Cost of living
Is Spain still affordable? A closer look at the cost of living
Spain may be known for its sunshine and siestas, but is it still a cheap place to live? Deutsche Bank’s latest global rankings offer some answers — and a few surprises.
Spain has long enjoyed a reputation as one of Europe’s more affordable places to live, especially compared to pricier neighbours like France, the UK, or the Nordic countries. But according to Deutsche Bank’s Mapping the World’s Prices 2025, that reputation only partly holds up today.
Not cheap, but not expensive either
When it comes to overall cost of living — including everyday expenses like groceries, utilities, transport, and leisure — Spanish cities rank solidly in the middle of the global table. Madrid and Barcelona are noticeably more affordable than global heavyweights like London, New York, Singapore or Zurich, but they are no longer “cheap” in a world context.
For example, food, clothing, and services remain relatively affordable in Spain compared to Northern Europe, but imported goods, branded electronics, and petrol can be more expensive than people expect — largely due to high indirect taxes and weaker economies of scale.
Local salaries limit purchasing power
One reason Spanish cities don’t rank better for cost of living is that prices need to be seen in relation to income. And this is where Spain falls short. Local purchasing power — how far the average salary goes — is lower than in most Western European countries, particularly when rent and fixed costs are taken into account.
So while the prices themselves might look reasonable, Spaniards still feel the pinch because their pay packets don’t stretch as far. Cities like Zurich, Frankfurt, and even Dublin can feel more affordable day-to-day for locals, simply because incomes are much higher.
What’s still good value in Spain?
Despite this, Spain still offers excellent value in certain areas:
- Public transport is cheap, reliable, and widely available.
- Dining out is far more affordable than in Northern Europe or the US.
- Healthcare delivers strong outcomes for a fraction of the price seen in Anglo markets.
- Cultural life, from museums to festivals, remains accessible and often subsidised.
In short, life in Spain may not be globally cheap, but it’s still good value for money, especially for those earning international-level incomes or pensions.
The takeaway
The idea that Spain is a budget-friendly destination is only partly true in 2025. For foreigners arriving with strong currencies or higher salaries, it can still feel like a deal. But for locals, the cost of living bites harder than it once did — not because prices have soared, but because wages haven’t kept up.
If you measure a city by the price of a pint, a pack of smokes, and a Friday night out, Spain still holds its own — though not without a few surprises along the way.
Deutsche Bank’s Mapping the World’s Prices 2025 doesn’t just compare salaries, rents and mortgage costs — it also ranks cities by the cost of simple pleasures and guilty indulgences: beer, cigarettes, wine, cocktails, fast food, and cinema tickets.
So where do Spain’s big cities land in the global hedonism index? The short answer: cheaper than Paris or London, but not exactly a bargain anymore.
Beer and wine: still decent value
Let’s start with the classics. A draught beer in a standard bar in Madrid or Barcelona costs around €3–€3.50, while a bottle of table wine in the supermarket sets you back around €4. That’s far less than the €6–€8 pints seen in London, Amsterdam, or Zurich, and less than half what you’d pay for a bottle in a US or Nordic grocery store.
In fact, when it comes to wine, Spain ranks among the most affordable places in Europe, with a good bottle available for less than what you’d pay for a glass in many other capitals.
Cocktails: the new luxury
Fancy something stronger? Ordering a cocktail in a bar in Madrid or Barcelona now costs about €12, which might raise eyebrows. That’s still cheaper than New York or Singapore, where prices top €20 in many places, but it’s a reminder that going out for drinks is no longer the casual, low-cost affair it once was — especially in trendier areas.
Fast food and a film: not what it used to be
A Big Mac meal will now cost you close to €9, and two cinema tickets in Spain’s cities will run to €18–€20, placing Spain mid-table internationally. Cheaper than most of Western Europe, but far from the ultra-affordable days of the early 2000s.
Smoking: expensive and falling out of fashion
One of the biggest jumps in price comes in cigarettes, with a typical pack now around €5.50–€6 in Spain — still cheaper than in France or the UK (where prices now exceed €12), but rising steadily as taxation increases and smoking becomes more socially and politically marginalised.
The takeaway
Spain remains a relatively affordable place to enjoy life’s little pleasures — but the gap is narrowing.
- Wine is still a bargain.
- Beer is no longer shockingly cheap, but still reasonable.
- Cocktails and cinema? Less so.
- Cigarettes? Rising cost, falling popularity.
In short, Spain still delivers good value for fun, especially for foreign residents and tourists. But for locals on Spanish salaries, even fun is feeling a bit more expensive these days.
