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Relaxing at Laugarvatn Fontana: Iceland’s Golden Circle Geothermal Retreat

8 minute read

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By Catherine Allan

2 July 2025

Aerial view of Thingvellir’s autumn rift valley with golden-orange shrubs

Imagine sinking into mineral-rich geothermal waters as steam curls over the glassy surface of Laugarvatn Lake, snow-dusted mountains framing the horizon. The air carries a whisper of volcanic warmth and the earthy scent of rye bread baking underground—right there on the shore.

No crowds, no sky-high prices, just you, the elements, and a thousand years of Icelandic bathing tradition. Welcome to Laugarvatn Fontana, a hidden sanctuary where relaxation feels raw, real, and utterly Icelandic.

Tucked between Þingvellir’s tectonic drama and Geysir’s explosive theatrics on the Golden Circle Route, Fontana isn’t just a stop—it’s a destination. Here, you’ll taste bread cooked by the Earth itself, brave invigorating dips in icy lake waters, and soak in pools fed by natural springs. As your friendly Iceland experts, we’ll guide you through every steam-kissed detail. Ready to unwind? Let’s begin.

👉 Extend your Golden Circle adventure: Explore our handpicked Golden Circle Tours.

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Welcome to Laugarvatn Fontana: Iceland’s Geothermal Sanctuary

Picture this: You’ve spent the morning hiking Þingvellir’s rifts or watching Strokkur geyser erupt. Now, just 10 minutes east on Route 36, a low-slung wooden complex appears beside a mist-shrouded lake. This is Laugarvatn Fontana—Iceland’s best-kept wellness secret. Unlike pricier spas (cough Blue Lagoon’s 15,000 ISK entry, $125), Fontana delivers authentic Icelandic hugarafl (peace of mind) for just 5,890 ISK ($50), with kids under 9 soaking free.

Perched on the edge of Laugarvatn Lake, the retreat harnesses steam rising from geothermal vents beneath its decks. As you pad between warm pools, the view unfolds: volcanic hills reflected in still water, arctic birds skimming the surface, and—if you’re lucky—the aurora dancing overhead. It’s wilder and quieter than commercial spots, with a focus on tradition over trends.

Why travelers adore it:

  • Location, location, location: Smack on the Golden Circle, 1:15 hour from Reykjavík. Pair it with Þingvellir or Geysir for a perfect day trip.
  • Affordable luxury: Thermal baths, steam rooms, sauna, and lake access included—no hidden fees.
  • No crowds, all vibes: With a smaller capacity, you’ll never feel packed like puffins in a cliff.

🍞 Fun fact: The steam you see? It’s from the same geothermal veins that bake Fontana’s famous rye bread underground. Nature’s multitasking!

Steaming Through History: Vígðalaug’s Saga

As you sink into Fontana’s warm waters, you’re not just soaking—you’re stepping into a 1,000-year-old tradition. Beneath your feet lies Vígðalaug, one of Iceland’s oldest geothermal pools, where Viking settlers bathed as early as the 10th century. Named after Vígdís (a feisty heroine from Icelandic sagas), this natural hot spring was once a sacred site for childbirth, healing, and community gatherings. Fontana’s modern pools pay homage to this legacy, channeling the same mineral-rich waters that nurtured generations.

🌋 Curious about the science beneath the soak? Dive into our guide to Iceland’s volcanoes and geothermal wonders.

Local insight: "Vígðalaug wasn’t just a pool—it was a social hub. Families resolved disputes here while soaking," shares historian Arnar Þórsson.

Fontana’s design echoes Iceland’s turf-house heritage, with wooden buildings blending into lakeside landscapes. But the true tribute? Keeping traditions alive—like baking rye bread in geothermal sand, just as Vikings did. This isn’t a reenactment; it’s a living thread connecting you to Iceland’s past.  

Earth’s Oven: The Geothermal Rye Bread Experience

Ever tasted bread baked by a volcano? At Fontana’s geothermal bakery, you’ll dig into warm, buttery hverabrauð (hot-spring bread) pulled straight from Laugarvatn’s steaming shores.

