Why Icelanders Are Happier Than Ever

In a world where happiness levels vary widely, Iceland stands out as one of the few countries where the sense of joy among its citizens is on the rise. According to recent reports, Iceland has experienced significant improvements in happiness metrics over recent years, thanks to a unique combination of natural beauty, progressive social policies, and a community-oriented spirit.

Iceland's Rising Happiness Score

The World Happiness Report for 2025 highlights that Finland tops the list for the third consecutive year, with several other Nordic nations, including Denmark and Sweden, experiencing a slight decline in their happiness scores. In contrast, Iceland has made substantial progress, rising from 18th place in 2008 to 3rd this year, yielding a notable 9.1% increase since the index's inception. This remarkable shift is attributed to the country’s high levels of social support, freedom, and generosity.

Despite its small population of under 400,000, Iceland invests heavily in infrastructure and social initiatives, which contribute to the overall well-being of its residents.

The Role of Nature

Many Icelanders attribute their happiness to the country’s breathtaking natural landscapes. Hrund Gunnsteinsdóttir, the author of the forthcoming book "InnSæi: Heal, Revive and Reset with the Icelandic Art of Intuition," expresses how easily accessible national parks and open spaces are integral to their lifestyle. Citizens can enjoy picturesque settings, whether hiking through lush greenery or walking along riverbanks and coastlines.

Geologist Jessica Poteet, an American expat, emphasizes her appreciation for the dramatic scenery, noting that the volcanic activity and stunning northern lights contribute significantly to her happiness.

While long, dark winters pose challenges, the invigorating midnight sun in the summer often prompts employers to offer "Sun holidays," allowing residents to relish outdoor activities. This policy provides a unique balance, helping to alleviate the effects of seasonal affective disorder commonly experienced during the darker months.

Supportive Social Systems

A strong social safety net plays a crucial role in ensuring a sense of security among residents. Several Icelanders share their positive experiences with the nation’s robust unemployment benefits and generous parental leave policy, which offers a total of 12 months of leave to be shared between both parents. This progressive policy applies regardless of marital status or sexual orientation, creating a supportive environment for families.

Moreover, access to early childhood education starting at age two enables parents to balance work and childcare effectively, enhancing family well-being.

Gender Equality: A Pillar of Society

Iceland's commitment to gender equality has been a fundamental aspect of its social fabric for decades. For the 15th consecutive year, the country has been recognized as having the smallest gender gap in the world. The political landscape reflects this commitment, with women holding many leadership positions, including the country’s first democratically elected female president in 1980. This year marks the 50th anniversary of the Women's Day Off, a significant moment that underscored the demand for equal representation in politics and the workforce. As Gunnsteinsdóttir notes, regions with gender equality tend to have better societal stability, promoting overall happiness.

Balancing the Effects of Tourism

While tourism has positively impacted Iceland's economy, it has also brought challenges, particularly in the capital city of Reykjavík where costs of living have surged. Many residents report that the steep housing market can be difficult for both locals and newcomers. Iceland received nearly 2.3 million international visitors in 2024, almost double the figures from 2015. To mitigate tourism’s effects, the government and various stakeholders are implementing new initiatives aimed at promoting responsible tourism and protecting the environment. Gunnsteinsdóttir mentions grassroots efforts through collaborations with local authorities and tourism businesses to educate visitors about sustainability.

Conclusion: The Power of Resilience

Despite external pressures, Icelanders maintain a resilient spirit, which many attribute to their unique natural environment. According to Gunnsteinsdóttir, the ancient Icelandic term "innsæi," or intuition, embodies the idea of being attuned to oneself and the world around. This sense of awareness and adaptability is crucial in navigating life's uncertainties, helping residents make the most of their circumstances.

In summary, Iceland’s remarkable rise in happiness can be credited to its stunning landscapes, progressive social structures, and a deep cultural commitment to resilience and gender equality. These factors combine to create an environment where citizens can thrive amidst both natural beauty and supportive governance.