If you’re planning to visit Iceland’s adorable capital of Reykjavik for the first time, I have some excellent news.

… First: I’ve already done the research and made all the mistakes so you don’t have to! Second: I’ve compiled them all in this post for you below to snoop at your own leisure.

Because yes, as wonderful as Reykjavik is with its quirky charm and bite-sized explorability, it’s also a destination many first timers fail to plan for properly… whether due to matters of budget or booking. That won’t be you though, because this post will run through everything you need to know. I hope you find it helpful!

NOTE: I also have a post all about general Iceland tips, so be sure to check that out if you’re visiting more of the country beyond its quirky capital.

1. Reykjavik is a cute city but make sure you also plan to see Iceland’s epic nature

First – let me get this out of the way: I strongly recommend that your Iceland trip consists of more than just Reykjavik.

Many first timers end up in Reykjavik because they take advantage of the free Icelandair stopover so they think they’ll just spend a few days in the city… but to me, this would be a massive wasted opportunity because the wonder of Iceland is really in its amazing natural attractions and landscapes.

So if you can, even for a day, rent a car or book a tour that takes you out to see some waterfalls and geothermal wonders. I promise you won’t regret it!

2. Reykjavik is a very small city so you can cover all the main sights in 1-2 days

Now in terms of how long to spend in Reykjavik proper, the city is pretty small, so you don’t really need much time to cover the main points of interest.

Naturally, if you want to see every single museum or attraction, you’ll need longer, but honestly, if your goal is to just appreciate the main landmarks and views, you can easily do the main must-sees in a day or two.

3. Staying in downtown Reykjavik is the most convenient (if you don’t have a rental car)

When you start looking up accommodation in Reykjavik, you’ll no doubt see that options tend to be pricey, and anytime there’s one that seems affordable, it’s probably because it’s located outside of downtown.

So it’s natural to wonder whether or not it’s worth actually staying downtown, or possibly picking somewhere farther out.

Here’s my take: while there are buses that can get you out to the suburbs easily, I do think staying downtown is very much worth it if you don’t have a rental car, just because that puts you in the center of the action, and allows you to walk pretty much everywhere.

That said, if you have a rental car with you, you’ll have many more options to choose from e.g. staying somewhere farther away then driving into Reykjavik and parking for free by the University of Iceland.

4. Affordable options in Reykjavik are often more affordable for a reason

… like when there’s a shared bathroom for instance!

So, don’t be blinded by good prices. As with all destinations, be sure to read reviews, and double check the fine print of room details. Some common features of more budget-friendly options in Reykjavik tend to be a lack of amenities, a farther out location and shared facilities like bathrooms and kitchens.

5. Consider the pros/cons of staying in Hafnarfjörður

One popular spot to stay outside of Reykjavik is Hafnarfjörður, thanks largely to the famous Hotel Viking being there. This area is easily connected to Reykjavik city centre by bus 1 and takes about 30 minutes. 

Honestly, having stayed there on my last visit, there isn’t much to do in terms of activities and attractions, with the Viking themed hotel and restaurant just being alright in my eyes. While the common areas and restaurant are well decorated, the rooms themselves aren’t the greatest, plus all the hot water comes from natural sources meaning sulphur smell for days… just FYI if that’s a dealbreaker for you!

All that said, if you’re going to or from Keflavik Airport, a great perk of Hafnarfjörður is you can catch the much more affordable 55 Bus to/from here. This big coach style bus is just like the Flybus but about half the price, making it a great option for those looking to save a bit of money.

So, if you’re looking for an affordable crash pad before your flight or maybe on your first day after landing, this could be worth considering. 

On that note…

6. The simplest option for getting to Reykjavik from the airport is the Flybus

This is a large coach style bus with luggage storage underneath, taking passengers between Keflavik Airport and the BSI Bus Terminal in Reykjavik. You can get tickets either online or through the digital ticket kiosks at Arrivals.

Tickets start at 3999 ISK one way so they’re not cheap, but usually cheaper than most alternatives (e.g. taxi) unless you’re splitting the cost between many people. 

Luckily, the service is very seamless and comfortable, with cool views along the way that make you feel like you’re on another planet.

NOTE: There is no set schedule for these buses because they time them to align with flights, but there is a little screen at Arrivals that tells you when the next departures are. There will usually be buses waiting outside well before the departure time too, so just head out as soon as you can to grab a seat.

