Last Updated on January 25, 2026 by Emily Hopkins
From the bustling streets of Madrid to the scenic beaches of Barcelona, or the relaxed lifestyle of Andalusia, Spain offers a diverse range of experiences for residents. Living in the country provides an opportunity to engage with a rich blend of history, culture, and contemporary life.
Explore the local cuisine, from paella to tapas, and immerse yourself in Spanish traditions, like flamenco dancing and siestas. This complete guide provides essential insights for a fulfilling experience. Every aspect of settling in this country is covered, from finding the right city to understanding how much it costs to live in Spain.
With this guide, you’ll be equipped to embrace the Spanish way of life, from understanding the language and customs to navigating everyday challenges. Whether you’re planning a short visit or a long-term stay, here is a comprehensive guide to what it takes to live in Spain!
Why Spain?
Spain is increasingly attracting expatriates for several compelling reasons. The country offers a high quality of life, characterized by a pleasant climate, scenic landscapes, and a rich cultural heritage. Additionally, Spain’s relaxed lifestyle, known for its siestas and vibrant social culture, appeals to those seeking to escape the pressures of fast-paced urban living.
Additionally, Spain boasts a relatively low cost of living compared to other Western European countries. This makes it an attractive option for those seeking a more affordable lifestyle without compromising quality.
The healthcare system in Spain is also highly regarded, offering expats access to quality healthcare at a fraction of the cost. Furthermore, Spain’s strategic location within Europe makes it an ideal base for travel.
This is handy for expats who want to explore other European countries. With its excellent infrastructure and modern amenities, Spain continues to be a popular choice for expats looking for a new and exciting place to live.
But there’s a lot more you need to know before deciding!
Best Cities
Spain offers a diverse selection of cities, each with its own distinct charm and appeal. The ideal city for residency depends on individual preferences, including climate, culture, cost of living, employment opportunities, and lifestyle. The following are some of the top cities in Spain that are popular among both expatriates and local residents:
- Barcelona
Known for its stunning architecture, vibrant culture, and beautiful beaches, Barcelona is a cosmopolitan city with a rich history. It offers a high quality of life, excellent public transportation, and a bustling nightlife. - Madrid
As the capital city of Spain, Madrid is a dynamic and lively city with a rich cultural scene, world-class museums, and beautiful parks. It offers excellent job opportunities, a diverse culinary scene, and a vibrant nightlife. - Valencia
Located on the eastern coast of Spain, Valencia is known for its beautiful beaches, stunning architecture, and rich history. It offers a lower cost of living compared to Madrid and Barcelona and a relaxed lifestyle. - Seville
Seville, the capital of Andalusia, is known for its stunning Moorish architecture, lively festivals, and rich cultural heritage. It offers a high quality of life, a lower cost of living than other Spanish cities, and a warm climate. - Bilbao
Located in the Basque Country, Bilbao is known for its modern architecture, world-class museums, and excellent cuisine. It offers a high quality of life, a strong economy, and beautiful natural surroundings. - Malaga
Situated on the Costa del Sol, Malaga is known for its beautiful beaches, sunny weather, and rich history. It offers a lower cost of living compared to other Spanish cities, as well as a relaxed lifestyle.
Cost of living
How much does it cost to live in Spain?
If you want to lead a fairly cheaper life without necessarily giving up on comfort, you might want to move and live in Spain. This is particularly true if you immigrate from a first-world nation in Europe and beyond.
If you’re wondering how much you need to live in Spain, here is some data for you. According to Numbeo, a single person’s estimated monthly costs are €705 without rent. A family of three will need about €2,547 to cover the same expenses.
Expats’ cost of living in Spain can vary depending on the city or region, lifestyle choices, and individual circumstances. In major cities like Madrid and Barcelona, the cost of living can be higher, especially for accommodation.
However, smaller cities and towns often offer lower living costs. Rent is one of the most significant expenses for expats in Spain. The cost of renting an apartment can vary greatly depending on the location and size of the property. Data from Idealista mentions that the average price of renting a property in Spain is about €14.7/m2.
