People usually come for the sangria, beaches, paella, and flamenco—but they stay for the affordable cost of living. After moving to Spain in 2016, I’ve realized just how inexpensive the country is, especially compared to other Western European countries. Whether you’re a student, an established professional, or a retiree, Spain has a lot to offer on a budget.
At Remitly, we’re here to help you make informed financial decisions. When you’re considering an international move, the cost of living in your new home is one of the most important factors to understand. In this article, we’ll break down all the common expenses you’ll encounter in Spain, from rental costs to metro tickets.
Housing costs in Spain
The housing market in Spain is a huge point of debate, especially among locals. With an influx of expats and the popularization of short-term vacation rentals for tourists, the cost of real estate has gone up in recent years. However, with enough patience and a little know-how, finding a place to call home that fits your budget is completely possible.
Rental costs
Spain offers a variety of rental options at a range of prices. It’s common for students and young professionals to rent a bedroom in a shared flat—one of the most budget-friendly options. Of course, it is also possible to rent an entire apartment directly from the landlord or through rental agencies called inmobiliarias.
Here are the average rental prices for one-bedroom apartments in Spain’s biggest cities
- Madrid: €1,500
- Barcelona: €1,200
- Valencia: €1,300
- Bilbao: €750
- Granada: €600
As you can see, the rent varies and depends on factors such as location, type of apartment, and amenities. In general, the big cities in Spain are more expensive than rural areas, where you can rent an apartment for around €400 per month. To explore some actual properties that are currently available for rent, check out Idealista, which is the go-to platform for finding housing in Spain.
Additional rental expenses and utilities
When I moved to Madrid, I lived in apartments that were contracted by rental agencies. As an American, I was prepared to put down the first and last month’s rent at the contract signing. I was shocked to learn that there was an additional cost associated with apartments managed by rental agencies: a non-refundable agency fee valued at one month’s rent plus 21% tax.
A new law in 2023 was introduced to ensure that this agency fee is paid by the landlord. In practice, it is still common for agencies and landlords to request this fee from tenants, especially if they are unfamiliar with the change in law. Be sure to discuss this with both the agent and the landlord, if possible, before signing any contracts through a rental agency.
When examining your rental agreement, be sure to check whether the utilities, or gastos, are included in the monthly rent. If not, you can expect to pay about €10-25 for water, €30-50 for WiFI, and €30-70 for electricity per month. These costs are lessened if you’re splitting bills between flatmates.
Purchasing a home
If you’re planning to stay in Spain long term, you might consider purchasing a property. This typically requires a NIE (non-resident identification number) or DNI (Spanish identification number), a Spanish bank account, and a notary process to register the property. Remember that you’ll have to cover property transfer tax or VAT, notary fees, and legal fees in addition to the cost of the home.
Transportation costs
Spain has an extensive and affordable public transport system, which ranges from city buses and metros to long-distance, high-speed trains. Flights are also generally very affordable for traveling from one city to another, or to nearby countries. Prices depend on many factors, but generally, buying tickets in advance saves money.
If you’re looking for savings and have a flexible schedule, ride-sharing platforms like Amovens or BlaBlaCar offer a very convenient travel alternative. Search for your route and get in touch with locals traveling the same path—you might even get a chance to practice your Spanish and make new friends!
Car ownership
If you want a little more freedom of movement or you are planning to settle in an area of Spain that isn’t as well-connected, owning a car is a great option. In addition to the cost of purchasing the car, you’ll be responsible for road tax, insurance, vehicle inspection, fuel and maintenance, along with potential parking permits.
In urban areas, you’ll likely have to pay for a parking spot. Sometimes, parking spots are associated with apartments, and are included in or can be added to your monthly rental contract. Gas costs about €1.45 per liter as of May 2025.
Alternate modes of transport
Taxis and rideshare apps are popular in Spain. Uber, Bolt, and FreeNow are commonly used apps to order a car. Many popular cities also offer a fixed-rate price from the city center to the airport. For example, in Madrid, you can hail a taxi in the city center and ride to the airport for €35 .
Many big cities offer government-sponsored bike shares. Private motorized scooter rentals are becoming less popular due to recent legislation that prioritizes pedestrian safety.
