Cost Of Living In Spain

The Cost of Living in Spain: a Comparison to Europe and the UK

For many Europeans, Spain is an attractive country to move to-- and not just because of the great wine and even better weather. For many, living in Spain also seems like a great way to save money. Renowned for having a low cost of living, Spain attracts expat residents from all over the world, who move to the country expecting their money to go a lot further than it would back home.

But the big question is... does it? While the costs of some aspects of living in Spain are low, some of the numbers may surprise you.

Spanish vs. European Salaries

If you're planning to find work in the Costa del Sol or another part of Spain, one of the first things you'll need to consider is your salary. Spanish salaries tend to be dismally low-- even in larger cities like Madrid and Barcelona, you'll usually make a sad fraction of what you made in the UK or Northern Europe. There are many reasons for this, including the Spanish tendency to live at home well into one's 30s, giving young Spanish workers extra disposable income and furnishing employers with an excuse to pay their employees very little.

Groceries and Eating Out

Generally, you'll find food in Spain cheaper than many other places in Europe. As long as you're not in a super touristy area, you can get a nice meal out for about 15 to 20€ a person, and a good menu del dia lunch menu for about 7 - 9€. Beer, wine, and other alcohols are quite cheap in Spain, with a small glass of beer about 1.50€ to 2.00€, and a bottle of house wine for around 8-12€. Soft drinks are often slightly more expensive than beer or wine.

While grocery prices are rising, you will probably find groceries to be cheaper here than in many places in Europe. It really depends on how you live and eat; if you tend to purchase imported luxury foods, your grocery bills will be quite high, as these items are ridiculously expensive in Spain. But if you're happy to live like a local and shop around for the best deals at the best grocery stores, you can feed a family rather cheaply in Spain.

The following is a 2008 grocery list of some basic foods/items from larger, less expensive Spanish grocery stores (in this case Mercadona):

Item	Price In Euros
1 Dozen Large Eggs	1.29
1 litre of milk (part skim, sterilized)	0.99
Flora margarine, 500 g.	2.47
Ground coffee, 250 g.	1.93
1 kilo of apples	1.65
1 litre of orange juice	1.19
1 kilo of purple onions	1.40
6 80 g. tins tuna in water	2.70
6-pack of Coca-Cola	2.82
6-pack of San Miguel beer	2.15
Plain yogurt (x4)	0.55
Toilet paper (6 double rolls)	1.80
Hellmann's Mayonnaise, 450g	1.49

General Expenses

Housing Costs - In major cities and touristy areas, rents in Spain can be surprisingly high, especially when salaries are taken into account. In non-touristy areas, rents usually run about 2.5 to 3.5% of the property's value. In touristy areas, that number may be higher. Buying a Spanish property can also be quite cheap or shockingly expensive, depending on where you buy. If you own a home, taxes on your home will generally run under 250€ annually.

Electricity, Gas, and Water - Electricity and gas in Spain cost about what they would in the UK. A couple living frugally (without air conditioning) can pay as little as 25 - 30€ monthly for electricity. With air conditioning, expect to pay 30% or so more during the summer months. For a small family without a garden to water or pool to fill, water will generally run about 10€ a month. Expect to pay up to 50€ if you have pool or a large garden.

Phone and Internet - As the main telephone and Internet company in Spain, Telefonica, has relatively little competition, prices for these services remain somewhat high. If you use a non-Telefonica company, you can generally get high-speed internet with national calls (not including a 14€ or so monthly fee for the phone line) for about 35€ monthly. Through Telefonica, expect to pay closer to 60€.

Shoes and Clothing - One thing that you will probably find more expensive in Spain is shoes and clothing. While there are plenty of large clothing chains in Spain, you'll find that luxury items cost more here. If you're used to searching out good deals or great sales in the UK or other places of Europe, you will have a hard time doing so in Spain, except twice a year during rebajas.

Small Luxuries - In Spain, you'll find little luxuries to be a bit more expensive than in the UK and some other parts of Europe. For beauty items (makeup, etc.) and other small luxuries, expect to pay quite a bit more (especially relative to salaries) than you would in the UK. The gym is also quite expensive, with some of the larger ones running 50-60€ a month. Movie tickets are about 7.50€ in the city.

Rising Prices in Spain

Between January and June of 2009, the price of diesel fuel rose 30%. This is reflected in prices all over the consumer market. Grocery prices are steadily rising, and Spain is catching up to the rest of Europe with regards to cost of living. However, for now, the cost of living in Spain will generally be about 10 to 15% lower than in the UK (not including rentals or mortgages).

Though Spain may be cheaper than many large European cities, major Spanish cities are quite expensive. To help you compare, take a look at the chart below. Here, you'll see an ordered listing of every European city to fall onto Mercer's list of the 50 most expensive cities in the world.

Most expensive European Cities:

Position On List	City, Country
3	London, UK
4	Oslo, Norway
7	Copenhagen, Denmark
8	Geneva Switzerland
9	Zurich, Switzerland
10	Milan, Italy
12	Paris, France
16	Dublin, Ireland
17	Rome, Italy
19	Vienna, Austria
21	Helsinki, Finland
25	Amsterdam, Netherlands
26	Athens, Greece
28	Madrid, Spain
29	Prague, Czech Republic
31	Barcelona, Spain
32	Stockholm, Sweden
35	Warsaw, Poland
37	Munich, Germany
38	Berlin, Germany
39	Brussels, Belgium
40	Frankfurt, Germany
42	Kiev, Ukraine
43	Luxembourg, Luxembourg
45	Bratislava, Slovakia
46	Düsseldorf, Germany
47	Riga, Latvia
49	Zagreb, Croatia
50	Hamburg, Germany