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How to Get a Tiny House in Iceland

by | Jul 13, 2023 | Featured, Popular, Tiny Houses | 0 comments

Do you want to live in a tiny house in Iceland but have no idea how to? Trust me – you’re not alone!

The stunning natural beauty of this Nordic island nation has captured many hearts around the world. But it can be hard to know where to start.

That’s where I come in!

Hey, I’m Nadia, the proud owner of a tiny house in the Nordics and I’m more than happy to share everything I know about the unique challenges of building and living in tiny houses in Iceland.

Read on for everything you need to make your tiny house dreams a reality!

What’s a Tiny House in Iceland?

Wooden home overlooking lake

Tiny houses in Iceland have a long, fascinating history.

Up until the 1940s, many Icelanders lived in small houses called turf homes.

With very few trees growing on the island, wood was a scarce resource and farmers would scavenge and then brand driftwood from the black sea beaches and use it with sod and stone to build their homes.

These cottages were extremely small to conserve materials and (thanks to the turf) preserve heat during Iceland’s long, dark winters.

Today, most Icelanders live in modern homes and apartments which are still on the smaller side, much for the same reasons – what a perfect location for a tiny home!

Can You Rent a Tiny House in Iceland?

Yes, you can rent a tiny house in Iceland!

Since renting isn’t all that common, however, your options will be fairly limited if you’re looking to rent long-term.

There are some absolutely stunning tiny homes and cottages available for extended stays that you can rent monthly on Airbnb, but they don’t come cheap: anything from $5,300 to $15,200 for a month.

If you want to try living tiny in Iceland before you fully commit to a house and want a cheaper alternative, there are studio apartments in and around Reykjavík with an average rent of between $1,300 and $1,600 per month.

Additionally, there are always campervans or RVs if you want to get closer to nature!

Tiny House Vacation Rentals in Iceland

tiny glass house in iceland with northern lights above


There is no shortage of tiny houses to rent during your vacation in Iceland!

The Hotel Laki cottages provide comfortable lodging for two to three people with simple beds, mountain views, and private bathrooms.

You can also opt for tiny homes on Airbnb, such as Otri, which offers three newly-built small houses with showers and cooking facilities that can accommodate two to four people each.

If you seek stunning views of the Northern Lights, the Panorama Glass Lodge tiny houses located in west and south Iceland feature a glass room with a glass roof.

Other glass houses and tiny homes can be found throughout the beautiful country, offering creative space-saving solutions and modern amenities.

Make sure to book your stay as early as possible – it tends to get busy, especially in June, July, and August.

Where Can I Buy a Tiny House in Iceland?

Vegdís is a fantastic local company where you can buy a tiny house in Iceland. 

Designed and built on the island, these tiny homes are extremely well-insulated, easy to heat, and can be used off-grid. 

They’re made from light materials, making them easy to transport – standard caravan regulations apply!

Outside of Iceland, Add a Room and Solido are two excellent options that ship all over Europe and have beautiful designs and innovative solutions for when you’re ready to make the move.

With Add a Room you can piece modules together and go as big or small as you’d like. Perfect if you decide that you need more space.

If you choose a tiny home from Solido, you’ll be ready to go completely off-grid – or stay on it.

No matter which company you choose, make sure that you research local regulations before purchasing a tiny house to ensure that it meets all safety requirements.

How Much Do Custom Tiny Homes Cost to Buy in Iceland?

tiny house on wheels being driven on the road

Credit: Solido Tiny House /

If you’re considering buying a custom tiny house in Iceland, you’ll be looking at prices from $61,500 up to $134,300.

The Vegdís tiny houses, available in up to 18 m2 and made from strong, maintenance-free fiberglass, range from $76,400 (10M ISK) to $101,650 (13.3M ISK) o.

Add a Room offers attachable modules between 10 m2 and 30 m2, ranging from $46,400 (309,000 DKK) to $105,120 (700,000 DKK) per module.

To stay warm during the winter, you’ll want to add extra insulation for $3,900 (26,000 DKK) and possibly look into more heating than the included small heater.

You can get a premade house for $72,700 (€65,000) from Solido while their custom tiny houses start at $30,200 (€27,000), but you will probably need multiple add-ons to fully customize your home.

To give you an idea, a deck is $2,200 (€2,000), a solar panel system is $6,700 (€6,000), and a refrigerator is another $3,400 (€3,000).

