Living In Spain Costs Average Household Almost £13,000 Less A Year, Study Finds

New research suggests that British households could save almost £13,000 a year by living in Spain rather than the UK. The biggest savings come not from property prices, but from the recurring costs of everyday life.

A new study by CostLiving has found that the average UK household spends £37,353 per year, compared to £24,598 for an equivalent household in Spain—a difference of £12,755 annually, or around 52%.

As Jodi Donnelly, Research & Analysis Lead at CostLiving, explains:

“For anyone weighing up a move to Spain, the purchase price is only half the story. The recurring cost of living, the rent, the energy bills, the fuel, is materially lower in Spain, and that advantage compounds every year you stay.”

The real cost difference is what happens after you move

For many Britons considering a move to Spain, attention tends to focus on property prices. But the research suggests that the bigger financial advantage may lie in what happens after you’ve bought or rented a home.

The study estimates that the average British household spends more than £1,000 a month extra on day-to-day living compared to a similar household in Spain. While property purchase costs can be significant, they are generally a one-off expense. The savings generated by lower living costs continue year after year.

Rent, energy and fuel drive the gap

The biggest differences are found in housing-related running costs.

Average monthly rent in the UK is estimated at £1,381 compared to around £1,038 for a typical 80m² flat in Spain. Energy bills are also substantially lower, with Spanish regulated electricity tariffs coming in roughly £98 per month below the UK’s price-capped dual-fuel costs.

Fuel prices help widen the gap further. Petrol costs around 23p less per litre in Spain than in the UK, reducing transport costs for households that rely on a car.

Interestingly, inflation is not the explanation. Consumer prices are currently rising at similar rates in both countries. The difference is that the underlying cost base remains significantly lower in Spain.

What this means for British buyers

For British readers, the findings help explain why Spain remains such an attractive destination despite rising property prices in many popular locations.

Over the last decade, property prices have increased significantly in many coastal markets favoured by foreign buyers. However, Spain’s overall cost structure remains considerably lower than Britain’s. For retirees, remote workers, second-home owners spending extended periods in Spain, and families considering relocation, the savings on everyday living can quickly add up.

Of course, averages never tell the whole story. Living in central Madrid, Barcelona, Marbella’s Golden Mile or Ibiza will cost considerably more than living in many provincial Spanish towns. Equally, London and the South East are not representative of the entire UK.

Nevertheless, the broad conclusion is difficult to ignore: for many British households, Spain still offers a materially cheaper lifestyle than the UK. And unlike a one-off saving on a property purchase, lower living costs are a benefit that keeps paying out year after year.