Spain Cost of Living 2025: Complete Guide to Moving Expenses and Monthly Budgets

Planning your Spanish move requires understanding both relocation costs and ongoing expenses. From Barcelona's busy tech scene to Andalucía's rural villages, Spain offers diverse living options at varying price points. This comprehensive guide breaks down real 2025 costs based on official data and expat experiences.

About this guide: We've compiled data from official Spanish (INE) and UK (ONS) statistics, surveyed over 500 UK expats living in Spain, and verified all visa requirements with Spanish consulates as of August 2025. Learn more about our research methodology.

At a Glance: Key Facts

✓ Monthly living costs: €800-2,500 for one person, depending on location and lifestyle
✓ Moving from UK: £2,400-7,000 total, including shipping and visa fees
✓ Compared to UK: Spain is 20-35% cheaper overall (Source: Numbeo, 2025)
✓ Best value cities: Valencia, Granada, Málaga (Source: Expatra Retirement Index)
✓ Most expensive: Madrid, Barcelona, Balearic Islands

Our research: This guide is based on 500+ expat surveys, official government data, and on-ground verification in 15 Spanish cities.

Quick Cost Comparison: Spain vs UK

Sources: INE Spain, ONS UK, Numbeo, August 2025

Understanding Spain's Regional Cost Variations

Spain's 17 regions offer dramatically different living costs. According to our Expatra Retirement Index, Spain ranks #1 globally for retirement value.

Most Expensive Regions

Madrid and País Vasco (Basque Country) Think of these as Spain's "London" - everything costs more here. A one-bedroom flat in Madrid centre runs €1,200-1,800 monthly. Your total monthly budget needs to be €2,000-2,500 for comfortable living.

Barcelona and the .Balearic Islands Barcelona matches Madrid's prices, whilst Mallorca and Ibiza add 15% during the summer months.

Most Affordable Regions

Extremadura and Castilla-La Mancha. These inland regions offer exceptional value. You can rent a two-bedroom house for €400-600 monthly. Total living costs for a comfortable lifestyle: just €800-1,200 per person.

Andalucía (Away from the Coast) Cities like Granada and Córdoba combine culture with affordability. Expect €600-800 rent for a nice flat, with total monthly costs around €1,200-1,500.

Housing and Accommodation Costs

Housing will be your biggest monthly expense - typically 30% of your budget. The good news? Spanish rental prices are significantly lower than in the UK.

What You'll Pay for Rent (August 2025)

Source: Idealista.com, August 2025

What You'll Need Upfront

• Two months' deposit (standard requirement)
• First month's rent
• Agency fee (one month's rent if using an agent)
• Total needed: 3-4 months' rent upfront

Important: You must have your NIE number (foreigner's ID) before signing any rental contract. Find more information in our guide on renting in Spain for expats.

Monthly Utility Costs

For a typical 60m² flat, expect these monthly bills:

• Electricity: €50-80 (more with air conditioning)
• Water: €20-30
• Gas: €25-40 (if you have it)
• Internet: €35-45 for fibre optic
• Mobile phone: €20-30 for a good data plan
• Community fees: €30-100 (covers building maintenance)

Total utilities: €110-185 per month

💡 Money-saving tip: Look for properties with 'A' or 'B' energy certificates - they'll cut your bills by 30%.

Daily Living Expenses

Food and Grocery Costs

Spain's food prices are refreshingly affordable. Here's what you'll spend:

Monthly grocery budget:

• Single person: €180-250
• Couple: €350-450
• Family of four: €600-800

Where to shop:

• Mercadona/Lidl (budget-friendly): 20-30% cheaper than UK prices
• Carrefour (mid-range): 15-20% below the UK
• Local markets: Best for fresh produce - save 20-30%

Sample grocery prices:

• Bread loaf: €0.90-1.50
• Milk (1 litre): €0.85-1.20
• Eggs (dozen): €1.80-2.50
• Chicken (1kg): €5-7
• Local wine: €3-5 per bottle
• Beer (supermarket): €0.80-1.50

Eating out:

• Morning coffee: €1.20-2.50
• Menu del día (3-course lunch): €10-15
• Evening tapas: €20-30 per person
• Nice restaurant dinner: €25-40 per person

💡 Insider tip: The "menu del día" is Spain's best-kept secret - a full lunch with wine for €10-15, served 1-4pm weekdays.

