Iceland On A Budget: 10 Must See Attractions

It is no secret that Iceland is our most favorite place in the world. In many ways our blog was created with the intention to share our love of Iceland. Traveling to Iceland on a budget? Consider these must-see attractions for a budget-friendly itinerary! The dramatic vistas, the wildlife, the road trips- there is no place in the world with so much unspoiled natural beauty that is so easily accessible. Although Iceland's tourist industry has boomed in the past 10 years, we still consider Iceland a budget friendly destination with careful planning AND considering that most of Iceland's beauty is completely free to access. Flights to Iceland from the northeast (Boston Logan Airport) continue to remain budget friendly, particularly in the shoulder season. At the time of writing this post, a round trip flight from Boston to Reykjavik in October is $400 direct- (yes, I am considering a return trip to Iceland in October!). Check out "How to Travel Cheaper in 2025" for more info on saving on flights. A car rental and accommodations remain the biggest expenses when traveling to Iceland but we have provided some of our favorite stays that remain somewhat budget friendly (at least for Iceland). For more general information about Iceland..

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Our Top Budget Friendly Iceland Attractions

Without further ado, here is our 10 Top Budget Friendly Attractions to Visit in Iceland with cost and time allowance estimation. This is meant to be an a la carte listing but could be used to create an itinerary if considering drive time between each attraction. We have organized these in order of distance from Reykavik and have offered accommodation recommendations for creating the perfect 8-10 day itinerary.

1. Budget Friendly Attractions
   1. Golden Circle: 1 full day -Thingvellir $7 parking
   2. Frioheimar Tomato Farm: 2 Hours - cost of meal
   3. Seljalandsfoss Waterfall and Gljufrbui Waterfall (Secret Waterfall): 2 hours- $6 parking
   4. Skogafoss Waterfall/Skoga Trail Hiking: 4 Hours including lunch- free
   5. Landmannalaugar and the Icelandic Highlands: Full Day
   6. Dyrholaey- to see puffins: 2 hours- free
   7. Reynisfjara Black Sand Beach: 2 hours -$8 parking
   8. Pakgil: Half Day- free
   9. Jokulsarlon Glacial Lagoon/Diamond Beach: 4 hours -$8 parking fee
   10. Vestrahorn/Stokksnes: 2 hours - $7 per person entrance fee

1. Golden Circle

This is a multi-stop listing and probably the most popular and iconic of Iceland's attractions (and the most crowded!). The best advice I was given in preparing to visit Iceland was to visit these attractions FIRST. Everything else will pale in comparison but they still hold wonder as an introduction to Icelands beauty and diversity.

The golden circle includes the following attractions: Geysir Geothermal Area, Gullfoss Waterfall, Thingvellir National Park and Kerid Crater. We recommend devoting 2 days to visiting this area of Iceland at the beginning of your trip and combining with a hot spring and Frioheimar Tomato Farm. We recommend a self driving tour so that you can spend as little or as long at each stop to your liking.

1. We spent the most time in Thingvellir National park (about 4 hours) as there are a number of lovely look outs and hiking within the park. You could easily spend a full day here hiking if you preferred a more in depth look. There is no cost for admission but there is a $7 parking fee.
2. Gullfoss Waterfall: there are no admission or parking fees, you could spend as little as an hour to 2 hours. Check out their store and cafe!
3. Geysir Geotherm l Area: No admission or parking fees. Spend about an hour and watch the geyser erupt! Gulfoss and Geysir are only 10 minutes from each other.
4. Kerid Crater: If we had to skip a location on the golden circle, we would skip Kerid Crater.

2. Friðheimar Tomato Farm-click for more Info

We missed this on our first trip to Iceland and really feel like this deserves to be on our MUST DO list. Spend the morning at Gullfoss and Geysir and book a lunch stop here. This books quickly so make sure to make your reservation as far in advance as possible. You'll need a few hours to take the tour and enjoy lunch-The tomato soup and bread are a must try and you'll eat among the tomato plants! They give you a tour of the greenhouse and explain how they grow and cultivate the tomatoes. Grab a cocktail while you are waiting for your tour/table to be ready!

