Cost of Living in Spain
Spain's cost of living is one of its major attractions for expats, offering Mediterranean lifestyle at prices significantly below most Western European countries and North America.
Monthly Budget by City
| Expense | Madrid/Barcelona | Valencia/Málaga | Smaller Cities |
|---|---|---|---|
| Rent (1BR city center) | €1,200-1,800 | €800-1,200 | €500-800 |
| Utilities (electric, water, internet) | €100-150 | €80-120 | €70-100 |
| Groceries | €250-350 | €200-300 | €180-250 |
| Public transport | €40-55 | €40 | €30-40 |
| Eating out (lunch menú del día) | €12-18 | €10-15 | €9-12 |
| Gym membership | €40-60 | €30-45 | €25-35 |
| Phone/mobile | €15-30 | €15-30 | €15-30 |
| Private health insurance | €50-100 | €50-100 | €50-100 |
Comfortable Monthly Budget
- Barcelona/Madrid: €2,000-2,800
- Valencia/Málaga/Sevilla: €1,500-2,000
- Smaller cities: €1,200-1,600
Housing Details
Barcelona (most expensive):
- 1BR center: €1,400-1,800
- 1BR outskirts: €900-1,300
- Deposit: 2 months rent standard
- Competition fierce in desirable areas
Madrid:
- 1BR center: €1,200-1,600
- 1BR outskirts: €800-1,100
- Slightly more affordable than Barcelona
- Better value in neighborhoods like Malasaña, Chamberí
Valencia (best value major city):
- 1BR center: €800-1,200
- 1BR outskirts: €600-900
- Growing expat community
- Beach access, excellent quality of life
Málaga/Sevilla:
- 1BR center: €700-1,100
- Very affordable, good weather
- Smaller expat communities
Food and Dining
Groceries: €200-350/month per person
- Mercadona, Lidl: budget supermarkets
- Carrefour, Alcampo: mid-range
- El Corte Inglés: premium
Eating Out:
- Menú del día (lunch): €10-15 (3 courses + drink)
- Tapas bar dinner: €20-30 per person
- Mid-range restaurant: €30-50 per person
- Fine dining: €60-120+ per person
Coffee culture: €1.50-3 for coffee (very affordable compared to US/UK)
Transportation
Public transit: Excellent value
- Madrid: €54/month unlimited (all zones)
- Barcelona: €40/month (Zone 1)
- Valencia: €40/month
Car ownership (if needed):
- Gas: €1.50-1.80/liter
- Insurance: €400-800/year
- Parking: €80-150/month in cities
Most expats don't need cars in major cities.
Taxes and Social Contributions
Income tax: Progressive 19-47% (or 24% flat under Beckham Law)
- 19% up to €12,450
- 24% €12,451-€20,200
- 30% €20,201-€35,200
- 37% €35,201-€60,000
- 45% €60,001-€300,000
- 47% over €300,000
Social Security: ~30% total (employer pays ~23.6%, employee ~6.4%)
VAT (IVA): 21% standard rate
Tips for Saving Money
- Live outside city centers: Save 30-40% on rent
- Use menú del día: Excellent value for lunch
- Shop at Mercadona/Lidl: Budget-friendly groceries
- Public transport: Excellent and affordable
- Avoid August in tourist areas: Prices spike
Pro Tips
- •Valencia offers best value among major cities—beach lifestyle at half Barcelona cost
- •Lunch menú del día is incredible value—3 courses for €10-15
- •Live outside tourist areas for 30-40% savings on rent
- •Public transport is excellent and cheap—skip the car
- •Shop at Mercadona or Lidl for grocery savings
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