Cost of Living in Spain vs UK

Thinking about relocating to Spain? You’re not alone!

For those feeling the pressure of rising costs in the UK, Spain provides a sunny alternative with a lower cost of living that attracts expats seeking a more affordable, balanced lifestyle.

Whether you’re planning to retire or aiming to improve your work-life balance, the financial advantages of moving to Spain are hard to overlook.

From more affordable housing and healthcare to the attractive Mediterranean climate and vibrant cultural scene, Spain offers a chance to enhance your quality of life without overstretching your budget.

One of the main attractions is the significant difference in housing costs, with property prices being much more reasonable than in the UK.

Everyday expenses, such as groceries, utilities, and transport, are also considerably lower, allowing your money to go further.

Beyond the financial savings, Spain boasts a laid-back lifestyle, bustling expat communities, and the opportunity to enjoy outdoor living throughout the year.

For many, these lifestyle improvements make the transition even more rewarding.

So, whether you’re drawn by the lower cost of living or the appeal of year-round sunshine, Spain could be the ideal destination for those looking to escape the stresses of life in the UK.

In this article, we’ll explore the key differences when it comes to the cost of living in Spain vs UK, helping you see exactly how much you could save by making the move!

Comparing Salary Averages

There are some major differences between thee countries when it comes to salary averages.

Knowing what you are likely to earn will help you better understand how you can support yourself and your family if you decide to relocate to Spain.

In 2024, salary differences between the UK and Spain remain significant due to various economic factors, including GDP, labour markets, and cost of living.

To give you the full picture we have created a comparison of average salaries across both countries:

United Kingdom

The annual average wage in the UK in 2024 is around £33,000 (approximately €38,000), with significant variations depending on the region and industry.

London tends to offer the highest wages, with average salaries often exceeding £40,000 due to the high cost of living and the concentration of jobs in high-paying sectors like finance and technology.

As of 2024, the UK’s minimum wage is £10.42 per hour for those aged 23 and over, which amounts to around £21,700 per year for full-time workers.

Spain

In contrast, the average annual salary in Spain is significantly lower, standing at approximately €28,000 (around £24,000).

Salaries in large cities like Madrid and Barcelona are higher than in other parts of the country but still tend to be below UK levels.

In Madrid, the average salary hovers around €35,000, whereas in smaller towns or rural areas, it can drop to around €20,000 to €25,000.

Spain’s minimum wage in 2024 is €1,260 per month, which equates to around €15,120 per year, a lower figure than the UK’s.

Industry-Driven Salary Comparisons

Salaries in certain industries may be rather different in Spain.

Drilling down further in salary difference between the two countries, here we take a look at the rate of pay you may expect to achieve in the UK versus Spain across several industry sectors:

Finance and Banking

In the UK, finance professionals can earn well above the national average, particularly in London where many businesses operate.

Salaries in this sector can range from £50,000 to over £100,000 per year, depending on experience.

In Spain, finance sector salaries are considerably lower, with professionals earning between €30,000 to €60,000.

Technology

The UK has a growing tech sector, with average salaries for software engineers and IT professionals sitting between £45,000 to £75,000.

In Spain, wages for similar positions are again lower, ranging between €30,000 to €50,000.

Healthcare

Salaries for healthcare professionals, such as doctors and nurses, are also higher in the UK.

For example, doctors can earn between £60,000 to £100,000 depending on specialisation, while in Spain, their salaries range from €40,000 to €70,000.

In summary, while salaries are generally higher in the UK, the cost of living, particularly in cities like London, is also significantly higher.

In Spain, despite lower wages, the overall cost of living—especially for housing, utilities, and food—makes it possible to live comfortably on a lower income, especially in less urbanised areas.

These salary comparisons reflect the trade-off many expats and workers consider when deciding between the two countries: higher earnings potential in the UK versus a lower cost of living and a more relaxed lifestyle in Spain.

Armed with this useful information, you can more accurately predict whether your finances will afford you a good standard of living in Spain.

Paying Spanish Taxes

Understanding how the local tax system works is crucial when living in Spain – a good understanding will give you the full picture when it comes to living expenses.

Whether you’re a retiree, an expat, or working remotely, staying compliant with Spanish tax laws will help you avoid legal issues and plan your finances more effectively.

Taxes in Spain are far from straightforward, with obligations operating on national, regional, and local levels.

While the UK’s tax structure is relatively simpler, with clearly defined income brackets, Spain’s system offers more complexity, particularly with varying tax rates depending on the region.