3. Seljanderfoss and Gljufrbui Waterfall (Secret Waterfall)

Seljanderfoss's magic is that you can walk behind this giant waterfall for some stunning views of the countryside. A popular tourist destination amongst tours, we recommend getting here as early in the day as possible. There is a small parking fee here (about $6) and you should plan for a few hours to explore this beautiful area. As you are facing Seljanderfoss there is a pathway to your left that travels alongside the cliffs and will bring you to Gljufrbui Waterfall tucked inside the rocks. You many need to wait in line to enter and this can take away from some of the magic but an early morning arrival may afford less crowds. We also saw lots of sheep in the area which is great fun to watch them roam wild in the countryside!

4. Skogafoss Waterfall/Skoga Trail Hiking

This is one of our favorite waterfalls in Iceland mainly for the hiking above the falls. This is a steep and long climb up a wooden staircase and may not be suitable for anyone with mobility constraints. Gramma and Uncle Ted stayed below for cocktails at the Skogafoss Bistro Bar with great views of the falls. They were able to put in a reservation for lunch which was a great respite after hiking for a few hours. Most people only climb up to the top and then return down the staircase but hiking along the Skoga Trail for a few miles is one of our favorite things to do in Iceland! You will encounter less people and there are multiple views and additional waterfalls to explore. The hiking is moderate and we recommend coming prepared with hiking boots. Plan to spend at least 2-3 hours here including lunch..

Iceland On A Budget: Where to Stay?

We are going to pause here to offer some convenient accommodation options with good proximity to the first 4 attractions and to the Highlands. One of the best areas to stay and make home base while visiting the Golden Circle and Seljanderfoss and Skogafoss is Hveragerdi. We love this area for its small town and walking distance to some incredible natural hot springs. You can see the steam rising up from this little town and there are some great hiking trails in your back yard! Complete with a grocery store, outdoor store and Pizza and Brewery!

Here are our favorite budget friendly options:

We loved the Frost and Fire Hotel for its proximity to natural hot springs and their very own hot tubs! Rooms are small but we fit 3 comfortably for two nights and current price is $316 per night. Breakfast was included and featured hot and cold options that allowed us to fuel up for the day! Leave time to hike up into mountains one morning or evening before or after your day's adventures!

The Greenhouse Hotel was the perfect option for a large group. Our group of 16 really loved staying here for its on site Food Court complete with a Taco Truck! Eating with a large group can be a production but returning each day to a variety of food options (and cocktails) was the perfect and easy way to end each day. Relaxed group seating allowed everyone to come down at their leisure and order their own food and we could debrief from the day. The Greenhouse Hotel also provides coffee and pastries on site and the most adorable little store complete with great Icelandic made souvenirs. The Greenhouse Hotel offered two family rooms that included accommodations for 4 and we booked these a year in advance to ensure we had this option. At publication, the Greenhouse Hotel is priced at $280 per night for two people in July.

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5. Landmannalaugar and the Icelandic Highlands

We took the following full day tour from the Greenhouse Hotel. The tour guide picked us up and dropped us off direct from the hotel. I needed a tour for 6 people and pick up closer to Hvergerdi and not Reykavik. This tour checked off all the boxes and was a private tour but not necessarily budget friendly at $200per person but well worth every penny ! We do recommend taking a rental car to the highlands as water/river crossings make for treacherous travels.This full day tour afforded us a 3 hour hike as well as a visit to surrounding attractions including the Valley Of Tears. For a full detailed guide to visiting Landmannalauger.

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6. Dyrholaey

Oh the Puffins! These fun little birds can be seen at Dyrholaey from April until early September. Leave a few hours to hike through Dyrholaey and take in the views back over Reynisfjara Beach. Parking is free and there is no admission fee to this spectacular natural park. You will encounter all kinds of wildlife here but the puffins steal the show !

7. Reynisfjara Black Sand Beach

A short distance from Dyrholaey lies the iconic Reynisfjara Black Sand Beach. We had a very different experience here in 2022 than we did in 2024. We essentially had this beach all to ourselves in 2022 but had to fight crowds and swarms of people in 2024. We stayed directly adjacent to this beach (see below for more information on where to stay). There is a parking fee per car of $8, be sure to actually pay this at the kiosk or on the app or you may be ticketed and find a change on your rental car bill at the end of your trip. The basalt columns and fierce waves make Reynisfjara one of the most dramatic backdrops in Iceland! Please heed the warning of sneaker waves as they will come up on you out of no where! You don't want to end up in a video of dumb tourists getting swept into the surf- Always keep your back to the waves!

