Cheapest hostels in Iceland

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 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.

Ideally located in Reykjavík's Vesturbær district, this hostel is just 500 metres from Reykjavik Old Harbour and 1.7 kilometres from Hallgrímskirkja Church, offering a budget-friendly base for exploring the city.
Guests can enjoy a shared kitchen with a fridge and microwave, free WiFi throughout, and convenient luggage storage, making it an affordable option for travellers.

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 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.

Perfectly situated in Breiðdalshreppur, this hostel offers unobstructed views of the aurora borealis and convenient proximity to Road 1, facilitating easy exploration of the surrounding district.
This budget-friendly hostel provides a family-friendly and pet-friendly environment with a shared kitchen and living room, ideal for groups and solo travellers seeking affordable accommodation with year-round outdoor activity opportunities like hiking and fishing.

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.

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.

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.

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.

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.

Directly on the beachfront in Vatnsnes, ÓSar Hostel is located 207 kilometres from Akureyri Airport, offering an excellent seaside location for budget-friendly travellers.
This hostel provides complimentary WiFi, on-site parking, and a bar, ensuring a comfortable and affordable stay with stunning sea views from all rooms.

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 Laugarvatn, this hostel is a mere 15-minute drive from Thingvellir National Park and 20 minutes from the Geysir hot spring area.
Offering budget-friendly accommodation, this hostel provides essential amenities including a shared lounge, on-site bar, and concierge services, with opportunities for golfing, fishing, and hiking 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 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.

Conveniently located just 800 metres from Reykjavík's city centre, this budget-friendly hostel offers easy access to Hallgrímskirkja Church and the Solfar Sun Voyager.
Guests can enjoy a shared kitchen, garden, bar, and restaurant, with free WiFi available throughout the property, making it an affordable choice for exploring the city.

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 near Keflavík International Airport in Reykjanesbær, this 3-star hotel offers easy access to Reykjanes UNESCO Global Geopark and The Icelandic Museum of Rock 'n' Roll, both within 5 kilometres.
This budget-friendly hotel provides a sauna, spa tub, and a bar, making it a great affordable option for exploring the Reykjanes Peninsula.

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.

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 a 19-minute walk from Nauthólsvík Geothermal Beach and Laugavegur Shopping Street, SM Hostel in Reykjavík offers a budget-friendly stay conveniently located 2.4 kilometres from Solfar Sun Voyager.
This hostel provides a shared kitchen, garden, and free WiFi, making it an affordable option for exploring Reykjavík's attractions like The Pearl and Hallgrímskirkja Church.

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.

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.

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.