In Spain, taxes are generally divided into national taxes like income tax, VAT, and corporate tax, while regions can adjust rates and set additional rules.

Your total tax burden may vary significantly based on where you live within the country.

For further details on the Spanish tax system, visit resources like the Spanish Tax Agency or consult a qualified tax advisor.

Tax Bracket Comparison: UK vs Spain

While the UK and Spain each have progressive tax systems, the structure and rates vary.

In the UK, the 2023/2024 tax bands are as follows:

• 0% for earnings up to £12,570 (personal allowance)
• 20% for income between £12,571 and £50,270 (basic rate)
• 40% for income between £50,271 and £150,000 (higher rate)
• 45% for earnings above £150,000 (additional rate)

The system in Spain is more layered, with tax rates depending on national and regional rates.

For 2024, the Spanish income tax rates are as follows:

• Up to €12,450: 19%
• €12,451 to €20,200: 24%
• €20,201 to €35,200: 30%
• €35,201 to €60,000: 37%
• €60,001 to €300,000: 45%
• Over €300,000: 47%

What is the main takeaway from this?

You will find the taxation system in Spain is intricate, and it’s critical to calculate your tax liability based on national and regional factors.

For a deeper dive into Spain’s regional tax variances and how they might affect your situation, check out the Spanish Ministry of Finance.

By preparing in advance and understanding how taxation works when living in Spain, you can ensure a smooth financial transition and avoid any unpleasant surprises.

Comparing Property Prices: Where Can You Find a Better Deal?

Property prices tend to be lower in Spain.

Another of the most important factors when considering a move to Spain is the cost of buying a home.

Purchasing property is often the largest financial decision you’ll make, so comparing home prices in Spain with those in the UK can give you a clearer picture of what to expect.

While Spain offers its share of luxury properties, with multi-million-pound homes in exclusive areas like Marbella or Ibiza, most homes are much more affordable, making the country a popular choice for expats.

One of the key differences between Spain and the UK is the space that comes with properties.

In Spain, homes often boast large outdoor areas and private or shared pools and are designed with outdoor living in mind; a major perk considering the country’s sunny climate for much of the year.

According to the UK Land Registry, the average home price in the UK in 2024 is currently £289,723 as of recent data.

In comparison, the average cost to buy a home in Spain is €249,400 (£209,105), representing a significant saving.

Depending on where you look, you might even find a spacious four-bedroom villa with a pool for under £160,000, a deal that’s hard to come by in the UK.

Location plays a significant role in pricing as well.

Coastal areas like Costa del Sol or Barcelona can be more expensive, while properties further inland, in regions like Andalusia or Extremadura, offer more affordable options without sacrificing quality of life.

You may be new to the Spanish property market.

In this case, for a full explanation of the buying process, visit the Spanish Property Insight webpage.

Regardless of where you choose to live in Sunny Spain, buying property there is almost guaranteed to be more affordable than in the UK.

Renting in Spain vs the UK: Which Offers Better Value?

Renting is a great choice for getting a taste of life in Spain and will likely be cheaper than in the UK.

When you’re new to life in Spain, renting a home is often the best starting point.

But what can you expect when renting a property here?

Spain’s rental market saw some important changes in 2023, including tenant protections and updates to rental caps.

Before you embark on your rental search, ensure that you familiarise yourself with these changes.

Check out the DREAMproperty.es website, which provides comprehensive insights into the latest legal updates for tenants.

Not only are rental costs generally more affordable in Spain than in the UK, but they also allow you to “test drive” different areas before committing to a property purchase.

Whether you’re searching for a bustling city life in Madrid or a peaceful retreat on the outskirts of Valencia, Spain offers a range of rental options to suit your lifestyle and budget.

In Spain, rental prices are typically much lower than in the UK, especially outside the major metropolitan areas.

For example, a one-bedroom apartment in the city centre of a Spanish city costs approximately £758 per month, while the same in the UK would cost around £1,081 per month.

If you’re looking for something in the suburbs, the differences are equally striking: renting a one-bedroom apartment outside a Spanish city will cost around £617, whereas in the UK, you’re looking at about £846.

For families, the savings are even more noticeable.

A centrally located three-bedroom apartment in Spain costs about £1,237 per month, compared to £1,900 in the UK. On the outskirts, the difference remains, with Spanish rentals costing around £937, while similar properties in the UK average £1,426

In conclusion, when comparing the cost of living in Spain to the UK, it’s clear that Spain offers more affordable rental options across the board, particularly outside major cities.

