Reykjavík: Iceland's Capital City

Reykjavík is the world’s northernmost capital city — a compact, creative, and genuinely surprising place. With a population of around 130,000, it punches well above its weight on restaurants, museums, nightlife, and cultural energy. It’s also the gateway to almost everything else in Iceland: the Golden Circle, the South Coast, whale watching trips, and Northern Lights tours all depart from here.

Getting There from Keflavík Airport

Most international flights land at Keflavík International Airport (KEF), approximately 50km from Reykjavík. The standard transfer options:

• Flybus (straeto.is/flybus): Runs to BSÍ Bus Terminal in central Reykjavík. Approximately ISK 3,999 one way, ISK 7,299 return as of 2026. Journey time 45–55 minutes. Hotel drop-off service available for ISK 5,499 one way.
• Airport Express: Similar price and schedule to Flybus, runs to Harpa Concert Hall.
• Taxi / Hreyfill: Approximately ISK 15,000–18,000 for up to 4 passengers. Book in advance during peak hours.
• Car hire: Pickup desks are in the arrivals hall. All major international companies plus Icelandic operators (Geysir, Blue Car Rental) are represented. Factor in ISK 2,000–5,000/day for mandatory gravel protection insurance (SAAP) if driving F-roads.

What to See and Do

Hallgrímskirkja Church — The defining image of Reykjavík. This Lutheran church’s basalt column-inspired tower is 74.5 metres tall and visible across the city. Take the lift to the observation tower for panoramic views. Open daily, tower admission approximately ISK 1,200 adult, ISK 200 child as of 2026.

Old Harbour and Whale Watching — Reykjavík’s harbour runs year-round whale watching tours. Elding Adventures at Sea and Special Tours are the two main operators, both running 3-hour tours from approximately ISK 12,900–15,900 adult. Humpback whales, minke whales, and white-beaked dolphins are the most common sightings. Book in advance in summer.

Perlan and Öskjuhlíð — The glass dome museum on Öskjuhlíð hill covers glaciers, volcanos, and the Northern Lights through immersive exhibits. General entry approximately ISK 4,490 adult as of 2026. The viewing deck gives 360° views over the city.

National Museum of Iceland — The best cultural overview of Icelandic history from the Settlement Age to the present. Allow 2–3 hours. Located on Suðurgata. Entry approximately ISK 2,700 adult, free for under-18s.

Laugavegur and Skólavörðustígur — The main shopping streets in the 101 postcode. Woollen goods (Icelandic Design Center, 66°North), design shops, bookshops (Mál og Menning), and cafes line both streets.

Blue Lagoon (Nearby) — Technically 47km from Reykjavík, near Keflavík airport. The world-famous geothermal spa costs approximately ISK 9,990–25,990 depending on package as of 2026. Book at least 2–4 weeks in advance — it sells out constantly. Entry includes silica mud mask and a drink.

Sky Lagoon — Opened 2021, located in Kársnes harbour, 10 minutes from downtown. Less commercial than the Blue Lagoon, with an infinity pool overlooking the ocean. Admission approximately ISK 9,990 (Pure Package) as of 2026. Closer and easier than the Blue Lagoon if you’re short on time.

Where to Stay

Budget (ISK 15,000–25,000/night):

• Kex Hostel — stylish hostel in a former biscuit factory on Skúlagata. Private rooms from approximately ISK 16,000, dorms from ISK 7,000.
• Hlemmur Apartments — self-catering studios near the bus terminal.

Mid-range (ISK 28,000–55,000/night):

• Hotel Borg — art deco hotel on Austurvöllur square, opened 1930. Doubles from approximately ISK 32,000. Central location.
• Centerhotel Skjaldbreið — reliable mid-range on Laugavegur. Doubles from approximately ISK 29,000.
• Apotek Hotel — former pharmacy building, now a design hotel on Austurstræti.

Luxury (ISK 65,000+/night):

• The Retreat at Blue Lagoon — built into a lava field, with direct Blue Lagoon access. From approximately ISK 120,000+ per night.
• Ion Adventure Hotel — 45 minutes east of Reykjavík, designed for Northern Lights viewing.
• Hotel Holt — Iceland’s premier art hotel, downtown on Bergstaðastræti.

Where to Eat

Bæjarins Beztu Pylsur — The famous hot dog stand on Tryggvagata. Order “ein með öllu” (one with everything). ISK 600–700. Open until 1am on weekends. A genuine Reykjavík institution since 1937.

Matur og Drykkur — Modern Icelandic cuisine from traditional recipes. Skál (fermented shark on toast), lamb neck soup, and cod with browned butter. Mains approximately ISK 4,200–6,500. Book in advance — popular.

Grillmarkaðurinn (The Grill Market) — Premium Icelandic ingredients (lamb, langoustine, Arctic char) cooked over lava rocks. Mains ISK 4,500–8,000. One of Reykjavík’s best restaurants.

Brauð & Co — Outstanding sourdough bakery on Frakkastígur. Queues form early on weekends. Croissants, cinnamon buns, and fresh bread from approximately ISK 500–800 each.

Coocoo’s Nest — Good brunch spot in Grandi harbour area. Eggs Benedict and pancakes from approximately ISK 2,800–3,500.

Getting Around

Reykjavík is walkable in its compact downtown core. Strætó city buses cover the wider city — day passes available. Taxis via Hreyfill (+354 588 5522) or the 55 app. Most visitors hire a car for day trips beyond the city.

Practical Tips

• Currency: Iceland uses the Icelandic Króna (ISK). Cards are accepted almost everywhere — cash is rarely needed.
• Weather: Expect rain, wind, and rapid changes year-round. Pack waterproof layers even in summer.
• Tipping: Not standard in Iceland. Service charges are included in restaurant prices.
• Opening hours: Many museums close Mondays. Check ahead during winter (shorter hours) and public holidays.