Cheapest hostels in Iceland

Just 500 meters from Hallgrímskirkja Church, Hostel B47 offers a budget-friendly stay in Reykjavík, with the Solfar Sun Voyager sculpture a 12-minute walk away and the city centre only 800 meters distant.
This hostel boasts a swimming pool and spa facilities, alongside free WiFi and private parking, making it an affordable and convenient base for exploring popular attractions like the Harpa Concert Hall.

Conveniently located 2.7 kilometres from Laugavegur, Reykjavik's main shopping street, and 2.2 kilometres from Laugardalur Swimming Pool, B14 Hostel offers a budget-friendly base for exploring the city.
This hostel provides guests with free WiFi and parking, a communal kitchen equipped with a fridge, microwave oven, and dishwasher, and is within easy walking distance of shops, restaurants, and bars.

Located in Seyðisfjörður village, this hostel is just 98 meters from the local swimming pool and a short walk from the harbour, offering a truly budget-friendly base.
Guests can enjoy a communal kitchen, BBQ area, and leisure facilities including a sauna and spa, with rooms boasting stunning fjord views and free Wi-Fi.

Adjacent to the geothermally heated Laugardalslaug Swimming Pool, this eco-certified hostel is located 3.5 kilometres from Reykjavík's city centre.
Offering a budget-friendly stay, this hostel provides free WiFi, communal kitchens with microwaves and fridges, and on-site dining featuring organic and local meals, with a terrace bar and barbecue facilities perfect for exploring the local area.

Located in Skaftárhreppur, The Fox Hostel offers a budget-friendly stay within a provincial park, situated 31.6 kilometres from Systrastapi rock and 32 kilometres from Fjarðrárgljúfur canyon.
This hostel provides a shared kitchen, free Wi-Fi, and on-site parking across its 8 rooms, each with a microwave, making it an affordable choice for exploring the natural beauty of the area.

Located in Reykjavík, this hostel offers quiet street views and is conveniently situated 1.8 kilometres from the Imagine Peace Tower and 2.1 kilometres from the Solfar Sun Voyager.
This budget-friendly hostel provides a shared kitchen, free WiFi, and on-site restaurant and bar facilities, making it an affordable choice for exploring the city.

Hostel Fjordur offers an affordable stay in Hafnarfjörður, just 11.6 kilometres from Reykjavík's Hallgrímskirkja Church and 9.3 kilometres from The Pearl, providing a convenient base for exploring the capital region.
This budget-friendly hostel boasts free WiFi, private parking, and access to shared kitchen and lounge facilities, making it an ideal cheap option for travellers.

Located in Akureyri's most central district, Hafnarstraeti Hostel offers immediate access to the town's amenities, with its ultra-central position making exploration effortless.
This budget-friendly hostel provides modern, cozy capsule beds equipped with bed linen, towels, TV with streaming, headphones, a personal safe, and charging sockets, alongside shared kitchen and BBQ facilities for a comfortable stay.

Offering a unique 'truck' themed stay, The Truck Inn by Ourhotels is situated in Hvítárbakki, Borgarnes, just 500 meters from the Icelandic Settlement Centre, making it a prime and affordable base for exploring western Iceland's historical sites and natural wonders.
This budget-friendly hostel provides included breakfast and a friendly atmosphere, ideal for solo travellers and adventure-seekers looking to witness the Northern Lights, with flexible check-in and check-out times to suit varied travel schedules.

Located in Reykjavik, this hostel is a short drive from Perlan and the University of Reykjavik, with Hallgrimskirkja and Laugavegur approximately 1.8 kilometres away, offering a budget-friendly base for exploring the city.
Guests can enjoy complimentary Wi-Fi, shared kitchen facilities, and an on-site bar, with a 24-hour airport shuttle available for an additional charge, making it a convenient choice for affordable travel.

Just 0 meters from Sæheimar and Surtseyjarstofa, Blue Hostel Blaufjoll in Vestmannaeyjar offers a budget-friendly stay with complimentary on-site parking, conveniently located 500 meters from Eldheimar Museum and 700 meters from Landakirkja Church.
This hostel provides free Wi-Fi throughout and features 18 guest rooms, perfect for those seeking an affordable and independent experience in Vestmannaeyjar.

Conveniently located in Reykjavik's Laugardalur district, this hostel is under a 5-minute drive from Laugavegur, the main shopping street, and the Laugardalslaug geothermal pool.
Offering free Wi-Fi and a shared kitchen, this budget-friendly hostel provides an affordable stay with easy access to local attractions.

Kanslarinn Hostel, a 2-star hotel, is conveniently located in Rangárþing ytra, just a 1-minute drive from Caves of Hella and within reasonable distance of Lava Centre.
This budget-friendly accommodation offers complimentary wireless internet, an onsite restaurant, and free parking, making it an affordable choice for travellers exploring Hella.

