Iceland Ranks High in Happiness: A Look Into the Keys to Icelanders' Joy

Iceland has emerged as one of the happiest places in the world, showcasing a remarkable increase in happiness levels in recent years. According to the latest findings from the 2025 World Happiness Report, Iceland ranks as the third-happiest country globally. This achievement is particularly noteworthy given that many other countries, including other Nordic nations, have reported declines in overall happiness scores.

Rising Happiness Levels

Since the inception of the happiness index in 2008, Iceland has experienced a significant increase in its happiness ratings, boasting a 9.1% rise in its overall score. In contrast, countries like Denmark and Sweden, which traditionally rank high in happiness, have observed lower scores over time. Iceland’s current position reflects not only improvements in happiness but also the nation's dedication to social support, freedom, and generosity. These factors have been pivotal in enhancing the quality of life for its residents.

Nature as a Key Contributor

One of the most significant aspects of Icelandic happiness is its breathtaking natural environment. Residents treasure their easy access to national parks and untouched landscapes, which provide opportunities for a range of outdoor activities such as hiking, walking, and enjoying the scenic beauty of rivers, coasts, and lakes. Hrund Gunnsteinsdóttir, an Icelandic author, highlights the striking contrasts in the landscape, from vibrant greenery to stark black sands, underscoring its role in personal happiness.

Jessica Poteet, a geologist originally from the United States, emphasizes how living amongst Iceland's unique geography—complete with volcanoes, Northern Lights, and dramatic mountain ranges—contributes to a profound sense of joy. Despite the challenges of long, dark winters, the country's summer feature, the midnight Sun, offers a balance that many locals appreciate.

Social Safety Nets Support Wellbeing

Iceland's strong social safety net has proven essential to its residents' sense of stability. Many individuals have benefited from government support during challenging times, such as job loss during the COVID-19 pandemic. Brenna Elizabeth Scheving, an expat in Iceland, shared how the country’s unemployment benefits and generous parental leave policies have greatly supported families, regardless of marital status. Parents can share up to 12 months of leave, fostering a balanced family dynamic.

Moreover, the availability of kindergarten for children as young as two years old allows parents to attend work while ensuring quality childcare and early education. This foundational support is reinforced by long-standing gender equality policies, which have yielded Iceland the smallest gender gap in the world for 15 years, according to the World Economic Forum.

Gender Equality and Its Impact

The commitment to gender equality is deeply embedded in Iceland's political and social fabric. Iceland was home to the world’s first democratically elected female president in 1980, highlighting long-standing progressivism. Gunnsteinsdóttir acknowledges the social and economic benefits of gender equality, linking them to overall happiness and well-being. The bonds forged through equality in the workforce and political arenas lead to better stability for communities and the environment.

Despite facing pressures from rising living costs, particularly in Reykjavík, and an influx of tourists—nearly double the numbers from 2015—many residents still view the advantages of tourism as outweighing the drawbacks. New initiatives are being implemented to manage tourism's impact and preserve the country’s natural resources.

Tourism and Infrastructure Development

As tourism surged, Iceland saw significant developments in infrastructure, greatly benefiting both locals and visitors. The completion of the fully paved Ring Road in 2019 and enhanced access to prominent attractions, such as the Fagradalsfjall volcano, have transformed the country’s connectivity. This development has made previously secluded communities more accessible and allowed for the growth of accommodations and services designed to promote a sustainable approach to tourism.

In addition to expanding infrastructure, local businesses are becoming more proactive in providing educational experiences surrounding Icelandic culture and environmental preservation, with a focus on responsible tourism practices.

A Culture of Resilience and Adaptation

At the heart of Iceland's happiness lies a deep sense of resilience and adaptability. The Icelandic concept of "innsæi," referring to intuition or the "sea within," emphasizes a profound connection with one's internal compass and external reality. Life in Iceland is characterized by a dynamic natural environment, and the community's ability to respond to environmental shifts—such as earthquakes and volcanic eruptions—has instilled in its residents an appreciation for change.

In summary, the combination of stunning landscapes, robust social policies, support for gender equality, and a culture of resilience contribute significantly to the high happiness levels among Icelanders. As the country continues to navigate challenges and opportunities, its emphasis on community well-being and natural beauty positions it as a standout example of societal happiness in the modern world.