Laugavegur is the main shopping street of Reykjavík and has many funky boutiques, with both Icelandic and international designs. Skólavörðustígur, running from Laugavegur up to Hallgrimskirkja, has a range of souvenir and craft shops where you can find a perfect gift for the family. Record shops and bookstores are also located on these streets, where you can find Icelandic music and literature as well as a wide range of foreign music and books in English.
Reykjavík has one flea market, Kolaportið, located in a warehouse by the harbour and open 11am-5pm Saturdays and Sundays. In addition to stalls selling clothes, antique furniture, old books, and other typical fleamarket wares, there is a food section where you can buy many Icelandic specialities as well as cheap and fresh fish and potatoes.
If you yearn for international chains such as Zara and Debenhams, then head to one of 2 malls in the capital area; Kringlan in Reykjavík and the newer Smáralind in neighboring Kópavogur. But keep in mind that everything in Iceland probably costs more than it does back home. Items can be as much as 3-4 times the price in neighboring countries, mainly because of taxes 24.5% sales tax on products, 7% on books, import duties and so on, though there are exceptions to this rule.
Sales tax is always included in the sticker price. All foreign visitors are entitled to claim back the tax if they spend 4,000 krona or more in one shop in one day. Iceland is not a member of the European Union, so visitors from all European countries are entitled to sales tax refunding. Icelanders living abroad are also entitled to sales tax refunding.
ATMs are found throughout the city, and they should accept any foreign cards. Currency exchange is mainly done at banks, there are very few special currency exchange shops. Icelanders themselves make very little use of cash, paying for even the smallest of things with their cards. Foreign cards will generally be accepted in stores and restaurants, although there may be problems with American Express in some places. A chip-and-PIN system is being introduced, so make sure you remember your PIN.
Please note that tipping isn't required in Iceland; it's not expected for any service, not for restaurants or for hotels, or any other place. Some cafes and restaurants have tipping jars, but paying extra remains entirely optional.
Sticking to your travel budget while in Reykjavík requires planning. (http://trip-to-iceland.co...)