What currency does Iceland use?
Are you planning a trip to Iceland and wondering about the currency you will need? In this comprehensive guide, we'll cover everything you need to know.
Iceland uses the Icelandic krona (ISK) as its official currency. Discover everything you need to know about Iceland’s currency to ensure a seamless travel experience.
Currency in Iceland
The Icelandic krona, or ISK, is Iceland’s official currency. It was first introduced in 1874 after Iceland gained independence from Denmark.
Initially, the krona was an evolution of the Danish krone, but today it’s an independent currency. While it shares a name with various Nordic currencies like those in Norway and Sweden, it’s totally separate.
The Icelandic krona is a relatively weak currency, having been devalued a number of times over the years. Interestingly, though, Iceland is not a particularly cheap travel destination.
Do I need to carry krona as cash?
Carrying cash is not essential, as most places will accept card payments, especially in major cities like Reykjavik. Mastercard and Visa credit and debit cards are the most likely to be accepted. Amex and Diners Club cards are not as widely used in Iceland.
Every bank is different, and there will usually be exchange fees and transaction costs for using your card abroad. Make sure you’re aware of how much you will be charged.
Cash is usually handy for small transactions, taxi fares, and tips, so it's still helpful to have some krona on hand.
Does Iceland accept any other currencies?
While the official currency is the Icelandic krona, you might find that some hotels and tourist-facing businesses accept the US dollar, British pound or euro.
There are no guarantees, however, so we recommend that you take Icelandic krona for the easiest transactions, especially outside of urban areas.
What denominations does the Icelandic krona come in?
Icelandic krona notes
The Icelandic krona is available as both notes and coins. The main denominations for Icelandic krona notes are:
- 500 ISK
- 1000 ISK
- 2000 ISK
- 5000 ISK
Icelandic krona coins
Icelandic krona coins come in denominations of:
- 1 ISK
- 5 ISK
- 10 ISK
- 50 ISK
- 100 ISK
To make sure you’re prepared when visiting Iceland, it's usually a good idea to have a mix of notes and coins for convenience during your travels.
Is Iceland expensive?
Iceland is a wonderful destination, famous for its stunning landscapes, waterfalls, rugged hills, hiking trails and natural hot springs.
It’s also well known as one of Europe’s more expensive countries to visit. Iceland is often more expensive for food, travel, and accommodation than in the UK, but there’s plenty of variety on offer and there are lots of ways to keep costs down.
Keep in mind that prices may vary depending on your location within the country and the time of year that you visit. Because Iceland is only a short flight from the UK, many travellers find that a short break is the most cost-effective option.
Where to get your Icelandic krona
You can buy Icelandic currency directly from us. For the best rates, order online today—your currency can either be posted out to you or you can click and collect at any Travelex store.
In addition to buying your krona as cash, you can also use the Travelex Money Card in Iceland. An optimal alternative to carrying your debit card. Unlike your debit card, our Travelex Money Card is not linked to your bank account, minimising your risk of losing all your funds in case of loss or theft.
Ready to buy some Icelandic krona?
It pays to be organised, so make sure you have enough Icelandic krona for your adventures. Buy Icelandic krona online as cash or on a Travelex Money Card.
You can convert any leftover Iceland currency to GBP when you return home. All you need to do is take out our Buy Back Promise for £4.99 when you buy your travel money and, after your trip, we’ll buy back your leftover currency from you at the original transaction exchange rate.
Iceland is a fantastic place to visit—for ideas of where to go and what to see, don’t miss our Iceland travel guide.
