Cost of Living & Renting in Popular Expat Areas of Spain

Expat Guide to Cost of Living in Spain

This month’s guide is for those considering or in the process of immigrating to Spain. It focuses on the cost of living, considerations and property expenses for moving to Spain, whether you choose to rent or buy. 

We look at region-by-region costs, as well as consider transport, groceries and beyond. 

Cost of Living

The cost of living varies across regions but is generally lower than in many Western European countries. Spain’s affordability is clear, with a growing average wage approaching €27,000 euros or €2245 a month. An individual or couple can live comfortably on €1000 per person, while a family might spend €2500 or more monthly.

Major Expenses

Plan a budget that includes essentials. 

• A typical studio apartment shared between two people might cost €1000, plus €150 in household utilities (for an 85m² apartment). 
• Running a car or using public transport will likely cost €250 a month. Most single bus tickets cost €2-3, and short train rides cost €3-6. The cost of fuel is currently around €1,40 a litre. 
• The average Spanish household spends €380 monthly on groceries, while a couple might be comfortable spending €300. 
• Private healthcare can typically range from €50 to €200 per month. Healthcare is available with co-payments on the national healthcare service but is not often accessible during the first 12 months of residency on a visa. 

Estimating costs

This total is likely to bring a couple’s major expenses to around €850-1000 per person, or more if they are in a city centre location. Some luxuries, activities, and language classes will increase outgoings. 

Everyone is different, but most expats spend €1000-1500 a month to live. €1000 should be enough to live fairly comfortably, while €1500 will likely give you a cushion and more license to appreciate what Spain offers. 

Savings

• A financial cushion for the first few months is advisable, especially if you move without a job. Demonstrating sufficient savings is mandatory for some visas.

Moving Considerations

Housing

Securing accommodation is a critical step in your move. We explore the rental and house-buying market, looking into popular localities for expats. 

Popular Expat Areas

Coastal areas like Costa del Sol, Valencia, and Alicante are popular for their climate and expat communities. Madrid’s favourable tax laws incentivise many, while cities like Catalan-speaking Barcelona and Basque-speaking Bilbao (as well as nearby San Sebastian) are popular for a slightly slower pace of city life. In recent years, Malaga and Seville have also attracted a growing expat community in the South of Spain. 

Rental Market

Rent varies significantly by region. Major cities like Madrid and Barcelona are more expensive, and the Spanish islands are starting to catch up. A real estate agent can help you navigate the market. Understanding rental contracts, including terms and deposits, is crucial.

Avg studio apartment rental costs by region in Spain are:

• Madrid – €1,300-1600.
• Barcelona – €900- 1400.
• Malaga –  €800-1100
• Gran Canaria – €700-1100

Buying Property

If buying, be aware of the legal processes and taxes. A solicitor can assist with paperwork and ensure compliance. The buying process involves securing a mortgage, signing a preliminary contract, and finalising the purchase with a notary.

Avg Property Prices per City in Spain:

Barcelona

• Barcelona City Centre – €600,000.
• Barcelona Suburb – €350,000

Madrid

• Madrid City Centre: €900,000​ 
• Madrid suburb – €240,000

Malaga

• Malaga City Centre: €430,000
• Malaga Suburbs: €250,000

Valencia

• Valencia City Centre: €300,000
• Valencia Suburbs: €220,000​ 

Seville

• Seville City Centre: €350,000
• Seville Suburbs: €210,000​ 

Bilbao

• Bilbao City Centre: €400,000
• Bilbao Suburbs: €250,000​ 

Avg Property Prices in Spanish Islands

• Las Palmas City Centre: €250,000
• Gran Canaria/Las Palmas Suburbs: €200,000
• Tenerife City Centre: €270,000
• Tenerife Suburbs: €220,000​

Costs for buying property

When buying residential property in Spain, the list of costs and fees includes financial items such as:

• Property Tax (IBI): 0.4% to 1.1% of cadastral value (administrative value assigned to all Spanish properties) annually
• Transfer Taxes (ITP): 6% to 10% of the purchase price
• Stamp Duty (AJD): 0.5% to 1.5% of the purchase price
• VAT: 10% of purchase price for new properties (21% for commercial/land)
• Notary Fees: 0.1% to 0.5% of purchase price, minimum €600
• Land Registry Fees: 0.1% to 0.3% of purchase price
• Valuation Tax: €200 to €500
• Deposit: 10% of purchase price

Legal and Administrative Tasks

• NIE Number: The NIE (Número de Identificación de Extranjero) is essential for almost all legal and financial transactions. Apply for your NIE soon after arriving.
• Residency Permit: You may need a residency permit depending on your visa. Spain is transitioning to a European directive where residence permits and visas are intertwined. However, there are exceptions, and some permits are still detached. Complete all necessary paperwork and meet deadlines when applying.
• Register with the Town Hall: “Empadronamiento” at your local town hall is necessary for accessing public services and proving residency.

Banking

• Open a Spanish bank account to manage finances. Major banks include Santander, BBVA, and CaixaBank.

Shipping

• Decide whether to bring belongings or buy new ones in Spain. International shipping can be costly. Evaluate the costs and benefits of shipping versus purchasing locally.

Relocation Services

• Relocation services can help with finding housing and schools, navigating bureaucracy, obtaining documentation, and setting up utilities.

Utilities and Internet

• Set up utilities and internet as early as possible. Research providers and schedule installations ahead of your move.

Why Choose IAS to Help

If you’re looking to secure a move to Spain, be it on a Spanish visa or permanent resident permit, our expert lawyers are on hand to assist.

We have helped thousands of expats move to Spain, defining their eligibility criteria, pathway to settlement and detailing moving considerations. We can help you too.

To speak to an immigration lawyer and get expert support for your Spanish relocation, call us on 0333 305 9375 or reach out to us online.