Shopping in Reykjavik

Reykjavík may very well be the best-kept secret of the cosmopolitan shopping enthusiast. Despite rumors that it is an expensive city, Reykjavík's prices are generally on par with those in New York. And when it comes to high fashion or designer wares, Reykjavík prices are almost always more reasonable. Why? In Reykjavík the mark-up is lower, thanks to reasonably-priced retail space and lower over-head prices.

Add to this the 15% tax-free refund - off a minimum purchase of ISK 4.000 - and you may wind up with some excellent buys indeed. Incidentally, price tags in Iceland always include sales tax. Visitors often comment on the pleasure of shopping in Reykjavík due to the extensive, high-quality selection that can be found within a relatively small geographical area.

Laugavegur and Bankastræti are the main shopping streets with numerous shops selling designer clothes. Leading up from Laugavegur towards Hallgrímskirkja is Skólavörðustígur, lined with arts and crafts galleries.

Icelanders have a great deal of affection for their atmospheric "old city center", which in addition to top-of-the-line stores contains a vast number of excellent cafés, restaurants and pubs. Starting at the top of Laugavegur and making your way westward, you will find a number of exclusive boutiques and fashion stores.

But there's more than just clothes to Laugavegur: accessories, children's clothes, fine porcelain, leather goods, cosmetics, lingerie, books, CD's, and more. And by-the-by: don't forget to check out stores that are on the second floor!

Leading up from Laugavegur and ending at the Hallgrímskirkja church is Skólavörðustígur, one of the most chic shopping streets in the city. It has boutiques, gourmet stores, a furrier, jewellery, design studios, art galleries, and more. A browse through the Skólavörðustígur stores is highly recommended, and here is a tip: locally-made items of art are among the best buys you will find in Iceland.

The downtown shopping district can be divided into the area around Austurstræti and Hafnarstræti, where shops selling souvenirs and woolens are located and Vesturgata where various arts and crafts galleries can be found. Kringlan is the biggest shopping center in Iceland, with over 130 shops selling designer clothes and other items.

Tax Free Shopping

All non-residents are entitled to a 15% tax-free refund - off a minimum purchase of ISK 4.000 in one shop. Detailed information on tax-free shopping can be found in the booklet "Shopping in Iceland" and in shops displaying the Global Refund tax-free shopping stickers. Scandinavians are also entitled to a 15% tax-free refund on goods purchased. NOTE! The VAT tax is included in all prices in Iceland.