Cost of Living in Spain

What is the cost of living in Spain? This is a question we are often asked, and sometimes it seems as if the answer could well be "how long is a piece of string?" - there are so many variables to be taken into account, not least the kind of lifestyle you aspire to. However it must be said that compared to the UK, France and Germany, Spain is still a relatively cheap place to live – though inflation has risen since 2004 when "the man from the Pru" named Spain as the country with the third lowest cost of living (South Africa came top).

Here are some general costs. They may vary in different areas, but the following should help you plan your move to Spain.

Mortgage costs

Spanish mortgages are available, but currently they are only available for up to 75% of the property value. Interest rates for a new mortgage are typically around 6%. See Finco Finance for more information about mortgages in Spain.

Utiliity bills

Utilities are roughly comparable to the equivalent in the UK and the rest of Europe – electricity bills are around 20-40 Euros per month for 2 people, depending on how much air conditioning and heating is used. Gas, although not available by main supply in most areas of spain, can be purchased in canisters. Each canister is around 13 euros . A canister will last approx. 1 month for a hot water combi boiler for a family of 4, or about a year if used for a gas hob. Water is metered in Spain and generally a little cheaper than in the UK, at around 20 Euros a month for those without a pool, up to 50 euros a month for people with a pool and water hungry garden.

Local taxes and urbanisation fees

Income tax

Schools and childcare

If you have children then, just as in the UK, their education will be free if you choose state schools. Private schools vary in price, from around 300 euros a month for church-subsidised Spanish private schools to up to 1000 euros a month for some international schools. Nursery care is cheaper than the UK at around 300 Euros a month for 9-2, 5 days a week. Free "pre-school" places are available in all primary schools for 3 year olds and some free nursery places are available for those who apply early enough.

Healthcare

General healthcare is free for those registered in the Spanish social security system. Private healthcare insurance policies start at around 48 euros a month depending on age and fitness. See Finco Finance Insurance for more information.

Groceries

When it comes to shopping, the choices you make will have a considerable impact upon your cost of living. Many Spaniards do their shopping at local, family run mini super markets – which, while not as expensive as you might think, are not always the cheapest option. The upside is that, by using local businesses, you are integrating into the local community – and you may find that more bargains come your way once you are on friendly terms with all the local shopkeepers! Perhaps the cheapest option for shopping is to use the local markets – practically every town and village in Spain has at least one, on a weekly basis: and, depending on the market, you can buy fresh locally grown and manufactured produce at very reasonable prices. If you opt for supermarket shopping, the cheapest are Eroski, Aldi, Mercadona and Lidl; with Consum and Carrefour a little pricier. Hipercor/Supercor is the Waitrose of Spanish supermarkets – easily the most expensive, but excellent quality. To try and summarise – if you cook from scratch, shop around, and are prepared to try local ingredients then you can expect your grocery bills to be around two thirds less than in the UK. Plus the new Iceland in Torrevieja may help with the cost of thsoe little luxuries from home!

Going Out

When it comes to eating out, Spain wins hands down in comparison to the UK, though prices vary a lot. While it's harder to eat out cheaply in tourist areas and you may have to trawl the streets a little, it is perfectly possible to get a really good, lunchtime meal for two – generally a set menu ("Menu del Dia") – for around 8 Euros each – that's two courses, with bread and a drink. A really nice restaurant dinner will set you back around 20-25 Euros a head, including wine. Spanish wine is around half the price of the equivalent in the UK though French, Italian and German wines are only marginally cheaper.

Some average prices:

• 1 litre fresh milk: 1E
• Loaf of bread (barra - like a small baguette): 80c
• 3 kilo bag of potatoes: 2.20E
• Half pint glass of beer in a bar (caña): around 1.20E
• Tomatoes (in the summer!): 80c a kilo
• Cheese: 1.90E for 250g Spanish cheese; 2.80E for 250g Cheddar
• Pork chops: 5-6E per kilo
• Fresh chicken: 2.60-4E per kilo
• Heinz baked beans: 1E, Spanish brand baked beans, 50c
• Baby food: 80c-1.50E depending on brand
• 1kg fresh oranges in season: 2E
• Bottle of cheap spanish wine from supermarket 80cents
• Bottle of decent spanish wine from supermarket €2.95
• Bottle of good spanish wine from supermarket €5
• Diesel €1.12 per litre
• Petrol €1.19 per litre
• UK newspapers: 2 to 3 Euros (and you don't get all the sections!)

All in all, most people find the cost of living in Spain to be around 15% cheaper than in the UK, as long as they are prepared to change their buying habits a little (eg by buying Spanish wine rather than French. But really you'll get a better idea by visiting us and checking out the local supermarkets, restaurants etc and by talking to our staff about taxes in whichever area you're interested in.