Play Iceland
  • Tours
  • Information Center
  • About
Select Page

Find Your Perfect Trip!

  • Find a Tour
  • Information Center
  • About Us
  • Disabled Link

Is There Poverty In Iceland?

Iceland is well-known for its good salaries and high standard of social care. But it would be wrong to say that poverty does not exist in the country. 

Just like anywhere in the world, you will find both wealth and poverty in Iceland. In 2017, the most recent report available, an estimated 8.8% of Icelandic people lived below the National Poverty Line. (World Bank). 

Compared to many countries, that rate is pretty “good.” (Any country with less than 10% of the population living below the National Poverty Line is in the wealthiest bracket of the World Bank Poverty report.)  

But some Icelandic people are going through financial difficulty. And the fact that poverty rates are relatively low doesn’t make life any easier for people struggling to pay their bills.

THANKS FOR THE INQUIRY!

WE'LL RESPOND SHORTLY.
1
1
  • 1
    Want to visit Iceland?
    Step 1 Want to visit Iceland?
  • 2
    What are you looking for?
    Step 3 Dates and travelers
  • 3
    Personal details
    Step 4 name email addition
0%
https://playiceland.is/wp-content/plugins/nex-forms-express-wp-form-builder
false
message
https://playiceland.is/wp-admin/admin-ajax.php
https://playiceland.is/guide/is-there-poverty-in-iceland
yes
1
fadeIn
fadeOut

WANT TO VISIT ICELAND?

PICK YOUR FAVOURITE

WANT TO VISIT ICELAND?

...just a few more details

--Select--
--Select--
Comfort
Comfort
Quality
Quality
Luxury
Luxury

WANT TO VISIT ICELAND?

- The perfect trip
- Tailored to your needs
- Sent within 24 hours!

prev
next
9
days
FROM ISK 242,143

Hot springs and the Westfjords: 9 Day Self-drive Tour
12
days
FROM ISK 283,223

The Complete Ring Road of Iceland: A 12 day Self-Drive Tour with Hiking
7
days
FROM ISK 223,554

West Iceland 7 Day Self-drive tour: Wellness culture and Amazing scenery
15
days
FROM ISK 309,920

Wonderful Hiking and Spa Treatments while immersed in otherworldly landscapes: A 15 Day Self-drive Tour in
17
days
FROM ISK 488,560

Iceland Majestic attractions: 17 Day Self-drive Tour
6
days
FROM ISK 175,298

6 Days in the Westfjords of Iceland: An Epic Self-drive Tour
3
days
FROM ISK 98,354

South Iceland hiking adventure: A 3-day self-drive tour
7
days
FROM ISK 219,995

South Iceland and Landmannalaugar: 7 Day Self-drive Tour
5
days
FROM ISK 103,995

An Amazing 5 Day South coast outdoor and history tour with glaciers, waterfalls, and black sand beaches
10
days
FROM ISK 209,533

10 Day Northern Lights hunt around the Iceland Ring Road

9 days

From ISK 242,143

Hot springs and the Westfjords: 9 Day Self-drive Tour

12 days

From ISK 283,223

The Complete Ring Road of Iceland: A 12 day Self-Drive Tour with Hiking

7 days

From ISK 223,554

West Iceland 7 Day Self-drive tour: Wellness culture and Amazing scenery

15 days

From ISK 309,920

Wonderful Hiking and Spa Treatments while immersed in otherworldly landscapes: A 15 Day Self-drive Tour in

17 days

From ISK 488,560

Iceland Majestic attractions: 17 Day Self-drive Tour
Card image

See All Tours

What Does Poverty Look Like In Iceland?

It’s worth considering that definitions of poverty vary across the globe. 

So what we call poverty in Iceland may not look the same as what we call poverty in a country like Haiti or Afghanistan. 

In Iceland, a household is typically considered poor if the earnings come below standard living costs. So if an Icelander were living off-grid and producing their food, they could be wrongly classed as living in poverty even if they have more than enough disposable income to thrive. 

But that doesn’t mean that poverty in Iceland does not exist. Some Icelanders are indeed hungry and/or homeless. 

Health Care 

In some contexts, poverty can also be measured in terms of access to health care and education. In Iceland, health care is mainly paid for with the central tax fund, with patient contributions being capped each month. 

Dentistry and mental health treatment are not as accessible in Iceland. As these are not covered in the same way, and poorer people in Iceland can not always access the treatment they need. For under 18s and expecting mothers, health care costs are partially or fully subsidized.  

 

prev
next
8
days
FROM ISK 163,495

Iceland South & West Road Trip: 8 Day Self-drive Tour
4
days
FROM ISK 83,495

A 4 Day Reykjavík city and the Breathtaking South Coast Tour
4
days
FROM ISK 83,495

4 Days in Reykjavík city and the Wild West
2
days
FROM ISK 37,253

Reykjavik and West Iceland: A  2-day Self-drive tour
21
days
FROM ISK 459,439

Take it all in!  All of Iceland in 21 days
4
days
FROM ISK 81,431

4 Day Self Drive Tour with Iceland's Golden Circle, Black Beaches, and Vik
25
days
FROM ISK 486,754

25 Day epic Self-drive Summer Tour around Iceland
7
days
FROM ISK 207,564

7 days in West Iceland and West fjords: Culture, History, and Adventures
19
days
FROM ISK 416,912

