Just Landed in Iceland? Your First 7 Days

Iceland has excellent, fast mobile coverage across populated areas and near-total 4G/5G in and around Reykjavík, though signal drops on remote highland routes. Prepaid SIMs and eSIMs are cheap to start and sold at Keflavík Airport, telco shops, and convenience stores; home fibre broadband is widespread and quick to install in the capital region.

Typical cost: Prepaid starter SIMs from around 2,000-3,000 ISK; unlimited-data monthly plans roughly 4,000-6,000 ISK, with home fibre broadband commonly 7,000-9,000 ISK per month.

Iceland is one of the most cashless countries in the world; debit and credit cards plus Apple and Google Pay are accepted virtually everywhere, including Strætó buses (via the Klapp app), parking, and market stalls. The króna is a small, effectively closed currency, so convert any leftover notes before you leave the country.

Opening an account: Open an account with Íslandsbanki, Landsbankinn, or Arion once you have a kennitala, an Icelandic address, and photo ID; you usually need to visit a branch in person the first time. Almost all day-to-day banking then runs through the bank's app, and your identity is verified everywhere via the Auðkenni electronic ID on your phone.

Cash: Cash is close to obsolete and many shops actively prefer cards; you can genuinely go weeks without touching a coin. Keep only a small amount, if any, for the rare unattended vending machine or an informal private sale.

Tipping: Tipping is not expected and service is included in menu and hotel prices. Rounding up or leaving a little for exceptional service is welcome but never assumed, and no one will chase you for it.

New residents must register their legal domicile (lögheimili) with Registers Iceland (Þjóðskrá Íslands) and obtain a kennitala, the ten-digit national ID number that underpins your bank account, salary, tax, phone contract, and healthcare. EEA/EFTA citizens register their right of residence, typically once they intend to stay beyond three months (or six if actively job-seeking); non-EEA nationals must first hold a valid residence permit from the Directorate of Immigration (Útlendingastofnun), and are usually registered when that permit is issued. Your registered address also determines which municipality collects your local tax and which services you can access, so keep it accurate whenever you move.

Deadline: Register your legal domicile as soon as you have a fixed address and, for EEA/EFTA citizens, generally within the window before your stay exceeds three months (six if seeking work). Do not delay, as nothing downstream works without the kennitala.

Where: Þjóðskrá Íslands (Registers Iceland), via the Ísland.is portal and skra.is, or in person at their offices in Reykjavík and Ísafjörður.

The capital region relies on the Strætó city bus network, which went fully cashless in mid-2025, so you pay via the Klapp (Klappið) app; the centre is walkable and flat, but there is no metro or tram anywhere in Iceland. Many residents drive because winter darkness, wind, and spread-out suburbs make a car practical, and studded winter tyres are the norm from roughly November to April.

From the airport: Keflavík (KEF) sits about 50 km southwest of Reykjavík. Flybus and Airport Direct coaches run to the BSÍ terminal in roughly 45-50 minutes for around 3,500-4,500 ISK, with optional hotel drop-off; alternatively book a taxi or a Hopp ride. There is no rail link and no city bus direct from the terminal building itself.

Reykjavík has a tight, expensive rental market with chronically limited supply, so good listings vanish within hours and you must be ready to view and commit fast. Most rentals surface via mbl.is/leiga, bland.is, Leigulistinn, and active Facebook housing groups rather than traditional estate agents, and competition is fierce for anything central.

Typical rent: A one-bedroom flat in central Reykjavík runs roughly 260,000-320,000 ISK per month, dropping to about 200,000-250,000 ISK in the suburbs and neighbouring towns like Kópavogur or Hafnarfjörður; rooms in shared flats are cheaper but scarce.

Deposit norm: Deposits are typically one to three months' rent, and landlords increasingly ask for a bank guarantee or a deposit registered through a formal rental deposit scheme. Register your lease with the tenancy system where possible, and never transfer a deposit before viewing the property and verifying the landlord's kennitala.

Iceland has a strong, largely public healthcare system administered through Sjúkratryggingar Íslands (Icelandic Health Insurance). After a six-month residency qualifying period you are covered on the same terms as citizens, paying modest co-payments per visit rather than large bills, with a ceiling that caps annual out-of-pocket costs.

How to access it: Register with your local heilsugæsla (primary healthcare centre), which is your first port of call for most issues, and book appointments and view records through Heilsuvera.is. For urgent but non-emergency problems in the capital area call Læknavaktin on 1700; dial 112 for genuine emergencies and go to the Landspítali hospital in Fossvogur for accident and emergency.

Insurance: For roughly the first six months of legal residence you are not yet covered by Icelandic Health Insurance, so keep private or travel health insurance active until the qualifying period ends. EHIC/GHIC cards cover EEA/UK visitors for necessary care during short stays but are not a substitute for enrolling once you settle.

• Always remove your shoes when entering someone's home; it is universally expected and not doing so is genuinely rude.
• Shower thoroughly and without a swimsuit before entering any public pool or hot tub; this hygiene rule is strictly enforced and pools are central to social life.
• Icelanders address each other by first name only, even in formal and government settings, because surnames are patronymics; the phone book itself is ordered by first name.
• Be punctual for work and formal appointments, but expect social plans to be casual, loosely arranged, and often confirmed last-minute.
• Keep a modest, low-key tone; loud self-promotion and status displays land poorly, and understatement is valued.
• Sort and recycle your rubbish carefully, as waste separation is taken seriously in most homes and buildings.
• Small talk is limited and Icelanders are comfortable with silence, so do not read reserve as coldness; warmth tends to appear once you are inside someone's circle.

• Never drive off-road; it is illegal, carries heavy fines, and permanently scars fragile terrain.
• Respect weather and safety warnings on safetravel.is and vedur.is, as wind and road conditions can turn dangerous within minutes even near the city.
• Buy alcohol only from state Vínbúðin shops, never supermarkets, and expect it to be very expensive with limited opening hours.
• Do not underestimate the wind: car doors get torn off in gusts, and a coat is far less useful than a proper windproof shell.
• Avoid tap-water bottled scams and pricey tourist traps; tap water is excellent, cold, and free everywhere, so never pay for still water.