People moving to Spain on a non-lucrative visa or golden visa will need to pay particular attention to the cost of living in Spain. Now we turn our attention to the cost of living in Spain vs UK.
The Cost of Living in Spain vs UK: Is It Cheaper?
Let’s start with the worst-case scenario. Imagine moving to Spain thinking you’ll save loads of money. You’ve heard it’s cheaper, right? But after a few months, you realise your savings are vanishing. Rent, food, and unexpected expenses creep up. What seemed like a dream move is now turning into a financial nightmare. Is the cost of living in Spain vs the UK better, or are you trapped in a costly mistake?
Life in Madrid vs California
Take Sam, for example. He left sunny California for Madrid. Everyone told him it would be cheaper. But here’s the catch: the rent in central Madrid wasn’t much lower than what he was paying in California. Utilities were higher than expected, and even simple things like groceries and eating out felt pricier once he factored in currency conversion. Yes, Spain can be cheaper, but it depends on your lifestyle. Sam expected to save big, but it wasn’t as clear-cut as he thought.
Moving from London to Marbella
Now, let’s look at Lisa. She moved from London to Marbella, a popular spot for expats. At first glance, it looked like a win: rent was significantly lower, and the sunny beaches were a huge bonus. However, Lisa soon realised that Marbella’s luxurious lifestyle came with hidden costs. Imported goods were expensive, and she found herself paying more for certain comforts she was used to in the UK. Even though some things were cheaper, she had to adjust her expectations.
You may be surprised to see that your money will go further when living in Spain compared to the United Kingdom.
Price comparisons
Here’s a table comparing the cost of living for certain commodities in California (Los Angeles), London, and Madrid:
| Commodity | California (Los Angeles) | London | Madrid |
| Housing rental costs (1-bed apartment) | $2,600 (city centre) | £2,300 / $2,800 (city centre) | €1,000 / $1,070 (city centre) |
| $1,800 (outside centre) | £1,500 / $1,820 (outside centre) | €700 / $750 (outside centre) | |
| Groceries (Monthly for 1 person) | $350 – $400 | £250 – £300 / $300 – $360 | €180 – €250 / $190 – $270 |
| Dining Out (3-course meal for 2) | $70 – $100 | £60 / $72 | €45 / $48 |
| Fast Food Meal | $9 – $10 | £7 / $8.50 | €8 / $8.50 |
| Utilities (Monthly, 85m² apt) | $170 – $200 | £150 – £200 / $180 – $240 | €120 – €180 / $130 – $190 |
| Public Transport (Monthly Pass) | $100 – $120 | £150 / $180 | €55 / $58 |
| Public Transport (Single Ticket) | $1.75 | £2.80 / $3.50 | €1.50 / $1.60 |
| Healthcare (Private Insurance) | $300 – $600 (monthly) | £100 – £150 / $120 – $180 (monthly) | €60 – €100 / $65 – $110 (monthly) |
| Healthcare (Annual Deductible) | $1,000 – $2,000 | £500 – £1,000 / $600 – $1,200 | €300 – €800 / $320 – $850 |
This comparison shows how these cities differ regarding housing, food, utilities, transport, and healthcare costs.
Spain vs UK: Food Costs
Food costs can vary significantly in both countries depending on where you live. Fresh produce at markets in Spain can be very affordable, especially in rural areas. However, in big cities like Madrid or Barcelona, you may pay almost the same as in London. Eating out in Spain is often cheaper but adds up quickly if you do it frequently.
Healthcare: A Surprising Difference
One massive benefit of Spain’s healthcare system is its free and high-quality public healthcare, which means there are fewer out-of-pocket costs. While the NHS is free in the UK, waiting times can be long, and private healthcare is expensive. This can be a significant factor for expats, particularly if they have any medical needs. Take your time when researching which health insurance is right for you and your family.
Housing Costs: Cheaper, But Be Careful
Housing is generally cheaper in Spain compared to the UK. But, as with Sam’s experience, this isn’t always guaranteed. In cities like Madrid or Barcelona, rent can rival major UK cities. On the other hand, rural or smaller towns in Spain offer far more affordable options, where you can find a flat for much less than you’d pay in the UK. But be cautious: lower rent might mean lower quality or less infrastructure.
Utilities and Transportation
Utilities in Spain can surprise newcomers. While rent is often lower, electricity and water bills are higher. Spain’s climate, though sunny, means you might need air conditioning in summer and heating in winter, driving up costs. Although energy prices are rising in the UK, some homes are better insulated from the cold. Public transportation in Spain is generally cheaper than in the UK, especially in big cities where the metro is affordable and efficient.
If you are looking to buy a property in Spain you need to be aware of the average house prices and whether or not it is worth buying a Spanish house
Tax matters
Not only have you got to think about the cost of living in another country, but you should also pay attention to the amount of tax you will pay and the UK/Spanish tax treaty, the US/Spanish tax treaty.
Frequently Asked Questions (FAQs)
- Is food cheaper in Spain compared to the UK?
Food can be cheaper in Spain, especially if you shop at local markets for fresh produce. However, in cities, prices can be closer to those in the UK, especially for imported goods. - How much cheaper is housing in Spain vs the UK?
On average, housing is cheaper in Spain, depending on location. Central Madrid or Barcelona can be as pricey as London, while rural areas are significantly more affordable. - Is healthcare in Spain free?
Yes, public healthcare in Spain is free and of high quality. Expats benefit from this, which can significantly reduce the overall cost of living. - Are utilities more expensive in Spain?
Yes, utilities, especially electricity, can be more expensive in Spain compared to the UK. You might need air conditioning and extra heating, depending on the season. - Can I save money moving from the UK to Spain?
It’s possible, but it depends on your lifestyle and location. Some things are cheaper, but hidden costs can quickly add up if you’re not careful. Always research thoroughly before making the move.