19 Day Self-drive Tour: the Ultimate Iceland Discovery
14
days
FROM ISK 274,995

14 days of Wonderful Winter in Iceland: Northern lights, History, and Amazing Scenery

8 days

From ISK 163,495

Iceland South & West Road Trip: 8 Day Self-drive Tour

4 days

From ISK 83,495

A 4 Day Reykjavík city and the Breathtaking South Coast Tour

4 days

From ISK 83,495

4 Days in Reykjavík city and the Wild West

2 days

From ISK 37,253

Reykjavik and West Iceland: A  2-day Self-drive tour

21 days

From ISK 459,439

Take it all in!  All of Iceland in 21 days
Card image

See All Tours

Education

Compulsory education (for students aged 6 – 16) is free for Icelanders, and University Tuition is also free. (But students do have to pay some signup fees for their degree). So although there is poverty in Iceland, this does not necessarily exclude people from education or healthcare in the same way that it can elsewhere. 

Homelessness In Iceland

While it’s important to acknowledge that Icelandic poverty may not look the same as poverty in other places, that doesn’t mean that we should take it lightly. 

Homelessness, while still low, went up by 168% between 2009 and 2017, according to the OECD. There hasn’t been an official report releasing the number of homeless people in Iceland since the 2011 census. 

This is particularly dangerous in a country that experiences such low temperatures in the wintertime, but you don’t see people sleeping on the street around this time. Instead, the homeless people will go to one of the shelters in the city. 

Homelessness in Iceland is primarily due to rising unemployment and a lack of affordable housing. Most homeless people are elderly. While addiction sometimes plays a role in homelessness, this is not always the case.  

prev
next
16
days
FROM ISK 389,767

16 Day Self-drive Tour: The Ring Road with outdoor activities and Wildlife
10
days
FROM ISK 209,533

Ring road and the Majestical Eastfjords: 10 Day Self-drive
9
days
FROM ISK 210,000

9 day West Iceland and Westfjords Culture Trip with Outdoor Adventures
4
days
FROM ISK 81,431

4 Day Northern Lights Winter Self Drive Tour with the Golden Circle and epic landscapes
19
days
FROM ISK 416,912

Iceland Ultimate Road Trip: 19 Day Self-drive Tour
4
days
FROM ISK 83,495

West Iceland Express: A 4-Day Self-drive Tour
2
days
FROM ISK 37,253

Reykjavík city and Reykjanes peninsula 2 Day Self-drive tour
15
days
FROM ISK 353,270

Amazing Iceland Ring Road and West-fjords: 15 Day Self-drive Tour
14
days
FROM ISK 274,995

14 Day Self-drive Tour Around the Iceland Ring Road and the Snæfellsnes Peninsula
2
days
FROM ISK 57,244

Icelandic Wonders in 2 days: South coast, Glacier Lagoons & Ice Caving

16 days

From ISK 389,767

16 Day Self-drive Tour: The Ring Road with outdoor activities and Wildlife

10 days

From ISK 209,533

Ring road and the Majestical Eastfjords: 10 Day Self-drive

9 days

From ISK 210,000

9 day West Iceland and Westfjords Culture Trip with Outdoor Adventures

4 days

From ISK 81,431

4 Day Northern Lights Winter Self Drive Tour with the Golden Circle and epic landscapes

19 days

From ISK 416,912

Iceland Ultimate Road Trip: 19 Day Self-drive Tour
Card image

See All Tours

Unemployment In Iceland

According to Statista, the 2019 unemployment rate in Iceland was 3.98%. While this isn’t high, social expectations about Icelanders being good workers make it particularly difficult for Icelanders that find themselves without work. 

Compared to some countries in Europe, like Spain and Greece, unemployment in Iceland is very low.  Spain and Greece have an unemployment rate of around 15%, and the average unemployment rate in Europe was 7.1% as of June 2021.

Final Thoughts 

Poverty is a complex subject. Only the people living in poverty can genuinely understand how it feels and what it means. 

Generally speaking, poverty is low in Iceland. There is a high level of education, and access to healthcare is subsidized by taxpayers. Unemployment and homelessness rates are low, even if they are growing. 

That doesn’t mean that poverty doesn’t exist in Iceland. Nearly 9% of Icelandic people live at risk of poverty, and access to dentistry and mental health support can be challenging. 

Overall, Iceland is a wealthy and stable country. But just like anywhere, some people don’t see the benefits of the GDP. The high cost of living and lack of affordable housing means that some people inevitably struggle to meet their basic needs. 

We hope this article answers all of your questions. For more information about Iceland, don’t hesitate to explore the rest of the Play Iceland site. 

 

THANKS FOR THE INQUIRY!

WE'LL RESPOND SHORTLY.
1
1
  • 1
    Want to visit Iceland?
    Step 1 Want to visit Iceland?
  • 2
    What are you looking for?
    Step 3 Dates and travelers
  • 3
    Personal details
    Step 4 name email addition
0%
https://playiceland.is/wp-content/plugins/nex-forms-express-wp-form-builder
false
message
https://playiceland.is/wp-admin/admin-ajax.php
https://playiceland.is/guide/is-there-poverty-in-iceland
yes
1
fadeIn
fadeOut

WANT TO VISIT ICELAND?

PICK YOUR FAVOURITE

WANT TO VISIT ICELAND?

...just a few more details

--Select--
--Select--
Comfort
Comfort
Quality
Quality
Luxury
Luxury

WANT TO VISIT ICELAND?

- The perfect trip
- Tailored to your needs
- Sent within 24 hours!