Sample Budgets for living in spain

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1 bed apartment $1,500

HOA $400

Homeowners Insurance $125

Property Tax $605

Electricity $125

Water $50 

Gas $50 

Cellphone $20

Internet $50

Cable / TV

Healthcare (1 person) $300

Groceries $500

Entertainment (dining out and activities) $200 

Drinks with friends $200 

Monthly $4,375

Annualized $52,500

Estimated National Taxes $4,000

Annualized cost with Taxs $56,500

*All figures are approx for guidance purposes*

1 bed apartment $276 based on ???

HOA $80

Homeowners insurance $40

Property Tax $35

Electricity $80 

Water , garbage $40

Cellphone $40

Internet $28

Cable / Pay TV 

Healthcare (1 person) $85

Groceries $350

Entertainment dining out $200 

Drinks with friends  $75 

Monthly $1,429

Annualized $17,148

Estimated National Taxes $9,600

Annualized cost with Taxes $26,748

COST SAVINGS Vs USA

$29,752

*All figures are approx for guidance purposes*

Posted on November 12, 2025

Posted by Mark Stucklin

Is Spain Still a Cheap Place to Live in 2025? A Global Perspective

Spain has long been a magnet for travellers, retirees, and expats seeking a warm climate, vibrant culture, and a slower pace of life. For decades, it has been touted as a budget-friendly alternative to the high-cost hubs of Europe and the Americas. But as global economies evolve and the cost of living surges in cities like New York and London, how does Spain stack up in 2025? Deutsche Bank’s Mapping the World’s Prices 2025 report provides a nuanced answer: while Spain remains far from unaffordable by global standards, it is no longer "cheap" in the traditional sense. For Americans moving to Spain, the shift in affordability may come as both a surprise and an opportunity. Let’s dive into the numbers, context, and what this means for residents and newcomers alike.

Spain’s Global Cost-of-Living Rankings: Middle Ground, Not a Bargain Bin

Deutsche Bank’s 2025 report ranks cities worldwide based on the cost of a baseline basket of goods and services, including groceries, housing, healthcare, transport, and leisure. By this measure, Spanish cities like Madrid and Barcelona fall squarely in the middle of the global spectrum.

Madrid and Barcelona are roughly 30-40% cheaper than London, New York, and Zurich.

However, they are 10-15% more expensive than emerging hubs like Bangkok, Dubai, and Mexico City.

Spain is in a curious sweet spot: it’s not the bargain destination it once was, but it’s still far from the price tags of the world’s most expensive cities. For example, a family of four can expect to spend €3,200–€3,800 per month on a modest lifestyle in major cities, versus €4,500–€6,000 in Paris or Frankfurt. But while the raw numbers look tempting, the full picture involves more than just prices.

Why Spain’s Affordability Is Debatable: Beyond the Price Tags

1. Imported Goods and Services Bite Deeper

Spain’s strength lies in locally produced goods, fresh produce, wine, and small appliances are reasonably priced. However, imported items, tech products, and high-end services (like dining at Michelin-starred restaurants or luxury car maintenance) are significantly pricier.

For instance: A pair of Nikes costs €70 in Barcelona vs. €55 in Berlin.

Petrol prices (€1.70 per liter) and branded electronics (like the latest iPhones) are among the highest in Southern Europe, driven by hefty VAT (21%) and import taxes.

2. Wages Don’t Stretch Far Enough

Here’s where the cost-of-living puzzle gets tricky. While Spanish cities may rank mid-tier globally, local purchasing power rarely matches this optimism. The average monthly salary in Spain is around €2,000 (net after taxes), barely keeping up with inflation and barely covering housing costs in cities like Madrid or Barcelona.

"Spain’s price-to-income ratio is one of the worst in the EU," says Deutsche Bank’s 2025 report. "While prices are moderate, wages have not kept up with inflation since the 2008 crisis."

This means Spaniards often feel financially squeezed, even as the country remains relatively affordable for expatriates with foreign salaries or pensions.

Cost Comparison: 

USA vs. Spain in 2025

Category: 

United States (USDC)      to Spain (EUR)

Rent (1BR in City Center)

$1,800/month           €900–€1,100/month Madrid/Barcelona are still cheaper than NYC or LA.

Groceries (Family of 4/week)

$300                                    €150–€180

Spain’s local produce and bulk shopping options save 20-30%.

