Spain has long been considered a very cheap and affordable country to live in and that is still true in most aspects.
While it still may be cheaper than back home, it’s probably worth noting that the cost of living in Spain has risen over the last couple of years.
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Cost of living in Spain vs the UK & USA
The general cost of living in Spain vs the UK is still cheaper in terms of rent, food, transport, eating out and entertainment. The same goes for the cost of living in Spain vs the US. The cost of living is even cheaper still in the smaller towns and rural areas, rather than large cities such as Madrid and Barcelona, which are two of the most expensive places to live in. According to the cost of living site, Numbeo consumer prices in Spain are 20.1 per cent lower than in the UK and 30.5 per cent lower than in the US.
Is living in Spain expensive? While the general cost of living is cheaper in Spain, keep in mind if you’re working in Spain you will most likely be earning less than you did in the UK or the US, so the relative cost of living could be similar. For example, Numbeo states that purchasing power in Spain is 12.9 per cent lower than in the UK and 25.1 per cent lower than in the US.
How much money do you need to live in Spain comfortably? According to the Adecco Monitor of Opportunities and Job Satisfaction, the average salary in Spain is €1,823 gross per month. For larger cities such as Madrid or Barcelona though, you’ll most likely need more money to live comfortably than if you lived in a more rural area. And most definitely more if you’re supporting a family too. The amount you need though, really does depend on where you choose to live and the lifestyle you want.
Surprisingly, not everything in Spain is cheaper than back home, internet, banking services, postal services, documents and bureaucracy, as well as being self-employed or setting up your own business can all be more expensive than other places in Europe, as well as the US.
Buying a house
There are a wide variety of houses to buy in Spain for all different budgets and if you look hard enough and in the right areas, there are still many great bargains to be had.
Rent in Spain has risen during the past year, the Spanish government has stepped in to protect renters by introducing rent caps (no more than a 2 per cent increase throughout 2023) for those currently renting, and for certain areas thresholds where the rent is not allowed to go above a certain amount.
The price of rental housing has increased by 8.4 per cent year-on-year on average in Spain during 2022. The average rent in Spain is €11.4/m2 per month. Generally speaking, the most expensive places to rent are the Mediterranean coastal areas and large cities, while northwestern and central cities tend to be cheaper.
The most expensive cities to rent in Spain are Barcelona at €19.35/m2, followed by Madrid at €16.38/m2, then Bilbao and Palma de Mallorca. While Malaga is currently the sixth most expensive city to rent in Spain, it is also the city where the rents have increased the most overall.
Just like other costs and bills, household bills have risen significantly over the past few years. Depending on what energy company and package you choose, there are cheaper times of day for electricity, so for example only putting your dishwasher or washing machine on during certain hours or days can help reduce your bills.
The Spanish government has implemented measures to reduce household energy bills and has also introduced several aid packages for low-income earners.
Food & drink
Is life cheap in Spain? Spain’s National Statistics Institute states that food prices rose by 16.6 per cent in February 2023, compared with last year. Olive oil, pasta, soft drinks, fruit and vegetables and fresh fish are some of the food products that have risen in price the most.
The average cost of 12 basic food products in Spain, including bread and milk comes to a total of €30.55 according to the consumer protection association Asufin.
Entertainment & leisure
Leisure and entertainment are still quite affordable in Spain to compared to many other northern European countries.
Activities such as going to the cinema, playing sports or going to exhibitions are usually quite reasonable. If you’re used to the free museums in a big city such as London, however, you’ll find not as many to be free in Spain, but there are typically discounts on certain days of the week, for residents, students or pensioners.
Spain has an incredible landscape and beautiful weather so many activities like hikes, a day on the beach or in the mountains can be enjoyed all year round without having to spend money on entrance fees.
Travel & transport
Transport is one area that’s definitely cheaper in Spain and generally you’ll find you get a better service too with more comfortable trains and nowhere near as many delays as you may have experienced back home. To help with the cost of living crisis some cities are also offering half-price metro tickets, while regional trains throughout the country are being given out for free during 2023.
To give you an idea, a single metro ticket in Barcelona is €2.40, one of the most expensive cities in Spain, while in London it is €3.40 and in New York, it’s €2.75. Long-distance trains and buses are also cheaper.
Hotels and other accommodations are also generally quite affordable in Spain, but prices have risen in the spring of 2023 and are due to stay high throughout the summer season. According to The Hotel Pricing Outlook by consultancy firm Simon-Kucher, the average hotel room rose by 40 per cent over Easter 2023.
Healthcare and education
Healthcare in Spain is free if you’re paying into the country’s social security system. You will automatically do this if you’re employed in Spain or if you’re registered as an autónomo or freelancer. If you’re not paying into the system you’ll have to sign up for private healthcare, which can range from €50 to €200 per month.
Education in public schools is also free in Spain, however concertada schools that are partly private and partly public are very common. If you choose to send your child to one of these schools, you will likely pay a monthly fee. The average monthly fee for one of these schools is €119 per month, but this will change depending on where in Spain you live. At both public and concertada schools your children will be taught in Spanish or another local language such as Catalan in Catalonia.
If you choose an international school, fees will be much higher than both concertadas and private schools, but your child will get an international education in English or another language such as French if you choose. They will also come away with an international qualification such as the international baccalaureate, enabling them to easily go to university anywhere in the world. International school fees vary in price. According to Internations, they cost on average €770 a month in Barcelona, €740 a month in Madrid and €520 per month in Malaga.
Other costs
Taxes are quite high in Spain, so you’ll need to be aware of this when you consider your move. The tax-free threshold is lower than in other countries and as the tax system can be very complicated, so you’ll probably feel more confident with a gestor (similar to an accountant) handling your taxes.
Certain tax rates and deductions can also depend on where you live in Spain, so do your research beforehand to find out where you’ll pay the most and the least. If you sign up to be self-employed or autónomo you’ll also have to pay your own social security fees on top of your taxes, which are among the highest in Europe at an average of around €300 per month, but it does depend on how much you earn.
Spain is still a country where great bargains can be found if you look around, particularly if you are willing to move to a smaller town or rural area.