Renting in Spain is a great way to experience the local lifestyle while managing your housing costs.

Utility Bills in Spain vs the UK

One of the most noticeable financial differences in Spain comes with utility costs.

For several years, energy prices in the UK have been significantly higher than the EU average, and this gap only grew larger following the COVID-19 pandemic and the economic impact of the war in Ukraine.

While the UK’s energy prices have recently been reduced slightly, the overall costs remain very high compared to Spain.

One of Spain’s biggest perks is the reduced need for heating, especially in the southern regions, where there are mild winters.

This alone can drastically cut your energy bills.

However, you’ll still need to account for other utilities such as water, electricity, and waste services.

Additionally, during Spain’s hot summer months, air conditioning becomes a necessity, especially at night, which can increase electricity usage.

To offer a clearer comparison, the average monthly utility cost in Spain for a one-bedroom apartment is around £121.

In contrast, in the UK, the same utilities would set you back about £245 per month, double the cost.

These stats are from Numbeo, an extremely helpful tool that allows you to directly compare different costs of living across the globe.

For those planning to live in Spain, the lower utility costs provide a significant financial benefit, especially compared to the higher bills in the UK.

The Cost of Driving in Spain vs UK

There are a few areas where Spain is cheaper, including lower petrol prices.

Whether you’re in Spain or the UK, owning and maintaining a car is never cheap.

However, there are some significant differences between the two countries when it comes to costs.

Understanding these cost variances will help you budget more effectively if you’re planning to drive in Spain.

One area where the Spanish have the advantage is fuel prices.

As of 2024, fuel in the UK costs between £1.70 and £1.90 per litre, while in Spain, you can expect to pay a more wallet-friendly £1.30 to £1.60 per litre.

It may not seem like much, but this difference adds up quickly, especially for those who commute or frequently travel by car.

Spain and the UK also have mandatory vehicle inspections, but key differences exist that have an impact on price.

In Spain, vehicles over four years old must pass the ITV inspection (similar to the UK’s MOT) every two years, and annually after ten years.

The cost of an ITV ranges from £20 to £30. By comparison, in the UK, the MOT is required annually for cars over three years old, with a maximum price of £54.85, though many garages offer lower rates​.

Car servicing costs are another point of comparison.

In the UK, a full service for a small car will cost around £170, while a larger vehicle could cost as much as £395.

Spain’s service costs are generally lower, though they vary depending on the region and type of service needed.

Overall, Spain tends to be cheaper than the UK regarding running and maintaining a car, mainly due to lower fuel prices and slightly reduced maintenance costs.

For more detailed insights on vehicle inspections in Spain, visit the ITV Spain website (Technical Inspection of Vehicles) or consult the UK government’s MOT guide.

Comparing the Cost of Travelling by Bus

Spain’s network of buses provide residents with a cheap way to get around.

Spain offers significant advantages regarding public transport, particularly if you’re mindful of your budget.

While the UK’s public transport system is widely used and fairly comprehensive in its coverage, it has a much steeper price tag.

In contrast, Spain’s bus services provide an efficient and budget-friendly way to navigate cities and towns.

According to Numbeo, the cost difference is striking:

• A single bus fare in Spain is just £1.29, while the UK equivalent costs almost double at £2.50.
• A monthly bus pass in Spain typically costs £33, whereas, in the UK, you’ll likely pay around £78.

This stark contrast makes a compelling case for Spain, especially for those who rely on public transport for their daily commute.

Whether you’re zipping around Madrid or taking a bus along the Costa del Sol, you’ll notice that transportation costs are much less burdensome than in many parts of the UK.

In addition to the lower prices, Spanish cities often feature modern, clean, and reliable bus networks, making it easy for residents and visitors alike to get around without breaking the bank.

This is just another reason why living in Spain is not only culturally enriching but also more affordable than in the UK.

UK vs Spanish Rail Networks

Train travel costs in Spain will be a welcome sight for UK residents who are accustomed to eyewatering prices.

The Spanish have an impressive rail system, another point of appeal!

Spain has made major strides in its rail infrastructure, particularly with the introduction of its high-speed AVE trains.

These sleek, modern trains can reach up to 300 km/h (186 mph), connecting major cities like Madrid, Barcelona, and Seville in record time.

One of the key benefits of living in Spain and using its rail system is affordability.

