Mapping the Settled Islands

Updated: March 2026 | Reviewed by: Nordic Relocation Data Analyst

Forget the illusion of isolated off-grid living. Your residence in the Faroe Islands is dictated entirely by sub-sea tunnel infrastructure and severe housing shortages.

What are the main towns in the Faroe Islands?

Short answer: The Faroe Islands only have one true administrative city: the capital, Tórshavn. Nearly the entirety of the foreign professional workforce, corporate infrastructure, and government services are centralized here on the island of Streymoy.

  • Tórshavn (Pop: ~21,000) is the only realistic destination for highly skilled expats.
  • Klaksvík is the second hub, focused almost entirely on the fishing and maritime industry.
  • Commuting between islands requires paying expensive sub-sea tunnel tolls managed by Landsverk.

As of 2026, beyond these two centers, the remaining population is dispersed across highly interconnected but commercially barren villages managed by local municipalities (Kommunas).


The Reality of Island Geography

Expats generally only consider the "Mainland" area—the physically connected central islands of Streymoy, Eysturoy, and Vágar. Over the last decade, massive sub-sea toll tunnels have effectively turned multiple islands into a single, extended suburb of Tórshavn, heavily influencing living costs.

Top Misconceptions

  • Myth: You can easily live in a remote village and commute. Reality: Winter hurricanes routinely shut down mountain passes. If you live on a ferry-dependent island like Suðuroy, bad weather means you are cut off from the capital.
  • Myth: Village housing is cheap. Reality: Houses in remote villages rarely enter the open market. They are inherited. You cannot simply rent a cheap coastal cottage on a whim.

Settlement Comparison: 2026 Metrics

Town / Region Demographics & Industries Housing Availability & Cost (DKK)
Tórshavn (Streymoy) Government, IT, Healthcare. Pop: ~21,000. Extremely low supply. Rents easily exceed 8,000–12,000 DKK flat rate.
Klaksvík (Borðoy) Maritime workers, fish processing. Pop: ~5,000. Low supply. Heavily reliant on local word-of-mouth (social networks).
Remote Villages Generational families, sheep farmers. Virtually zero open market. Rentals are almost non-existent.

Official Resources