Cost of living in Spain vs USA: your 2025 guide
Spain is home to a large number of expats, some of whom come for a temporary stay, while others decide to make this country their permanent residence. Many choose to live in Barcelona, which is quite expensive, but the city could offer a good opportunity to invest in property. Continue reading to understand what you can expect in terms of living costs in the most popular Spanish cities.
Has moving to Spain crossed your mind? Imagine living in a country with delicious food, warm weather year-round, and one of the highest life expectancies in the world. Tempting, isn’t it? But what does it mean in terms of budgeting?
We've put together this guide to give you a clear picture of the cost of living in Spain compared to the USA.
In addition to general expenses, we'll discuss property prices and provide a method for comparing mortgage offers from top Spanish banks. Because yes, as a US citizen, you are eligible for a Spanish mortgage.
Cost of living in Spain compared to the US
Generally, prices are more affordable in Spain compared to most US cities. Consumer prices, including rent, are 38.4% lower in Spain than in the US.
When it comes to housing prices, the cost per m² for an apartment can be up to 15% lower in Spain. However, it's important to note that the average monthly net salary in the US is up to 59% higher.
You might find the chart below helpful, as it compares some basic costs in USD across different cities in Spain.
The currency in Spain
The official currency in Spain is the euro, also known as EUR or €.
To understand the exact value of your money in euros, 1000 USD is equivalent to 968 EUR, meaning that 1 USD equals 0.9689 EUR when writing this article.
What are the general living expenses in Spain?
Barcelona ranks among the most expensive cities to live in Spain. Its popularity draws numerous tourists, digital nomads, and expats, and rents here are higher than in Madrid, Spain’s capital.
As you might expect, life in a smaller city generally comes with a lower cost of living, along with its perks and drawbacks. While you may miss out on the vibrant lifestyle of larger cities, opting for a coastal village can offer stunning beach views and direct access to the sea.
Here’s a brief overview of monthly costs to help you understand whether living in Spain is expensive:
What about healthcare costs in Spain?
Spain has a healthcare system that is ranked among the best in the world. This enhances the country's living standards and attracts even more people interested in retiring in Spain.
Funded by social security payments, the public healthcare system is largely free, with eligibility extended to all tax-paying workers.
However, private health insurance offers quicker access to services and multilingual options. Costs vary but typically range from 112 to 224 USD per month, depending on age, gender, and pre-existing conditions.
It’s important to note that you’ll need private health insurance coverage for all long-stay residence visas and residence permits, including the Digital Nomad Visa.
How expensive is housing and accommodation in Spain?
Rental prices are higher in densely populated cities such as Barcelona or Madrid.
Opting to rent can often be the quicker, more straightforward path. However, buying a property in Spain is a financial commitment that promises long-term rewards, including equity growth and a sense of permanent stability.
Here are some average monthly rent prices in Barcelona, Madrid, Malaga and Alicante:
Spain's average rent per m² is 14.04€, marking an increase of 11.25% compared to December 2023. For a 100 m² property, the monthly rent would be 1404€.
The average mortgage has a 3.27% interest rate over 25 years, with loans averaging 143,400€. The estimated monthly payment is approximately 700.33€.
As you can see, the estimated monthly mortgage payment is lower than the monthly rent for a 100 m² property, which might make purchasing a more appealing option when relocating.
Continue reading more insights on renting versus buying a property in Spain, before deciding what aligns best with your plans.
Is buying a property in Spain a good investment?
Yes, buying a property in Spain can be a good investment.
The strong demand from foreigners and Spain's appealing lifestyle and stable rental market make it an attractive option for residential and rental purposes.
Spain is well-connected by international airports that accommodate transcontinental and low-cost flights, and its lifestyle is very appealing to US citizens. The healthcare system is excellent, the food is delicious, and you can enjoy abundant sunshine and warm weather. There are also professional opportunities available if you seek them.
Is buying with a mortgage a better investment?
Purchasing a property with a mortgage is often a better investment than paying rent to a landlord each month.
A mortgage can significantly increase the return on your initial investment. For example, if you purchase a property for 250,000 EUR with a mortgage of 175,000 EUR and a deposit of 75,000 EUR, a 10% increase in the property's value (25,000 EUR) would result in a 33.33% return on your initial investment.
To secure competitive mortgage offers in the Spanish market, consider using Homevest. This digital platform simplifies the application process by connecting applicants with multiple banks competing head-to-head, ensuring you receive the best mortgage deals.
Compare mortgage offers with Homevest directly from the US
There’s no ‘one size fits all’ secret to finding the perfect mortgage. Some prefer a fixed rate for stability over the years, while others, more risk-averse, opt for a variable rate.
The first step to understanding which mortgage is a good fit for you is to assess your financial situation—then, you can work together to make the most of your mortgage.
How do you do this?
Homevest can save you time by sourcing offers from top Spanish banks that match your profile. Remember, it's not just about lower interest rates; fees and additional products should also be considered.
You can quickly estimate a budget to know how much you could borrow from a Spanish lender. If you’re eligible, and once you upload your mortgage documents, Homevest will prepare your file and send it to the banks best suited to your financial profile.
Every application is evaluated on a case-by-case basis, so if you’re ready to explore your options, learn everything you need to know about getting a mortgage in Spain, including requirements and interest rates for non-resident buyers.
The cost of living in Spain is more affordable than in many US cities.
Many cities are popular destinations for permanent moves or for spending a year or two exploring somewhere new.
Make the most of your Spanish experience and enjoy the sunny weather!
Sources used and checked in January 2025:
- Cost of living US vs. Spain
- US dollars to Euros Exchange Rate
- Cost of living in Madrid
- Cost of living in Barcelona
- Cost of living in Malaga
- Cost of living in Alicante
- Health insurance in Spain
- Housing prices in Spain
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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