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Why is alcohol so expensive in Iceland?

The reason it costs so much is because of the very high taxes put on alcoholic beverages. (More than 80% of the price of a bottle of vodka is just tax!) While it's true that most Scandanavian countries have high alcohol taxes, Iceland is even famous amongst its neighbors for the whopping alcohol duties.



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Tipping isn't mandatory or customary in Iceland, but it is always appreciated. The standard rate of tax on Icelandic products is 24%, with some products and services, including books, food and accommodation, taxed at a reduced rate of 11%.

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Yes, you can wear jeans in Iceland. The summer and shoulder seasons are especially good times to travel in your most comfortable pair. If you plan to go on an adventurous excursion, we recommend wearing the appropriate, activewear clothing.

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Yes, the water is perfectly safe to drink in Iceland. Unless marked otherwise, tap water is considered safe, and because of where it comes from, you know you're getting it in its purest form. Nearly all of Iceland's tap water is sourced from groundwater – stored deep in wells under the earth's surface.

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Etiquette and Manners in Iceland
  1. Respect nature by leaving it as you found it. ...
  2. There is no word for 'please' in Icelandic. ...
  3. Shower before entering a sauna or pool. ...
  4. Take your shoes off when entering someone's home. ...
  5. Respect Iceland's food and traditions. ...
  6. You don't need to tip in restaurants. ...
  7. Stick to the roads when driving.


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