Iceland Farmstays: Authentic Rural Accommodation

Iceland farmstays — bændagardar in Icelandic — are among the most authentic travel experiences the country offers. These are working farms that have adapted to accommodate travellers, providing a genuine window into Icelandic agricultural life that no hotel chain can replicate. The Icelandic farming tradition is ancient, shaped by the land and the climate, and staying on a working farm provides context for the landscape that fundamentally changes how you experience Iceland.

What to Expect

Farmstay accommodation ranges from very simple rooms in converted farm buildings to surprisingly stylish converted barns and farmhouses with modern facilities. The defining features: geothermal hot tubs are almost universal — even the most basic farmstay usually has an outdoor hot tub fed by natural geothermal water, heated to 38 to 42°C year-round; home cooking is common, with dinners often sourced from the farm's own produce; and direct interaction with working Icelandic farmers and their families provides context and conversation unavailable in hotels.

Prices are typically 20 to 40 percent lower than comparable hotel accommodation in the same region, making farmstays one of the best value options for quality accommodation across Iceland.

Icelandic Horses

Iceland has approximately 80,000 horses — more per capita than almost anywhere in the world. The Icelandic horse is a small, hardy breed brought to Iceland by the Norse settlers 1,100 years ago and protected by law from outside breeding (no other breed can enter Iceland). It is the only horse breed in Iceland and has remained genetically pure for over a thousand years.

Many Icelandic farmstays offer horse riding experiences — from short introductory rides for complete beginners to multi-day pack trips through the interior highlands. The Icelandic horse's unique fifth gait, the tolt — a smooth, fast, four-beat gait that produces an effortless riding sensation quite unlike a trot — is experienced best on a longer ride. Horse farms in the Golden Circle area, the Snaefellsnes Peninsula and North Iceland are the most easily accessible from major travel routes.

Finding Farmstays

The Visit Iceland farm accommodation platform (icelandicfarm.is) lists registered farmstay properties across the country with location, facilities and booking. The database includes approximately 80 properties ranging from remote highland farms to accessible South Coast locations. Booking directly through the farm rather than through an aggregator typically provides better rates and more flexibility.

Booking Farmstays

Icelandic farmstays are bookable through Bungalo.is, Booking.com, and direct through farm websites listed in the Icelandic Farm Holidays directory (farmholidays.is). The Icelandic Farm Holidays association quality-inspects member properties annually and provides a reliable baseline standard. Farm accommodation ranges from basic rooms in the farmhouse to purpose-built guesthouse wings with en-suite facilities and breakfast service. Breakfast at an Icelandic farmstay — farm-produced eggs, homemade bread, local butter, skyr, and strong coffee — is one of Iceland's most authentic food experiences. Farmstays with geothermal hot tubs (common in geothermally active areas) and working farm access for children are the most sought-after options.

Getting around Iceland is easiest by car. Compare rental options and find the best deals on Discover Cars — free cancellation available.

Planning your Iceland trip? Don't forget travel insurance — SafetyWing offers flexible Nomad Insurance from $56.28/4 weeks, ideal for Iceland's dramatic terrain and ever-changing conditions. Get covered before you go and explore with confidence.