8. Pakgil

We would consider Pakgil as one of the hidden gems of South Iceland. Driving into Pakgil was an adventure all its own! Technically not an F-Road, Road 214 meanders through farmland and overlooks but is a narrow gravel road. Drive slow and cautiously- you'll want to stop at a variety of pull offs to take in all the incredible views! This drive is not for the faint of heart but the rewards of incredible waterfalls and green covered cliffs is really some of the best of Iceland. You will arrive at a small campground where we parked free of charge, actually, when we traveled here in 2021 there was no other humans seen for miles. An approximate 45 minute drive over 21km from Vik, Pakgil is the perfect day trip and affords some incredible hiking and no crowds! On our drive out we encountered herds of wild sheep and cows grazing in the mountains.

9. Jokulsarlon Glacial Lagoon/Diamond Beach

From Vik, the Jokulsarlon Glacial Lagoon and Diamond Beach is approximately 2 hours and 15 min from Vik. We made a full day trip of the Lagoon, Diamond Beach and Vestrahorn for a long day trip- approximately 12-14 hours. Driving to Jokulsarlon you will pass Fjallsarlon Glacier Lagoon. Most people drive right by but for a less crowded option, Fjallsarlon Glacier is equally beautiful. There is no parking fee here, we simply pulled off the side of the road. We saw seals and birds everywhere and was such a great spot for a picnic lunch! Fjallsarlon does not hold the same drama of towering pieces of glacial ice as Jokulsarlon but the views of Vatnajokull glacier are stunning all their own! There is an $8 parking fee for Jokulsarlon.

Across the street you can walk over to the Diamond Beach with shining pieces of ice scattered across the black sand beach. If time allows, plan to come back through here during sunset for some stunning views in the golden light!

10. Vestrahorn

Approximately another hour and half from Jokulsarlon lies Vestrahorn and the Skokksnes Peninsula. With its towering jagged peaks in the background and sand dunes and tidal pools in the foreground, Vestrahorn may be the most beautiful place we have ever experienced. We wish we had more time here to hike and explore but we added this at the end of a day trip and we were losing light. To access the beach you will need to pay an entrance fee of approximately $7 per person at the Viking Cafe. This will give you a pass to enter through the gate where you can drive down to the beach and explore the Viking Village (an old movie set). We made a dinner stop in Hofn, a quaint fishing village with some great restaurant options. Vestrahorn is approximately 6 hours from Reykavik and 3.5 hours from Vik- the farthest east we traveled on our tour of South Iceland.

Iceland On A Budget: Where to Stay?

Because of Vestrahorn's distance from Reykavik and Hvergerdi, you may want to make a home base in central South Iceland.

Here are some of our favorite budget-friendly options:

"Tiny Home In Vik": We absolutely loved Ragner's Airbnb on Reyjanisfara Beach. Ragner was a puffin hunter before they became endangered and will share many stories of his adventures as a puffin hunter in Iceland. After no longer being able to hunt puffins, he and his family build these three cabins as a source of income. Their proximity to Reyjanisfara can not be beat! Waking up in the morning with a cup of coffee and walking out and having this spectacular beach all to yourselves does not have a price tag. You'll encounter sheep grazing and birds catching their morning breakfast! The accommodations are cozy but feature a full kitchen. At approximately $300/night this is one of the BEST budget friendly accommodations in Iceland!

Black Beach Suites is our Second recommendation in the area of Vik. This was more budget friendly in 2021 but as they have expanded the price has expanded accordingly. We still feel that The Black Beach Suites still holds a great deal of value for the $ tag. With sweeping views and modern conveniences and style, this serves as a great option for families. Complete with a bar and restaurant, this is a spectacular home base to return to after a day's adventures!

In conclusion, Iceland remains a magical and mystic destination. Despite increases in costs, we still find Iceland to be budget friendly when considering overall costs. Tours and excursions are amazing ways to infuse experiences into your itinerary but they are not necessary to experience the wonder of Iceland. In fact, we recommend ensuring there is ample time to explore on a whim and relax and take in the magic of this beautiful country!