Cost of Living in Spain: A Practical Breakdown
This page provides a country-level overview of what living costs look like in Spain. It covers the main expense categories and explains how they tend to work. For a broader view of how cost of living works abroad, see the cost of living hub.
Costs in Spain vary widely depending on where you live and how you live. The numbers someone experiences in Madrid differ from those in a small coastal town. This page focuses on patterns and structures rather than specific figures. Use it as orientation before researching specific cities.
Housing
Housing is typically the largest expense for people living in Spain. Rental costs depend on location, size, and whether the property is furnished or unfurnished.
In major cities like Madrid and Barcelona, housing costs are higher than in smaller cities or rural areas. Within cities, prices vary significantly by neighborhood. Central areas with good transit access tend to cost more than outlying districts.
Most rentals require a deposit, usually one or two months of rent. Some landlords ask for additional guarantees, especially from tenants without local income history. For more on what to expect with deposits and fees, see rent deposits and fees.
Furnished apartments cost more per month but avoid upfront furniture costs. Unfurnished apartments cost less monthly but require buying or renting furniture separately.
Utilities
Utility costs in Spain include electricity, water, gas, and internet. These may be included in rent or billed separately, depending on the rental agreement.
Electricity tends to be one of the more noticeable utility costs. Spain has a tiered pricing system, and rates can vary by time of day. Running air conditioning in summer or heating in winter affects bills significantly.
Water is generally less expensive than electricity. Some buildings include water in community fees rather than billing it separately.
Internet and mobile plans are widely available. Speeds and prices vary by provider and location. Many people bundle internet with mobile service. For more on how utilities work abroad, see utilities abroad.
Food and Groceries
Grocery costs in Spain are moderate compared to many Western European countries. Supermarkets range from budget chains to higher-end stores, with noticeable price differences between them.
Fresh produce, olive oil, and local products are often affordable. Imported goods and specialty items cost more. Shopping at local markets can provide good quality at reasonable prices, though this varies by area.
Eating out ranges widely in cost. A simple lunch at a local restaurant costs less than dinner at a trendy spot in a major city. Menú del día, a set lunch menu offered by many restaurants, provides a full meal at a fixed price. For more on food costs abroad, see food and groceries.
Transportation
Transportation options in Spain include public transit, driving, and regional travel. What makes sense depends on where you live.
Major cities have metro systems, buses, and commuter trains. Monthly transit passes offer unlimited rides within zones. Smaller cities rely more on buses or require a car.
Car ownership involves insurance, fuel, parking, and maintenance. Fuel prices fluctuate but are generally higher than in the United States and lower than in some Northern European countries. Parking in city centers can be difficult and expensive.
Regional trains and buses connect cities. High-speed trains link major cities quickly but cost more than slower regional options. For more on transportation patterns abroad, see transportation costs.
Healthcare
Spain has a public healthcare system that covers residents. Access depends on residency status, employment, and whether you are enrolled in the social security system.
Some people qualify for public healthcare through employment or residency. Others need private insurance, at least initially. Understanding which situation applies to you matters for budgeting.
Private health insurance is available and varies in coverage and cost. Some employers provide it. Others arrange it independently. For more on healthcare systems abroad, see healthcare.
Taxes
Spain has national, regional, and local taxes. The main ones that affect residents include income tax, social security contributions, and value-added tax (VAT) on purchases.
Income tax rates depend on earnings and region. Social security contributions apply to employment income. VAT is included in the price of goods and services.
Tax obligations depend on residency status. Becoming a tax resident in Spain creates obligations that differ from those of non-residents. Some people have tax obligations in multiple countries. For more on how expat taxes work, see taxes for expats.
What Varies by City Versus Nationally
Some costs vary significantly by city. Others are more consistent across Spain.
Tends to vary by city:
- Housing costs (large differences between Madrid, Barcelona, and smaller cities)
- Parking and car-related costs
- Restaurant and entertainment prices
- Neighborhood-level price variation
Tends to be more consistent nationally:
- Grocery staples at major chains
- Utility rate structures
- Mobile and internet pricing
- Public healthcare access (once enrolled)
Common Surprises People Mention
Several cost-related surprises come up often among people living in Spain.
Electricity bills can be higher than expected. The pricing structure and seasonal usage affect costs more than some people anticipate.
Upfront housing costs add up. Deposits, agency fees, and first-month rent together can require several months of expenses at once.
Furnished versus unfurnished makes a real difference. The choice affects both monthly costs and upfront spending.
Eating out is more affordable than in some countries. The menú del día tradition and general restaurant pricing often surprise people coming from higher-cost countries.
Regional variation is significant. The same lifestyle costs noticeably different amounts in different parts of Spain.
How This Connects to Other Setup Areas
Cost of living intersects with other aspects of setting up life in Spain.
Banking affects how you pay for things. Having a local bank account makes paying rent, utilities, and recurring bills easier. Transfer fees and exchange rates matter if your income comes from another country.
Healthcare access determines whether medical costs come from taxes, insurance premiums, or out-of-pocket payments. Understanding your coverage affects both budgeting and peace of mind.
Visa requirements sometimes include financial thresholds. Some visas require showing income or savings that meet certain levels. Understanding local costs helps evaluate whether you meet those requirements.
Cost of living in Spain becomes clearer after spending time there. The patterns described here provide orientation, but personal experience fills in the details. Research specific cities once you know where you are heading, and expect the first few months to reveal costs that are hard to anticipate in advance.