Unlocking Reykjavik: Top Affordable Bars & Happy Hours

Reykjavik has over 50 bars running daily drink deals, and knowing where to go can make a real difference to your wallet. This guide cuts through the noise and points you straight to the best happy hour spots in the city.

Drinking in Reykjavik is a proper social experience — less about getting rounds in quickly and more about settling into a warm bar while the wind picks up outside. Many of the best food and drink tours in town let you combine that with local food, so you’re not just drinking on an empty stomach.

For something a bit different, a beer and schnapps walking tour led by locals is worth considering. You get the drinks, but you also get the stories — which, in Iceland, are usually pretty good ones.

If you want to stretch your budget even further, Guide to Iceland’s VIP Club offers exclusive discounts at a range of bars and restaurants around the city. It’s a simple way to enjoy more without spending more.

Staying on a tight budget? It’s worth checking out the most affordable accommodations in Reykjavik, most of which sit within easy walking distance of the action.

Read on for the top happy hour deals Reykjavik has to offer.

The bar scene here runs from old-school pubs that haven’t changed in decades to newer spots drawing a younger crowd — there’s genuinely something for everyone.

Key Takeaways for Happy Hour in Reykjavik

Happy hour in Reykjavik punches above its weight. Drinks are expensive in Iceland — that’s just a fact — so catching a good deal early in the evening makes a lot of sense. Here’s what to keep in mind:

• Attractive drink discounts: Most bars offer meaningful price cuts during happy hour, not just a token percentage off.

• Variety of venues: From tucked-away neighbourhood pubs to sleek cocktail bars, the range is genuinely wide.

• A boon for budget travelers: Given the high cost of drinks in Iceland, happy hour allows visitors to enjoy vibrant nightlife without breaking the bank.

• Central location: Most participating bars are situated in downtown Reykjavik, affectionately known as 101, nestled between Laugavegur and Austurstraeti.

With that in mind, here are the best bars for happy hour in Reykjavik, ranked from the most upscale to the most budget-friendly.

Note: While prices and currency conversions may change, rest assured that this guide is consistently updated to bring you the most accurate information available.

15. SKY Bar

Sitting on top of Center Hotels Arnarhvoll, SKY Bar has one of the best views in the city — Faxafloi Bay stretching out on one side, Mount Esja looming on the other, and Reykjavik’s rooftops in between. It works equally well for a date or a low-key pre-dinner drink.

Floor-to-ceiling windows and comfortable indoor seating make it a good spot to watch the weather roll in off the sea, which happens more dramatically than you’d expect.

The menu covers wines, sparkling drinks, and cocktails with some creativity behind them, plus local beers and a snack menu built around shareable plates — sliders and fries, that sort of thing.

SKY Bar runs two happy hours daily, so there’s a decent window to catch a deal. VIP Club members also get access to exclusive offers on top of that.

Things to Know Before You Visit SKY Bar

• Address: Ingolfsstraeti 1, 101 Reykjavik

• Happy Hours: Daily from 6 PM to 8 PM, with a later happy hour from 8 PM to 11 PM

• Happy Hour Offers: Beer for $7 (900 ISK), wine and prosecco for $9 (1,150 ISK), and cocktails for $13 (1,680 ISK)

• Google Rating: 4.4/5

• TripAdvisor Rating: 4/5

14. Kokteilbarinn

Part of the Monkeys Food & Wine Restaurant, Kokteilbarinn has built a solid reputation as one of the better places in Reykjavik for a well-made cocktail. The space has candlelit tables, eclectic decor, and an indie playlist that somehow gets the balance right between atmospheric and unpretentious.

If you’re not in the mood for another pint, this is the place to come. It’s sophisticated without being stiff.

Happy hour brings a 25% discount on cocktails and select menu items. The champagne train — a shared bubbly experience ordered by the group — is the kind of thing that sounds gimmicky until you’re actually doing it, at which point it’s excellent.

VIP Club members get access to exclusive deals, which sweetens an already decent visit.

Things to Know Before You Visit Kokteilbarinn

Here are some quick details to help you plan your visit to this stylish cocktail bar:

13. Elly Bar

On Laugavegur Street, Elly Bar is the kind of place you stumble into and find yourself coming back to. Mismatched furniture, warm lighting, a mix of regulars and first-timers — it has a relaxed, neighbourhood feel that’s surprisingly hard to find this close to the main tourist drag.

The cocktail menu is strong, and there are ten taps pouring Icelandic beers. The Mexican food — tacos, burritos, nachos — is genuinely good, and there are solid vegan options too. Evenings tend to pick up with live music, karaoke, or the occasional piano sing-along depending on the night.