Author: 
Mark Stücklin
Posted on
If you measure a city by the price of a pint, a pack of smokes, and a Friday night out, Spain still holds its own — though not without a few surprises along the way.
Deutsche Bank’s Mapping the World’s Prices 2025 doesn’t just compare salaries, rents and mortgage costs — it also ranks cities by the cost of simple pleasures and guilty indulgences: beer, cigarettes, wine, cocktails, fast food, and cinema tickets.
So where do Spain’s big cities land in the global hedonism index? The short answer: cheaper than Paris or London, but not exactly a bargain anymore.
Beer and wine: still decent value
Let’s start with the classics. A draught beer in a standard bar in Madrid or Barcelona costs around €3–€3.50, while a bottle of table wine in the supermarket sets you back around €4. That’s far less than the €6–€8 pints seen in London, Amsterdam, or Zurich, and less than half what you’d pay for a bottle in a US or Nordic grocery store.
In fact, when it comes to wine, Spain ranks among the most affordable places in Europe, with a good bottle available for less than what you’d pay for a glass in many other capitals.
Cocktails: the new luxury
Fancy something stronger? Ordering a cocktail in a bar in Madrid or Barcelona now costs about €12, which might raise eyebrows. That’s still cheaper than New York or Singapore, where prices top €20 in many places, but it’s a reminder that going out for drinks is no longer the casual, low-cost affair it once was — especially in trendier areas.
Fast food and a film: not what it used to be
A Big Mac meal will now cost you close to €9, and two cinema tickets in Spain’s cities will run to €18–€20, placing Spain mid-table internationally. Cheaper than most of Western Europe, but far from the ultra-affordable days of the early 2000s.
Smoking: expensive and falling out of fashion
One of the biggest jumps in price comes in cigarettes, with a typical pack now around €5.50–€6 in Spain — still cheaper than in France or the UK (where prices now exceed €12), but rising steadily as taxation increases and smoking becomes more socially and politically marginalised.
The takeaway
Spain remains a relatively affordable place to enjoy life’s little pleasures — but the gap is narrowing.
- Wine is still a bargain.
- Beer is no longer shockingly cheap, but still reasonable.
- Cocktails and cinema? Less so.
- Cigarettes? Rising cost, falling popularity.
In short, Spain still delivers good value for fun, especially for foreign residents and tourists. But for locals on Spanish salaries, even fun is feeling a bit more expensive these days.
Author: 
Mark Stücklin
Posted on
Spain may be known for its sunshine and siestas, but is it still a cheap place to live? Deutsche Bank’s latest global rankings offer some answers — and a few surprises.
Spain has long enjoyed a reputation as one of Europe’s more affordable places to live, especially compared to pricier neighbours like France, the UK, or the Nordic countries. But according to Deutsche Bank’s Mapping the World’s Prices 2025, that reputation only partly holds up today.
Not cheap, but not expensive either
When it comes to overall cost of living — including everyday expenses like groceries, utilities, transport, and leisure — Spanish cities rank solidly in the middle of the global table. Madrid and Barcelona are noticeably more affordable than global heavyweights like London, New York, Singapore or Zurich, but they are no longer “cheap” in a world context.
For example, food, clothing, and services remain relatively affordable in Spain compared to Northern Europe, but imported goods, branded electronics, and petrol can be more expensive than people expect — largely due to high indirect taxes and weaker economies of scale.
Local salaries limit purchasing power
One reason Spanish cities don’t rank better for cost of living is that prices need to be seen in relation to income. And this is where Spain falls short. Local purchasing power — how far the average salary goes — is lower than in most Western European countries, particularly when rent and fixed costs are taken into account.
So while the prices themselves might look reasonable, Spaniards still feel the pinch because their pay packets don’t stretch as far. Cities like Zurich, Frankfurt, and even Dublin can feel more affordable day-to-day for locals, simply because incomes are much higher.
What’s still good value in Spain?
Despite this, Spain still offers excellent value in certain areas:
- Public transport is cheap, reliable, and widely available.
- Dining out is far more affordable than in Northern Europe or the US.
- Healthcare delivers strong outcomes for a fraction of the price seen in Anglo markets.
- Cultural life, from museums to festivals, remains accessible and often subsidised.
In short, life in Spain may not be globally cheap, but it’s still good value for money, especially for those earning international-level incomes or pensions.
The takeaway
The idea that Spain is a budget-friendly destination is only partly true in 2025. For foreigners arriving with strong currencies or higher salaries, it can still feel like a deal. But for locals, the cost of living bites harder than it once did — not because prices have soared, but because wages haven’t kept up.
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