The state-run Renfe operates the railway network. Fares are more regulated, and the company focuses on keeping them accessible for passengers.

Booking tickets in advance can unlock further discounts, making it possible to travel long distances at a fraction of the cost you’d expect in other European countries.

In contrast, the UK’s rail network is operated by multiple private companies, each managing different regions.

This fragmented system has led to varying service standards and fare structures, often making train travel in the UK expensive and inconsistent.

While there are deals to be found, UK residents often face higher prices, especially for long-distance journeys.

Although direct comparisons can be difficult due to different booking systems and regional services, it’s generally accepted that Spain offers more cost-effective rail travel, particularly on its high-speed routes.

Whether you’re commuting between cities or exploring Spain’s diverse regions, the affordability and efficiency of its trains make getting around a pleasure.

A Taste of Savings: Comparing Food Prices in Spain vs. the UK

Grocery costs are typically lower in Spain than in the UK.

Moving to Spain can also offer some welcome relief on your grocery bills, especially when it comes to daily essentials.

Food prices in Spain are generally lower than in the UK, and various factors contribute to this difference.

Whether shopping for fresh produce, staples, or a good bottle of wine, understanding why these price disparities exist can help you appreciate the savings.

One major factor is location and local supply.

Spain, blessed with a warm climate and fertile land, is a major producer of fruits, vegetables, and olive oil.

This means that many food items are locally sourced, reducing transportation costs and making them cheaper.

In contrast, the UK relies more heavily on imports due to its cooler climate, leading to higher prices for similar items.

Seasonality plays another key role.

In Spain, buying fruits and vegetables when they are in season is much more affordable because these products don’t need to be imported or stored for long periods.

In the UK, out-of-season produce often has to be brought in from other countries, which naturally increases the cost.

Take a look at the Numbeo website to compare the cost of groceries between the two countries.

• 1 litre of milk: Spain €0.87 (73p) – UK £1.25
• 500g loaf of white bread: Spain €1.07 (90p) – UK £1.23
• Dozen medium-sized eggs: Spain €2.12 (£1.78) – UK £2.94
• 1kg of potatoes: Spain €1.53 (£1.29) – UK £1.14
• Mid-range bottle of wine: Spain €5.00 (£4.21) – UK £8.50
• Cigarettes (pack of 20): Spain €5.40 (£4.55) – UK £14.00

These numbers highlight the overall affordability of food and everyday items in Spain compared to the UK.

The savings add up over time, particularly for those settling into living in Spain in the long term.

Spain’s food landscape is diverse and budget-friendly, from local markets brimming with fresh produce to affordable supermarket options.

Is Living in Spain More Affordable Than in the UK?

When comparing the overall cost of living in Spain to the UK, it’s clear that Spain tends to offer a more affordable lifestyle.

From housing to groceries, everyday expenses are generally lower, making it an appealing destination for expats.

Of course, cultural and lifestyle differences between the two countries play a big role in the decision to move, and the choice ultimately comes down to your personal circumstances and preferences.

That said, Spain’s sunny climate, lower cost of living, and relaxed lifestyle continue to attract many UK residents each year despite the added complications of Brexit.

Living in Spain can significantly boost your quality of life at a more reasonable cost compared to the UK, whether it’s for retirement, a new job, or a change of pace.

If you’re ready to move, don’t hesitate to contact a trusted removal service like White & Company to help make your transition as positive an experience as possible.

Ready to Move to Spain? Here’s How to Get Your Belongings There Safely

Once you’ve weighed the pros and cons of living in Spain and decided to join the nearly 300,000 Brits who already call Spain home, the next crucial step is ensuring that your personal belongings make the journey safely.

Moving abroad is a big undertaking, and that’s why it’s often best to leave it to the professionals.

When relocating to Spain, having a trusted and experienced removal company on your side can make all the difference.

White & Company has built a solid reputation in the removal industry for offering reliable, affordable, and professional services.

As a member of the British Association of Removers (BAR), OMNI, and FIDI, they adhere to strict standards, ensuring your move is in safe hands.

These affiliations provide additional peace of mind that your belongings will be handled carefully throughout the moving process.

Whether you need a no-obligation home survey or just want a quick quote, White & Company offers various ways to get in touch, including an online chat feature, a quote form, or simply a phone call.

Max Peterson

Max is a seasoned writer and blogger in the real estate and home moving sectors, as well as a knowledgeable source of information for expatriates living and working abroad. His detailed insights have helped thousands of people move and live abroad with greater simplicity and ease.