Cost of living in Spain vs the UK: what is really cheaper

Is life in Spain really cheaper? In this article, we compare the cost of living in Spain and the UK in detail. We list products and services side by side to see what is cheaper and what, perhaps, costs a little more…

The cost of living in Spain: a good deal for British and American buyers?

Spain is often said to be cheaper, but is life there really such a financial advantage?

The cost of living is a key factor for many expats, retired or not, who are looking for a future main or second home. Thanks to its good reputation, Spain welcomes a growing number of investors every year who are looking for a pleasant and comfortable place to live.

But what about the standard of living? Is it the same everywhere? Is the cost of living in Spain the same in Madrid, in Barcelona, in Valencia or in Andalusia, for example?

6 things that cost less in Spain than in the UK

Put simply, consumer prices in Spain are about 27% lower than in the UK, and about 36% lower than in the US, according to the OECD's 2024 figures. That makes buying property in Spain all the more appealing. Let's compare the cost of living in Spain and the UK!

To start, here are the products and services that cost less in Spain than in the UK:

• The price of food and soft drinks in Spain is only about 4% lower than in the UK (and 18% lower than in the US). The bigger the city, the higher the prices. It makes sense that food prices are higher in Madrid than in Valencia, for example, as Valencia is only the third-largest city in the country.
• The price of alcohol and tobacco is around 56% lower than in the UK;
• The price of restaurants and hotels is around 21% lower than in the UK (31% lower than in the US), but here too, eating out costs more in Barcelona than in a small town in Andalusia, for example;
• The cost of transport is around 17% lower than in the UK;
• The cost of leisure, sport and culture is around 18% lower;
• The cost of housing, water and energy (rent, water, electricity and gas) is around 43% lower than in the UK.

3 things that cost more in Spain than in the UK

Most everyday products cost less in Spain, but not all of them! According to the OECD's 2024 figures:

• The cost of vegetables and pulses is around 9% higher in Spain than in the UK;
• The cost of clothes and shoes is about the same as in the UK, around 2% higher;
• The cost of ready meals and other prepared food is around 9% higher than in the UK.

Other expenses

At this point, you are probably wondering: “what budget do I need to live in Spain?” or “can you live in Spain on €1,000 a month”? That is perfectly normal! Again, keep in mind that the cost of living in a small Andalusian village has nothing in common with the cost of living in a big capital such as Madrid.

It also depends on your lifestyle and spending habits, so it varies a lot.

• Some types of cinema tickets can cost between €13 and €18, and if you also want a soft drink and popcorn, expect to pay €6 to €7. The average ticket price, however, is around €8.
• The monthly price of gym membership depends on the type of gym. In general, for €25 to €35 you can join a gym that has everything you need.
• The metro is the most popular means of transport in Spain. A 10-journey ticket costs about €7.

Housing

Of course, the cost of living in Madrid is different from the cost of living in Andalusia. The same goes for a big international city like Barcelona compared with a smaller city like Valencia, the third-largest city in Spain. In this article, we focused on the cost of living in Alicante. Take a look if the Costa Blanca appeals to you.

The differences in the cost of living mainly come down to property prices. In early 2023, the average price per square metre was €3,929 in Madrid, €4,050 in Barcelona, €2,049 in Valencia and €1,874 on average in Andalusia, but prices vary widely between Andalusian cities. For example, in Málaga, property costs €2,817/m², but in Huelva, it falls to €1,289/m².

For rentals, expect €16.6/m² in Madrid, or around €1,600 a month for 100 m². The bill climbs in Barcelona, where you should expect around €1,900 a month for the same size (figures updated in February 2023). In Valencia, expect more like €1,100.

As you can see, the cost of living is closely reflected in housing prices.

The cost of living in Spain's main cities

According to Eurostat's 2024 price comparisons, prices in Spain are below the EU average for food and soft drinks, and for housing, water, electricity and gas.

In Spain, the minimum wage was €1,080 gross a month in 2023, paid in 14 instalments a year. Lower wages also help explain why prices are often lower than in the UK.

Of course, some regions of Spain are cheaper than others. The cost of living in Barcelona and the cost of living in Madrid are well above the rest of the country. That makes sense: these are large cities with more jobs, more students and more tourists.

Living in the south of Spain, on the other hand, is cheaper. The cost of living in Andalusia and in cities such as Murcia is lower than in bigger cities like Madrid and Barcelona.

Since the end of COVID and a study by the Banco de España, you often hear that the real cost of living in Madrid and in Barcelona is 20% higher than in the rest of the country. Fortunately, salaries in these cities are higher too.

To keep it simple, here are a few figures to remember:

• Real cost of living in Barcelona and Madrid: €2,000 to €2,500 a month
• Real cost of living in Valencia: €1,500 to €2,000 a month
• Real cost of living in Murcia: €1,200 to €1,500 a month

For example, here is a closer look at the cost of living in Valencia, the third-largest city in Spain. Prices vary depending on location and lifestyle. Here is an overview of the cost of living in Valencia in 2023:

• Housing: the average rent for a one- or two-bedroom flat in Valencia is around €700 to €1,200 a month, depending on the location and size of the property. Rents rose during 2022 and hit record levels in 2023 (+19.4% in one year).
• Utilities such as electricity, water and internet are generally not included in the rent. They have also gone up since the 2022 energy crisis.
• Food: supermarket prices are similar to those in Madrid or Barcelona. On the other hand, you can eat out for €10 or sometimes less, depending on the location and type of restaurant, of course.
• Leisure: Valencia offers options for every budget. Museums are sometimes even free. Some cultural attractions, such as the City of Arts and Sciences, are fairly expensive: expect to pay around €40 for a ticket.
• Transport: public transport in Valencia is affordable. A monthly pass costs around €45, and taxis are generally cheaper than in Barcelona or Madrid.

Worth knowing if you are tempted to settle there: the cost of living in Ibiza and in Mallorca is higher than in most of Spain. If you want to save money, it is better to look at a region other than the Balearic Islands.

The cost of living in Spain: watch your spending habits

Overall, the real cost of living in Spain remains lower than in the UK. However, spending habits can greatly reduce the savings. Expats who eat local and buy products made in Spain will benefit most from the price difference.

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