How much is the cost of living in Spain? A guide for expats in 2025

According to our British Expat Report 2024, 39% of Brits are considering moving abroad due to the UK’s rising cost of living. One of the top destinations? Spain.

Known for its warmer climate, beautiful coastlines, and laid-back lifestyle, Spain has long been a popular destination for expats.

But how much does it actually cost to live in Spain? In this guide, we’ll break down the key cost-of-living elements for those thinking of making the move in 2025.

A summary of the cost of living in Spain

Spain offers a lower cost of living compared to the UK (and many other Western European countries) making it an attractive option for expats. In fact, the cost of living is on average around 26% lower than in the UK.

Here’s a quick overview of the key costs of living in Spain for a single person, a family of four, and two retirees:

Average monthly costs for a single person: Around €700 to €1,100 without rent, and €1,400 to €2,000 with rent.

Average monthly costs for a family of four: Around €2,700 to €3,000 without rent, and €3,800 to €4,500 with rent.

Average monthly costs for two retirees: Around €1,600 to €2,200 without rent, and €2,500 to €3,300 with rent.

How much are housing costs in Spain?

As you’d expect, housing costs in Spain can vary significantly based on location, although they are generally far more affordable than in the UK – whether you’re renting or purchasing a Spanish property.

Comparing the two countries’ capitals shows just how much more expensive the UK is. Rental prices in London can be twice as high as in Madrid.

Housing typically accounts for around 25% to 35% of a household’s living costs in Spain (compared to around 30% to 60% in the UK). So, if you have a monthly budget of €5,000, you’ll likely be able to afford around €1,250 to €1,750 on housing.

Here are some examples of how much you could expect to pay:

Renting

In city centres like Madrid or Barcelona, a two-bedroom apartment typically costs between €1,200 and €1,800 per month, depending on the exact location and apartment quality.

Outside major cities, rents drop significantly. For retirees looking to settle in quieter towns, a two-bedroom house near Alicante could be rented for around €700 to €900 a month.

Buying property

Likewise, property prices in Spain vary across the country but tend to be lower than British property prices.

On average, the cost per square metre is 40% lower in Spain than the UK. Of course, popular expat areas tend to be a bit pricier due to strong demand, but they’re still often significantly more affordable that comparable locations in the UK.

A villa in a town like Altea or Nerja might be priced around €200,000 to €350,000. In comparison, a two-bedroom apartment in central Madrid can cost upwards of €400,000 to €600,000.

If you’re planning on purchasing your own home, it’s important to also understand the various costs of buying a property in Spain.

Mortgage rates

Mortgage rates are more affordable in Spain than they are in the UK. Currently, mortgage interest rates in Spain average around 3.5%, which is much lower than the average 5.5% rate in the UK.

If you took out a loan worth £200,000 and repaid it over 25 years, the UK monthly repayments would be around £200 more than the Spanish monthly repayments.

It’s worth noting, however, that Spanish lenders may offer higher interest rates to foreign buyers to compensate for the perceived higher risk of lending to an overseas national.

What is the average salary in Spain?

Salaries in Spain are on the lower end compared to the UK and other European countries, though of course they vary depending on the region and industry.

The average salary in Spain is around €27,000 per year, which is significantly lower than the UK’s average of £37,000.

In major cities, salaries are higher. The average salary in Madrid is around €35,000, while in smaller towns or rural areas, average salaries can drop to around €18,000 to €25,000.

Higher-paying sectors include technology, healthcare, and finance, while tourism and agriculture tend to offer lower wages.

For digital nomads or remote workers, Spain has become increasingly attractive due to its lower living costs and good internet infrastructure.

How much do you pay in Spanish taxes?

Spain’s tax system can be complex, especially for expats, so it’s important to be aware of all the different taxes you could be liable to pay in Spain. These include:

General income tax rates

General income is taxed at rates from 19% to 47%, with the current tax bands as follows:

Taxable income (€)	Tax rate (%)
0 to 12,450	19
12,451 to 20,200	24
20,201 to 35,200	30
35,201 to 60,000	37
60,001 to 300,000	45
Over 300,000	47

Savings income tax rates

Savings income, which includes dividends, interest, and capital gains, is taxed at different progressive rates:

Taxable savings income (€)	Tax rate (%)
0 to 6,000	19
6,001 to 50,000	21
50,001 to 200,000	23
200,001 to 300,000	27
Over 300,000	28

Property taxes

Spain’s annual property tax (IBI) ranges from 0.4% to 1.3% of your property’s cadastral value (which is lower than market value).

Wealth tax

Spain’s wealth tax (impuesto sobre el patrimonio) applies to both residents and non-residents, but the rules differ:

• Residents pay tax on their worldwide assets, with a general exemption of €700,000 per person and an additional €300,000 deduction for a primary residence.
• Non-residents are only taxed on Spanish assets, with the same €700,000 exemption (although this varies from region to region).