Food and dining expenses
Eating and drinking in the neighborhood bars and cafes is an integral part of the Spanish cultural experience. As a Spanish resident, I frequent my local restaurants and cafes almost every day, even if it’s just for a coffee or a beer.
Dining out
I’m able to dine out so often because it’s so affordable. Here’s a breakdown of typical prices:
- Tapas bars: Typically family-owned, you can spot a no-frills tapas bar by its fluorescent lighting, visible selection of food behind the bar, and a gambling machine tucked into a quiet corner. In these establishments, you can get a caña (small beer) or coffee for less than €2 and a snack or tapa for less than €5 .
- Mid-range restaurants
If you’re looking for a slightly fancier option, plenty of mid-range restaurants are available all over Spain. These are a mix of family-owned places and chain restaurants, ranging from fast-casual to a more formal sit-down restaurant with white tablecloths. You can expect to pay €10-30 per person for food, plus a little more if you intend to have drinks or dessert.
- High-end restaurants
In Spain’s urban centers and dotted throughout the country, you’ll find gastronomic powerhouses that are either pushing the boundaries of cuisine or perfecting the traditional dishes. In these places, you can expect to pay €50 per person or more.
Groceries and eating in
Groceries are relatively cheap in Spain compared to many other European countries. Whether you shop at big chains like Mercadona and Carrefour or support your local corner store, the average monthly spending on food and drink is €180 , according to Spanish national statistics. This will be higher if you regularly buy prepared meals or imported specialties.
Healthcare expenses
As an American, I feel that one of the most affordable aspects of living in Spain is the healthcare. If you’re working and living in the country legally, you’ll have access to a fantastic public system where your essential medical expenses are covered. Plus, there are affordable private insurance options that give you access to potentially quicker services (depending on the situation) and things that aren’t covered by the public system, like dental care.
Private insurance
As you apply for a Spanish visa and transition into your life in Spain, you’ll have to contact private health insurance coverage. This must be maintained until you register for the public healthcare system, and cost on average €30-50 per month.
Lifestyle and entertainment costs
Good news: optional expenses in Spain are affordable as well, keeping the overall cost of living in the country relatively low.
Gym, cinema, and cultural events
If you’re looking to get a gym membership in Spain, you’ll have the option of a private gym, like BasicFit, or government-sponsored gyms called polideportivos. You can expect to pay about €30 per month for access to a gym. Alternatively, you can often access polideportivos on a one-time basis for around €5 .
A movie ticket in Spain is about €10 , but keep an eye out for discount days when you can snag a ticket for about €5 . Keep in mind that it’s common for movies and TV shows to be dubbed in Spanish. If you’re looking to watch a movie in its original language, look for movies in “VOSE.”
If you’re looking to attend cultural events in Spain, why not attend some local fiestas? Each city and town has its own festival, usually linked with a specific Catholic saint’s feast day. For example, Madrid’s city festivals are in the spring and coincide with the feast day of San Isidro. Note that these are not normally focused on religious aspects. Instead, they center around local culture and have special foods, drinks, dances, and music—usually all offered for free.
Tuition fees at private schools
If you’re moving to Spain with your children and looking to pursue private education for them, keep in mind that the tuition will vary based on the type of school and its curriculum. In urban centers, like Madrid, private school tuition can be around €10,000 per year for elementary school students and €25,000 per year for high school students. Keep an open mind and tour different schools to see what they offer and how much they cost.
Conclusion
Overall, Spain is one of the most affordable Western European countries to call home. Although day-to-day costs are rising, expenses remain accessible, especially if you’re willing to research and find the best options for your budget.
FAQs
What is the most common way to make payments in Spain?
Contactless card payments have become the norm in the big cities of Spain. That being said, it’s always a good idea to have some cash on hand. Some places of business don’t allow small payments to be completed by card. Additionally, smaller businesses might be cash-only, especially if they are in villages or rural areas.
Will restaurants split the bill?
Usually, yes. Just let them know that you’d like to pay separado. However, it’s usually up to your table to divide up the items and figure out the total each person will pay.
Does Spain have a tipping culture?
Tips are not expected or mandatory in Spain. Unlike in the US, employees in the service sector, like waiters and waitresses, are paid a full salary with benefits and are not living off tips. As a result, leaving a tip in Spain is generally based on having had an outstanding experience—and it will be much appreciated by the receiver.