Cost of Living in Spain vs USA

Cost of Living Comparison Between Spain and the United States

On average, the cost of living in Spain tends to be significantly lower, sitting at up to 123% less than expected costs in the US. Nevertheless, it is essential to understand just how these differences break down and how they might be affected by various factors, including region, type of housing, and lifestyle factors.

While general claims may seem to paint a clear picture of which location is cheaper, you should also consider how additional differences between regions can further shape not only the actual likely costs of living in either the US or Spain, but also influence your experience and opportunities.

Overall, the cost of living should usually be broken up into its core categories to gain a more nuanced overview. These include general housing costs, utilities, groceries and food costs, healthcare fees, transportation, Education, as well as other lifestyle and leisure expenses. Beyond this, however, you should also consider salary and income averages as they may apply to your particular job prospects, potential for growth, and other factors such as taxes and insurance.

It can feel a little overwhelming and unrealistic to try to get a reliable overview of the costs of living in a way that can actually be applicable to your individual situations when looking at country comparisons alone, as there tend to be significant differences among regions and even locally within cities. While you won’t necessarily need to know the exact place you might move to, you should prepare at least a vague idea of potential regions, or an understanding of what you need from a place to make it a viable option.

Finally, you must understand that while average cost of living implications can still provide some valuable insights, these numbers aren’t guaranteed, nor are they set to remain the same in the future. With persistent changes in the economy and financial markets and many unpredictable factors from employment landscapes, environment, and other trajectories, it can be hard to say just how the cost of living circumstances might develop over the next few years and beyond that. While it isn’t realistic to try and anticipate everything, it can help to consider affordability with a long-term orientation, possible changes of you or your household’s needs in the future, and what you might be able to do to create a sustainable budget and savings to see you through the continued if gradual rise of the average cost of living predictions, based on current trajectories.

What you might want, need, or be able to afford might vary drastically from average expectations, or it might be well aligned. It is important to approach the provided figures with an awareness of your own situation, and our team of immigration specialists can help you with that.

Housing Costs in Spain vs USA

Considering the average cost of housing can be a good starting point to thinking about the cost of living, especially when you are approaching the topic from a potential consideration of planning a move. Understanding how much you may need to pay for your home, whether bought or rented, can be one of the most important factors, especially since it might be the largest initial cost that you will encounter, especially if you plan to be a homeowner rather than a tenant. 

Housing costs in Spain and the US can be drastically different, though you will need to consider that beyond the national average, there are several factors that will affect the actual cost of housing. While it is impossible to tell exactly how much this might cost you without a set address and timeframe, it helps to consider your location preferences and requirements, as well as the type and size of accommodation you might want to seek out.

At a glance, the average housing costs in the US tend to be considerably higher than in Spain, which is reported to sit at as much as 45% less than average housing prices in the States. However, you should consider how additional factors may exacerbate or diminish this divide.

While US housing tends to be more expensive, there is a considerable trend in America towards, on average, larger properties. This applies especially when you are considering living in suburban or rural areas, with the latter offering, on average, the most significant amount of space for what you are paying. However, added space also means added distance, and larger homes can often imply more significant travel needs to get to essential locations such as shops, schools, or work.

While offering unique charm and history, Spanish and US homes can be drastically different, with many historic buildings in more built-up areas existing on an ‘attached’ basis, meaning that you might share walls with a neighbour.

Beyond these tendencies of Spanish and US housing, you should also remember that the national average doesn’t necessarily reflect all regions. Generally, living in more popular cities will be more expensive, with New York and California in the US sitting significantly above the national average. Living costs tend to be directly associated with the centrality of location, sitting at their highest in city centres and diminishing towards the wider expanses of urban development. Additionally, the US tends to see higher prices around the East and West coasts, while Midwestern regions enjoy slightly lower average prices.

Similarly, you will see a significant increase in housing costs when looking at popular city locations, such as Madrid and Barcelona, as compared to more rural villages. It is also important to consider how tourism may affect availability and, by extension, the cost of housing, with more popular areas having a tendency towards an increased presence of tourist housing, leaving fewer available options for permanent residents.

Utility Costs in Spain Vs USA

Once you have considered the average costs of housing, you will need to examine what it might cost to live in said accommodation. Utility costs are an inescapable aspect of making and maintaining a liveable space and include essentials such as water, gas, and electricity, but you might want to consider additional factors that could vary per region.

On average, the monthly utility costs are significantly lower in Spain than in the US, though actual price differences will largely depend on use cases and region. For example, you will likely be spending a lot less on gas or electricity costs for heating your home when living in a relatively warm climate, such as in Spain, than if you live in some of the colder US regions where the winters are long and harsh. At the same time, costs for air conditioning might be more notable in the Southern regions of Spain, in particular, though hotter climates are also prevalent in the US.

Similarly, costs for water may vary regionally in Spain based on use and consumption, though this is usually the case in the USA, too.

While it is difficult to give reliable numbers given the many variations, you may well expect to pay an additional $100 if you are living in the US, but much of that will depend on your service providers and utility packages that might be available in your respective region.

