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The Cost of Living in Spain in 2009

There have been a few scare stories in the UK press about the recent drop in the euro / sterling exchange rate. But what does it all really mean in terms of the cost of living in Spain for new expats?

If you have a job lined up in Spain, you’ll be paid in euros anyway and so will be unaffected. But British pensioners, and other people who receive a UK income will be worse off in Spain than they would have been in 2007. However, most experts agree that the rate will not fall as low as it did in December again, and that the pound is likely to remain fairly stable against the euro in 2009.

• The Times: “Expats in Euroland shouldn’t get Depressed” 22 Dec 2008
• The Telegraph: “Pound’s weakness in 2009 will be against the dollar, not the euro” 9 Jan 2009

Moreover, at 1.12 euros to the pound, living costs Spain are still much, much cheaper than they are in many areas of the UK, even if it isn’t as cheap as it was when the pound was overvalued like it was in 2007.

In the table below, we've compiled some figures for typical living costs on the Costa Blanca, compared with costs in Wembley and Sheffield. Costs are for a small 3 bedroomed house with 2 people.

A Comparison of Typical Annual Living Costs in Spain and the UK

Notes

1. Average UK rents. Source: www.rentright.co.uk
2. Band C council tax for Sheffield. Source: www.sheffield.gov.uk
3. Band C council tax for Wembley. Source: www.brent.gov.uk

Grocery Costs

Finally, here is a selection of supermarket prices for comparison

Notes

1. UK source: Sainsbury's
2. Spain source: Mercadona