VIP Club members get meaningful discounts on both cocktails and beer, which makes Elly Bar one of the better options for a proper night out without a painful bill at the end.

Things to Know Before You Visit Elly Bar

Here are some quick details to help you plan your visit to this welcoming Reykjavik hangout:

12. 22 Bar

22 Bar does a good job of being many things at once — somewhere you can have a quiet drink early on and somewhere that gets properly lively later. The decor is sharp, the staff are friendly, and the crowd is a healthy mix of locals and visitors.

It sits on Laugavegur Street, which makes it an easy first stop before heading further into the evening. Regular live music adds to the appeal, and if you’re new to Reykjavik’s nightlife, it’s a comfortable place to start.

Happy hour covers discounted beer, wine, and cocktails. VIP Club members also get special savings on food, which makes lingering for a bite an easy decision.

Things to Know Before You Visit 22 Bar

• Address: Laugavegur 22, 101 Reykjavik

• Happy Hours: Daily from 12 PM to 8 PM (beer and wine) and 5 PM to 9 PM (cocktails)

• Happy Hour Offer: Discounts on beer, wine, and cocktails

• Google Rating: 4.5/5

11. Prikid

Prikid has been doing its thing since 1951, and it shows — in the best possible way. By day it’s a relaxed café with a diner feel, good for coffee or brunch. Come evening, it turns into something busier and louder, with hip-hop on the speakers and a crowd that ranges from students to seasoned regulars.

The beer-and-burger combo during happy hour is one of the better deals in the city. The walls are covered in vintage posters and graffiti that tell their own version of Reykjavik’s history, which gives the place more character than most.

Sunday nights bring retro film screenings with popcorn and drink deals — a decent low-key way to close out the weekend.

VIP Club members get generous discounts on food and drinks, plus the occasional complimentary item to get things started.

Things to Know Before You Visit Prikid Cafe

Here are some quick details to help you plan your visit to this iconic Reykjavik hangout:

10. Den Danske Kro

Den Danske Kro is a local favourite, and for good reason — the drinks are among the most affordable in the city. Guide to Iceland’s VIP club members also get exclusive discounts on top of already fair prices.

The beer selection is wide, with plenty of Icelandic classics on the menu alongside a solid cocktail list. Thursday nights bring extra discounts beyond the usual happy hour, which makes it worth marking in your calendar. The interior leans into its Danish tavern roots — wooden accents, warm service, and an atmosphere that doesn’t try too hard. Live music keeps things lively when it’s on.

Things to Know Before You Visit Den Danske Kro

Here are some quick details to help you plan your visit to this local retreat:

9. Saeta Svinid

Saeta Svinid — translating to “The Sweet Pig” — is a gastropub that takes its food seriously without losing the pub feel. On the rare occasion the Icelandic sun shows up, the outdoor seating fills fast, and a lamb sandwich or burger with a cold draft is hard to argue with.

Later in the evening it shifts gears. The upper floors keep the pub vibe, while the lower level gets louder and more energetic. Karaoke and bingo nights have become fixtures here — they draw regulars week after week, which tells you something.

VIP Club members can get exclusive discounts on select days, making it a smart stop whether you’re visiting for the first time or the fifth.

Things to Know Before You Visit Saeta Svinid

Here are some quick details to help you plan your visit to this popular Reykjavik gastropub:

8. Litli Barinn

Litli Barinn sits just outside the main downtown cluster, and it’s become a genuine local haunt. The cocktails are good, the wine list is considered, and the food — built around local ingredients — is priced fairly. It’s the kind of place that works for a spontaneous drop-in as much as a planned evening.

The drinks menu changes regularly, which suggests someone back there actually cares about what’s on tap. Guide to Iceland’s VIP Club members get exclusive discounts here, making it a solid option for both food and drinks.

Things to Know Before You Visit Litli Barinn

Here are some quick details to help you plan your visit to this inviting Reykjavik spot:

7. Skuli Craft Bar

Skuli Craft Bar is the obvious choice if craft beer is your thing. The selection is extensive, the staff know what they’re talking about, and they’re genuinely helpful if you’re not sure where to start or want to try something new.

Happy hour gives you a choice of four rotating beers on tap or a glass of red or white wine at a discounted rate. VIP Club members get benefits on other days too, which adds up. The bar is about a five-minute walk from Ingolfstorg Square and Austurvollur Square, has a modern, unfussy feel, and has outdoor seating when the weather cooperates.

