Is It Cheaper to Live in Spain or the UK?

Spain is outpacing many of its European counterparts in economic growth, with a projected growth rate of 1.7% for 2024, driven by strong domestic consumption and investment. The UK’s growth, while stable, is more modest, reflecting ongoing adjustments post-Brexit​. The cost of living also varies greatly; Spain generally offers a lower cost of living, making it an attractive destination for expats from the UK. Understanding the differences in the cost of living in Spain and the UK is essential when considering a move. This article will help determine if living in Spain is cheaper than living in the UK through comparisons between the most affordable region and how much is rent in Spain compared to the UK.

How Much Money Does a UK Citizen Need to Move to Spain?

Moving to Spain involves several upfront costs, including visa fees, transportation, and initial housing setup. Typically, these expenses range from €5,000 to €10,000. Visa applications, such as for the Non-Lucrative Visa, require proof of sufficient financial means, amounting to €2,400 per month for a single applicant and an additional €600 per month for each dependent​. The monthly cost of living in Spain is generally lower than in the UK. A single person can live comfortably on around £1,257 per month, while a family of four might need about £2,555. These figures cover rent, utilities, food, and transportation expenses. For example, renting a one-bedroom apartment in the city centre costs about €770 per month, while renting outside the city centre might cost around €540.

What is the Average Salary in Spain vs. the UK?

The average monthly salary in Spain is approximately €2,268, compared to around £2,800 in the UK. Despite lower wages, Spain’s reduced cost of living often balances this difference, allowing for a comfortable lifestyle on a lower income. This is particularly evident in lower essentials such as food, transportation, and healthcare costs.

What Region of Spain is the Cheapest to Live in?

Regions like Murcia, Extremadura, and Valencia are affordable, offering lower rents and living costs than major cities like Madrid and Barcelona. For example, renting a one-bedroom apartment in the city centre costs around €770 in Spain, compared to £1,200 in the UK. Suburban rents are also significantly lower, making Spain a more affordable option for renters.

Is income tax higher in the UK or Spain, and do UK residents pay taxes in Spain?

Income tax rates in Spain range from 19% to 47%, while in the UK, they range from 20% to 45%. Spain offers several tax benefits to foreign residents, potentially reducing the overall tax burden. Consulting a tax advisor is recommended to understand how these rates apply to your circumstances. Additionally, Spain has tax treaties with the UK to prevent double taxation, ensuring residents are not taxed twice on the same income. UK residents living in Spain for more than 183 days annually must pay taxes on their worldwide income. Fortunately, Spain and the UK have tax treaties to prevent double taxation, ensuring residents are not taxed twice on the same income. This arrangement helps maintain a fair tax system for expatriates living in Spain.

How Much is Rent in Spain Per Month Compared to the UK?

Housing costs in Spain vary widely depending on the location. Major cities like Madrid and Barcelona have higher rents, with a three-bedroom apartment in the city centre costing about €1,720 per month. Rental prices are significantly lower in more affordable regions like Murcia and Valencia. For instance, a similar apartment in these areas might cost about €1,264 per month​. With proper planning and an early visit, check the locations and make sure you’re making a good deal. If you can’t travel beforehand, it’s always good to check for groups online where city locals communicate; they usually make constant updates to share about the neighbourhood’s security, traffic conditions and infrastructure. This way, you can make a better choice regarding the locations and be aware of the environment to know what you can expect.

Real-life Experience: Can I Afford to Move to Spain?

Many find Spain affordable, with food prices, transportation, and healthcare costs. Essential expenses are generally lower, making living comfortably on a moderate budget. Food prices in Spain are lower than in the UK, with items such as milk, bread, and fresh produce significantly cheaper. For example, a British expat, Sarah, reported moving to Spain with her family in 2021. She found the cost of living much more reasonable, especially regarding housing and daily expenses. The hunting for a home led her to a three-bedroom house in Valencia—the costs were much better than she anticipated. The prices ranged from €700 to €900 monthly, cheaper than her previous rent in the UK. She adds that her joy was even bigger with the grocery prices and affordable public transportation, which allowed her family to enjoy a comfortable lifestyle without financial strain.

Additional Considerations

Healthcare and Immigration Policies: Spain’s healthcare system is accessible to residents who contribute to social security. Recent policy changes have made it easier for expats to access these services, ensuring quality medical care. Both public and private healthcare options are available, with public healthcare being free for residents who contribute to social security.

Government Initiatives and Tips: Spain offers tax benefits and subsidies to attract expats. Learning Spanish and engaging with local communities can significantly enhance the living experience, helping newcomers integrate and enjoy their new environment. Additionally, Spain’s relaxed lifestyle, pleasant climate, and vibrant culture make it an attractive destination for expatriates.

Moving to Spain: How We Can Help

So, we already know that the cost of living in Spain is usually lower than in the UK, which calls the expat community’s attention worldwide. Without proper planning and understanding of immigration requirements, papers can cost you a fair amount of money. It makes a huge difference between saving and extra expenses. Hiring professional assistance from experienced companies can help you plan your finances without delays or penalties for not complying with the rules. If you can facilitate this process, look for who understands the subject. At VanOne International Movers, we provide a comprehensive suite of removal services, including customs clearance and door-to-door delivery, ensuring your move is hassle-free. Contact us today for a free quote, and trust us to manage every aspect of your relocation effectively.