Cost of Living in Spain vs. UK – A 2025 Expat Guide

Moving to Spain is a dream for many UK expats, but how does the cost of living compare between the two countries? While Spain is known for its affordable lifestyle, lower property prices, and cheaper groceries, some costs—such as electricity or imported goods—can be more expensive than in the UK.

At 247 Expat Insurance, we help expats settle in Spain by providing comprehensive health, home, car, and travel insurance. This guide breaks down the cost of living in Spain vs. the UK, so you know what to expect before making the move.

Overall Cost of Living – Is Spain Cheaper Than the UK?

• Yes, in most cases, Spain is cheaper than the UK, particularly for housing, food, and transportation.
• However, utility bills, electronics, and international brands can be more expensive in Spain.
• The cost of living varies by region—major cities like Madrid and Barcelona are pricier than smaller towns.

On average, an expat’s monthly expenses in Spain can be 30-40% lower than in the UK.

Rent, groceries, and transport are significantly cheaper in Spain, but the price difference depends on your lifestyle and location.

You’re absolutely right! The table should compare similar-sized cities in the UK and Spain for a more accurate comparison. Below is the corrected housing price comparison, with London vs. Madrid, Birmingham vs. Barcelona, Manchester vs. Valencia, and Leeds vs. Alicante to better reflect equivalent city sizes and property markets.

H2: Housing & Rent – Spain vs. UK

✔ Spain offers lower rent and property prices compared to the UK, especially outside major cities.

✔ Owning property is more affordable in Spain, with lower purchase costs and reduced property taxes.

✔ Council tax (IBI in Spain) is significantly lower than UK council tax.

H3: Property Price Comparison (2025) – UK vs. Spain

Madrid is significantly cheaper than London, while Barcelona and Birmingham are fairly similar. Smaller cities like Alicante and Valencia offer much lower property prices compared to their UK counterparts.

Housing & Rent – Spain vs. UK

• Rent in Spain is generally cheaper than in the UK, especially outside the major cities.
• City-centre rents in Madrid and Barcelona are lower than in London but comparable to Birmingham or Manchester.
• Smaller cities and coastal areas like Alicante and Valencia are significantly cheaper than similar UK towns.

Rental Price Comparison (2025) – UK vs. Spain

Living in Madrid is much cheaper than London, while Barcelona is similar to Birmingham. Cities like Valencia and Alicante offer significant savings for expats compared to Manchester or Leeds.

Food & Grocery Prices – Is Spain Cheaper?

• Fresh food is generally more affordable in Spain, especially for meat, dairy, and seasonal produce.
• Imported goods and UK brands are more expensive, especially at specialty stores.
• Dining out is much cheaper in Spain compared to the UK.

Grocery Price Comparison – UK vs. Spain (2025)

Key takeaway: Basic food shopping in Spain is 20-30% cheaper than in the UK, but imported goods can be expensive.

Healthcare – UK vs. Spain

• Spain has one of the best healthcare systems in the world, with both public and private options.
• Private health insurance in Spain is much cheaper than in the UK, making it a great option for expats.
• Unlike the NHS in the UK, Spain’s public healthcare system requires contributions or private coverage for non-residents.

247 Expat Insurance provides affordable health insurance for expats in Spain, meeting residency and visa requirements.

Transport & Fuel Prices

• Public transport is much cheaper in Spain, especially in major cities.
• Petrol and diesel prices are similar between the UK and Spain.
• Many expats find buying a car in Spain more affordable, but road tax and insurance costs vary.

For car owners, 247 Expat Insurance offers comprehensive and third party car insurance for expats in Spain.

Utilities & Bills – What’s More Expensive?

• Electricity costs in Spain have risen in recent years but are still cheaper than in the UK.
• Internet and mobile phone contracts cost about the same in both countries.

Air conditioning use in Spain during the summer can increase electricity bills significantly.

Final Verdict – Which Country Is More Affordable?

💡Spain is generally more affordable than the UK, particularly for housing, food, and transport, but imported goods and some services can be pricier.

How 247 Expat Insurance Can Help Expats in Spain

Moving to Spain? 247 Expat Insurance provides:

• Health insurance – Private medical cover meeting visa requirements.
• Home insurance – Protect your property in Spain.
• Car insurance – Full coverage for expat drivers.
• Travel insurance – Protection for UK-Spain trips.

Get a free quote today!

Disclaimer

The cost of living varies by region and is subject to inflation. Prices in this article are for reference only and may change over time. Always research up-to-date costs before making financial decisions.