Getting Around Spain

Public transport in Spain is excellent and affordable:

Monthly transport passes:

• Madrid: €54.60 (all zones)
• Barcelona: €40 (one zone)
• Valencia: €45
• Most other cities: €35-45

Between cities:

• High-speed train (Madrid-Barcelona): €60-120
• Budget bus: €15-40
• Domestic flights: €30-150 (book early)

If you need a car:

• Petrol: €1.55-1.70 per litre
• Insurance: €400-800 yearly
• Annual MOT (ITV): €35-45
• Monthly parking: €80-120 in cities

Telecommunications

Internet & Mobile Plans (2025):

Mobile-only plans: €15-30 for 20-50GB
Installation: Often free with a 12-month contract

Healthcare

Spain's healthcare system consistently ranks in the global top 10 (WHO data):

Public Healthcare (Post-Brexit):

• UK S1 form holders: Free access
• Working residents: Via social security
• Non-working residents: Convenio especial €60-157/month

Private Healthcare:

• Basic plans: €40-60/month
• Comprehensive coverage: €80-150/month
• Popular providers: Sanitas, Adeslas, DKV
• English-speaking doctors are widely available

Prescription Costs:

• Pensioners: 10% co-payment (capped €8-18/month)
• Workers: 40-60% co-payment
• Chronic conditions: Reduced rates available

We have a very detailed guide on health insurance in Spain for expats, which can help you choose the right option.

Understanding Spanish Taxes (Essential for UK Expats)

When Do You Become a Tax Resident?

You're a Spanish tax resident if you:

• Stay in Spain for 183 days or more in a year
• Have your main home or business in Spain
• Your spouse and children live in Spain

Why this matters: Tax residents pay Spanish tax on worldwide income (including UK pensions). Non-residents only pay tax on Spanish income.

Income Tax Rates for Residents

Your tax rate depends on your income:

Non-residents pay a flat 24% on Spanish income only.

Your UK Pension in Spain

State pension: Taxed in Spain if you're a resident
Government service pension: Usually only taxed in the UK
Private pension: Taxed in Spain

⚠️ Important: Tell HMRC when you become a Spanish resident to stop UK tax being deducted.

Further reading: UK Pension in Spain.

Wealth Tax

Only applies if your assets exceed €700,000:

• Your main home gets €300,000 exemption
• Rates from 0.2% to 3.5%
• Madrid and Andalucía currently don't charge this tax

The Modelo 720 Declaration

If you have over €50,000 in UK assets (bank accounts, property, investments), you must declare them annually by 31 March. This is just a declaration - not a tax - but penalties for not filing start at €10,000.

💡 Get professional help: Spanish tax rules are complex. A good tax advisor (asesor fiscal) costs €50-150/hour but can save you thousands.

Find more details in our guide on Spanish taxes for expats.

Moving to Spain: What It Costs

Shipping Your Belongings from the UK

Here's what you'll pay to ship your household goods:

Extra costs to budget for:

• Professional packing: £800-1,500
• Insurance: £100-300
• Customs clearance: £300-500
• Pet relocation: £500-1,500 per pet
• Car shipping: £1,000-2,000

💡 Save money: Share a container (groupage) to cut costs by 30%. Find more tips in our guide on how to plan and organise removals to Spain.

Moving Your Money

Transferring funds from the UK to Spain:

• High street banks: Charge 3-4% in fees and exchange rates
• Currency specialists (Wise, Currencies Direct): Just 0.5-1%
• For pensions: Set up regular transfers for better rates

Visa Costs and Requirements

Important: All visa requirements verified with Spanish Consulate London, August 2025.

Non-Lucrative Visa (for retirees):

• Cost: £130 application fee
• Income required: €2,400/month (€28,800/year) - Source: Spanish Immigration Law
• Plus €600/month per family member
• Health insurance required: €50-150/month
• Processing time: 2-3 months

Digital Nomad Visa (remote workers):

• Cost: £130 application fee
• Income required: €2,762/month minimum (200% of Spanish minimum wage)
• Must work remotely for non-Spanish companies
• Valid for 1 year, renewable to 5 years

TIE Card - ESSENTIAL from October 2025: According to EU Entry/Exit System regulations:

• Cost: €12
• Required for ALL UK residents in Spain
• Replaces old green certificates
• Without it, you can't travel freely in Europe

Setting Up Your New Spanish Life

First month essentials:

• NIE number (foreigner ID): €10
• Bank account: €0-30 (here is a detailed guide on opening a bank account in Spain for expats)
• Empadronamiento (town registration): Free
• Utility deposits: €200-400 total
• Internet setup: Usually free

Monthly Budget Examples

Valencia - Single Person (Comfortable Living)

Different Budgets for Different Lifestyles

Budget Living (€800-1,200/month)

• Small town or rural area
• Modest apartment
• Mostly home cooking
• Public healthcare only

Comfortable Living (€1,500-2,000/month)

• Nice city neighbourhood
• Regular dining out
• Car or good transport access
• Private health insurance

Premium Lifestyle (€2,500+/month)

• Prime city location
• Frequent dining and entertainment
• Car plus taxis
• Comprehensive private healthcare

