This paper is one in a series on EU enlargement countries covered by the European Quality of Life Survey (EQLS) 2012: Croatia, Iceland, Kosovo, Montenegro, Serbia, Turkey and the former Yugoslav Republic of Macedonia. One way of measuring a society’s progress is by assessing the subjective well-being of its citizens, to complement the more usual economic information such as GDP. This report looks at three subjective well-being measures in Iceland: life satisfaction, happiness and optimism. On average, people in Iceland rate their life satisfaction at 8.3 on a scale of 1 to 10. This is above the average in the EU27 (7.1), where life satisfaction levels range from 5.5 in Bulgaria to 8.4 in Denmark. See also related content for an Introduction to this series of reports.