The best souvenirs from Iceland are the things Icelanders actually use: a hand-knitted wool sweater, a bottle of Brennivín, flaky sea salt, liquorice sweets and local design. Skip the plastic puffins and buy something made here. This guide covers what to buy, where to find it and how to get it home, including the tax-free refund.
1. The Icelandic wool sweater (lopapeysa)
The lopapeysa is the classic Icelandic souvenir. It is knitted from lopi, the unspun wool of Icelandic sheep, with a round yoke pattern around the neck and shoulders. The wool is warm, light and naturally water-repellent, and a good sweater lasts for decades.
Check the label before you buy. Many sweaters sold in tourist shops are machine-made or knitted abroad. If you want one hand-knitted in Iceland, the Handknitting Association of Iceland has sold members' work since 1977 from its shop on Skólavörðustígur, the street leading up to Hallgrímskirkja. The Álafoss wool shop in Mosfellsbær, on a mill site dating from 1896, sells sweaters and lopi yarn if you would rather knit your own.
A hand-knitted sweater is a real investment, so expect a high price. Read more in our guide to the lopapeysa.
2. Brennivín and other Icelandic spirits
Brennivín is Iceland's traditional schnapps. It is made from grain and flavoured only with caraway, bottled at 37.5% and served ice cold as a shot. Its old nickname is svarti dauði, black death, after the original black label. It is also the drink traditionally served with fermented shark.
Iceland also has a growing number of small distilleries making gin, vodka and aquavit with local herbs such as birch and Arctic thyme. They make good gifts for anyone who likes to try something new.
3. Icelandic sea salt
Flaky sea salt from the Westfjords is a light, useful gift. The best known is made on the Reykjanes farm in Ísafjarðardjúp, where seawater is boiled and dried using water from local hot springs. The company revived an old salt-making tradition there in 2011. Look out for plain flakes and flavoured versions such as birch-smoked and Arctic thyme.
Sea salt is sold in supermarkets, delicatessens and souvenir shops around the country.
4. Liquorice and chocolate
Icelanders love liquorice, and above all liquorice mixed with chocolate. Look for chocolate-covered liquorice balls, liquorice bars and bags of mixed sweets from the long-established Icelandic sweet makers. They are cheap, light and sold in every supermarket and petrol station.
Reykjavík also has craft chocolate makers producing bean-to-bar chocolate with local flavours. A few bars make an easy gift that fits in any bag.
5. Harðfiskur (dried fish)
Harðfiskur is wind-dried white fish, usually cod or haddock, and has been eaten in Iceland for centuries. Icelanders eat it as a snack, often spread with butter. It is almost pure protein and keeps well.
It also has a strong smell, so pack it in a sealed bag or two. You will find it in supermarkets and petrol stations. Read more about local dishes in our guide to Icelandic traditional food, or try local food on one of our food tours. The Reykjavik Food Tour covers at least ten traditional Icelandic foods on a walk through the old centre.
6. Icelandic skincare
Icelandic skincare brands use ingredients such as geothermal seawater, silica, algae and plant extracts. The best known range comes from the Blue Lagoon and is sold at the lagoon, in Reykjavík and at the airport. In summer, our Blue Lagoon from Reykjavik tour includes transfers and a comfort admission with a silica mud mask. Several other Icelandic brands sell serums and creams in pharmacies and department stores.
Liquids and creams over 100 ml have to go in your checked bag, or be bought after security at the airport.
7. Arctic thyme tea and Icelandic herbs
Blóðberg, or Arctic thyme, grows wild across Iceland and has long been used for tea. It has a mild, fragrant taste. Dried Icelandic herbs, including birch and Arctic thyme, are sold in supermarkets and gift shops and weigh almost nothing in your luggage.
8. Handmade jewellery
Reykjavík has many independent goldsmiths and jewellers, especially along Laugavegur and Skólavörðustígur. Many take their inspiration from nature and Viking-era designs. Pieces made with lava stone are popular, and a much better idea than taking a real stone home.
9. Icelandic design and outdoor clothing
Iceland has a strong design scene, from wool blankets and ceramics to homewares and prints. Icelandic outdoor clothing brands are also popular, and a hat, scarf or pair of wool mittens is a practical souvenir you will use at home.