Public Transport (Monthly)

$150                                          €60–€80

Spain’s extensive rail networks and buss systems cost a fraction.

Eat-Out (Fast Food Meal)

       $10                                                                     €8

Tapas and the menu del dia culture makes restaurant and street food cheap and abundant.

Healthcare (Annual Plan)

$7,000–$10,000          €2,000–€3,000 Spain’s public healthcare system is top-tier and low-cost.

Electricity (Monthly)

$200                                                €90

Mild winters offset higher summer cooling costs.      

Petrol/gas (Per Liter)

$1.10                                               €1.70

Spain’s high VAT makes fuel pricier than in neighbouring Italy or France.

Source: Deutsche Bank World Prices 2025, Numbeo, and local utility data.

For Americans moving to Spain, this table highlights both opportunities and caveats. Housing is a standout saving, while healthcare and transport costs are significantly lower. However, imported goods and utilities (like heating in winter) may feel like an adjustment.

What’s Still Cheap in Spain?

While Spain isn’t the budget utopia it once was, it still offers exceptional value in key areas:

1. Public Transport

Spain’s metro systems, regional trains, and buss networks are efficient, clean, and incredibly affordable. A monthly pass in Madrid costs €60, compared to $150 in New York. Catches? Some rural areas have limited options, and high-speed trains (like AVE) can cost €100+ to Barcelona.

2. Food and Dining

Spain’s culinary scene is unmatched for value. A meal at chiringuito (local eateries) can be as low as €7, while tapas bars offer generous portions for €4-€6 per person. Even high-end restaurants are 20-30% cheaper than in the US.

"In Spain, you get more food per euro than anywhere I’ve lived," says Sarah Thompson, an American expat who moved to Seville in 2024. "A weekend picnic with wine and cheese costs less than a movie night in the US."

3. Healthcare

Spain’s public healthcare system consistently ranks among the top 10 globally, with low co-pays and universal coverage. Annual insurance plans for expats start at €2,000, versus $7,000 in the US for family coverage.

4. Leisure and Culture

Museums, concert tickets, and festivals often cost €5-€15, with many events (like Semana Santa or Feria de Abril) free to attend. Spain’s cultural institutions frequently subsidize tickets to arts and entertainment.

The Hidden Costs for Expats

For Americans moving to Spain, the "hidden costs" often relate to bureaucracy, not prices. Setting up bank accounts, applying for a residency visa, and navigating tax obligations can add €500–€1,000 in upfront fees. Additionally:

Housing deposits in cities like Barcelona require 1-2 months’ rent upfront, a hurdle for those without local savings.

Property taxes (Impuesto sobre Bienes Inmuebles) and land transfer fees can eat into real estate savings.

The Takeaway: Spain Is Still "Good Value"

Spain’s 2025 cost-of-living position is best summarized as "middle-tier but budget-friendly for expats". While it doesn’t offer the hyper-low prices seen in Southeast Asia or Latin America, it still beats most of Europe and North America for a high quality of life.

For Americans moving to Spain, key factors to consider:

Housing and healthcare savings can offset higher costs for imports and fuel.

A $4,000/month salary (in USD) or a $50,000 pension is often "luxury" in Spain, especially in smaller cities like Granada or Bilbao.

Spain’s public services, climate, and culture enhance the "value per euro" beyond just financial metrics.

"Spain may not be a budget paradise anymore, but it’s still our best bet for a happy, healthy, and affordable lifestyle," concludes Deutsche Bank’s analysis. "For those with international salaries or pensions, it’s a compelling proposition."

Final Thoughts: Is Spain Right for You?

Spain’s 2025 cost-of-living landscape is a reminder that affordability is not just about prices—it’s about income, inflation, and lifestyle choices. While locals grapple with stagnant wages and rising living costs, expatriates with strong currencies or global salaries often find themselves in a golden sweet spot. Whether you’re planning to move from the USA to Spain or simply dreaming of retirement by the Mediterranean, the data is clear: Spain remains a land of good value, as long as you know where to look.

All this being said the primary reason for my colleagues and I to move to the Costa Colida region of Spain is more about lifestyle, the way of life here is at a slower pace than just about every city in the USA. Of course the cost of living that lifestyle is a bonus.

*All figures are approx for guidance purposes*