Can I Build a Tiny House in Iceland?

small red house on barren hill in iceland

Yes, it’s possible to build a tiny house in Iceland!

But before you start building your own tiny home, it’s important to understand what is involved in the construction process.

There are local building codes and regulations that must be followed, building permits to get, and safety standards that must be maintained.

The weather conditions can be harsh, so you need to choose the right materials when constructing a house so that it can withstand cold temperatures, rain, snow, and wind.

With some careful planning and research, however, there’s nothing stopping you from building your dream tiny home in beautiful Iceland!

Do You Need to Own Land to Get a Tiny House in Iceland?

The answer is no, you don’t need to own land to get a tiny house in Iceland.

There are several options available if you’re considering living tiny in this beautiful country.

You can find some land to rent and build or keep your small house on it, as long as you come to an agreement with the landowner.

If you go for a house on wheels, it may fall under the same rules as a caravan and standard camping rules will apply.

Should you want to buy a piece of land after all, you’ll most likely need approval from the government if you’re not an Icelandic citizen.

Whatever option you choose, it’s important to understand the regulations before embarking on your journey towards owning a tiny home in Iceland.

Is a Tiny House Cheaper Than a Regular House?

The cost of buying a tiny house in Iceland is generally much cheaper than purchasing a regular-sized house, even if you choose to spend extra on custom designs and high-quality materials.

This can be attributed to the fact that a tiny home requires less energy to heat and cool, which reduces costs over time.

Additionally, they require less maintenance due to their smaller size, meaning less time spent tidying and cleaning.

However, it’s important to note that a tiny home won’t accumulate value like a traditional house does, so if you’re looking for an investment opportunity, you should explore other options.

All in all, buying a tiny house in Iceland can be more cost-effective than choosing a bigger one.

What Are the Laws for Living in a Tiny House in Iceland?

Good news – there are no laws that prevent you from living in a tiny house in Iceland.

There’s a long tradition of small dwellings, so the government is fairly open to this sort of housing.

However, local governments might have specific building regulations and codes that you need to be aware of before purchasing or constructing a tiny house.

There might be permissions and permits you need to apply for as well, so it’s important to get all the necessary paperwork in order before starting any construction project.

Don’t worry, all your hard work will be worth it once you get the keys to your new amazing home!

Isn’t It Too Cold to Live in a Tiny House in Iceland?

glacier in iceland

It is not too cold to live in a tiny house in Iceland.

The cold weather is often seen as a challenge to tiny house living, but with the right insulation and heating systems, it’s possible to make your home comfortable and livable in any climate.

If you’re worried about energy costs, there are some great sustainable options available such as geothermal heating systems that use renewable energy sources instead of fossil fuels.

In the winter, the average temperature ranges from 32 °F (0 °C) in the south to 14 °F (−10 °C) in the north, and can sometimes reach −13 to −22 °F (−25 to −30 °C), so make sure you have your fluffy socks ready!


Are there cabins where you can see the Northern Lights in Iceland?

Yes, there are glass cabins with wonderful views of the Northern Lights. Check out the Panorama Glass Lodge or Airbnb for more info.

Can you rent a glass house in Iceland with Airbnb?

Yes, Airbnb has glass houses available for rent in beautiful Iceland. Here is one example of a stunning glass cottage.

Are there tiny houses for elves in Iceland?

There are indeed miniature homes for elves! They are called álfhól in Icelandic and house the Huldufólk (Hidden People). You can find them in several locations, such as Borgarfjörður Eystri and Hafnarfjörður.

What is the Panorama Glass Lodge in Iceland?

At the Panorama Glass Lodge, you can rent glass cottages in west and south Iceland. They’re the perfect place to admire Iceland’s unique nature, the Northern Lights, and the Midnight Sun.

Wrap Up: How to get a tiny house in Iceland

Living in a tiny house in Iceland is a unique experience.

If you’re interested in living the tiny house lifestyle, there are plenty of options available.

From finding readymade plans to starting from scratch, we can help you can create the tiny house of your dreams.

And if it’s not quite right for you, there are always options to rent or sell the house down the road.

So get ready for an amazing journey living tiny in Iceland! Grab those keys and start exploring this incredible country – you won’t regret it!

Good luck and Keep Living Tiny xx



Founder of TLS

Hey I’m Nadia, your tiny house obsessed friend, helping you discover alternative and tiny living solutions that can help you achieve financial freedom.

If I can go from renting to buying my own home, heading towards semi-retirement in 3 years then so can you!

Read more about my story here