The cost of living is relatively low in Spain compared to other western European countries, meaning expats can enjoy a high quality of life without breaking the bank.
New Zealand is quite expensive unlike most countries, it tends to fluctuate depending on whether living in an urban or rural area. The cost of living also varies depending on which of New Zealand's islands a person lives on, since the South Island is cheaper than the North Island. Auckland and Wellington ranked 89th and 114th respectively in the 2019 Mercer Cost of Living Survey. This makes them more expensive to live in than cities like Doha and Montreal, but cheaper than Hong Kong and Seattle.
The cost of living in Spain: an overview
Spain is a very popular destination for expats, especially those moving from Britain. Its location on the sultry Mediterranean Sea, laid-back culture and low living costs have an appeal that is difficult to resist for those moving to sunnier climes.
Standard of life in Spain
Spain’s performance on the OECD’s better life index – which measures standards of living – is mixed. Although the country ranks above average for work-life balance, housing, health, community and safety, wages are low by European standards.
Cost of housing in Spain
There are significant differences in the cost of property throughout Spain. Properties in Madrid, Barcelona and most other coastal cities are comparatively more expensive than rural areas and less popular cities.
If you are looking to rent property in Spain, you should expect to pay an average of some NZD 20-30 per square metre per month in Madrid and NZD 25-40 in Barcelona, although which area of the city you choose greatly affects the price you will pay.
In Sevilla, Valencia and other coastal cities, rents are somewhat cheaper.
If you are buying Spanish property, the average property price per square metre in Barcelona is around NZD $8000 (NZD $400,000 for a 50 square metre apartment). Larger family homes in more exclusive areas of both cities can cost as much as NZD $1,000,000.
Expats living near the Spanish coast should expect to pay slightly higher prices than other cities in Spain, although there are some exceptions.
The cheapest areas to live in Spain are Estremadura, Aragon, Navarre and Castile-La Mancha. The most expensive places to live in Spain are the Balearic Islands – Ibiza, Mallorca and Menorca – where average luxury house prices top NZD $2,000,000.
Cost of utilities and communications in Spain
Some Spanish utilities are reasonably priced compared with EU countries, however, the cost of electricity and natural gas in Spain is among the highest in the European Union.
Average electricity bills range between NZD $100–200 per month in the summer depending on air-conditioning, but can jump to more than NZD $170 in winter with heating systems. However, the mild climate often keeps electricity costs in check, although in some regions temperatures can fall below zero in winter. For more information, read our guide on how to reduce energy costs in Spain.
The cost of broadband is comparable to other countries in western Europe and typically comes in packages with telephone, television, and mobile in Spain.
A basic package will start at NZD $40 a month for a 12-month contract. You can read more about getting a phone, internet and television in Spain in our guide on mobile networks in Spain.
Cost of public transport in Spain
There are extensive public transport services in Spanish cities, which include buses, metros and taxis at affordable prices. Spain also has an efficient high-speed train network.
Single fares on a bus are between NZD $2-4 depending on the distance you are travelling. If you are planning to commute to work, you can invest in a monthly travel pass to access buses and the metro at a discounted cost.
People over 60 are entitled to a tarjeta dorada (golden card), which costs NZD $10 for the year and gives you 25–40% discounts on fares depending on the time of day and type of transport.
The cost of taxi fares change dramatically from one city to the next, and the larger cities are not necessarily more expensive than the smaller ones.
Before catching a taxi in Spain, you can find out the cost of your journey beforehand by using an online taxi fare calculator or via services such as Uber or Cabify, which have limited services in some cities.
Cost of food in Spain
The supermarkets in Spain offer excellent value for money. Staple foods such as milk, bread and eggs are all under a euro and the choice of cheap wines, beers and cheese are unbelievably low.
Eating out needn’t be too expensive either. You can find nice restaurants in Madrid and Barcelona serving traditional Spanish food for decent prices. Expect to pay around NZD $15-25 per person in an inexpensive restaurant and around NZD $60 per person in somewhere more upmarket.
It is also a custom in some Spanish regions to offer free or low-priced Spanish tapas with your drink. If you know which Spanish bars to go to, you can eat while you drink for next to nothing.
Cost of education in Spain
State schools in Spain are paid by taxpayers. Providing you are registered as a Spanish resident with your local town hall, foreigners can send their children to a Spanish school with no tuition fees, excluding books and small donations.
Lessons are conducted in Spanish, and in Barcelona and Valencia some classes are conducted in the local dialect. Read more in our guides to education in Spain and choosing a school in Spain.
If you prefer to send your children to a bilingual or private school in Spain, fees vary widely depending on the city and reputation of the school. Some schools, however, are partially subsidised and cost aroundNZD $1,500 a year.
There are also plenty of international schools in Spain, with fees ranging from NZD $7,000 per year. International schools follow the same curriculum models found in the US, UK, France and several other countries.
If you’re looking to study in Spain, the affordable cost of living makes the country a good location for university students. The average tuition fees for a bachelor’s degree at a public university ranges from NZD $1000 a year.
If you prefer to attend a private university, tuition fees are substantially higher.
Cost of healthcare in Spain
If you are registered as a resident and have a Spanish social security number, you will be entitled to access certain Spanish healthcare services free of charge. For some treatments you will have to pay a contribution, so check this with the region you live in as the healthcare systems differ from one region to the next.
If you want to ensure you are fully covered for a wide range of medical treatments or zero payment, you will need to consider private health insurance in Spain. Basic packages start around NZD $50 a month for young people between the ages of 20 and 30. The cost goes up with age, and most private companies won’t insure anybody over a certain age if deemed too risky.
Cost of childcare in Spain
The compulsory school age in Spain is six years old, so working parents with young children may need to arrange childcare in Spain with nurseries, pre-schools or independent childminders.
State-sponsored pre-schools are free of charge and accommodate children from the ages of three to five years old. The alternative is a state nursery which typically costs around NZD $450 a month including meals. To take advantage of the state system you have to be registered as a resident with a social security number.
Private nurseries and daycare centres are naturally more expensive. The typical cost in a daycare centre in Madrid, for example, is around €450–€500 per month.
For children up to the age of three, you can also consider hiring a nanny or au pair.