Conveniently located in the city centre, this hostel offers easy access to Reykjavik's main attractions, with the Hallgrímskirkja church just 1 kilometre away.
This budget-friendly hostel boasts private, app-controlled 'Hubs' with double beds, a communal kitchen with a microwave and dishwasher, and a bar, all managed by 24/7 'CityHosts' for local recommendations and magic wristband access for keyless entry and self-service tap beer.

Located a mere 10-kilometre drive from Keflavík International Airport, this hostel provides convenient access to attractions like the Viking World museum.
Offering a budget-friendly stay, the hostel features a shared kitchen, a TV lounge, and a children's playground, with options for private rooms or dormitory facilities.

Located in the Laugardalur district, this hostel is just 1 kilometre from Laugardalur Family Park and 2 kilometres from Central Reykjavík, with local bus stops only 100 metres away.
Offering individually decorated rooms, this budget-friendly hostel provides complimentary WiFi, a garden, and a lounge bar, making it an affordable choice for travellers seeking comfortable and convenient accommodation.

Situated on the Snaefellsnes Peninsula in western Iceland, this hostel is located in Hellissandur, offering countryside vistas and proximity to opportunities for hiking and fishing.
This budget-friendly hostel, formerly a fish processing factory, provides a communal kitchen, on-site bar, and complimentary tickets to weekly summer performances, making it an affordable and unique cultural experience.

Kanslarinn Hostel in Hella offers a budget-friendly stay conveniently located for exploring the region, situated 34 kilometres from the iconic Seljalandsfoss waterfall.
This hostel provides essential amenities including free WiFi and on-site dining, making it an affordable choice for travellers seeking a comfortable base.

Located in Reykjavik's downtown district, this hostel is a mere 4-minute walk from Laugavegur and 6 minutes from Hallgrimskirkja, offering a prime position for exploring the city.
This budget-friendly hostel provides excellent amenities including a shared kitchen, on-site cafe, and complimentary Wi-Fi, ensuring a comfortable and affordable stay with private rooms featuring refrigerators and microwaves.

Offering unobstructed views of the Northern Lights, ÞVerhamar Hostel Room 1 is a budget-friendly hostel located just off Road 1 in Breiðdalsvík, providing excellent access for aurora hunters and travellers alike.
This private room accommodation, ideal for two guests, features a private bathroom and access to shared amenities including a kitchen and living area, with year-round outdoor activities like hiking and fishing readily available nearby.

Situated by the sea in Eyrarbakki, Bakki Apartments & Hostel is a mere 8-minute walk from the Eyrarbakki Museum and 80 kilometres from Reykjavík city centre.
This budget-friendly hostel offers both self-catering apartments and shared dormitory rooms, with free WiFi and parking, making it an affordable choice for exploring the Icelandic coast.

Conveniently located in Hafnarfjörður, this hostel offers budget-friendly accommodation just a 15-minute drive from the Sky Lagoon and Laugavegur, with Reykjavik City Hall 12.7 kilometres away.
Guests can enjoy free Wi-Fi, on-site parking, and rooms equipped with a refrigerator and microwave, making it an affordable choice for exploring the area.

Skogar Hostel is located in a rural part of Rangárþing eystra, just 2 kilometres from the famous Skogafoss waterfall and Skógar Museum, and within 5 kilometres of Kvernufoss Waterfall and the historic Drangshlio Houses.
This budget-friendly hostel offers essential amenities including free WiFi in public areas, a shared kitchen, and complimentary parking, making it an affordable base for exploring the natural wonders of southern Iceland.

Located in Hvolsvöllur, this hostel offers easy access to Seljalandsfoss waterfall, just 21 kilometres away, and Skógafoss waterfall, 50 kilometres distant.
This budget-friendly hostel boasts a swimming pool, hot tub, sauna, and fitness centre, alongside an on-site restaurant and bar, providing excellent value for travellers.

Unparalleled northern lights viewing opportunities are available directly from this hostel, situated just by road 1, offering easy access to Breiðdalsvík town centre and year-round outdoor activities.
This budget-friendly hostel provides a communal kitchen, living room, and multiple shared bathrooms, accommodating up to 2 guests in a private room, with pets welcome and a garden for enjoyment.

Conveniently located in Egilsstaðir, Tehúsið Hostel & Guesthouse is situated 33.8 kilometres from Hengifoss and 24.1 kilometres from Gufu Waterfall, with Egilsstaðir Airport just 1.9 kilometres away.
This hostel offers a budget-friendly stay with a shared kitchen, free Wi-Fi, and on-site parking, making it an affordable choice for exploring the region.