Iceland is one of the few places in the world where happiness is rising. Locals say the secret lies in nature, gender equality and a deep-rooted sense of resilience.

For the third year in a row, Finland has topped the 2025 World Happiness Report. While the Nordic countries traditionally fare well in the rankings, Denmark (ranked second), Sweden (fourth), and Norway (seventh) have all reported a net lower total happiness score since the survey started, measuring a slight decline in happiness over time. In fact, out of the top 20, only seven countries have been getting happier year on year – and Iceland stands out as having one of the biggest increases of them all, seeing a 9.1% boost since its measure on the first index in 2008.

Ranked the third-happiest country in the world this year (compared to 18th in 2008), Iceland scores the highest out of all countries in social support, with impressive scores in the freedom and generosity measures as well (third and fifth respectively). Despite its relatively small population – numbering just under 400,000 – the country continues to invest in infrastructure, progressive social policies and tourism.

But the thing that makes many Icelanders the happiest is something that the government has relatively little control over: the nation's otherworldly landscapes.

"From home, from work, it's very easy to get to a national park or open spaces where we can hike, walk by the river, coast or lakes," says Hrund Gunnsteinsdóttir, author of forthcoming book InnSæi: Heal, Revive and Reset with the Icelandic Art of Intuition. She especially loves the landscape's variations and stark contrasts, from green and lush to barren and black sands.

As a geologist originally from the US, Jessica Poteet moved to Iceland specifically to be closer to nature. "Being somewhere with volcanoes and Northern Lights and cotton candy-pink skies with snow-capped mountains in winter is a dream," she says. "I never take it for granted. It's one of the key things contributing to my happiness."

That said, residents note that winters can be long and dark, which can be a challenge – but that the summer's midnight Sun more than makes up for it. Poteet notes that on particularly sunny days, employers will often offer a "Sun holiday" so people can enjoy a day of hiking or skiing, depending on the season.

The country's strong social safety net also lends residents a sense of stability and ease. "During Covid, I lost my job. I was able to go on unemployment until I found a new job," says Brenna Elizabeth Scheving, another US expat living in Iceland. She also was able to take advantage of the country's generous parental leave policy, where both parents are entitled to share 12 months parental leave, up to six months each, with six weeks transferrable to the other parent. The policy applies to both adoptive and biological parents, regardless of marital status or sexuality.

Kindergarten is also available to children as young as two, which enables parents to work and generate income, knowing that childcare and education are provided for.

In fact, equitable gender policies have been built into the country's DNA for........

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