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).

If you are planning to buy a property in Spain then the news is good: Spanish mortgages are extremely good value for money, with typical interest levelled at around 3%. Utilities are fairly competitive when compared to the equivalent in the UK and the rest of Europe – electricity bills average out at around 25-30 Euros per month for 2 people, though air conditioning will bump up your bills in the summer months. Gas bills are about 40 Euros a month for the same theoretical household – though bear in mind that gas is not available in many areas and that most houses in Spain are poorly insulated, which means they can cost a lot to heat in winter. Water is metered in Spain, but rates are pretty reasonable at around 15 Euros a month (or double -triple that if you have a pool or a garden that needs watering). Local taxes, too, are generally quite low; the average home owner can expect to pay around 250 Euros a year, mainly because items which would be covered by Council Tax in the UK are incorporated into a regional component of income tax.

If you have children then, just as in the UK, their education will be free if you choose state schools – though do remember that you often have to pay for your child's books and materials. Pre-school education can be expensive, although it's cheaper than the UK at around 200 Euros a month. Basic healthcare, too, is free – for those paying social security in Spain and their dependents.

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 Mercadona and Dani, with Al Campo 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. If you prefer your meals pre-prepared and bought from a supermarket, and you like your little luxuries from home – your bills probably won't change much.

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 6 Euros each – that's two courses, with bread and a drink. A really nice restaurant dinner will set you back around 15 Euros apiece. Spanish wine is around half the price of the equivalent in the UK though French, Italian and German wines are only marginally cheaper. While eating out can be a cheap option, takeaways are generally not, and depend greatly on where you live. Home delivered pizza in an inland town will set you back around 6-8 Euros, the same pizza on the coast – 8-10 Euros. And in a small inland village…forget it; you'll need to pick a frozen one up next time you're at the supermarket (around 3.50 Euros).

All in all, the cost of living in Spain is around 20-30% less than in the UK though this can vary enormously depending on the area where you live, the type of property you own, and the kind of lifestyle you lead.

Some average prices:

• 1 litre fresh milk: 80c
• Loaf of bread: 60c
• 3 kilo bag of potatoes: 2.20E
• Half pint glass of beer in a bar: around 1.50E
• Tomatoes (in the summer!): 80c a kilo
• Cheese: 3E for 250g Spanish cheese; double that for the same amount of Cheddar
• Pork chops: 5-6E per kilo
• Fresh chicken: 2.60-4E per kilo
• Heinz baked beans: 1E
• Baby food: 80c-1.50E depending on brand
• UK newspapers: 2 to 3 Euros (and you don't get all the sections!)