As an alternative though…

7. You can take local buses like the 55 into the city for cheaper

This bus is pretty much just like the Flybus, except it’s half the price and with many more stops. If you are staying in the centre of Reykjavik, it’s definitely less convenient because the journey is longer, the schedule is less frequent, and the bus stop itself is a short walk from the Arrivals hall of Keflavik Airport (closer to the car rental area during our trip). But hey, if the timing works out and you don’t mind these trade offs for a cheaper journey, then it’s worth considering!

As I mentioned earlier, at the end of our trip we spent the night at Hotel Viking, so taking the 55 Bus back to the airport was perfect because there’s a handy stop right in Hafnarfjörður, a short walk from the hotel.

8. Beware that the BSI bus terminal is a 15-20 min walk to the city centre 

Just a warning though if you’re catching the bus: the BSI Bus Terminal (AKA the bus station where you will arrive) is not in the centre of Reykjavik. This stop will take you about 15-20 minutes of walking to reach the center of the city where all the main sights are, which could be an issue if you have a lot of luggage to drag around with you.

So, be ready to do a bit of walking to actually get to any points of interest. 

That said…

9. Exploring on foot is the best way to appreciate the best of Reykjavik 

Again, the city is super small, so you can easily walk around to see everything. That, to me, is the nicest way to do it because then you can appreciate the cute streets and duck into all the little shops and pet all the cutest cats at your own leisure.

SIDE NOTE: You can genuinely book a feline-focused walking tour of Rekyjavik like this one if you want. That’s how many cats there are.

In any case, most of the main tourist sights can be found in a small part of the downtown core. Generally, visitors stick to the area from the Hallgrimskirkja church to the Harpa, which is only a 20 minute walk end to end, so very doable.

10. There is a very solid public bus system to get between longer distances in the city 

Of course, if you plan to take the bus, there are many options too.

To look up information about buses, Straeto.is is your best friend. This is the official website of the company running the 27 routes in and around Reykjavik, as well as 18 routes outside of the capital region.

They also have an app you can use to check timetables and buy tickets but, to be honest, the recent reviews are atrocious, so if you wanna make your life easy, Google Maps is pretty good for directions because they even have real time location now on the buses! Then, you can pay for tickets by tapping a contactless credit card when you board. 

Again, the city is quite small so I don’t foresee you needing to use the bus too much unless you’re staying outside of the city centre, but I do think it’s a better option than taxis (whose prices can be shocking).

11. E-scooters are a popular way to quickly get around Reykjavik city centre

And if you’re up for a more adventurous mode of transport, then you can also rent e-scooters to get around the main city centre of Reykjavik. The main app for them is called Hopp, and if the reckless youths of Reykjavik are anything to go by, this is a super popular way to get around. (How old do I sound?)

12. Prioritize smaller snacks and street food stalls for budget-friendly bites 

Now in regards to food and drink tips for Reykjavik, I do have to say again that Reykjavík is a pricey city, and the food scene is no exception. But there are definitely easy ways to save, mainly by sticking to smaller snackier items rather than full on sit-down meals at restaurants. 

Some classics include…

• Cinnamon buns and pastries – the ones from Brauð & Co are unreal
• Seafood soup – I got one from Turf House and it was really good with one of the best views in the city overlooking the Hallgrimskirkja
• And of course, hot dogs – a classic staple!

You could also opt into a food tour like this one to maximize value for money.

That said though, do…

13. Lower your expectations for the famous hot dogs from Bæjarins Beztu Pylsur 

These hot dogs are definitely tasty, don’t get me wrong, but with their long tourist-filled line ups at all hours, I’d say it’s definitely a place propped up primarily by viral hype and a (relatively affordable) price point. Honestly, you can find very similar hot dogs at gas stations and street stalls across the country, so don’t expect these to taste like magic and unicorn dust – they’re simple hot dogs, but good for a filling bite that won’t bankrupt you.

NOTE: For a more filling sandwich, I really enjoyed Hlöllabátar – they have lots of sandwich options and they’re all massive and super filling. I genuinely saw a group of police officers walking and I was like where do THEY have lunch, that must be good… and they all ended up here.

14. Consider dining at a Food Hall for a well-priced sit-down meal

Food halls have become all the rage in Iceland, with several now in operation in Reykjavik. These are like fancy food courts where there’s a communal seating area and lots of different stalls selling different cuisines.

