Iceland is a young, raw land of volcanoes, glaciers, geysers and waterfalls, floating alone in the North Atlantic just below the Arctic Circle — a nature-lover's dream where the earth still visibly makes itself. Reykjavík, the world's northernmost capital, is the base for all of it: a small, colourful, creative city of hot-spring pools, cosy bars and a famous music scene, with otherworldly landscapes and the northern lights (in winter) a short drive away. Expensive, but unforgettable.
What things cost: Iceland is very expensive — food, drink and tours all sting, the price of importing nearly everything to a remote island. Tap water is pure glacier and free, the geothermal pools are cheap, and much of the scenery costs nothing. Buy alcohol at the airport duty-free, and know that when a zone below says 'low', it's still not cheap.