Can I afford to live comfortably in Spain?
Live Comfortably in Spain
A Deep Dive into the Costs
The question, “Can I afford to live comfortably in Spain?”, is complex and requires a detailed examination of various factors. Let’s break it down:
LOCATION
The cost of living in Spain varies dramatically depending on where you choose to live. Major cities like Madrid and Barcelona are significantly more expensive than smaller towns and villages in rural areas. Coastal regions, especially popular tourist destinations, also command higher prices. Consider:
- Major Cities (Madrid, Barcelona, Valencia, Seville, etc.): Expect higher rent, higher grocery costs, and more expensive entertainment. You’ll likely require a higher income to maintain a comfortable lifestyle.
- Smaller Cities and Towns: Generally more affordable, offering a lower cost of living across the board. This is appealing to those seeking a quieter life and a lower budget.
- Rural Areas: The most affordable option, but often requiring a car for transportation and potentially offering fewer amenities.
ACCOMMODATION
Rent and property prices have seen significant increases in recent years, particularly in popular areas. Your housing budget will be a major determinant of your overall affordability. Consider:
- Rent: Rent in major cities can be surprisingly high, especially for apartments in central locations. Expect to pay a significant portion of your income on rent.
- Buying Property: While potentially a good long-term investment, purchasing property requires a substantial upfront cost and ongoing expenses like property taxes and maintenance.
- Type of Accommodation: Apartments tend to be more common and generally more affordable than houses. Consider your needs and desired lifestyle when choosing.
DAILY EXPENSES
These add up quickly. Consider:
- Groceries: The cost of groceries can vary but tends to be lower than in many other European countries and significantly lower than in the US or UK. However, eating out regularly can quickly increase expenses.
- Transportation: Public transport is generally reliable and affordable in cities, but cars can be necessary in rural areas. Factor in costs like gas, parking, and potentially car insurance.
- Utilities: Electricity, water, and gas bills vary depending on your consumption and location. Expect to pay around €100-€200 per month for a typical apartment.
- Healthcare: Spain has a public healthcare system, but private healthcare is also available. While public healthcare is generally good, you might consider a supplementary private health insurance depending on your preferences.
- Entertainment: Going out for dinner, attending cultural events, and enjoying leisure activities can significantly impact your budget.
INCOME
Your income needs to comfortably cover all the above expenses while leaving you with sufficient funds for savings and unexpected costs.
LIFESTYLE
Your desired lifestyle significantly impacts affordability. A minimalist lifestyle will be far cheaper than a lavish one. Consider:
- Eating out: Regularly dining at restaurants can drastically increase your monthly budget.
- Travel: Domestic travel within Spain is relatively affordable, but international travel will increase expenses.
- Hobbies and leisure: Factor in the cost of pursuing your hobbies and interests.
TAXES
Spain has a progressive income tax system, meaning higher earners pay a higher percentage of their income in taxes.
Important recommendations:
1. Research specific locations: Look up the average rent, grocery costs, and other expenses in the areas you are considering.
2. Create a detailed budget: List all your expected monthly expenses and compare them to your estimated income.
3. Consider a buffer: Include a safety net in your budget for unexpected costs.
4. Factor in moving expenses: Moving to Spain will involve costs like flights, shipping belongings, and potentially visa fees.
SAMPLE DATA TABLE
Restaurants | Range | |
|---|---|---|
| Meal, Inexpensive Restaurant | 14.00 € | |
| Meal for 2 People, Mid-range Restaurant, Three-course | 50.00 € | |
| McMeal at McDonalds (or Equivalent Combo Meal) | 9.00 € | |
| Domestic Beer (0.5 liter draught) | 3.00 € | |
| Imported Beer (0.33 liter bottle) | 3.25 € | |
| Cappuccino (regular) | 1.99 € | |
| Coke/Pepsi (0.33 liter bottle) | 2.15 € | |
| Water (0.33 liter bottle) | 1.59 € | |
Markets | ||
| Milk (regular), (1 liter) | 1.04 € | |
| Loaf of Fresh White Bread (500g) | 1.32 € | |
| Rice (white), (1kg) | 1.40 € | |
| Eggs (regular) (12) | 2.56 € | |
| Local Cheese (1kg) | 12.09 € | |
| Chicken Fillets (1kg) | 7.25 € | |
| Beef Round (1kg) (or Equivalent Back Leg Red Meat) | 13.55 € | |
| Apples (1kg) | 2.08 € | |
| Banana (1kg) | 1.72 € | |
| Oranges (1kg) | 1.76 € | |
| Tomato (1kg) | 2.22 € | |
| Potato (1kg) | 1.53 € | |
| Onion (1kg) | 1.64 € | |
| Lettuce (1 head) | 1.12 € | |
| Water (1.5 liter bottle) | 0.66 € | |
| Bottle of Wine (Mid-Range) | 5.00 € | |
| Domestic Beer (0.5 liter bottle) | 1.09 € | |
| Imported Beer (0.33 liter bottle) | 1.79 € | |
| Cigarettes 20 Pack (Marlboro) | 5.50 € | |
Transportation | ||
| One-way Ticket (Local Transport) | 1.50 € | |
| Monthly Pass (Regular Price) | 30.00 € | |
| Taxi Start (Normal Tariff) | 3.60 € | |
| Taxi 1km (Normal Tariff) | 1.29 € | |
| Taxi 1hour Waiting (Normal Tariff) | 23.00 € | |
| Gasoline (1 liter) | 1.55 € | |
| Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car) | 33,365.00 € | |
| Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car) | 26,710.69 € | |
Utilities (Monthly) | ||
| Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment | 132.01 € | |
| Mobile Phone Monthly Plan with Calls and 10GB+ Data | 17.58 € | |
| Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) | 29.59 € | |
| Fitness Club, Monthly Fee for 1 Adult | 39.98 € | |
| Tennis Court Rent (1 Hour on Weekend) | 13.65 € | |
| Cinema, International Release, 1 Seat | 8.00 € | |
Childcare | ||
| Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child | 438.66 € | |
| International Primary School, Yearly for 1 Child | 8,464.62 € | |
Clothing And Shoes | ||
| 1 Pair of Jeans (Levis 501 Or Similar) | 74.27 € | |
| 1 Summer Dress in a Chain Store (Zara, H&M, …) | 31.31 € | |
| 1 Pair of Nike Running Shoes (Mid-Range) | 77.73 € | |
| 1 Pair of Men Leather Business Shoes | 90.66 € | |
Rent Per Month | ||
| Apartment (1 bedroom) in City Centre | 938.49 € | |
| Apartment (1 bedroom) Outside of Centre | 713.26 € | |
| Apartment (3 bedrooms) in City Centre | 1,468.15 € | |
| Apartment (3 bedrooms) Outside of Centre | 1,064.08 € | |
Buy Apartment Price | ||
| Price per Square Meter to Buy Apartment in City Centre | 3,648.75 € | |
| Price per Square Meter to Buy Apartment Outside of Centre | 2,284.56 € | |
Salaries And Financing | ||
| Average Monthly Net Salary (After Tax) | 1,704.98 € | |
| Mortgage Interest Rate in Percentages (%), Yearly, for 20 Years Fixed-Rate | 3.52 |