A wealth tax declaration is required if the total gross value of assets exceeds €2 million or if taxable assets after exemptions result in a positive tax liability.

Spain’s autonomous regions can set their own exemptions. For instance, Madrid currently offers a 100% wealth tax exemption, meaning no wealth tax applies in the region.

Inheritance tax

Inheritance tax in Spain is typically lower than in the UK, with the system using progressive tax rates:

Value of inheritance (€)	Inheritance tax rates (%)
Up to 7,993	7.65
7,993 to 31,956	7.65 to 10.2
31,956 to 79,881	10.2 to 15.3
79,881 to 239,389	15.3 to 21.25
239,389 to 398,778	25.5
398,778 to 797,555	29.75
Over 797,555	34

There are also personal allowances and tax relief for beneficiaries, allowing them to inherit a certain amount tax-free before the inheritance tax scale begins.

• Children under 21 years old have an allowance of €47,859.
• Children over 21, spouses, grandchildren, parents, and grandparents have an allowance of €15,957.
• Other family members, such as siblings, aunts/uncles and in-laws have an allowance of €7,993.

For more details on some of these taxes, check out our guide to Spanish property tax. This covers the taxes that apply when buying, owning or selling Spanish property, including IBI, rental income, wealth and capital gains.

How much are transportation costs in Spain?

Transportation costs, such as car prices, public transport fares and fuel, are also more affordable in Spain than compared to the UK.

Car prices: Purchasing a car in Spain costs roughly the same as in the UK, but fuel is often cheaper.

Public transport: In cities like Madrid and Barcelona, a monthly public transport pass costs between €40 and €55, compared to around £150 in London.

Train fares: A long-distance train ride from Madrid to Seville costs around €60 to €80, while similar UK train journeys can easily exceed £100.

How much are groceries in Spain?

Groceries in Spain are also generally cheaper than in the UK. The average monthly grocery bill for a single person is around €200 to €300. For a family of four, it ranges from €450 to €700.

Staple items such as bread, olive oil, wine, and fresh produce tend to be more affordable in Spain, while imported goods, particularly from the UK, may be pricier.

How much are utilities in Spain?

Utilities in Spain, including electricity, water, and gas, typically cost between €100 and €200 per month for a standard apartment. Internet and mobile phone plans are also relatively affordable, with basic packages starting from €30 to €40 per month.

How much does Spanish healthcare cost?

Spain offers a public healthcare system, which is funded by taxes and free at the point of service for residents. Expats can access this system if they contribute to social security.

For private healthcare, costs usually vary, with private insurance premiums typically ranging from €50 to €150 per month. These costs are significantly lower than private healthcare in the UK.

How much are education and childcare in Spain?

Childcare costs in Spain also vary, with public options being free or very low cost for children over three. However, private schooling can cost between €4,000 and €10,000 per year.

University fees are also generally lower than in the UK, with tuition fees at public universities ranging from €1,000 to €3,500 per year.

The costs of leisure, dining out, and other miscellaneous expenses

Dining out in Spain is often more affordable than in the UK. A meal at a mid-range restaurant typically costs between €10 and €15, compared to £15 to £20 in the UK. Gym memberships are similarly budget-friendly, averaging €30 to €50 per month. Cinema tickets are also cheaper, ranging from €8 to €10.

Mobile phone plans in Spain are generally more cost-effective. A basic plan with data and calls might cost around €10 to €20 per month, depending on the provider and the amount of data included. In the UK, equivalent plans often range from £15 to £30.

Clothing in Spain, particularly from local or European brands, is often priced more competitively than in the UK. High-street fashion retailers like Zara, Mango, and Pull&Bear frequently offer lower prices in Spain. For instance, a pair of jeans may cost between €30 and €40 in Spain, whereas a similar item could cost £40 to £50 in the UK.

Other cost considerations

While the cost of living in Spain varies depending on location and lifestyle, it’s generally lower than in the UK. This, combined with the country’s favourable climate and quality of life, makes Spain an attractive option for expats in 2024.

However, the lower cost of living also comes with lower salaries. This is less of an issue for retirees, remote workers, or those with another income. For people looking to move to and work in Spain, it’s important to account for this in your budgeting plans.

It’s also vital to take currency exchange into account when thinking about how much it costs to live in Spain. If you’re sending money from the UK to Spain – whether it’s a one-off large payment for a house or regular transfers of pensions payments or other income – the exchange rate can significantly impact how much money you receive.

At Currencies Direct, it’s our job to help you get the most from your money. On top of offering highly competitive exchange rates with zero transfer fees, we also provide you with personalised support to help you transfer at the best possible rate.

You can create a free account in minutes online, with no obligation to make a transfer once you’re set up. Alternatively, get in touch with us via email at customer.s@currenciesdirect.comor by phone at +44 (0) 20 7847 9400.