One of the biggest reasons retirees from the UK, USA, Germany, and the Netherlands choose Spain is its lower cost of living. Spain offers a high quality of life at a fraction of the cost of many Northern European countries.
Spain is ~24% cheaper than the UK
Spain is ~32% cheaper than the USA
Spain is ~26.5% cheaper than Germany
* While rent prices are higher in major Spanish cities, they still tend to be lower than in major US, UK and other significant European cities.
How Much Do You Need to Retire in Spain?
Most single retirees can live comfortably in Spain on €1,800 to €2,500 per month. Couples may need around €2,500 to €3,500, depending on lifestyle and location.
Here’s a rough monthly breakdown:
- Rent: €600–€1,200 depending on region (lower in inland towns, higher on the coast)
- Utilities: €100–€150 (electricity, water, gas, internet)
- Groceries: €250–€400 per couple
- Dining Out: €10–€15 for a set lunch (menu del día); dinner for two with wine from €30–€50
- Transport: €30–€60 if using public transport regularly
- Healthcare (private insurance): €100–€250 per month per person
Prices as of mid-2025, and obviously can vary, prices shown are averages.
Affordable Luxury
Your money goes further in Spain. For many, you could be:
- Living in a sea-view apartment instead of a small flat
- Eating out multiple times a week
- Spending more on travel and hobbies
Regional Differences
The cost of living varies by location:
- Most affordable regions: Murcia, Extremadura, Castilla-La Mancha
- Mid-range: Costa Blanca, Costa del Sol, Valencia
- Higher-end: Barcelona, Madrid, Mallorca
Living inland or in smaller towns can reduce costs significantly while still offering access to healthcare and amenities.