Reykjavík is the nicest capital we’ve ever visited! Everything is within a walking distance, there are lots of cafes, restaurants and bars, lot of art shops and galleries. People are quite friendly and surprisingly happy.
After a day walking the city, do go and dip in one of the hot tubes in Sundlaugar (the famous city swimming pool); just be aware – the water in one of the tubes is 44C – hot hot 🙂
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