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What are the cheapest cities in Spain?

What’s on this page?

  1. Which part of Spain is cheaper to live in?
  2. The cheapest real estate
  3. Food, drinks, restaurants
  4. The cheapest places to stay
  5. Transport
  6. Car rental
  7. How profitable is the purchase of housing in Spain

Having made the decision to move to Spain, and having assessed your financial situation, you may be interested in what are the cheapest places to live in Spain.

In our review, we will try to analyze the situation and recommend you the cheapest cities in Spain, and perhaps you will consider, for example, the cheapest place to live in Spain by the sea.

Which part of Spain is cheaper to live in?

Statistics show that in general life in Spain is 8% cheaper than in any other developed country in Europe and America. Only the cost of communication services is on average 12% higher than in other countries.

According to the Numbeo indexes, a website that evaluates the cost of living around the world compared to the basic index of 100, cost of living in New York, we can see that Spain is in 46th place out of 137 countries studied.

City in Spain

The main indexes of Spain as of 2022 look like this:

  • cost of living index - 53.88
  • rent index - 21.25
  • cost of living index including rent - 38.58
  • food index - 45.69
  • price index in restaurants - 53.96
  • local purchasing power index - 70.04

The food index shows the average level of food prices in Spain compared to food prices in New York. In this example, these prices are 54.31% lower than in New York.

Price index in restaurants - the ratio of prices for food and drinks in restaurants in Spain compared to similar prices in New York is 46.04% lower.

Local purchasing power index - the ratio of purchasing power to the average salary in the city. With an index value of 70, Spanish residents, on average, can buy 30% less goods and services than New Yorkers with their average salary.

Numbeo has also ranked major Spanish cities by cost of living in 2022. This is what the five cities look like, where the cost of living is the lowest in comparison with New York:

  • Santa Cruz de Tenerife - 50.65
  • Alicante - 51.21
  • Murcia - 51.32
  • Malaga - 51.65
  • Granada - 51.75

Santa Cruz de Tenerife city in Spain

The largest cities in Spain simply cannot be the cheapest, as they are cultural and tourist centers where a large number of people from all over the world come together. For example, Valencia, which is the third largest city in Spain with over 800,000 inhabitants, is considered much cheaper than Madrid and Barcelona. However, we can hardly call Valencia a cheap city. If for a fairly comfortable stay in the capital you need from € 3200, then in Valencia - more than € 2300.

The cheapest places to live in Spain are located in the center of the country, in the rural outback. According to experts, in 2022 the cheapest city in Spain is Palencia, the capital of the province of the same name, which is located in the north and in the center of Castile and Leon. About half of the population of the province lives in the city. There are settlements around the city with the number of inhabitants not more than 200 people. The cost of living in the city of Palencia is 30% below the national average.

However, this does not mean that the income of the inhabitants of Palencia is lower than in other regions. In 2022, the average annual income here was € 23,654, i.e. almost € 2000 per month.

The ten cheapest cities also include Melilla, Lugo, Logroño, Teruel, Cáceres, Zamora, Avila, Soria and León.

The cheapest real estate

The next important subject of analysis is the acquisition or rental of real estate. Given the high level of supply and demand in this market, as well as intense competition between homeowners and specialized agencies, prices in this segment of the Spanish economy vary significantly depending on the quality of the property and its location.

Real estate in Spain

You definitely should not look for the cheapest place in Spain to rent or buy property in the capital, major cities or popular coastal resorts. If renting an apartment with one bedroom on average costs € 600, then in Madrid or Barcelona you will have to pay € 900 for similar apartments. Therefore, once again, you should consider the Spanish province - the cheapest part of Spain to buy property.

Town The cost of renting a property, €/sq. m Real estate purchase price, €/sq. m
Ourense (Province of Galicia) 5.9 1038
Ciudad Real (Castilla-la-Mancha) 6 1018
Zamora (Samora) 6 1043
Lugo (Galicia) 6.1 1050
Caceres (Extremadura) 6.2 1075

When deciding to buy real estate, you should take into account the taxation system when conducting such transactions. The Spanish property tax IBI is a local tax, the rates of which differ from region to region. The ranking of cities with the lowest IBI is as follows:

  • San Sebastian - € 147
  • Bilbao - € 153
  • Victoria - € 258
  • Pamplona - € 314
  • Santander - € 328

Food, drinks, restaurants

An important factor when evaluating the cheapest places in Spain is the cost of the grocery set. The country is famous for its high quality products, which are largely grown by local agricultural producers.

This applies to vegetables and fruits, meat and fish products, and wines. Food prices in almost all regions of Spain are generally a pleasant surprise for Europeans and residents of the American continent.

Restaurant in Spain

Referring to the Numbeo indices, you can see for yourself the cheapest cities to buy products:

City Index Numbeo Note
Santa Cruz de Tenerife 42.17 Grocery group
Alicante 42.39  
Vigo 42.75  
Malaga 43.07 Grocery group
Murcia 43.3 Grocery group

Spain is a country where locals will always prefer eating at a restaurant or bar to buying groceries and cooking in their own kitchen. The culture of eating among the Spaniards is inextricably linked with the contemplation of the surrounding world, unhurried communication with friends over a glass of local wine or beer. The average national cost of a menu del dia (a hearty complex lunch) in a local restaurant is from € 10, and the cost of a three-course dinner for two people is about € 40.

