Cheapest hostels in Iceland

Boasting prime views of Höfn Harbour and Vatnajökull Glacier, this hostel is situated in Höfn, just 80 kilometres from Jökulsárlón Glacier Lagoon and 130 kilometres from Skaftafell National Park.
This budget-friendly hostel offers a guest kitchen, BBQ area, and laundry facilities, providing an affordable base for exploring the region with staff ready to assist with booking glacier tours and other excursions.

Just 500 meters from Hallgrímskirkja Church, this private room in a hostel offers a prime central Reykjavík location, only a 5-minute walk to both Hlemmur and BSI bus stations, making it an affordable base for exploring the city.
This budget-friendly accommodation provides a comfortable 160x200cm bed for two guests, free Wi-Fi, ample storage, and access to a well-equipped communal kitchen and tiled bathrooms for a hotel-like stay.

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.

Centrally located in Akureyri, this hostel is just a short walk from Akureyri Church and Hof - Cultural Center and Conference Hall, offering a prime position for exploring the town.
This budget-friendly hostel provides complimentary wireless internet, a communal kitchen, and a terrace with views, making it an affordable choice for travellers seeking comfort and convenience.

Centrally located in Reykjavík, this hostel is just 250 meters from Laugavegur shopping street and 0.9 kilometres from Harpa Concert Hall.
This budget-friendly hostel offers a communal kitchen, on-site restaurant and bar, and a heated outdoor terrace, providing a great base for exploring the city affordably.

Perfectly situated in the heart of downtown Reykjavík, Loft - Hi Eco Hostel is just 500 meters from the main shopping street, Laugavegur, and a short walk to the Harpa Concert Hall and Hallgrímskirkja Church, offering an excellent base for exploring the city's attractions.
This budget-friendly hostel provides a rooftop terrace with city views, free WiFi, a bar, and hosts weekly social events, making it an ideal and affordable choice for travellers seeking a social and convenient stay.

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.

Just 400 metres from the Local History Museum, Saeberg Hi Hostel offers budget-friendly accommodation in the Icelandic countryside, conveniently located 1km off Ring Road 1 midway between Reykjavik and Akureyri.
This hostel provides oceanfront relaxation in a private geothermal hot tub with stunning fjord views, alongside diverse accommodation options and exceptional birdwatching opportunities, making it an ideal seaside stopover.

Just 500 meters from the village centre of Vík, this hostel offers a budget-friendly stay in South Iceland, conveniently situated for exploring the local area.
Guests can enjoy an eco-friendly atmosphere with on-site farm animals, free Wi-Fi, parking, and discounts at local restaurants, making it an affordable choice for travellers.

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 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.

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.

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.

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 in Modrudalur, Askja Hostel is situated approximately 80 kilometres from Vopnafjordur Airport, offering a peaceful retreat in a serene landscape.
This budget-friendly hostel provides essential amenities including complimentary WiFi, a welcoming garden, and an on-site bar, making it an affordable choice for travellers.

Located within a national park in Rif, this hostel is 3.7 kilometres from the Murals of Hellissandur and 9.9 kilometres from Skarðsvík Beach, offering a budget-friendly base for exploring the natural surroundings.
Enjoy complimentary buffet breakfast, free WiFi in public areas, and an onsite game room at this affordable accommodation, perfect for travellers seeking cheap and cozy stays near the seaside.

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.

Centrally located in Akureyri, this hostel is a short walk from HOF – Cultural & Conference Centre, the swimming pool, gym, shops, and whale watching tours, with Akureyri Airport only 3.4 kilometres away.
Offering budget-friendly accommodation, this hostel boasts an exclusive Rooftop Zen SPA with panoramic sea views, a lavish breakfast buffet at its stylish restaurant, and free WiFi throughout the property.

This hostel in Reykjavik is perfectly situated within walking distance of the city centre, offering an affordable base for exploring.
Guests can enjoy a bar, restaurant, and shared kitchen, alongside complimentary Wi-Fi and tour assistance, making it a budget-friendly choice.

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.

Centrally located in Akureyri, this hostel is a mere 5-minute drive from the airport and 1 kilometre from the Botanical Garden.
Offering a budget-friendly stay, Akureyri Backpackers provides free Wi-Fi, an on-site bar, and kitchen facilities, with car rental and local activity bookings available to enhance your trip.

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 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.

Located in the Vík district of southern Iceland, this hostel offers a unique stay between Mýrdalsjökull Glacier and the coast, situated just 4 kilometres from Reynisfjara Black Sand Beach and 15.9 kilometres from the Dyrhólaey peninsula.
This budget-friendly hostel provides a communal kitchen, bar, and complimentary WiFi, making it an affordable choice for travellers exploring the stunning seaside landscapes near Vík.

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.

Conveniently located in Akureyri, this hostel is just 349 metres from Akureyri Church and Hof Cultural and Conference Centre, offering a budget-friendly base for exploring the city.
This affordable accommodation boasts unique sleeping pods, a shared kitchen, barbecue facilities, and is ideally situated for whale watching and cycling adventures.

Discover the Wilderness Center / ÓByggðasetur Íslands, a budget-friendly hostel located in the remote Óbyggðasetur region, approximately 48 kilometres from Egilsstaðir Airport.
This pet-friendly hostel offers a unique experience with on-site horse riding, fishing opportunities, and an on-site restaurant serving local meals, alongside free WiFi and a relaxing sauna and jacuzzi.

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.

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.

Located on Hverfisgata in Reykjavík's city centre, this hostel is within easy walking distance of numerous restaurants, bars, shops, and art galleries, offering a prime spot for exploring the capital.
This budget-friendly hostel provides comfortable 6 sqm sleeping pods for two guests, featuring a communal living room with a self-service beer bar and a rooftop hot tub for a traditional Icelandic spa experience.

Framtid Hostel in Djúpivogur offers affordable seaside accommodation, located just 85 kilometres from Egilsstaðir Airport, providing a budget-friendly base for exploring this coastal village.
Guests can enjoy sea views, private entrances, and fully equipped kitchens, alongside an on-site restaurant and bar for a comfortable and convenient stay.