Things to Know Before You Visit Skuli Craft Bar

Here are some quick details to help you plan your visit to this charming Reykjavik bar:

6. Kaldi Bar

Kaldi Bar genuinely changed how Icelanders drink beer. As the downtown face of the Kaldi Brewery, it’s been at the centre of the craft beer movement here for years, and it still draws a crowd that’s as much local as tourist.

The interior is compact, but there’s a sizeable heated outdoor area that gets used year-round — Icelanders aren’t easily put off by cold air. The beer selection leans heavily on the brewery’s own output, including the much-loved Kaldi, which is exactly what you’d expect from a bar with this name.

Things to Know Before You Visit Kaldi Bar

Here are some quick details to help you plan your visit to this trendy Reykjavik bar:

5. The Irishman Pub

If the Dubliner’s energy is a bit much for you, The Irishman Pub offers something a bit more considered — still lively, but with a touch more polish. It opened with a clear idea of what it wanted to be: an Irish pub with a modern edge, and it’s pulled it off reasonably well.

The happy hour runs long, prices are fair, and there’s a wheel of fortune that adds some unpredictability to the evening. VIP Club members get extra discounts on beers, which brings in a steady crowd on weekends.

One note: live music runs Thursday through Saturday. If another rendition of “Wonderwall” isn’t your idea of a good time, factor that in before you commit to a stool.

Things to Know Before You Visit The Irishman Pub

Here are some quick details to help you plan your visit to this engaging Reykjavik Irish pub:

4. Lebowski Bar

If for some reason you’ve not seen *The Big Lebowski* in the last 20 years, we highly recommend doing so before visiting this unique bar. Walking into Lebowski Bar without that context means missing half the point — the themed rugs, the 10-pin bowling alley running along the bar’s wall, the whole atmosphere.

The soundtrack does the job properly: Kenny Rogers’s “Just Dropped In”, Bob Dylan’s “The Man in Me”, the Eagles occasionally warming things up. It’s consistent in a way that suggests genuine affection for the source material rather than a quick licensing exercise.

The menu offers over 30 varieties of White Russian cocktails, which is either excessive or exactly right depending on your feelings about the film. There’s a review of the Lebowski Bar if you want a fuller picture before visiting.

Movie screenings, trivia nights, and a general weekend buzz keep it busy. And during happy hour, the Spin the Wheel could win you ten free beers.

Highlight: You could even win ten free beers on the Spin the Wheel during happy hour!

Things to Know Before You Visit Lebowski Bar

Here are some quick details to help you plan your visit to this captivating Reykjavik bar:

3. Kiki Queer Bar

Kiki Queer Club is Iceland’s only dedicated gay venue currently operating, holding its ground in what’s been called Iceland’s “gayest corner” at Laugavegur 22. The crowd is genuinely mixed — all ages, orientations, and styles — and it’s a proper fixture on the weekend nightlife circuit.

Iceland’s strong sense of safety means LGBT travellers can move freely through Reykjavik’s nightlife without concern. For more on that, there’s a dedicated guide to gay Iceland worth reading.

Kiki has a way of pulling you onto the dance floor fairly quickly. The 80s tracks help. So do the cocktails and the atmosphere, which feels inclusive in a way that doesn’t need to announce itself.

VIP Club members get exclusive cocktail discounts, which is a nice bonus on top of an already good night.

Things to Know Before You Visit Kiki Queer Club

Here are some quick details to help you plan your visit to this lively Reykjavik club:

2. The English Pub

The English Pub has been part of Reykjavik’s bar scene long enough to earn the label of institution. The outdoor seating next to Austurvollur Square is one of the better spots in the city for a draft beer in the sun — and your VIP Club membership brings that pint down to a very reasonable price.

Football goes up on the screens when there’s a match worth watching, and live music runs nightly. Requests are welcomed, dancing is encouraged, and the atmosphere tends to build steadily across the week rather than saving everything for the weekend.

The founders spent years putting together a list of 40 premium ales, and the care that went into that selection is still evident. It’s not just a tourist pub — the beer is genuinely taken seriously here.

Things to Know Before You Visit The English Pub

Here are some quick details to help you plan your visit to this lively Reykjavik establishment:

1. Bastard Brew & Food

Bastard Brew & Food sits at the top of this list because it genuinely earns it. Two daily happy hour slots, its own beers, inventive cocktails, and prices that don’t make you wince — it covers the basics and then some.

If you need something to eat, the warm pretzels with jalapeño cheese sauce are the obvious choice. During happy hour, you get $4 (510 ISK) off large drafts, draft cocktails, and wine by the glass, which adds up quickly over an evening.

