks in Iceland housesitting was one of the most incredible experiences of my life, and I couldn’t recommend it enough. Obviously, all housesitting experiences are different, however, having an actual home to stay in (not to mention the money I saved!), was unreal. Another perk was being able to cook at home. Iceland is expensive for sure, and having the option to prepare meals at home was a life-changer. Groceries are expensive indeed, as they import most things, but you’ll save hundreds of pounds!

Reykjavík Favourites

Reykjavík as a capital is absolutely breathtaking! It radiates that unmatched Nordic vibe, and thanks to its vibrant tourism boom over the past decade, it has also become noticeably diverse and international. Despite being a rather small city, it’s jam-packed with gorgeous bars and restaurants worth trying out!

Hot Dogs

Perhaps slightly controversial, but to be completely honest, Swedes do hot dogs better. The perfect blend of flavours and textures in their sausages, coupled with a variety of innovative toppings, really gives them an edge in the hot dog game. However, I would still highly recommend trying out one of the hot dog stands scattered around Reykjavík; they’re a classic and an experience that you shouldn’t miss while exploring the city! These stands are often frequented by both locals and tourists, showcasing the vibrant street food culture that Iceland has to offer. There are a few different companies, but you’ll be able to get a hot dog with all the toppings at all sites! 🌭

Le Kock & The Laundromat

Le Kock bringing all the flavours

I first discovered Le Kock while watching Phil Rosenthal’s uplifting travel documentary series on Netflix, ‘Somebody Feed Phil’ — and obviously, I had to check it out. Nestled within the dim-lit and trendy Exeter Hotel on Tryggvagata, Le Kock is a gorgeous, gorgeous bakery, bar (with jazz nights!), and restaurant all rolled into one, offering a wonderful culinary experience. Their hamburgers and fried potatoes are a solid 9/10 and the generously filled bagels are just mouth-watering! I tried the traditional cheeseburger, Kock potatoes and ofcourse, a salmon bagel to-go!

Another somewhat popular place that I’d highly recommend is The Laundromat Café, located on Austurstræti 9. The vibe is giving retro (think the Breakfast Club but with more intimate), evoking feelings of nostalgia while providing a space that encourages relaxation and conversations among friends. The service is friendly and laid-back yet attentive, ensuring that you feel welcomed at all times. The coffee + food is delicious, boasting an impressive menu that features a variety of freshly brewed coffee options and hearty breakfasts. Whether you’re looking for a casual catch-up with friends or a peaceful place to work, The Laundromat Café is definitely worth a visit.

PS. I tried Brauð & Co (famous on socials for their cinnamon buns!) and would definitely recommend it for a quick pick-me-up!

Places To Visit

As previously mentioned, and with a population just around 140,000, Reykjavík itself is relatively small — and ideal for a weekend getaway! The compact nature of the city means you can easily explore its vibrant streets, filled with colourful houses, charming cafes, and local shops in a day or two. In addition to the locations above, I’d highly recommend visiting the iconic Hallgrímskirkja, which stands tall at 74,5 meters and is located right in the heart of Reykjavík. Its unique architectural design is inspired by the basalt columns found in Iceland’s natural landscapes, making it a must-see. From the moment you arrive, it’s impossible to miss this striking landmark. For a small fee, you can take the lift up to the viewing deck, where you’ll be rewarded with some gorgeous views of the city and its surrounding landscape.

Reykjavík undoubtedly has some lovely museums celebrating Icelandic — and international of course — art and design. If you love modern art, I’d highly recommend Reykjavík Art Museum Hafnarhús and Reykjavík Art Museum Kjarvalsstaðir. Hafnarhús is gorgeously located in an old warehouse near the harbour and hosts a variety of rotating exhibitions, showcasing both established and emerging artists. Kjarvalsstaðir, on the other hand, is nestled in a beautiful park that enhances the artistic atmosphere, and primarily focuses on the works of the beloved Icelandic painter Jóhannes S. Kjarval, whose vibrant landscapes capture the essence of Iceland’s breathtaking scenery.

Completing this art institution is Ásmundarsafn, a remarkable venue known for its impressive collection of Icelandic art, showcasing both modern and contemporary pieces that reflect the culture of the region. However, it was sadly closed for refurbishment during my visit. Other museums I’d absolutely love to visit next time are Perlan, famous for its stunning views of the city and fascinating exhibitions about Icelandic nature, as well as the Árbær Open Air Museum, an exceptional outdoor museum that transports visitors back in time with its historic buildings and engaging living history presentations.

Last but not least, if the season’s right and the skies are clear, you should definitely head to Grótta Lighthouse and see if you can catch those astonishing Northern Lights!

Day Excursions

If you’re not planning on hiring a car, I cannot recommend organised day excursions enough! These excursions offer a hassle-free way to explore the most beautiful and interesting sights without the stress of navigating unfamiliar roads. I booked through Viator and GetYourGuide, and had two absolutely unforgettable experiences. The guides were incredibly knowledgeable and passionate, providing fascinating insights and making sure every detail was taken care of. Just remember that meals are usually not included, and make sure to bring snacks!

The views from the Kerid Crater

These are the trips that I booked:

South Coast Classic (£80ish)

Golden Circle and Kerid Crater Afternoon Tour from Reykjavik (£60ish)

Two day trips are more than enough to explore some essential Icelandic must-see’s, such as the coastal village of Vik, known for its gorgeous church, stunning black sand beaches and impressive rock formations; Skógafoss Waterfall, which cascades majestically down 60 meters and provides a breathtaking backdrop for photos; Þingvellir National Park, a UNESCO World Heritage site where you can walk between the North American and Eurasian tectonic plates; the Kerid Crater, a vibrant volcanic crater lake that offers breathtaking views and a fascinating glimpse into Iceland’s geothermal activity + much more.

Gullfoss waterfall, located in the canyon of the Hvítá

All in all, travelling around Iceland solo and on a budget can be an exciting adventure! As someone somewhat new to solo travelling, I was happily surprised by how effortless it was. The stunning landscapes and breathtaking natural wonders are not only easily accessible but also well-indicated for tourists, making navigation a breeze. I discovered that public transport options were quite affordable (get the Klappið app!), giving me the freedom to explore many wonderful destinations without stretching my budget.

Moreover, housesitting offered an affordable accommodation with a warm and welcoming atmosphere. The sense of adventure was palpable, as each day brought new experiences, whether it was witnessing the Northern Lights or indulging in the country’s unbelievable nature.

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