New Series: What Is The Real Cost of living in Spain?
Welcome to our new series of posts looking at the cost of living in Spain. In this introductory post, we will inform you of general costs and provide you with great sources of information that you can use to calculate your own budget.
Your own personal cost of living in Spain will depend on the size of your family, your chosen destination and, of course, your expected standard of living. The information we provide serves as a guideline and it is up to you, to be honest when making your own calculations. A “Tapas in Malaga” kind of lifestyle budget will be nowhere near a “Popstar in Marbella” kind of lifestyle budget 😉
When talking about why they made the move to Spain, many expats will say the quality of life is one good reason while others point to the sun which seems to be constantly beaming down from the sky. Great food, endless fiestas and friendly environment are also major attractions.
Pensioners find their money goes further in Spain than in the UK and other north European countries, despite the poorer exchange rate compared to a few years ago. However, workers, unless they are self-employed with most of their income earned from outside Spain, will find the wages to be disappointingly low. That said, it is still fair to say your money goes a long way. For most people, the cost of living in Spain is generally lower than in their home country.
As we mentioned, in future articles we will be looking in detail at the cost of living in the top Spanish destinations for expats but now we are going to give a general overview of how much you need to live in Spain.
Living costs vary between the regions and from resort to resort – the top cities of Madrid and Barcelona are expensive but Spain’s third largest city of Valencia is surprisingly cheap. Likewise, the Balearic islands and swanky resorts such as Marbella will cost more than living in Torrevieja or Malaga. It’s worth bearing that in mind if you are still unsure of where to move to in Spain. You will find that some of the most expensive Spanish cities also have the highest incomes. For example, the cost of living in Barcelona is 30.17% higher than the national average, San Sebastian is 27.85% higher and Madrid is 22.72%. However, while. the average salary in Spain is about €23,000, in Madrid, it is €36,000, €33,000 in Barcelona and €29,000 in San Sebastian. Figures also show the cost of living in Madrid or Barcelona is still 40% cheaper than London.
Cost of living in Spain: Day to Day Expenses
These data are based on 26070 entries in the past 18 months from 2114 different contributors.
Tips for reducing your own cost of living in Spain: Food shopping
It goes without saying that you’ll also need to adapt to your new life in Spain, particularly when doing the weekly grocery shopping. Buying everything in one large supermarket is often not the best option.
In Spain, the indoor markets are great for buying fruit, vegetables, meat and fish. This is simply because you can buy as much or as little as you want – no pre-packed stuff there!
Each supermarket has its own strengths and weaknesses. For example, Lidl can be great for meat, frozen and fresh veg, and fruit while Mercadona is a favourite for toiletries and bread. Other top supermarkets in Spain are Carrefour, Consum, Dia, Supercor and Aldi. (Click on the supermarket’s names to access their websites and compare prices)
Take your time with the food shopping. Visit new places and embrace the change. And it goes without saying, that you should always try to buy fresh products that are in season.
The best idea is to be versatile – as a Spanish teacher advised: “If chicken is expensive then eat fish. If potatoes are dear, eat rice instead.”
What you will find, in almost all parts of Spain, is that it’s much more affordable to go out to eat – and a that is a great way to start integrating.
Internet and mobile phones:
Cost of internet packages vary along with the speeds but, thankfully, fibre optic is making a breakthrough in many areas. The best deals are with Movistar, Orange and Vodafone, although you’ll need to check what their coverage is like in your area. You may also find firms in your area offering packages too.
If you think your children would benefit from being taught in English or following the British curriculum, you will find many private international schools in Spain. There is more information in our articles about international schools in Malaga and Alicante.
A litre of petrol is currently about €1.28. Use this website to check current petrol and diesel costs in your chosen destination: https://www.elpreciodelagasolina.com/
The results show you the location of petrol stations near to where you are …
Cost of Living in Spain: Monthly Expenses
Rent can be anything from about €450 to over €5000 (subject to your requirements) and location. For researching rental prices in different areas, the best online sites are Kyero, ThinkSpain and Idealista.
This article will help you to decide on the best location for you: http://movetomalagaspain.com/property-finder-malaga/where-to-live-in-malaga/
This article explains how to use portals to check out specific rental properties in different destinations: http://movetomalagaspain.com/how-to-find-your-ideal-long-term-rental-in-spain/
Use this table to calculate the rent in your chosen area: http://www.fotocasa.es/indice-alquiler-inmobiliario__fotocasa.asp
TIP: Rent prices are rising and good rental properties are difficult to find. Be ready to act quickly as soon as you find something you like!
Here is a breakdown that serves as a guideline as to where your money will go
Cost of Living in Spain: Annual Expenses
You will also need to factor in annual expenses such as:
- car insurance (average of €600 a year)
- house insurance (contents and building is from €129 with Linea Direct)
- travel insurance (from €70)
- health insurance if not eligible for SIP card (from €40 a month for a 30-year-old male)
Check out our article on how to save money on insurance in Spain
- car tax (€90 for a four-year-old family car)
- municipal taxes (about €125)
- IBI tax as a homeowner (depends on property value but from €200 to €800)
You should budget for a further €1,800 to cover these annual bills.
If you run a business, you will have to pay:
- tax on earnings
- IVA (the equivalent of VAT) of 21% which you collect from your customers
- any insurance needed such as public liability insurance.
As you can see, many costs are fairly low in Spain, especially the fun ones such as having an after-work drink or dining out. When you add the other benefits of living in Spain such as the sheer beauty of the country, the crazy fiestas and the attitude of the locals, it’s worth every penny!