Currency and Banks

The currency in Iceland is the Icelandic króna (ISK). Foreign currency can be exchanged in banks. You can use paper bills and coins in Iceland but it’s far more common to use payment cards or mobile phone apps to pay for goods and services.

Most shops, companies, businesses and taxis accept payment by card (debit and credit cards). Information on exchange rates for ISK against other currencies can be found here. Information on the Icelandic króna, interest rates, inflation targets and more can be found on the website of the Central Bank of Iceland.

An Icelandic bank account is necessary when living and working in Iceland. This will enable you to get your salary paid directly into your bank account and to get a debit card. A bank account is also important for daily financial transactions.

There are many banks in Iceland. Below is a list of the three main banks that offer service for individuals and have comprehensive information in English on their website.

Arion banki
Íslandsbanki
Landsbankinn

These banks have online banking services where you can pay bills, transfer money and deal with other financial matters. The easiest and cheapest way to transfer money abroad is by online banking. You can also visit your nearest bank branch and speak to representative for assistance with any banking related enquiries.

To open a bank account in Iceland you need to have an Icelandic ID number (kennitala). You will also need original proof of ID (passport, driving licence or residence permit) and you need to have your domicile registered on Registers of Iceland.

There are many ATMs located around Iceland, usually in towns and in or near shopping malls.