Cheapest hostels in Iceland

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.

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 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.

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.

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.

Offering captivating sea or mountain views, this hostel in Grundarfjordur is perfectly situated for exploring the local area, with whale watching opportunities just a short distance away.
This budget-friendly accommodation provides essential amenities including free WiFi, a communal kitchen with a fridge and microwave, and on-site dining options, making it an affordable choice for travellers.

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.

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.

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.

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.

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 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.

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.

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.

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 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 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.

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 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.

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.

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.

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.

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.

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.

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.

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.