Grocery and Food Expenses in the US vs Spain

While housing costs and utilities may make up a larger sum of overall living expenses, groceries and the cost of food in particular tend to be where the cost of living really feels noticeable for most people. Feeding yourself and your household is an essential and ever-present consideration, but watching the money drain routinely just to buy essentials, not to speak of some nicer ingredients, can feel disheartening.

As such, considering which regions might lessen this continuous burden can potentially open up a significant lifestyle improvement and decrease stress, as well as have additional benefits such as improvements in health and general enjoyment with more easily accessible and affordable high-quality ingredients.

Based on national averages for food and groceries, Spain tends to be significantly more affordable, with reported numbers suggesting that the expected cost might be up to 32% lower in Spain as compared to the US. For many households, this could free up a significant portion of the weekly or monthly budget to either put towards savings, more leisure activities, or simply just nicer food to enjoy.

Nevertheless, you will need to once again factor in that the real cost of food will largely vary depending on where you choose to buy your food from. Additionally, you may experience that some food staples might well feel cheaper in the US, where several grocery chains pride themselves on offering bulk packages for low prices. Nevertheless, this doesn’t always translate to notable savings in terms of nutritional value or variety and will once again depend on the type of foods that you choose to buy.

One consideration that may factor in here is that the food markets in Spain and the EU in general tend to be more strictly regulated than in the US, which can potentially support an overall more reliable access to good quality products. Naturally, this too cannot be fully generalised and will vary depending on the source and type of grocery.

Finally, there will be regional differences simply in the type of food you can access most easily, which could entail additional grocery costs should you choose to import items that may be more available elsewhere. These factors are secondary to overall food prices, but bear consideration when investigating the likely state of your personal cost for groceries.

Healthcare Costs in Spain vs the United States

When it comes to healthcare, the reputation of the US’s fraught and expensive system might precede itself, leading to a non-surprising answer that average healthcare costs tend to be significantly lower in Spain than in America. With overall lower prices, access to healthcare and medical support is much easier in Spain, while the quality of care ranks as one of the best in the world.

Naturally, how to access healthcare and the associated costs will vary depending on your immigration status and potentially other circumstances, with Spanish nationals and citizens being granted access to the overall lowest costs. Still, while some immigration rules might require you to obtain private health insurance cover, this will likely be cheaper than it is in the US, with excess fees and also the overall price of medication often being much lower than in America.

There are some circumstances that could shift this, such as your employment circumstances. In the US, employers may offer health care coverage, which would reduce the expenses that you have to take on yourself. Nevertheless, the true benefits of this cover will largely depend on the region and service, as well as the type of health concerns that you might need help with, as many private policies have vastly different restrictions on what might be covered.

Depending on your pre-existing health concerns, these factors may seem more or less important, but one thing to consider is how likely the unexpected is to cause financial pressure on top of your need for recovery. Living without the fear of a medical emergency can potentially feel priceless. If you are unsure about how this might apply to your circumstances, you can call us today at +44 (0)333 414 9244 to speak to one of our expert advisors. We will be happy to help you understand all you might need to know.

Transportation Costs in Spain vs USA

Depending on your location, professional circumstances, and general lifestyle, transport and accessibility of utilities may be a core factor when deciding whether a region is viable for you to live in. From getting to and from work to shopping for groceries, leisure activities and entertainment, being able to access the places you need and want to get to will have a huge impact on your day-to-day life and wellbeing, as well as your overall financial situation, as getting to work is essential.

As such, you should consider how a region may impact your transport requirements in terms of accessibility and availability, as well as overall costs. Surprisingly, this tends to be one of the areas where Spain is reported to hold a slightly higher national average than you might find in the US. However, this is only by about 4%.

Due to the relatively low difference in average costs, you may instead choose to consider the average demands of transport, especially the type of transportation, as these can be strikingly different in the US compared to Spain. The US is well known to be a fairly car-centric culture, with many remote regions virtually cut off unless you have access to your own transportation. Additionally, public transport can be rather lacking, with underfunded train systems and bus networks that are commonly under-connected and inconvenient for routine travel. Of course, this will vary by location, and major cities may usually have better options, with New York, in particular, being famous for its subway.

In Spain, on the other hand, public transport may be much better connected, posing a viable alternative to car travel, which, while naturally still prevalent, may at times be less convenient in more built-up cities.

Beyond this, there is a major consideration in terms of walkability, with much of the US lacking in easily accessible infrastructure should you wish to travel on foot. While it is also not always convenient to walk, especially for longer distances, as may be found in the States due to urban sprawl or rural distances, this nevertheless impacts your options, should you wish to save money on transport.

Education Costs in Spain vs USA

Whether you are planning ahead for the education of your child or children, or if you are looking to seek out education yourself, Spain and the USA hold significant differences when it comes to tuition averages.

While there are differences in education that are offered in Spain and the USA, predominantly the language of the course, where applicable, there is no question that both countries offer highly acclaimed options for education, from school to further education levels.

In Spain, primary and secondary levels of school are generally free, though there might be additional costs or other considerations. In the US, you may need a higher budget to send your child to school, and you should consider the often more rigorous requirements for extracurricular activities.