The design shops in central Reykjavík and at Harpa are a good place to browse. Prices are high, but so is the quality.
10. Books, sagas and Yule Lads
Iceland has a deep love of books. An English translation of one of the sagas, a book of Icelandic folk tales or a photo book of the landscape makes a thoughtful gift. Bookshops in Reykjavík have good English sections.
Around Christmas, look for figures and books about the 13 Yule Lads, the mischievous Icelandic Christmas characters. Our guide to elves and trolls in Iceland tells more of the folklore behind them.
11. Northern Lights photos and prints
A good print or photo book of the aurora is a lasting reminder of your trip, especially if the sky stayed cloudy while you were here. Many Icelandic photographers sell prints in Reykjavík galleries and shops. The lights themselves are visible from roughly September to mid-April. Read our Northern Lights guide, or join a Northern Lights tour to take your own photos. The Northern Lights Photo Tour is built around exactly that.
12. Fun and quirky gifts
For something light-hearted, souvenir shops sell everything from puffin-themed items and Viking helmets to novelty condoms printed with Icelandic landscapes. Fine as a joke gift, but try to buy at least one thing that was made in Iceland.
Where to shop in Reykjavík and around Iceland
- Laugavegur and Skólavörðustígur: the main shopping streets in Reykjavík, with wool, design, jewellery and souvenir shops.
- Kolaportið: an indoor flea market by the old harbour, open at weekends, with second-hand sweaters, dried fish and bric-a-brac.
- Supermarkets: the cheapest place for sweets, salt, tea and dried fish.
- Museum and visitor centre shops: often the best places for books and quality local products.
- Outside Reykjavík: Akureyri has a good town-centre shopping street, and farm shops and craft shops along the Ring Road sell local wool and food.
- Keflavík Airport: duty-free for alcohol, sweets and skincare, plus Icelandic design shops after security.
Tours to book
A few tours that fit well with a shopping day in Reykjavík:
- Private Reykjavik Walking & Food Tour: the city centre and Laugavegur with a private guide, plus lunch or dinner.
- Reykjavik Food Tour: a small-group walk tasting traditional food, so you know what to take home.
- Northern Lights Photo Tour: take your own aurora pictures instead of buying a print.
Tax-free shopping: how to get your VAT back
Visitors who live outside Iceland can claim back part of the VAT on goods bought here. The purchase must be at least ISK 12,000 on a single receipt, you must take the goods out of the country within three months, and you need to ask the shop for a tax-free form when you pay.
At Keflavík Airport, get your forms stamped and claim your refund at the tax-free counter in the check-in and arrivals hall before you check in your bags. Keep the items where you can show them if asked.
Getting your souvenirs home
- Liquids over 100 ml, including spirits and skincare, go in checked luggage unless bought after security.
- Duty-free alcohol comes in a sealed bag, but it can still be taken at a transfer airport. Check the rules if you have a connecting flight.
- You must be 20 or older to buy alcohol in Iceland.
- Check your home country's customs allowance for alcohol and food before you buy.
- Pack dried fish in sealed bags, and wrap bottles in a sweater.
- Please leave lava stones, moss and beach pebbles where they are. Many of the places you visit are protected nature areas.
Questions people ask
What is the most popular souvenir from Iceland?
The lopapeysa, the Icelandic wool sweater. Check the label if you want one hand-knitted in Iceland, as many are machine-made or knitted abroad.
Where can I buy alcohol to take home from Iceland?
Only in the state-run Vínbúðin shops, which are closed on Sundays, or at the duty-free shop at Keflavík Airport, where prices are lower. You must be 20 or over.
Can I get a VAT refund on souvenirs in Iceland?
Yes, if you live outside Iceland. Spend at least ISK 12,000 on one receipt, ask for a tax-free form and claim at Keflavík Airport before you check in your bags.
What are cheap souvenirs from Iceland?
Liquorice and chocolate, sea salt, Arctic thyme tea and dried fish. Buy them in supermarkets, where prices are much lower than in souvenir shops.
Can I take lava rocks home from Iceland?
Please don't. Many sites are protected, and removing stones damages them. Buy lava-stone jewellery instead.
