Managing expenses effectively is a key part of life, especially when you're adapting to a new place. Whether you're an expat settling into Spain, a local small business owner, or a finance professional consulting others, understanding the typical costs of living here is essential. This guide offers an overview of average living expenses in Spain to help you plan and manage your budget with ease. 

Average costs of living in Spain (excluding rent) 

Summary

To spare some of the details. The average cost of living in Spain while excluding rent is €720 euro per month for a single person, or €2.550 for a family of four.  These costs include groceries, transportation, utilities, and miscellaneous expenses. However, these costs can vary greatly depending on the region or city you are living in. In general, larger cities like Madrid and Barcelona tend to have higher living expenses compared to smaller towns or rural areas.

Groceries 

For most households in Spain, groceries are a significant yet manageable cost. While prices may differ slightly depending on the city or supermarket, you can expect to spend an average of €200–€300 per month per person. Major supermarkets such as Mercadona, Carrefour, or Lidl offer competitive prices, with the following being examples of staple costs:

• A loaf of bread (500g): €1,30 

• A litre of milk: €1,05

• A dozen eggs: €2,60 

• 1kg of chicken breast: €7,25 

• 1kg of cheese: €12,20

• Fresh fruits (Dependent on the fruit): €1,75-€2,50

• 1kg of potatoes: €1,55

• 1kg of onions: €1,65

• Bottle of wine: €5,00

Spain's local markets are also a great place to find affordable and fresh produce. If you're located near coastal areas you can often find excellent seafood options at reasonable prices.

Utilities 

The cost of utilities in Spain, including electricity, water, heating, and garbage collection averages €100–€150 per month for a medium-sized apartment. However, these costs can vary depending on the provider and season. Electricity prices tend to spike in the summer due to air conditioning use. 

Looking for more specifics? We've created an in-depth guide to managing utilities in Spain to help you make more informed choices.

Insurance 

Private health insurance starts at around €30 per month for basic coverage and can go up to €100 for more comprehensive plans. On average people spend €512 annually on private health insurance. Although Spain’s public system remains free for residents.

Car insurance is mandatory, with third-party liability policies typically costing between €150 and €300 per year. Comprehensive coverage starts at around €400 annually and varies depending on your car, location, and driving history.

Home insurance isn’t required by law but is highly recommended. Standard multi-risk policies usually range from €300 to €600 per year. In cities like Madrid and Barcelona, premiums can be slightly higher. From anywhere between €400 and €800, while in regions like Andalusia, you might pay closer to €300 and €500.

Transportation 

Spain has an excellent public transportation system, making it easier to get around without a car. Here’s a breakdown of daily and monthly costs:

• Metro or bus ticket (one-way): €1.50–€2,50

• Monthly public transportation pass (depending on city): €20–€40 

If driving, petrol costs approximately €1.50–€1.80 per litre, and car maintenance, tolls, and parking fees should also be factored in.

Dining and entertainment 

Dining out in Spain can be quite affordable, but lifestyle choices matter. You can grab a menu del día (set lunch) for around €10–€15 in many restaurants. A mid-range three-course dinner for two will typically cost around €50, while a coffee or soft drink at a café is usually €1.50–€2.50. 

For entertainment, cinemas charge around €8–€10 per ticket, and gym memberships tend to range between €30–€50 per month. For night owls, expect prices like €3–€6 per beer and €8–€12 for cocktails at bars or clubs.

Rent costs in Spain 

Rent is one of the highest expenses in Spain and it can vary greatly depending on the city you're in. Madrid and Barcelona tend to have the highest rents, while smaller cities like Valencia, Seville, or Bilbao are more affordable. 

Here’s a quick overview of average rental prices:

• 1-bedroom flat in the city centre: €700–€1,200 

• 1-bedroom flat outside the centre: €500–€900 

• 3-bedroom flat in the city centre: €1,200–€2,500 

• 3-bedroom flat outside the centre: €800–€1,500 

For a deeper look into rental options and city-specific tips, check out our in-depth guide to housing in Spain.

 Essential tips for expense management in Spain 

• Shop smart for groceries: Stick to discount supermarkets or buy in bulk for items like rice, pasta, or cleaning supplies. Visit local markets for fresh produce to save money. 

• Use public transport: Monthly transit passes offer great value especially in cities with comprehensive metro and bus systems. If you’re outside urban centres consider carpooling apps to save on commuting costs. 

• Maximise insurance savings: Compare quotes from multiple providers for health, property, or car insurance to ensure you're getting the best deal. 

Managing your expenses efficiently will allow you to enjoy everything Spain has to offer, from its vibrant dining culture to its rich entertainment scene.

Conclusion

Understanding the cost of living in Spain is not as difficult as it might seem at first glance. With a little bit of planning and know-how you can seriously lower your monthly expenses. Make sure to shop smartly and keep an eye on your other expenses. Soon enough you’ll be enjoying Spain’s rich culture, cuisine and breathtaking scenery on the back of a well managed budget!