Because it’s quick service food, the prices tend to be lower than traditional sit-down restaurants and they can be great if members of your party all want to eat different cuisines, so make sure you check one (or more) out!

The most popular ones include…

• Pósthús Food Hall & Bar
• Hlemmur Food Hall
• Hafnartorg Gallery
• Borg29 Mathöll
• Grandi Mathöll
• Kúmen
• Mathöll Höfða

15. Keep an eye out for Happy Hour deals to drink more affordably

Buying alcohol in Iceland is not cheap, with the usual cost of a beer being minimum 1200 ISK and cocktails starting at 2500 ISK. There’s a reason most people stock up on alcohol at duty free! 

Now, bearing in mind the country’s zero tolerance policy for drinking and driving, you might not end up wanting to drink anyway but if you do, there are lots of places in Reykjavik that do happy hour specials so that might be a more affordable way to do it. 

You’ll usually see signs advertising happy hours all around the city, but when in doubt, just type happy hour into Google Maps to find spots near you that offer specials.

16. Be sure to book a table ahead of time for any popular restaurants

Of course, those were all tips about how to save money dining out in Reykjavik. If budget is of no concern, you have tons of great options, just be sure to read reviews quickly before you sit down anywhere and make a reservation ahead of time.

The truth is there are many restaurants in Reykjavik with a great reputation but if you know about it, other tourists know about it too, so many of them can book out weeks in advance during peak periods. To avoid disappointment, do book a table for any must-go places.

We didn’t spend much time in Reykjavik on our recent trip, and on my previous trip I was still a broke student so don’t have many nicer recommendations, but here are some great suggestions by others on Reddit. 

17. Look into the Reykjavík City Card if you plan to do many of the main museums 

Museums aren’t often the main reason people come to Iceland, but when in Reykjavik, there are several great options for a rainy day (or if you’re a bit of a museum nerd like me!)

If you do think you’ll be visiting a few of the city’s museums while in town, it’s definitely worth considering a Reykjavik City Card.

This is a sightseeing pass you can buy for 24, 48 or 72 hours, which allows you to see all the attractions included in the pass for that time period. This often works out to be cheaper than just buying tickets for each place you go to, especially if you plan to visit many. 

Because it includes bus travel as well, it’s fairly easy to recoup the cost of the pass if you just do a few of the pricier museums. Click here to explore the options.

18. Read reviews carefully for attractions, especially ones that simulate nature

Apart from museums, there are several attractions in Reykjavík where the main purpose is to give you a taste of Iceland’s nature in an accessible way in the middle of the city. Some examples include Saga VR, Fly Over Iceland, and the most famous museum complex in the city, Perlan. 

In my opinion, Iceland’s nature is something best experienced in real life, so I would personally only prioritize these attractions if I don’t have the time to book a day trip or travel onwards to see Iceland’s amazing nature in person. Not to be dramatic, but truly nothing compares.

If you do opt for one of these though, do make sure you read reviews carefully so you know what you’re in for.

19. Don’t miss some of the quirky little museums (e.g., the Penis Museum)

Okay, honestly, I never thought I would be recommending this, but yes indeed – the Icelandic Phallological Museum (usually better known as the Penis Museum) is actually VERY fun.

Not only is it probably one of the world’s most unique museums, it’s also strangely engrossing and well worth visiting if you’re morbidly curious… and don’t mind staring at random animal ding dongs in the name of touristic enlightenment. 

There are also many other smaller quirky museums to take note of as well, like the Icelandic Punk Museum and the Dead Gallery/Studio, so definitely worth checking out if the topics interest you!

20. Time your visit to the Hallgrimskirkja Church to hear the organ/bells 

I’m not gonna lie, the Hallgrimskirkja Church is amazing on the outside but pretty plain on the inside… so if you’re able to time your visit for when they do organ performances, then that really does enhance the experience. I believe they do special organ concerts on Saturdays if you want to guarantee a performance, but otherwise the organist does play throughout the week as well.

Do note though that they can be closed for religious services and private gatherings from time to time, so be sure to double check on their website.

And if you’re able to, definitely go up the tower for some super nice views of the city. Timing your visit for the bells, which go every 15 minutes and the most going off on the hour, makes it extra special!

21. The Sky Lagoon is epic, and the Sér Package is 100% worth the cost 

If there’s one relaxing activity I can recommend in Reykjavik, it’s the Sky Lagoon, specifically the Sér Package.