Here’s the ritual:

  1. Bury the pot: Bakers mix rye dough, seal it in a pot, and bury it 12 inches deep in 100°C (212°F) black sand near the lake.
  2. Let Earth cook: For 24 hours, volcanic heat works its magic—no ovens, no electricity.
  3. Unearth & feast: Dig up the pot, slather the dense, sweet loaf with Icelandic butter, and savor caramel notes from natural steam.

Pro tips:

  • 🕒 Timing: Join daily bakery demonstrations at 11:30 AM and 2:30 PM (book ahead!).
  • 🍽️ Pair it: Try it with plokkfiskur (fish stew) at Fontana’s café for the ultimate Icelandic combo.

🌋 Fun fact: The same geothermal veins heating the baths bake your bread—nature’s ultimate multitasker!

Soak Therapy: Geothermal Baths & Contrast Wonders

Fontana’s genius lies in its contrast therapy—an Icelandic wellness ritual alternating heat and cold. Here’s your sensory journey:

Step 1: Warm Up

  • Mineral pools: Drift between three tiered pools (38°C–40°C) rich in silica and sulfur, softening skin and easing muscles.
  • Steam rooms: Breathe in eucalyptus-infused steam rising directly through floor grates from hot springs below.

Step 2: Take the Plunge

  • Lake Laugarvatn dip: Brave a 5-second icy plunge (yes, even in winter!) to boost circulation.
  • Sauna reward: Retreat to the lakeside sauna, where panoramic windows frame mountain views.
  • The science bit: This hot-cold cycle reduces inflammation, spikes endorphins, and leaves you glowing. As regulars say: "10 minutes here erases 10 hours of jet lag."

❄️ Bravery bonus: Winter bathers often spot the Northern Lights while floating in the warm lake-access pool!

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Why Fontana Beats the Crowds: Authentic & Affordable

Let’s cut to the chase: While other geothermal spas charge luxury prices (cough 12,000+ ISK at Blue Lagoon), Laugarvatn Fontana delivers Iceland’s quintessential relaxation for just 5,890 ISK—with kids under 9 soaking free. But the magic isn’t just in the price tag. Here, you’ll trade manufactured luxury for raw authenticity: no wristband scanners, no timed entries, just you, steam-kissed lake views, and the soul-soothing silence of Iceland’s highlands.

👉 Love geothermal vibes? Discover Iceland’s best hot springs and pools for the ultimate soak.

Why it’s Iceland’s best-kept secret:

  • Golden Circle hot springs without the circus: With a 150-person max capacity (vs. 700+ at commercial spots), you’ll never fight for pool space.
  • Zero fluff, all substance: Your ticket includes geothermal baths, steam rooms, sauna, and lake access—no sneaky add-ons.
  • Family goldmine: Free entry for 0-9 yr olds + shallow kiddie pools make this Iceland’s most budget-friendly geothermal spa.

💡 Insider tip: Visit between 3-5 PM when day-trippers head back to Reykjavík—you’ll have the misty pools nearly to yourself.

Seasonal Magic: Northern Lights Dips & Midnight Sun Soaks

Fontana’s geothermal baths transform with the seasons, offering two utterly Icelandic experiences:

Winter: Aurora Ballet from the Pools From October–March, combine warmth and wonder:

  • Float in the 39°C lake-access pool as the Northern Lights swirl overhead (peak viewing: 10 PM–2 AM).
  • Pro move: Check the Aurora Forecast App and book a Golden Circle Northern Lights Tour for post-soak chasing.

Hot tip: Rent a robe (800 ISK) – stepping out mid-aurora to fetch towels is mood-killer!

Planning a road-trip? Browse our self-drive tours.

Summer: Golden Hour Under the Midnight Sun In June–July, experience surreal "nighttime" soaks:

  • Bathe in 24-hour daylight with sunsets painting the lake pink at 11 PM.
  • Post-10 PM visits offer empty pools and photo ops: steam ribbons against twilight-blue mountains.

☀️ Local secret: The geothermal bakery stays open until 9 PM in summer—pair rye bread with midnight sun views!