Of course, the range of prices for restaurant services is quite wide, in every locality you can find both inexpensive bars and chic gourmet restaurants with high prices. According to some studies, prices in restaurants in Madrid, Barcelona and Bilbao are 40% lower than in New York, and prices in Seville are considered to be among the lowest - 56% lower than American prices.

The cheapest places to stay

Many are interested in Spain as a place where you can improve your health and relax. Indeed, the Spanish climate, with 300 days of sunshine a year, and beautiful sea or mountain scenery, place Spain higher among other European countries. Therefore, you would want to know the cheapest place to stay in Spain.

So, the following places are considered the cheapest seaside resorts in Spain:

  • Lloret de Mar (Costa Brava)
  • Calella (Catalonia)
  • Pineda de Mar (Catalonia)
  • Tossa de Mar (Girona)
  • Mallorca (Balearic Islands)

Calella city in Spain

Prices in hotels of such resorts are quite reasonable:

Resort Hotel price, euro/day
3* 4* 5*
Lloret de Mar 70 80 185
Calella 70 100 -
Pineda de Mar 75 104 -
Tossa de Mar 70 115 -
Majorca 60 75 155

The prices for Mallorca hotels are quite low because it is an island, and the possibilities of tourists here are somewhat limited, especially in moving around the country. Therefore, the number of tourists is much smaller than in other resort areas.

Lloret de Mar is a resort for young people. Here you can combine beach holidays, various sports and vibrant nightlife.

Calella is located 50 km from Barcelona and is very attractive because you can enjoy the advantages of a quiet resort town, the opportunity to see the sights of Barcelona as well as low prices.

Tossa de Mar is a quiet town located at some distance from Barcelona which does not have a direct transport connection with it. Hotels here are famous for their high level of service at reasonable prices.

Pineda de Mar is located near Calella, very attractive for families with children and pensioners. Here, unlike in other resorts, there is no nightlife, and the entry into the sea from the sandy beach is rather gentle.

According to vacationers living in a two-star hotel Pineda de Mar, the conditions and level of service in it correspond to a four-star Turkish hotel. Prices at a local restaurant are the following:

  • Paella with seafood - € 9
  • Shrimps - € 16
  • Fish with vegetables - € 4.5
  • French fries - € 2
  • A glass of sangria - € 1.5

Food market in Spain

Fruit prices:

Cherries - € 1.2
Peaches - € 1
Grapes – € 0.9

Tickets to Barcelona (round trip for two) - € 22.

Transport

Spain is a country with a developed transport system. In all cities, public transport functions well here, and communication between cities is well established. The regions of Spain differ only in the cost of travel for various types of transport.

Urban transport in Spain

The lowest city bus fares are registered in the following cities:

  • Logroño - € 0.53
  • Avila - € 0.55
  • Salamanca - € 0.59
  • Palencia, Santiago de Compostella, Vitoria, Segovia - € 0.6

Car rental

The car rental service in Spain today is very popular and relatively inexpensive. Of course, it all depends on the brand and condition of the car. When renting, be sure to pay attention to the mileage counter, the level of gasoline and oil, the completeness of spare parts, accessories and documents.

Car rental in Spain

The cost of car rental also depends on the region. Naturally, in places with the largest number of tourists, rental prices will be higher. If Granada is considered the most expensive place to rent a car, then the cheapest car rentals in Spain can be found in these cities:

Town Car rental price, €/7 days
Tudela 39.16
Alcorcon 46.54
Lugo 48.54
Talavera 49.78
Palencia 49.84

How profitable is the purchase of housing - the pros and cons of such a decision

Purchasing a home in Spain today is much more profitable than in other European countries, since Spanish property prices are much lower. By purchasing a residential or commercial property, you can choose to live there, organize your business without having to rent a place for it and thereby significantly save money. In addition, you can rent out your own property and earn income.

House by the sea in Spain

At the same time, the acquisition of real estate comes with rather great expenses, even if housing is purchased in a region with relatively low prices. If you buy an apartment at a low price, then there may be problems with living conditions, since the premises may require significant improvements, even a major repair. Therefore, when choosing a property, the best solution would be to see it with your own eyes in order to predict possible additional expenses.

When buying a home, it is important to realistically evaluate all potential expenses such as: utilities, transport, food, children's education, leisure activities, travel and entertainment, etc. If everything is calculated correctly in advance, then the acquisition of housing will bring only positive emotions.

FAQ

Where is the cheapest place to go in Spain?

The cheapest places in Spain are small towns located in the hinterland of the country. Although, on the coast you can also find places with a relatively inexpensive cost of living, such as Santa Cruz de Tenerife, Alicante, Murcia.

What is the cheapest coastal town in Spain?

The cheapest town today is Lloret de Mar (Costa Brava, Catalonia region).

Is it possible to live cheaply in Spain?

Yes, it is. Living in Spain is generally cheaper than in other European and North American countries. In Spain, there are a large number of places where the cost of living is below the average. So, the cheapest city in Spain is Palencia, the capital of the province of the same name. The cost of living in this city is 30% below the national average.

What is the best part of Spain to live in?

It depends on your preferences and financial resources. In every part of Spain, you can find a place that fully suits your needs and your budget. The Spanish province boasts the cheapest cost of living.

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