For Self-Employed (Autónomo)

If you're working for yourself, add these monthly costs:

• Social security: €230-300
• Tax aside (20% of income)
• Accountant (gestoría): €50-100
• Extra monthly costs: €330-450 plus tax

For Families with Children

School costs:

• State schools: Free (just books €200-400/year)
• Private schools: €400-900/month
• International schools: €800-1,500/month
• Nursery (under 3): €300-500/month

Smart Ways to Save Money

On Housing

✓ Choose suburbs instead of city centres (save 30-40%)
✓ Look for rentals in September-November (off-season)
✓ Negotiate longer contracts for 10-15% discount
✓ Always verify the property has a habitability certificate

On Daily Expenses

✓ Shop at local markets (save 20-30% on produce)
✓ Use the menu del día for lunch (€10-15 vs €25+ for dinner)
✓ Buy annual transport passes (save 15-20%)
✓ Join buying cooperatives for organic food

On Administration

✓ Learn basic Spanish to avoid translator fees
✓ Only use gestorías for complex paperwork
✓ Apply for resident discounts everywhere
✓ Don't register as autónomo unless earning in Spain

On Taxes

✓ Consider the Beckham Law if eligible (flat 24% tax)
✓ Move assets before becoming tax resident
✓ Choose your region wisely (Madrid has no wealth tax)
✓ Keep detailed records for Modelo 720

What Changes in 2025-2026

Coming Soon

ETIAS System Expected mid-2025 but frequently delayed. The €7 travel authorisation for short visits. Check official ETIAS site for updates.

Digital Nomad Visa Updates Requirements may change. Current income threshold: €2,520/month. Verify with Spanish consulate.

Energy Prices Government price caps uncertain beyond 2025. Electricity costs may rise.

Already Changed

TIE Card Requirement From October 2025, the TIE card is mandatory for travel. Green certificates won't be accepted at borders.

Golden Visa Property investment route ends April 2025. Other investment options remain.

Your Questions Answered

Can I live comfortably in Spain on €1,500 per month? Yes, absolutely. This budget works well in Valencia, Málaga, Granada, and most cities outside Madrid/Barcelona. In rural areas, you'll live very comfortably.

How much cheaper is Spain than the UK? Overall, Spain is 20-35% cheaper. Utilities are 50% less, public transport 40-60% cheaper. Only private healthcare might cost more (since NHS is free).

What income do I need for a Spanish visa?

• Non-lucrative (retirement) visa: €2,400/month
• Each family member adds: €600/month
• Digital nomad visa: €2,762/month minimum

Will I pay tax on my UK pension? If you live in Spain more than 183 days, yes. Your state pension gets taxed in Spain. Government service pensions usually stay UK-taxed. Get professional advice - this is complex.

What's the Modelo 720? It's a form declaring UK assets over €50,000 - bank accounts, property, investments. File by 31 March yearly. Not filing costs minimum €10,000 in penalties.

What are the hidden costs people forget?

• Community fees: €30-100/month
• Property tax (IBI): €200-800/year
• TIE card application: €12
• Gestoría fees: €50-150 per task
• Home contents insurance: €15-30/month

Which Spanish cities offer best value for retirees? Our Retirement Index ranks Valencia, Alicante, and Málaga highest for balancing costs, climate, and amenities. Interior cities like Granada offer exceptional value too.

How much does self-employment cost? Monthly social security starts at €230, plus 20% tax set aside. Total: €310-450/month before income tax. Use a gestoría for paperwork (€50-100/month).

Making Your Move

Spain offers exceptional value for UK expats - your money goes 20-35% further whilst enjoying superior weather and lifestyle. Success comes from choosing the right location for your budget.

Your next steps:

1. Calculate your expected income in Spain
2. Choose 2-3 potential locations to explore
3. Visit for extended periods before committing
4. Get professional tax advice before becoming resident
5. Apply for your NIE and TIE card early

Remember: from rural Extremadura at €800/month to central Barcelona at €3,000+, there's a Spanish lifestyle for every budget.

Ready to start? Please explore our complete Spain guides and visa requirements guide for everything you need.

Editorial Note: This guide was fact-checked by our editorial team and verified against official sources in August 2025. All prices include VAT where applicable. Currency conversions use rates from 1 August 2025 (€1 = £0.85).

Disclaimer: All costs are estimates based on August 2025 data from official government sources, pricing surveys, and reports from 500+ UK expats living in Spain. Individual expenses will vary by lifestyle and location. For visa and tax matters, always consult qualified professionals. Tax rates and regulations are subject to change.

How We Maintain Accuracy: This guide is reviewed quarterly and updated when significant changes occur. See our Editorial Standards and Research Methodology for details on our fact-checking process.