As the world becomes more interconnected, thousands of individuals and families are considering relocation to either Spain or the United Kingdom. Both countries offer incredible opportunities, vibrant cultures, and distinct lifestyles — but one major factor that often determines the decision is the cost of living.
From housing and childcare to transportation, groceries, and taxes, understanding the financial differences between Spain and the UK is essential before making your move.
How Does the Cost of Living Compare Between Spain and the UK?
Overall, Spain is considerably more affordable than the UK, especially in key areas like housing, utilities, and day-to-day expenses. On average, renting a one-bedroom apartment in a city centre costs around £600 in Spain compared to £800 in the UK.
Property prices in Spain are also about 40% cheaper than in the United Kingdom, and utility bills are significantly lower. For instance, monthly utility costs average £100 in Spain versus £250 in the UK.
Average Monthly Expenses
| Category | Spain | United Kingdom |
|---|---|---|
| 1-Bedroom Apartment (City Centre) | £600 | £800 |
| 3-Bedroom Apartment (City Centre) | £1,100 | £1,300 |
| Utilities | £100 | £250 |
| Internet | £30 | £30 |
| Milk (1L) | £0.90 | £1.20 |
| Loaf of Bread | £1.10 | £1.20 |
| Fuel (per litre) | £1.45 | £1.59 |
These differences highlight why Spain continues to attract expats seeking a more affordable European lifestyle.
Why Are Housing Costs Lower in Spain?
When it comes to housing, Spain offers more value for money compared to the UK. Most households in Spain spend 25–35% of their income on housing, while in the UK, this figure ranges between 30–60%.
Factors Influencing Housing Prices
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Location: Major Spanish cities like Madrid or Barcelona remain cheaper than London. Rural areas in both countries offer even more savings.
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Property Type: Villas and coastal homes are costlier, while apartments remain budget-friendly.
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Market Trends: Energy efficiency rules, local demand, and economic conditions shape pricing.
Renting and Buying
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A two-bedroom apartment in central Madrid costs €1,200–€1,800 monthly, while similar accommodation in London can be almost double.
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Outside major cities, rent drops to €700–€900 near coastal areas such as Alicante.
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Buying property is also cheaper in Spain — £2,500 per m² in Madrid versus £4,400 in London.
Mortgage rates further increase Spain’s appeal, averaging 3.5% compared to 5.5% in the UK.
How Do Healthcare Costs Differ Between Spain and the UK?
Both Spain and the UK offer excellent healthcare systems, but they operate differently.
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Spain: Healthcare is taxpayer-funded and free at the point of service for residents. Expats can access public care by contributing to social security or choose private insurance, which costs €50–€150 per month.
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UK: The NHS provides universal healthcare free at the point of use, but long waiting times and funding issues are ongoing challenges. Private healthcare is available but more expensive than in Spain.
Overall, Spain offers faster access and lower private care costs, while the UK provides comprehensive public coverage.
Which Country Has Lower Utility Costs?
Spain clearly wins in this category.
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The average monthly utility bill for an 85m² apartment in Spain is £110, compared to £280 in the UK.
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Energy costs in Spain are about 54% lower, largely due to milder weather reducing heating needs.
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Internet services are 20% cheaper in Spain, with widespread 5G coverage.
Are Groceries and Food Cheaper in Spain?
Yes, grocery shopping in Spain is significantly cheaper than in the UK.
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Regular milk: £0.90 in Spain vs £1.20 in the UK
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Rice (1kg): £1.10 vs £1.60
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12 Eggs: £2.10 vs £3.00
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Wine (mid-range): £4.20 vs £8.00
On average, groceries in Spain are about 20% cheaper, especially for fresh produce and local items. Dining out is also far more affordable – a mid-range three-course meal for two costs £40 in Spain vs £60 in the UK.
How Do Lifestyle Costs Compare?
Spain’s warmer weather and outdoor culture make lifestyle expenses lighter. Gym memberships, cinema tickets, and clothing are generally cheaper than in the UK.
For example:
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Gym membership: €30–€50 in Spain vs £40–£60 in the UK
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Cinema ticket: €8–€10 in Spain vs £12–£15 in the UK
Meanwhile, the UK offers many free cultural and leisure activities, such as museums, public parks, and walking trails.
Are Transportation Costs Lower in Spain?
Yes, transportation is notably cheaper in Spain.
| Category | Spain | UK |
|---|---|---|
| Petrol (per litre) | £1.45 | £1.59 |
| One-way ticket (public transport) | £1.30 | £2.40 |
| Monthly pass | £25 | £70 |
| Taxi starting fare | £3.00 | £3.80 |
With cheaper fuel and public transport, commuting costs in Spain are around 40% lower on average.
How Do Education and Childcare Costs Compare?
Childcare is a major expense where Spain again proves more affordable.
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Private preschool: €450 (£390) in Spain vs £1,240 in the UK
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Nanny services: €10–€15/hour vs £12–£20/hour
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International school tuition: £7,600 in Spain vs £14,600 in the UK
Public education is free in both countries, and both offer government assistance schemes. However, the UK ranks higher overall in educational quality, while Spain offers better affordability for families.
What About Salaries and Taxes?
Average salaries in Spain are lower, around €27,000 annually, compared to £37,000 in the UK. However, the lower living costs in Spain help balance this gap.
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Spain’s income tax: 19–47% (depending on region and income level)
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UK tax: Progressive rates with additional National Insurance contributions
Spain also offers lower mortgage rates (3.5% vs 5.7%), reducing financial pressure for homeowners.
Considering Moving to Spain or the UK? Lawsentis Can Help
Relocating abroad requires more than just comparing costs, it involves immigration rules, tax planning, residency options, and lifestyle preparation.
Lawsentis offers expert legal and immigration guidance for individuals and families relocating to Spain, the UK, or other parts of Europe. Our experienced consultants provide personalised relocation advice, ensuring your move is smooth, compliant, and stress-free.
Contact Lawsentis today to discuss your relocation or visa options.
Start your journey with confidence – speak to our experts now.
Top 10 FAQs About the Cost of Living in Spain vs UK
1. Is it cheaper to live in Spain or the UK?
Yes, Spain is around 25–40% cheaper than the UK in most categories, including housing, utilities, groceries, and transportation.
2. What is the average monthly living cost in Spain?
A single person can live comfortably in Spain on £1,200–£1,500 per month, including rent and daily expenses.
3. Are healthcare services free in Spain like in the UK?
Spain’s public healthcare is free for residents contributing to social security, similar to the UK’s NHS system.
4. How much does rent cost in Spain compared to the UK?
Rent in Spain is 25–40% cheaper. A one-bedroom flat in the city costs about £600 in Spain and £800 in the UK.
5. Are taxes higher in Spain or the UK?
Tax rates are similar, but Spain offers regional tax benefits. Some areas, like Madrid, provide wealth tax exemptions.
6. What are grocery prices like in Spain?
Grocery items are roughly 20% cheaper, especially local produce, bread, and wine.
7. Is public transport better in Spain or the UK?
Spain has cheaper and efficient public transport options, with monthly passes costing nearly half of UK prices.
8. Are salaries lower in Spain?
Yes, salaries are lower, but the lower living expenses help offset this difference.
9. Is buying property cheaper in Spain?
Absolutely, property prices in Spain are about 40–50% lower per square metre than in the UK.
10. Is Spain a good country for expats?
Yes, Spain is one of Europe’s most popular expat destinations, offering an excellent quality of life, warm weather, and affordable living.