Iceland Shopping Guide: Best Souvenirs & Where to Buy

Shopping in Iceland

Bustling Laugavegur shopping street in Reykjavik, Iceland with colorful buildings and people

Treasures to Hunt: Must-Have Icelandic Souvenirs

Prepare to fill your bags with unique Icelandic treasures that will transport you back to this magical land long after your trip ends! First on your list should be a genuine hand-knitted lopapeysa, the iconic Icelandic wool sweater, which typically costs between 18,000 ISK and 35,000 ISK (approximately 120 EUR – 235 EUR) in dedicated craft stores, a truly cozy and authentic keepsake.

Beyond the warmth of wool, you’ll discover captivating lava rock jewelry, with small pieces like pendants or earrings ranging from 4,000 ISK to 8,000 ISK (approximately 27 EUR – 54 EUR), perfect for carrying a piece of Iceland’s dramatic landscape with you.

For a taste of local luxury, indulge in gourmet treats like Omnom Chocolate; a 100g bar of this exquisite Icelandic brand costs around 990 ISK (approximately 6.70 EUR) in specialty shops, offering a delicious memory to savor.

Don’t overlook the high-performance outdoor gear from 66°North, the luxurious Blue Lagoon Skincare products, or the traditional crafts found at Rammagerðin, ensuring your Iceland shopping guide is packed with both practical and sentimental finds.

Hand-knitted lopapeysa, a traditional Icelandic wool sweater, displayed in a shop

Unlocking Iceland’s Retail Secrets: Where to Find Your Gems

To truly dive into the Icelandic retail scene, you’ll want to explore the vibrant Laugavegur, Reykjavík’s main shopping street, bustling with charming boutiques and unique souvenir shops.

For a more extensive selection and modern shopping experience, head to major centers like Kringlan in Reykjavík or Smáralind, the largest mall in Iceland located in Kópavogur, where you can find everything from fashion to electronics.

These larger shopping havens generally welcome you from 11:00 to 19:00 on weekdays, 11:00 to 18:00 on Saturdays, and 13:00 to 17:00 on Sundays, giving you ample time to browse.

Remember, if you’re seeking strong alcoholic beverages, your only stop will be VínBúðin, the state-run alcohol monopoly stores, as this Iceland shopping guide ensures you know exactly where to find what you need.

A bar of Omnom Chocolate, a gourmet Icelandic brand, with unique packaging

What Will Your Icelandic Haul Cost You?

Your Icelandic shopping adventure can be as budget-friendly or luxurious as you desire, but knowing typical prices helps you plan your spending wisely.

As you consider that iconic lopapeysa, expect to invest between 18,000 ISK and 35,000 ISK for a high-quality, hand-knitted piece, a true testament to Icelandic craftsmanship.

Smaller mementos like a beautiful lava rock pendant or earrings will typically set you back 4,000 ISK to 8,000 ISK, offering a lovely, affordable reminder of your journey.

For delicious edible souvenirs, a gourmet 100g bar of Omnom Chocolate is around 990 ISK, but you can snag Icelandic snacks, chocolates, and coffee at significantly lower prices by visiting local grocery stores like Bónus or Krónan, making your souvenir budget stretch further.

Modern interior of Kringlan shopping mall in Reykjavik, Iceland

Smart Shopping: How to Get Your Tax Back in Iceland

Savvy shoppers, listen up: Iceland offers a fantastic VAT refund of up to 14% on purchases over 6,000 ISK made by non-residents, a brilliant way to save on your cherished souvenirs!

To claim your refund, simply ensure you receive a ‘Tax Free Shopping Cheque’ from the retailer at the time of purchase and fill it out completely.

Before checking your luggage at Keflavík Airport (KEF), present your filled-out cheque, your purchases (which must be exported within three months), and your passport at the Arion Bank counter.

This straightforward process means more money back in your pocket, allowing you to perhaps splurge on another Icelandic delight on your next trip.

Arion Bank VAT refund counter at Keflavik Airport (KEF) in Iceland

Insider Tips for Savvy Shoppers in Iceland

To ensure you’re getting authentic goods, especially for that coveted lopapeysa, seek out stores like the Handknitting Association of Iceland (Handprjónasamband Íslands) on Skólavörðustígur in Reykjavík; many cheaper versions in tourist shops are machine-made or imported.

For delicious and budget-friendly edible gifts, bypass the souvenir shops and head straight to local grocery stores such as Bónus or Krónan, where you’ll find Icelandic snacks, chocolates, and coffee at much better prices.

A crucial tip for your daily adventures: avoid buying bottled water! Iceland’s tap water is among the purest in the world and perfectly safe to drink directly, so carry a reusable bottle and refill it often.

This comprehensive Iceland shopping guide empowers you to make smart choices, find genuine treasures, and save money while exploring this incredible country.

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