Cheapest hostels in Iceland

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.

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.

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.

Conveniently located in Grindavik, this apartment offers easy access to major attractions, situated just 3.3 kilometres from Hópsnes Lighthouse and within 15 kilometres of the Blue Lagoon and Brimketill Lava Rock Pool.
This budget-friendly apartment provides excellent value with features including air conditioning, a garden, and concierge services, making it an affordable choice for exploring the area.

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.

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.

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.

Space Capsule Hostel Árblik in Búðardalur is located approximately 139 kilometres from Reykjavík Domestic Airport, offering convenient access to local sites such as Búðardalur Church and Búðardalur Museum.
This budget-friendly hostel provides unique capsule rooms with private bathrooms, a shared kitchen with modern appliances, and complimentary WiFi, making it an affordable choice for travellers.

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.

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.

Located in Dalvík, this hostel is 42 kilometres from Hof - Cultural Centre and Conference Hall and 45 kilometres from Akureyri Airport.
Offering a budget-friendly stay, Dalvík Hostel Gimli provides free WiFi, a shared kitchen with a fridge and microwave, and barbecue facilities, with ski equipment rental and access to hiking and skiing areas nearby.

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.

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.

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.

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 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.

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.

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.

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 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.

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 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.

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.

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.

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.