This package includes the Skjól ritual, which is an incredible 7 step wellness experience at the lagoon including a sauna, salt scrub, steam room and more. Paying this bit extra also gets you a private shower/changing room, which to me would be worth the extra cost alone. 

All things considered, upgrading to this package isn’t that much more than the usual entry price and it’s really, really worth it. They also offer packages that include a transfer like this one from the bus terminal which might be more cost effective than taking a taxi if you don’t have your own rental car. 

Overall I really enjoyed this lagoon experience, even more than the Blue Lagoon, so if you’re looking for a relaxing splurge, go for it!

22. Reykjavik has many affordable and nice public pools as well 

That said, for a nice pool experience that costs significantly less, do know that there are plenty of other public pools to visit in Reykjavik for a fraction of the cost.

I believe there are 18 geothermal pools you can experience in the city, which are much more affordable than the more touristy lagoon experiences. Granted, these pools won’t be as swanky and epic as their more famous tourist-geared counterparts, but they can be a great opportunity to get a soak in without spending a fortune.

23. Don’t miss the many beautiful murals & street art around the city 

And for another budget-friendly must do, check out all the street art in Reykjavik!

There are so many fun ones and they do change, of course, with time but on my recent visit I saw one of a puffin fighting a polar bear, which was pretty great.

There’s actually a free app called the Reykjavik Art Walk that you can download that will show you the locations and explanations of the city’s many public art pieces, so be sure to check it out. You can also book a street art tour like this one for a more structured experience.

24. Be sure to stop by the Harpa to admire its amazing architecture

The Harpa is a very unique concert hall with a glass façade that’s meant to resemble the basalt landscapes of Iceland. This popular must-see is probably on your list already, but a lot of visitors simply photograph it from the outside.

… But don’t just stop there! You’re allowed to go in. Visiting the inside is completely free and if you’re lucky like me, you might even experience a free concert inside, which allows you to appreciate the venue’s amazing acoustics.

There’s also a very fun gift shop inside with souvenirs made by local artisans.

25. There’s a free gravel parking lot right by the University of Iceland

Now let’s move onto some of the very niche and specific tips I accumulated from first-hand experience – YES there is free parking in Reykjavik! My recommendation would be the free parking lot near the University of Iceland. It’s a 15-ish minute walk to the city centre through a nice park, so definitely go for it if you don’t mind a little walk in return for savings.

26. There’s no need for cash, but make sure you have a travel-friendly card 

I didn’t take out any cash on my recent trip – everyone accepted card in Rekyjavik, so definitely make sure you have a travel-friendly one that doesn’t charge you fees. I personally have used Wise for many years and love them. If you use my referral link you can get your first transfer free.

27. Layer up and prepare for the weather to change at a moment’s notice

You honestly never know what the weather will be like in Iceland, so I think it’s smart, regardless of the season, to always have a warmer waterproof layer in your bag because you truly never know.

A jacket with a hood is definitely better than an umbrella because the wind here can be crazy. Make sure you also have some gloves and a buff to protect your neck in case you get cold easily.

28. If you want an authentic souvenir, go to a shop you can’t pronounce

Another piece of advice I heard once that I love so much is that if you want an actual authentic Icelandic souvenir, head to a shop that you can’t pronounce the name of, because these are usually the stores that aren’t explicitly geared towards tourists.

Now make no mistake, going to these shops will probably be pricier than getting souvenirs from the more generic shops but often that’s for a reason, whether because the stuff is actually locally made or higher quality in general. 

In any case, when you’re shopping for souvenirs you should definitely inspect labels to determine the actual materials, like let’s say, whether that sweater is actually Icelandic wool or not, and also see where it was made – if that matters to you. 

29. Finally: be a respectful visitor and remember that locals do live here 

Like many popular places, Iceland has had its fair share of bad tourist behaviour, so do remember at the end of the day, Reykjavik is a city that many Icelanders call home and as cute as the views and everything are, you should still be respectful and clean up after yourself.

Don’t just go up to people’s houses and gardens to take photos, don’t feed people’s cats without asking, and don’t randomly stop in the middle of the street to take photos or potentially block people’s way. Respect the locals so they’re still happy to receive more visitors in the future!

I hope this list of Reykjavik travel tips was helpful!

Let me know in the comments if you have any more to add.