Weekly specials include:

• Mondays: All-day happy hour

• Tuesdays: Tacos, Corona, and margaritas at special prices

• Wednesdays: $4 (510 ISK) off select gin and tonics

• Thursdays: $4 (510 ISK) off all cocktails

Guide to Iceland’s VIP Club unlocks further savings, which makes Bastard Brew & Food viable at pretty much any hour. The outdoor seating area is a good spot when the weather allows, and the upstairs darts area gives you something to do between rounds.

There’s a full review of Bastard Brew & Food available if you want more detail before visiting.

Things to Know Before You Visit Bastard Brew & Food

Here are some quick details to help you plan your visit to this welcoming Reykjavik hangout:

Happy Hour Reykjavik Tips and Late-Night Drinking Culture

One thing worth knowing: prices tend to double after happy hour ends. Locals are well aware of this, which is why most of them don’t head out until late — skipping the expensive downtown bars early on and starting the evening at home instead.

Happy hour really is the smart window if you’re watching your spending. That’s not a caveat — it’s the point of this entire guide.

For a more local approach, consider stopping at Vinbudin, the state-run liquor store, before heading out. It’s worth understanding how it works: in Iceland, you can only buy alcohol through state-run stores — not at corner shops or supermarkets (unless 2.25% beer counts, which it probably doesn’t for your purposes).

Vinbudin is the only option for stocking up before a night in. Hours are typically 11:00 to 18:00, with a handful of locations open until 20:00. All Vinbudin outlets are closed on Sundays, so plan ahead if you’re spending that day in.

While you’re at it, try Brennivín — an Icelandic unsweetened schnapps that translates to “burned wine” and goes by the nickname “Black Death.” The name was originally designed to put people off drinking it, which has instead made it one of Iceland’s most popular spirits. It’s traditionally served alongside fermented shark, or hárkarl, which is an experience unto itself.

Tip: We recommend taking part in this 1-hour Eimverk Distillery tour, where you can sample Icelandic whiskey, gin, and Brennivín for an unforgettable experience.

Beer wasn’t legalised in Iceland until 1989, after a ban that lasted over seventy years. Locals mark the occasion every year on March 1st — Beer Day — and today beer is comfortably Iceland’s most popular drink. Reykjavik’s bars pour a solid range of local craft options alongside familiar names like Gull, Brio, and Viking Lager.

A beer platter is the easiest way to work through the local varieties without committing to a full pint of each. Skál!

FAQs About Happy Hour in Reykjavik

Here are some frequently asked questions regarding happy hour in Reykjavik:

What time is happy hour in Reykjavik?

Happy hours in Reykjavik typically commence around 15:00 and wrap up by 19:00, although individual bar timings may vary. Some venues kick off a bit earlier or push later into the evening, so it’s worth checking each place before planning a bar crawl.

What is the Happy Hour app in Iceland?

The Appy Hour app is the go-to tool for tracking down happy hour deals in Reykjavik. It lists bars with active discounts, current prices, and real-time updates — particularly useful if you’re moving between venues and want to know what’s on where.

Can I wear jeans to happy hour in Reykjavik?

Absolutely. Most bars in Reykjavik embrace a laid-back vibe, so jeans are perfectly acceptable for happy hour. Unless you plan on heading somewhere more upscale later in the evening, you can dress comfortably.

What are the best happy hour bars in Reykjavik?

Strong contenders include Lebowski Bar for atmosphere and deals, Kaldi Bar for craft beer, The English Pub for live music and a reliable pint, and Kiki’s for a fun, inclusive night out. Each has its own angle on discounts, so the best pick depends on what kind of evening you’re after.

Discovering the Best of Reykjavik: From Happy Hour to Drink Tours

Happy hour is one of the better ways to get into Reykjavik’s nightlife without it costing a fortune. The range on offer — cosy pubs, cocktail bars, craft beer spots, lively dance floors — means there’s a version of this city that suits most tastes.

If you want to go a step further, a microbrewery and distillery tour is worth considering. It pairs tastings with a genuine look at how Icelandic beer and spirits are made. There’s also a microbrewery, distillery, and beer-tasting tour from Reykjavik that includes visits to Malbygg Microbrewery and RVK Brewing — two of the best in the country. It’s one of the more memorable ways to understand what’s actually in your glass.

Have you experienced happy hour in Reykjavik? Which bars would you recommend to fellow travelers? Share your insights in the comments, and let us know your favorite spots!