2025 Traveler Essentials: Tickets, Tours & Logistics

Planning your Laugarvatn Fontana visit? Here’s everything you need for a seamless 2025 experience:

Booking & Pricing:

  • Online reservations are essential – Secure slots via Fontana's official site or bundled with our South Coast Self-Drive tour.
  • 2025 Pricing:
  • Adults: 5,890 ISK (~$45 USD)
  • Teens (10-16): 3,750 ISK
  • Kids 0-9 FREE (Iceland’s most family-friendly geothermal spa!)
  • Pro tip: Book the "Geothermal Experience" package (8,990 ISK) for baths + bakery demo + soup buffet.

Facilities & Access:

  • Lockers, showers, and hairdryers provided (bring your own towel or rent for 800 ISK).
  • Wheelchair-accessible pools and ramps throughout.
  • Free parking (15-min walk from Laugarvatn village).

Golden Circle Connections:

  • Perfect midpoint stop between Þingvellir (15-min drive) and Geysir (25-min drive).
  • Tour buses arrive 10 AM–2 PM – visit after 3 PM for solitude.
  • Driving? Route 36 has EV charging stations.

Beyond the Baths: Hikes, Cafés & Photo Ops

Don’t rush off! Extend your Fontana experience with these gems:

Lakeside Strolls & Hikes

  • Walk the Laugarvatn Loop (1.5 km, flat): Spot arctic terns and steam vents bubbling at the lake’s edge.
  • Hike Laugarvatnshellir cave (40 min): Where outlaw Fjalla-Eyvindur hid in the 18th century.

On-Site Café Culture

  • Warm up with Icelandic lamb soup or plokkfiskur at Fontana’s glass-walled café overlooking the lake.
  • Must-try: Geothermal rye bread ice cream – sweet, earthy, and uniquely Icelandic!

Photographer’s Paradise

  • Golden Hour Magic: Capture steam curling against Mt. Laugarvatnsfjall at sunrise/sunset.
  • Winter Frames: Northern Lights reflecting in bath waters (use a tripod + 10-sec exposure).
  • Pro angle: Shoot from the wooden bridge – pools + lake + mountains in one frame.

👉 Planning your own route? Check out our Iceland 8 day self-drive ring-road tour, perfect for a Golden Circle stop like Laugarvatn Fontana.

Your Fontana FAQs: Plan Like a Pro

Got questions?
We’ve got answers:

Q: When does the geothermal bakery operate? A: Daily demos at 11:45 AM & 2:30 PM (book ahead). Summer adds 10:15 AM sessions. Tasting included!

Q: Is Fontana accessible for mobility-limited visitors? A: Yes! Ramps connect all pools, and waterproof wheelchairs are available (request in advance).

Q: How long should I spend at Fontana? A: 2–3 hours covers baths + bakery. Add 1 hour for café/lake walks.

Q: Can I combine Fontana with Þingvellir/Geysir in one day? A: Absolutely! Ideal Golden Circle itinerary:

  1. Þingvellir (8-11 AM) → 2. Fontana (11:30 AM bakery, then soak) → 3. Geysir/Strokkur (3 PM).

Pre-book our Golden Circle Small Group Tour for stress-free logistics.

Q: Are towels/robes included? A: Rent towels (800 ISK) or robes (1,500 ISK). Bring swimsuits – no rentals! Not sure what else to bring? Check our Iceland packing guide.

Next Steps Ready to experience Iceland’s geothermal soul? Book your Golden Circle adventure with us for seamless access to Fontana, Þingvellir, and Geysir. Or need help planning? Contact our Iceland experts – we craft relaxation, one soak at a time!

👉 Finalizing your itinerary? Explore our curated South Coast Tours or Self-Drive Packages.

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About the author

Catherine became fascinated by Iceland when she studied geology at university. And while there’s plenty to captivate a self-confessed geology geek, there’s so much more to discover here. The wild landscapes, epic bathing spots, and laid-back culture are just some of her favorite things about Iceland. When she’s not writing about travel, you’ll probably find her rock climbing or planning her next adventure.

View more posts by Catherine

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