Cheapest hostels in Iceland

Remote highland views surround this Mývatn hostel, offering a budget-friendly base for exploring the Askja volcano region from Mývatn.
With kitchen facilities and no curfew, this affordable hostel is perfect for solo travellers and families seeking Iceland's raw beauty.

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.

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.

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.

Conveniently located in Vestmannaeyjar, this budget-friendly hostel is a short walk from Sæheimar museum and aquarium, and within 10 minutes of Surtseyjarstofa visitor centre and the Volcanic Film Show.
Offering free WiFi and parking, this affordable accommodation provides a cheap and cozy base for exploring the island's rich history and geological wonders.

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.

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.

Bus Hostel Reykjavik is centrally located in Reykjavík, providing easy access to major city landmarks within a short walk.
This budget-friendly hostel offers free high-speed WiFi, a fully equipped shared kitchen, and 15 private bathrooms, ensuring a comfortable and affordable stay.

Located in Stokkseyri, this unique hostel is set in a former fish factory on the coast, conveniently situated near Route N.1 for easy exploration.
This budget-friendly hostel offers a 24-hour reception, a communal kitchen with a microwave, and a terrace, making it an affordable and practical base for exploring the seaside.

Located in Stokkseyri, this hostel is 34 kilometres from Ljosifoss and 64 kilometres from Reykjavík Domestic Airport.
Enjoying a budget-friendly stay, guests can make use of the shared kitchen, bar, and entertainment facilities, with hiking and diving opportunities nearby.

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.

Conveniently located 1.9 kilometres from Nauthólsvík Geothermal Beach and Reykjavík Domestic Airport, this budget-friendly hostel offers easy access to The Pearl, Hallgrímskirkja Church, and Reykjavik Art Museum: Kjarvalsstadir.
This hostel boasts a shared kitchen, a terrace, a bar, and offers opportunities for skiing, making it an affordable choice for exploring Reykjavík.

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.

Located in Hrífunes, The Fox Hostel is situated approximately 47 kilometres from Fagrifoss, offering a remote and peaceful escape.
This budget-friendly hostel provides free WiFi, complimentary private parking, and opportunities for hiking, making it an affordable choice for exploring the surrounding mountain views.

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 deep within the Thorsmork Nature Reserve, this hostel is situated 32 kilometres from Seljalandsfoss waterfall, offering a remote and exclusive escape.
Guests can enjoy a sauna, a restaurant and bar, and kitchenettes in the cottages, making it a perfect budget-friendly base for exploring the Laugavegur and Fimmvörðuháls hiking trails.

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.

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.

Perfectly situated in Borgarbyggð, this 3-star hotel offers immediate access to The Settlement Centre and the Puppet Museum of Bruduheimar, with Borgarfjörður Museum and Husafell Swimming Pool also within 500 meters.
This budget-friendly hotel provides essential amenities including free WiFi in public areas, a restaurant, and a bar, making it an affordable choice for exploring local attractions.

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.

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.

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.

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.

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 in the town of Búðardalur, Space Capsule Hostel Arblik is an excellent base for exploring the untouched beauty of Western Iceland's fjords and coastlines.
This budget-friendly hostel offers unique 'space capsule' private sleeping pods, modern common areas, and a no-curfew policy, making it an affordable option for travellers seeking a unique stay in Iceland.

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.

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.