Currency is not something to be forgotten among the more exciting elements of planning a holiday! And if you are planning to visit Iceland, you might be surprised to learn that the Euro is not used here. Despite its location on the European continent, you’ll need to get your head around a whole new currency – the Icelandic Króna.
Previously to the Icelandic Króna, the population used the Danish Króna as they existed under Danish sovereignty. While Iceland was issuing its own banknotes from 1885, the Icelandic Króna officially separated from the Danish one in 1918.
Don’t panic if you’ve left things too late to get out cash. While the first settlers were Vikings, Icelanders do not live in the Dark Ages. You will be able to draw cash in Iceland from ATMs and find exchange establishments in the airport and in Reykjavik. However, if you have the time now, you might be able to avoid the steeper exchange rates and prepare for your trip more affordably. Let’s take a closer look at everything you need to know about the official currency of Iceland.
Icelandic Króna is denoted by ISK and is Iceland’s official currency. 1 Icelandic Króna is split up into 100 eyrir. You might recognise “Króna” from other Nordic nations, but it’s important to treat it as its own currency when in Iceland to avoid confusion. The conversion rate to US dollars at the time of writing is roughly 1 Icelandic Krona to 0.0072 US Dollars.
Cashless payments are the most common form of payment for tourists visiting Iceland. Card and contactless payments are actually preferred in most establishments. The limit on contactless payments is ISK 7500 per transaction (currently around $50 USD).
While it is recommended that you carry a small amount of local currency with you while on holiday, you’ll likely be able to use your card to pay everywhere you visit.
So what will you encounter when you’re in Iceland?
You’ll find notes of 500, 1000, 2000, 5000, and 10000 Icelandic Króna.
Coins are available in denominations of 1, 5 and 10 Icelandic Króna are silver, and coins of 50 and 100 are gold.
As mentioned above, cash will only really be necessary if there are issues with your card. However, should you wish to take money out while in Iceland, this is absolutely possible. Bear in mind that ATM machines in cities, towns, and some roadside services will provide more affordable rates than at the airport.
Unlike the United States, Iceland has no real culture around tipping in the service industries. If you felt that you experienced truly exceptional service, then a 10% tip is advisable. It is also sometimes common for cash tips to be given to tour guides on guided excursions, but this again is not mandatory.
There is no way around it, Iceland is a relatively expensive place to visit. If you’re planning to visit, you might be after some advice on how to keep your costs down while still enjoying your time there as much as possible. Here are a few quick tips to follow for your trip!
If you are looking to travel in Iceland in a camper van or rental car, browse our models today and start planning your trip! Safe travels.