Supermarkets are not allowed to sell alcohol of any kind but most restaurants are allowed to sell alcohol. ... The only stores that are allowed to sell alcohol are government owned alcohol stores called Vínbúðin. People under the age of 20 are not allowed to buy alcohol of any kind in Iceland.

Why is alcohol banned in Iceland?

Even today alcohol sales in Iceland are highly regulated and government run liquor stores (Vínbúðin) are the only places to buy alcohol in Iceland. The somewhat shaky logic behind the beer ban was that access to beer would tempt young people and workers into heavy drinking.

Why is alcohol in Iceland so expensive?

One of the things which is taxed most heavily in Iceland is alcohol. Alcohol taxes are levied by alcohol volume. If we take the bottle of vodka as an example: The Alcohol Tax makes up 5,419 ISK to the price of 7,300. ... The state therefore collects a total of 6,163 ISK in taxes on the bottle, or 84.4% of the sale price.