Best Bars Not in Reykjavik, Iceland – Local Guide

If you’re planning a trip to Iceland, you’ve probably heard that Reykjavik has a lively bar scene. But the real character of Icelandic nightlife unfolds in smaller towns like Akureyri, Selfoss, and Vík, where local pubs serve up affordable drinks and genuine hospitality. This guide cuts through the tourist noise to show you the best bars outside the capital, with prices, local tips, and the stories behind them.

Legal drinking age in Iceland: 20 years old · VAT on alcohol: 24% standard rate · Average pint price in a Reykjavik bar: ISK 1,500–2,200 (approx. $11–$16) · Pubs outside Reykjavik mentioned in top blog lists: At least 10 identified in one guide · Alcohol strength cap for retail sale: 2.25% ABV

These facts set the stage for what follows: a detailed look at where to drink, what to order, and how much it costs.

Where do locals drink in Iceland outside Reykjavik?

Akureyri

• Götubarinn – a charming bar in the centre (Visit Akureyri)
• Strikid – top-ranked bar on Trip.com (Trip.com)
• Backpackers Bar & Restaurant – also among the top (Trip.com)
• Pósthúsbarinn – nightclub atmosphere (The Culture Trip)

Akureyri’s compact centre makes bar-hopping easy, and the Visit Akureyri nightlife page lists several venues within walking distance. The pattern: a small but sociable scene where locals mix with visitors.

Selfoss

• Kaffi Kú – a riverside café-bar
• Tryggvaskáli – historic building with a pub
• Olverk Pizza & Brewery – craft beer and pizza

Selfoss bars lean toward relaxed, food-focused spots. No dedicated nightlife guide exists for the town, but local blogs and Reddit threads mention Kaffi Kú as a friendly hangout.

Húsavík

• Salka – a popular bar near the harbour
• Gamli Baukur – traditional pub, often busy with whale-watchers

Húsavík’s pubs cater heavily to tourists, but locals still frequent Gamli Baukur for its laid-back vibe. The Tripadvisor page for Akureyri clubs and bars suggests happy hour as a way to cut costs – a tip that applies equally here.

Ísafjörður

• Húsið – a cultural centre with a bar
• Kaffi Hornið – cosy café-bar

Ísafjörður’s bar scene is small but charming. Húsið doubles as a music venue, though it’s unclear how often live acts play.

Vík í Mýrdal

• Smiðjan Brugghús – a microbrewery with a taproom
• Mia’s Country Van – a food truck that sometimes serves beer

Vík’s options are limited, but Smiðjan Brugghús offers freshly brewed craft beer. What this means: Outside Reykjavik, you trade quantity for character – each town has one or two standout spots where locals actually go.

What is the best alcoholic drink in Iceland?

Brennivín

• Iceland’s signature spirit, often called “Black Death”
• Traditionally served as a schnapps, usually chilled

Brennivín is a caraway-flavoured distilled spirit that dates back to the 19th century. It’s the go-to shot for toasts and a staple in any bar’s back shelf.

Icelandic craft beers

• Borg Brugghús – widely praised for its IPAs and stouts
• Ölgerðin Egill Skallagrímsson – produces classic lagers

Iceland’s craft beer scene has exploded. Bookmundi’s Iceland nightlife guide labels several Reykjavik bars as cheap or affordable, but outside the capital, local breweries like Borg Brugghús are the stars.

Berry liqueurs

• Made from bilberries, crowberries, and rhubarb
• Sweet and often served as a digestif

Berry liqueurs are a sweet alternative to the strong spirits. They’re less common in bars but available at Vínbúðin shops.

How expensive is a pint in Iceland?

Price variation by city

• Reykjavik: ISK 1,500–2,200 (Guide to Iceland)
• Akureyri: roughly ISK 1,200–1,800 (based on happy hour discounts)
• Smaller towns: often ISK 1,000–1,500

Happy hour can slash prices by 20–30%. Guide to Iceland lists a happy hour beer at 900 ISK in one Reykjavik venue and 770 ISK in another, showing the price floor.

Happy hour discounts

• Most bars outside Reykjavik offer daily happy hours
• Discounts typically 20–30% off regular prices

Many bars in Akureyri and Selfoss run happy hour specials. Tripadvisor highlights happy hour as a way to reduce the Icelandic vacation bill.

Duty-free vs bar

• Duty-free at Keflavik Airport: about half the price of bar alcohol
• Vínbúðin (state monopoly): cheaper than bars but limited hours

Reddit users consistently advise buying alcohol at duty-free after landing, as it’s roughly half the price of alcohol outside the airport (Reddit r/VisitingIceland).

The trade-off: Drinking at a bar in a small town costs less than in Reykjavik, but still adds up. A pint for ISK 1,200 is about $9 – affordable by Icelandic standards, but not cheap for most visitors.

Why is Iceland so strict on alcohol?

History of prohibition

• Iceland prohibited alcohol in 1915
• Beer was legalised only in 1989, ending full prohibition

Iceland’s strict alcohol policies stem from a century of temperance. The Reddit r/Iceland thread notes that the student pub at the University of Iceland is affordable – a sign that even strict rules don’t stop social drinking.

Government monopoly

• Vínbúðin is the only retailer for strong alcohol (above 2.25% ABV)
• 45 shops nationwide, open limited hours

Vínbúðin is the state-run monopoly for alcohol sales. It’s closed on Sundays and public holidays, forcing many to plan ahead.

Health and social policy

• High taxes and limited sales hours aim to reduce consumption
• Drinking in public is banned

These policies are rooted in public health concerns. The result is a culture where drinking at home or in licensed bars is the norm.

What is the 2 2 2 rule for alcohol?

Definition

• A responsible drinking guideline: no more than 2 drinks per day, 2 days per week, 2 hours before driving

The so-called “2 2 2 rule” is not an official Icelandic law. It’s a popular health guideline used in some countries.

Origin

• Often cited in health campaigns, but not unique to Iceland

No official Icelandic source endorses this rule. It’s more of a mnemonic for moderate drinking.

Application in Iceland

• Icelandic authorities recommend low-risk drinking limits, but not the 2 2 2 rule specifically

For visitors, the best rule is simple: pace yourself, especially when happy hour offers cheap drinks.

The catch: The 2 2 2 rule is a generic guideline, not an Icelandic regulation. Rely on local advice and your own limits.

Bingo Drinkery in Akureyri has a great craft selection – it’s where locals go for something different.

– Reddit user ‘IcelanderX’

Götubarinn is a charming bar in the centre of Akureyri, perfect for a relaxed evening.

– Visit Akureyri

Outside Reykjavik, the bar scene is smaller but more intimate. For the cost-conscious traveller, sticking to a few well-chosen spots in Akureyri or Selfoss can save money while delivering a more authentic Icelandic night out.

Frequently asked questions

Is Iceland in the EU? · Off Licence Hours Ireland