While private education is an option in both countries, it tends to still entail lower overall tuition costs in Spain, though specifics will vary by institution.

Looking past fundamental education and turning towards University and further education, Spain continues to offer significantly lower tuition fees. While University costs in Spain tend to be rather low for citizens and most EU students, international students who may need to pay more can still expect to pay significantly less than they would in the US, even if they held home-fee status there. While the US offers some of the world’s leading universities and research programmes, excessive tuition fees and present uncertainty in student-loan arrangements, as well as the prevalence of unsustainable private loan arrangements for US students, point towards Spain as a viable and more affordable option.

Lifestyle and Leisure Costs in the USA vs Spain

Beyond obligations and essential costs, it’s important to make space for thinking about lifestyle and entertainment, and factor these into your budget. While the costs for such activities will vary largely depending on your interests and activities that you wish to pursue, there is a general tendency for these to be less expensive in Spain.

Be it dining out, which can be up to 18% cheaper in Spain, or a variety of cultural, entertainment, or sporting activities, you have a wide variety of options to explore and engage with while being able to save money that would be spent on similar activities in the USA. Nevertheless, you will need to consider what type of activities you are likely to seek out, as more niche interests might not be as represented in some regions. Of course, the same is true for the US, and it is worth keeping an open horizon. With lower costs, it can be a great opportunity to explore some new things.

Salary and Income Comparison in USA vs Spain

With all that focus on expenses, looking at the likely ranges of income adds essential context to how you will actually be able to support your budget. Job salaries and general income trajectories can have huge discrepancies across different professional sectors, so it can be hard to compare the USA and Spain with a one-size-fits-all approach. In the US, salaries for certain thriving sectors such as tech and entrepreneurship may well exceed the average income trajectories for similar positions in Spain, but other jobs, such as working in hospitality, might be disproportionately less well remunerated than in Spain, where income for staff in these areas isn’t expected to be subsidised with tipping.

Additionally, it makes sense to consider the locations of those higher-paying jobs, which can often be limited to the more popular cities, thus leading to disproportionate living expenses to keep the increased salary in check. Overall, living with regulated, slightly lower wages in a generally more affordable region can often make the money go further, so it is important to look past the numbers alone.

Additionally, accessibility to work can be much more balanced in Spain for families, given the significantly lower cost of childcare, which tends to be up to 70% lower than in the US, plus additional benefits for parents such as more protections around parental leave.

ChTax Comparison in Spain and USA

Comparing taxing systems between Spain and the USA might be a more difficult venture, as it is a highly complex topic that varies not only regionally but also based on individual circumstances.

With Spain’s progressive taxation system, what you actually have to pay varies drastically based on your income and wider circumstances, ranging from about 19% to 47% on average. On the other hand, the federal tax structure in the US might seem cheaper, with only 10% to 37% being taxed on average, but these are further added to by state taxes, which can vary drastically. 

Overall, it is best to approach taxation in particular with consideration to personal circumstances, as this is really what will determine how much you can expect to pay. However, you can also consider how these taxes might be implemented and see how what is paid in might come back to support you in other ways.

Cost of Living in Popular Cities

Overall, the cost of living depends on the specific city as much as the country, though comparison between popular cities in Spain and the US generally still shows that the overall cost of living in Spain may be more sustainable.

Living in Spain’s most popular cities, such as Barcelona or Madrid, will inevitably lead to costs of living that are on the higher end of the national average. Nevertheless, this will still be more affordable than living in some of the most popular cities in the USA, such as New York or California.

From rental prices, which may average at around $1,000 more per month in central city locations in the US, such as New York or California.

While specific numbers vary, renting in a central location in New York or California may incur an average $1,000 extra per month than renting centrally in Madrid or Barcelona. On top of this, the costs of food in popular cities may often be more expensive, driving the average increase in costs in the USA over Spain further.

Naturally, living centrally in a popular city will bring easier access to leisure and entertainment options, potentially saving on travel costs, but cities like California, in particular, are known for their urban sprawl, leading even ‘central’ locations to require transport and planning. Additionally, events in more popular cities might also have larger crowds and higher associated costs than in Spain, though tourism might have a stronger seasonal impact in those regions.

How We Can Help

Navigating the nuanced process of understanding varying factors that shape expected living costs in different areas can be an involved and often daunting process. Nevertheless, it is essential to gain a realistic overview of the plausible costs and implications of moving to one area over another before making a decision.

While national averages can provide valuable insights towards the general trajectories of living and prosperity, it will be especially helpful to approach such explorations with a more nuanced consideration of individual needs and circumstances, which will allow for more precise interpretation of likely expenses. This can be a tricky and time-consuming process, but our team of immigration specialists can help you understand the costs and benefits of moving to different locations, as well as help you explore how some regions may be more suitable than others.

With our years of expertise, our specialists are able to advise you not only based on expenses but with a realistic understanding of what it might take for you to be able to move to any location, considering expenses but also wider immigration implications. You can call us today at +44 (0)333 414 9244 to find out more about our services and get started on your journey towards finding a new home and location.