Iceland has a reputation for being expensive. But here’s the truth: many of the country’s most iconic experiences are completely free.
If you’re planning a budget trip to Iceland, this guide covers the best free things to do in Iceland, including waterfalls, hot springs, hiking trails, Reykjavík attractions, and natural phenomena like the Northern Lights, plus how to explore them affordably.
1. Go Hiking in Iceland’s Wild Landscapes
One of the best free activities in Iceland is hiking. Iceland’s landscapes are raw, open, and accessible without entrance fees.
Top free hiking areas include:
- Fagradalsfjall – Famous for recent eruptions and dramatic lava fields.
- Ásbyrgi – A horseshoe-shaped canyon in North Iceland.
- Djúpalónssandur and Dritvík – Rugged coastal hiking on the Snæfellsnes Peninsula
- Landmannalaugar – A summer-only Highland hiking destination known for colorful rhyolite mountains.
Hiking in Iceland is completely free, but always:
- Check weather conditions at vedur.is
- Check road conditions at road.is
- Wear proper hiking boots
- Prepare for sudden weather changes
2. Visit the Free Natural Attractions Along the Ring Road
Almost all of Iceland’s major natural attractions are free to visit. You may encounter small parking fees (usually under 1,000 ISK), but there are no entrance fees.
Free attractions include.
- Seljalandsfoss
- Skógafoss
- Jökulsárlón
- Reynisfjara
- Mount Esja
These sights are located along Iceland’s famous Ring Road (Route 1), making them ideal for a self-drive road trip.
What is the Cheapest Way to Reach These Attractions?
Public transportation in Iceland is limited and not designed for sightseeing. Bus routes rarely stop at waterfalls, glacier lagoons, or remote viewpoints.
The most affordable and flexible option is renting a cheap car in Iceland and exploring at your own pace. Booking an inexpensive vehicle with Firefly allows you to:
- Stop at scenic viewpoints anytime
- Avoid expensive guided tours
- Travel on your own schedule
- Create a custom Iceland itinerary
For a true budget Iceland road trip, renting a car is usually cheaper than multiple day tours.
3. Free Attractions in Reykjavik
Reykjavík is Iceland’s capital and cultural center. While it’s the largest city in the country, the main attractions are concentrated in the downtown area, making it easy to explore on foot.
Many of Reykjavík’s top landmarks are completely free;
- Hallgrímskirkja – Free to enter the church. You can pay a small fee to access the tower for panoramic city views.
- Sun Voyager – An iconic waterfront sculpture with views across Faxaflói Bay toward Mount Esja.
- Harpa Concert Hall – Open to visitors during the day and free to explore inside.
- Grótta – A peaceful coastal walk popular for sunset and Northern Lights viewing.
Reykjavík’s central area is very walkable, so you can park your rental car at your accommodation and explore the main sights on foot.
4. Visit the Free Natural Hot Springs in Iceland
Iceland is famous for the Blue Lagoon, but many natural geothermal pools are completely free.
Popular free hot springs include:
- Hellulaug
- Seljavallalaug
- Reykjadalur
These natural hot springs offer scenic views and authentic Icelandic experiences without an entrance fee.
Always respect nature, leave no trace, and follow local safety guidelines.
5. Experience Iceland’s Natural Phenomena for Free
Two of Iceland’s most famous experiences cost nothing.
Northern Lights (Aurora Borealis)
Visible from September to April, the Northern Lights are completely free to see. All you need is:
- Clear skies
- Darkness away from city lights
- Patience
Driving outside Reykjavík increases your chances of seeing the aurora.
Midnight Sun
The Midnight Sun is from late May to July, Iceland experiences nearly 24-hour daylight. This allows you to:
- Hike late at night
- Explore remote areas
- Drive scenic routes without rushing
Both experiences are free and unforgettable.
6. Enjoy Free Live Music in Reykjavík
Reykjavík has a vibrant music scene, and many venues offer free live performances throughout the week.
Popular spots include:
- KEX Hostel – Regular live bands and DJs in a relaxed setting
- Loft Hostel – Open mic nights and acoustic sessions
- Bókabúð Máls og Menningar – A historic bookstore on Laugavegur that often hosts free live music upstairs in a cosy bar setting.
Entry is typically free, though you might be expected to purchase something.
Catching a live performance is one of the most authentic and budget-friendly ways to experience Reykjavík’s culture, especially during the darker winter months.
FAQ: Free Things to Do in Iceland
- Is Iceland expensive to visit?
Iceland can be expensive, but many attractions such as waterfalls, beaches, hiking trails, and natural landmarks are completely free.
- Are waterfalls in Iceland free?
Yes. Most waterfalls, including Seljalandsfoss and Skógafoss, are free to visit. Some locations charge a small parking fee.
- What is the cheapest way to travel around Iceland?
Renting a cheap car and doing a self-drive trip is often more affordable than booking multiple guided tours.
- Can you see the Northern Lights for free?
Yes. You do not need to pay for a tour. You simply need clear skies and a dark location.
- Are there free hot springs in Iceland?
Yes. Several natural hot springs such as Reykjadalur and Hellulaug are free.
- Do I need a 4×4 rental car in Iceland?
The Best Way to See Iceland’s Free Attractions
The best way to experience all of these free activities is with the flexibility of your own vehicle.
By renting a cheap car in Iceland with Firefly, you can:
- Travel independently
- Save money on tours
- Stop at waterfalls and viewpoints whenever you like
- Make the most of your time in Iceland
If you’re planning a low-cost Iceland road trip, booking early helps secure the best rental rates.
