Self-catering in Iceland

On vacation, the last thing most people want to think about is cooking and washing up. If you like to be pampered, self-catering probably isn't for you. But if you're on a smaller budget and still want to do the things that brought you to Iceland, cooking some of your own meals is the single best way to cut costs.

Tours in Iceland are expensive, car rental is pricey, and cheap accommodation is hard to come by. Eating out costs more than you'd probably pay at home, and drinking out is worse. Is Iceland worth it anyway? Absolutely. The trick is to spend on the experiences and save on the everyday stuff, and that starts with finding a hostel, guesthouse, cabin or apartment with a kitchen.

Pick lodging with a real kitchen

Apart from the big hotels, most accommodation in Iceland has some kind of kitchen. That can mean anything from a hot plate and a mini-fridge to a full kitchen stocked with pots, spices and leftover pasta from the last guests. Ask exactly what's there before you book, and count it when you compare prices. A slightly more expensive guesthouse with a proper shared kitchen can easily be cheaper by the end of the trip.

• Hostels: almost all have guest kitchens. See hostels in Iceland and hostels in Reykjavik.
• Apartments and cottages: the best kitchens, and often the best value for families or groups. See vacation rentals in Iceland and alternative accommodations.
• Campervans and campsites: many campsites have a sheltered cooking or washing-up area, but bring your own stove and gas.

Where to shop

The discount chains are where Icelanders shop, and where you should too.

• Bónus, the one with the pink pig logo, is the classic budget supermarket. It has stores all over the capital area and in towns like Akureyri, Selfoss, Ísafjörður, Egilsstaðir and Stykkishólmur. Most capital-area branches are open every day, closing somewhere between 19:00 and 23:00, but hours vary by store, so check the opening hours page.
• Krónan is the other big discounter. Most of its stores are open every day from 8:00 to 21:00, including the downtown branch at Hallveigarstígur 1 and the one on Fiskislóð out at Grandi.
• Nettó has branches around the country, including in smaller towns on the Ring Road.

Convenience stores and gas station shops are handy late at night and on long drives, but you pay for it. Do your big shop at a discounter and top up elsewhere.

What to buy

Supermarkets are well stocked with cheese, bread, meat, fish and ready meals. Imported fresh vegetables can be pricey, but Icelandic greenhouse tomatoes, cucumbers and peppers are good. Icelandic lamb and fish are the things to cook here, and a tub of skyr makes a cheap, high-protein breakfast. Pick up rye bread and smoked or cured fish for picnic lunches, which will save you a fortune on road trips where the only lunch option is a gas station grill.

Buying alcohol

Supermarkets don't sell regular-strength beer or wine. For that you need Vínbúðin, the state-run liquor store. You must be 20 or older, and they check ID. The main Reykjavik stores, including the downtown one at Austurstræti 10a, are open Monday to Thursday 11:00 to 18:00, Friday 11:00 to 19:00 and Saturday 11:00 to 18:00, and closed on Sundays. A few larger branches stay open until 20:00 on weekdays. See the full list of hours.

The better deal is the duty-free store in the arrivals hall at Keflavík, which you walk through before customs. Travelers 20 and over can bring in, for example, 1 liter of spirits, 0.75 liters of wine and 3 liters of beer, or 18 liters of beer on its own. The full list of allowed combinations is on the Icelandic customs page. There's more on all this in drinking in Iceland and what to drink in Iceland.

Can you bring food from home?

Yes, within limits. Customs lets travelers bring up to 10 kg of food, sweets included, worth no more than 25,000 ISK, duty-free. You can't bring meat or dairy products from outside the European Economic Area, so leave the jerky and cheese at home if you're flying from North America. Dried pasta, coffee, oatmeal and snacks are all fine and save a surprising amount. The rules are on the customs site.

Self-catering outside Reykjavik

Outside the capital, self-catering is easy. Most guesthouses and cottages have kitchens, and if you're staying out in the countryside instead of in a town, it's even more appealing. Who doesn't want to eat a good meal with Iceland spread out in front of them? Shops get sparse in the Westfjords, the east and the Highlands, so stock up in bigger towns before long stretches. If you're driving the Ring Road, plan your grocery stops the same way you plan your gas stops.

Mix it up

Self-catering doesn't mean skipping the local food. The best trade-off is to eat your main meal out at lunch, when portions and prices are smaller and you won't drink as much, then cook dinner yourself. Save one night for a splurge, and fill the gaps with cheap eats like pizza, food-hall stalls and the famous Icelandic hot dogs. For more money-saving ideas, see dining on a budget in Reykjavik and how to budget for a trip to Iceland.