Laugarvatn Fontana Spa
Laugarvatn Fontana is a geothermal spa on the shores of Lake Laugarvatn in the heart of the Golden Circle, about an hour from Reykjavik. Its steam rooms are built directly over natural hot springs, its pools overlook the lake, and it is the only place in Iceland where you can watch traditional rye bread being baked underground using geothermal heat. Please note that Fontana is currently undergoing a major renovation and is scheduled to reopen in June 2026.
Geothermal Pools and Rye Bread Baked Underground on the Golden Circle
People have been bathing at Laugarvatn since at least the year 1000 AD, when, according to Icelandic historical accounts, chieftains who objected to being baptised in the cold waters of Lake Thingvallavatn argued that the warmer springs here would be more appropriate. The site has been used for bathing and relaxation continuously since 1929, and the modern Fontana facility opened in 2011. It is currently undergoing a significant expansion and renovation and is scheduled to reopen in June 2026 with additional pools, a panoramic sauna, and upgraded facilities throughout.
What distinguishes Fontana from other Iceland spas is the combination of its lakeside setting and the steam rooms built directly over natural geothermal vents. You can hear the hot spring bubbling beneath the grids in the floor, and the steam rises at temperatures between 40 and 50 degrees Celsius. The outdoor pools sit alongside Lake Laugarvatn with uninterrupted views across the water, and guests can wade into the cold lake between soaks, following the traditional Icelandic practice of temperature contrast bathing. The geothermal bakery is a separate highlight: dough is sealed in a pot, buried in the hot black sand on the lake shore, and left for 24 hours until the natural heat bakes it into a dense, slightly sweet rye loaf. Guided bakery tours run daily and include a tasting of fresh bread with smoked trout caught from the lake.
Fontana sits on Route 37 in the village of Laugarvatn, directly between Thingvellir National Park and the Geysir geothermal area on the Golden Circle route. It is about 80 kilometres from Reykjavik, roughly an hour and 20 minutes by car. The location makes it a natural midpoint stop on a Golden Circle day trip, offering a relaxed break between sightseeing. Entry is more affordable than the Blue Lagoon or Sky Lagoon, and children under 10 enter free with an adult. Check fontana.is for current opening information and tour times ahead of your visit.
