Deborah Cater
Spain continues to attract residents and expats with its warm climate, relaxed culture, and relatively affordable lifestyle. However, 2025 brings notable changes in the cost of living, influenced by inflation, tax adjustments, and shifts in housing and utility expenses.
The cost of living in Spain has increased in recent years, yet it remains more affordable for many expats from the north of Europe, Canada and the USA than in the countries of origin.
According to Numebo, the estimated monthly costs for a family of four in May 2025, excluding rent, is €2,538.30. For a single person, again excluding rent, the cost is estimated at €716.90 per month. This puts the cost of living in Spain, on average, at 27.8% lower than the USA. Rent, on average, offers an even more significant saving in Spain compared to the USA, coming in 45% lower.
For Brits looking to move abroad, the cost of living crisis is a major factor. A Currencies Direct report shows 39% of Brits considering making the move are doing so because of the crisis in the UK. And of those thinking about moving, 22.8% have Spain in their sights as their new home.
We look at the key costs when living in Spain.
Housing
Housing costs are on an upward trajectory in 2025. Average rents for one-bedroom apartments range from €600 to €1,500 per month, depending on location. Major cities like Madrid and Barcelona see higher averages, with rents around €1,370 and €1,293 respectively. The average comes in at around €917 per month. The same size property outside of a city centre is on average €718 per month, ranging from €450 to €1,060.
Property prices per square metre also vary, with Madrid at €6,565 and Barcelona at €5,562. On average, a city centre apartment in Spain will cost €3,659 per square metre.
To address escalating rents, a new rent-control index effective from January 1, 2025, aims to limit rental price increases for contracts signed after May 26, 2023.
Utilities and Energy
Utility expenses are expected to rise due to policy changes. The reinstatement of a 21% VAT on electricity bills and a 40% increase in system charges could result in an additional €72 per year for households consuming 250 kWh monthly.
Average monthly utility bills, including water, gas, and electricity, now range between €80 and €213.
Food and Essentials
The cost of groceries is affected by the return of standard VAT rates. Basic food items like bread, milk, eggs, and vegetables now carry a 4% VAT, up from the reduced rates in previous years.
Pasta and seed oils have returned to a 10% VAT, while olive oil remains at a reduced 4% due to its classification as a basic necessity. The price of olive oil also fluctuates due to weather conditions affecting harvests. In 2023/24, the price of EVOO rocketed due to drought. However, the price returned to a more stable €3.80 to €5 for conventional EVOO in March 2025.
Meat has increased in price in the big supermarkets, with chicken fillets around €7 per kilo. Vegetable prices have also increased in supermarkets. However, the wide-spread occurrence of local markets does mean vegetables can be purchased at a much lower price, than the average cost of €2.22 per kilo for tomatoes and €1.65 fir a kilo of onions.
Transportation
Public transportation remains relatively affordable, with government subsidies extended through June 2025. Free train season tickets for Cercanías and Media Distancia services continue, and a new bonus scheme includes a single Cercanías ticket for €20 per month, with free transport for children under 15.
The average cost for a monthly pass is €30 in Spain, with a one-way ticket averaging €1.50 on public transport.
However, car drivers face increased costs, with tolls on motorways managed by SEITT rising by 2% for vehicles without electronic payment devices. Fuel prices are averaging around €1.55 per litre, with diesel cheaper than petrol by around €0.10 per litre.
Healthcare
Spain’s public healthcare system offers nearly universal coverage for residents and workers. In 2025, the average monthly healthcare expenditure is projected at €64 per person.
Many opt for additional private health insurance for enhanced services, with basic packages starting around €30–€50 per month for younger adults.
Telecommunications
Major telecommunications providers, including Movistar, Orange, and Vodafone, have announced price increases in 2025. Some packages will see monthly rates rise by up to €6. However, low-cost providers like O2, Lowi, Pepephone, Simyo, and Digi have not announced similar hikes.
The average monthly rental plan with calls and 10GB+ of data ranges from €10 to €30 per month.
Eating Out
This is where expats from northern Europe and the USA will really notice the difference. The menu del día remains a popular dining option, with three courses coming in at an average of €11. A three-course meal for two at a mid-range restaurant ranges from €35 to €80.
A coffee ranges from e1.20 to €3.50, depending on your location, whilst half a litre of Spanish beer averages €3. Of course, a caña can be as cheap as €1 in local bars.
Overall Monthly Expenses
Considering these factors, the recommended monthly budget for living in a city centre in Spain in 2025 is at least €1,600 per person or €3,600 for a family of four. This accounts for housing, utilities, food, healthcare, transportation, and other essentials.
Considering the average gross salary is expected to be €31,600 per year in 2025, which equates to €1,703 net per month, this would make it just about affordable. Whilst this is below the EU average of €36,000, the lower cost of living in Spain narrows the gap.
However, for expat retirees purchasing their own home, the lower cost of living is a great incentive for the move abroad.