Faroe Islands - Money & Costs
Money & Costs in Faroe IslandsCurrency: Danish Krone
Because so much is imported, you'll have to dig deep into your pocket for food, accommodation and transport in the Faroes, and you will have to put in some effort to have a real budget trip. If you are prepared to sleep in youth hostels or a tent, travel on bus passes or hitchhike, and self-cater or eat at snack bars, you could probably scrape by on US$30 a day. If you bring your own caravan or campervan, you can enjoy a little more comfort and still keep within a reasonable budget, although don't forget that petrol costs about US$1.20 a litre (about US$4.80 a gallon). Expense account travellers, or those who won't quibble about parting with US$500 a day, will have all their prayers answered in the Faroes. It's also worth noting that weekends are not trading hours and very little is open, and on Sundays, nothing is open between mid-morning and mid-afternoon, this is known as 'church time'.
You can change money at Faroese banks during normal business hours, and the exchange counter at Vágar Airport is open 10 am to 2 pm and for all incoming international flights. Normally banks charge a small commission for exchange services. Major credit cards are widely accepted, tipping is not required and bargaining is unacceptable.
Travellers can get a partial refund of the 25% VAT paid on goods as they leave the country. If you spend more than US$48 in any one shop that displays the 'Tax-free for Tourists' sign, you'll be given a refund cheque for about 15% of the value of the goods. You'll have to show what you've bought to Customs, and can receive your refund at the airport.