Same rental rules apply to foreigners as to locals; no nationality restrictions, and tenant rights are protected by the Rent Act No. 36/1994
Deposit is capped at three months' rent, must sit in a separate interest-bearing account, and is returned with accrued interest if no written claim is filed within four weeks
Universal, tax-funded system: people with six months of legal residence generally become automatically covered by Iceland Health (Sjúkratryggingar Íslands), with no nationality or employment test.
Very low patient charges once insured: an insured daytime GP visit at a public health centre is 500 ISK (about EUR 3.5), with children, pensioners and disabled people exempt and a monthly out-of-pocket ceiling (around 37,800 ISK general / 25,200 ISK for pensioners and children).

Watch out for

The Reykjavik market is very tight: vacancies are low, competition is intense, and good listings can be gone within hours — line up viewings fast
Long-term leases are usually unfurnished; furnished stock concentrates in the short/mid-term (Airbnb, guesthouses), often used as a 2-4 week bridge on arrival
Six-month waiting period: after registering legal domicile with Registers Iceland you generally wait six months before public coverage starts, so most newcomers need private insurance to bridge the gap.
For non-EEA temporary residents, holding health insurance is a condition of the residence permit and there is no public cover during the wait, so private medical insurance is effectively mandatory at the start.

Cost of living

Reykjavik

€2,900–€3,900/mo