Tipping In Iceland: A Guide to Icelandic Tipping Customs

One aspect of the travel experience that often surprises travelers is the local attitude toward tipping. In some countries, it's an everyday practice, while in others, it's a cultural faux pas. Then there are those countries where tipping falls somewhere in between, leaving you wondering what's expected.

In this guide, we'll walk you through the tipping etiquette of Iceland to help you navigate your visit smoothly. Additionally, we'll offer valuable tips on how to get ISK in cash in Iceland, so you can focus on soaking up the sights, sounds, and flavors without the stress of financial hiccups.

Is Tipping Expected in Iceland?

Tipping in Iceland is not customary. Leaving a small tip of any amount will certainly be appreciated, but there's no expectation.

Tipping in Restaurants, Bars, and Cafes

When dining out in Iceland, you won't need to tip your wait staff. Even at high-end places, service staff will not expect gratuity from you. If you insist, you may round up to the nearest krona or tip around 10%.

When visiting bars and cafes, you might see the occasional tip jar. Feel free to drop in some change if the service was attentive.

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Do You Tip Hotel Staff in Iceland?

For hotel staff in Iceland, tipping is not expected. Hotel staff share the same customs as other industries.

Tipping Taxis and Tour Guides in Iceland

For taxi drivers in Iceland, tipping is also not common. Taxis in Iceland usually include a service charge in the price, which covers gratuity.

Tour guides in Iceland will also not expect tips. If your tour was informational and enjoyable, you can consider a 10% tip, or write a positive review and spread the word.

Practical Tips for Tipping in Iceland

By following these tips, you'll optimize your cash transactions in Iceland, minimize fees, and enjoy a smoother travel experience:

1. Withdraw Cash With a Travel Debit Card: Choose a travel debit card without international transaction fees that allows you to hold local currency and withdraw cash like a local. These cards typically offer fee-free ATM withdrawal allowances, making them a convenient and cost-effective option for accessing cash while traveling in Iceland.
2. Stay Within Fee-Free Allowances: Many travel debit cards provide fee-free ATM withdrawal allowances per month. To avoid additional fees, try to stay within this allowance when withdrawing cash.
3. Opt for Local Currency Transactions: When making purchases or withdrawing cash in Iceland, you'll be prompted to pay in ISK or your home currency. Always choose to pay in the local currency (ISK) rather than your home currency to avoid dynamic currency conversion (DCC) fees. DCC will result in terrible exchange rates and additional charges, so opting for local currency transactions ensures you get the best exchange rate.
4. Avoid Credit Card Cash Advances: Steer clear of using credit cards for cash withdrawals, as they incur cash advance fees and higher interest rates (APR). Cash advance APR is also higher than purchase APR.

Recommended Travel Cards for Fee-Free Cash Withdrawals Abroad

Compare the best travel debit cards without international transaction fees for your trip to Iceland:

Wise Multi-Currency Account

With the Wise Account, convert currency at the mid-market exchange rate. Spend, hold, and convert between dozens of currencies with your debit card and never be asked to do a dynamic currency conversion. The only fees that they charge you for using ATMs abroad will come at 1.75% per withdrawal — and only after you've exceeded your $100 monthly withdrawal limit.

The Wise Account is available in the US, Canada, EU/EEA, the UK, Japan, Australia, New Zealand, and several other countries and territories.

N26

Available for EU and EEA residents to open, an N26 account will never charge foreign transaction fees. All Euro ATM withdrawals are fee-free, giving you free rein to travel the Eurozone. Outside of the Eurozone, ATM withdrawals cost 1.7% per withdrawal.

Starling Bank

The Starling Bank card is an excellent option in the UK for foreign travel. In addition to no foreign transaction fees, Starling Bank does not charge foreign ATM withdrawal fees. You might only be charged a third-party fee, just as you would in the UK.