Breakdown of cost of living
Apart from rent, groceries represent another significant component of living expenses. If you want to live in Spain, here is a cost breakdown of everyday items on a grocery list.
| Food Item | Cost |
|---|---|
| Milk, 1 L | €1.05 |
| Bread, 0.5 kg | €1.31 |
| Rice, 1 kg | €1.42 |
| Eggs, x12 | €2.75 |
| Cheese, 1 kg | €12.35 |
| Chicken Breast, 1 kg | €7.34 |
| Round Steak, 1 kg | €13.69 |
| Apples, 1 kg | €2.16 |
| Banana, 1 kg | €1.76 |
| Oranges, 1 kg | €1.80 |
| Tomato, 1 kg | €2.23 |
| Potato, 1 kg | €1.58 |
| Onion, 1 kg | €1.71 |
Estimates are from Numbeo (as of January 2026).
Quality of life
Spain provides a high quality of life for expatriates, combining a relaxed Mediterranean lifestyle with modern amenities. The country enjoys a mild climate, abundant sunshine, and numerous opportunities for outdoor activities throughout the year.
Its rich cultural heritage, renowned cuisine, and vibrant social environment contribute to a rewarding living experience. Additionally, Spain offers excellent healthcare, with both public and private services available at reasonable costs.
As you can tell, the cost of living is generally lower than in other Western European countries, making it affordable for expats. Spain’s well-developed infrastructure has efficient public transportation, high-speed internet, and good healthcare and education facilities.
The work-life balance is also favorable, focusing on enjoying leisure time and spending time with family and friends. Overall, Spain provides a welcoming and comfortable environment for expats looking to live a fulfilling life in Europe.
- Interested to know what Digital Nomads think of Spain? Check out our interview Living Abroad: A Digital Nomad Interview with Katie Dillon.
Learning the Spanish Language
Learning Spanish can greatly enhance your experience living in Spain, especially if you relocate permanently. It’s optional, as many people in Spain, particularly in tourist areas and cities, speak English.
Nonetheless, knowing Spanish can significantly improve your quality of life and integration into Spanish culture. Speaking of integration, understanding the language helps you integrate into the local community and make meaningful connections with neighbors, colleagues, and new friends.
Learning the Spanish language provides a deeper insight into the country’s culture, traditions, and way of life, enhancing the overall expatriate experience.
While not always mandatory, many employment opportunities in Spain require at least a basic proficiency in Spanish.
This is especially true in customer service, education, and healthcare sectors. Knowing Spanish makes daily tasks like grocery shopping, interacting with locals, and handling administrative matters much easier and less stressful.
As someone new to Spain, consider enrolling in Spanish language classes. Many language schools and universities offer courses for all levels, from beginners to advanced. The other way of learning the language is by immersing yourself in the local culture.
To improve Spanish language skills, immerse yourself in the language by watching Spanish films, listening to Spanish music, and reading books or newspapers. Practice speaking regularly and incorporate the language into daily activities, such as shopping, ordering meals, or conversing with neighbors.
Authorization to Reside in Spain
To reside in Spain as an expat, you must obtain the appropriate visa or permit based on your circumstances. Here are some common types of authorization to reside in Spain for expats:
- Non-Lucrative Residence Visa;
- Golden Visa;
- Digital Nomad Visa
- Work Visa;
- Entrepreneur Visa;
- Student Visa;
- Family Reunification Visa.
Once you have obtained the appropriate visa or permit, you can reside in Spain legally.
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Spanish Government
Spain is a constitutional monarchy, with a king or queen serving as the head of state. The monarch’s role, however, is largely ceremonial and carries limited powers. The current monarch is King Felipe VI. Spain’s Parliament, known as the Cortes Generales, is bicameral, comprising two chambers:
- Congress of Deputies (Congreso de los Diputados) is the lower house of parliament, with members elected through a proportional representation system. It is the primary legislative body.
- Senate (Senado): The upper house represents the regions and is made up of senators, some of whom are appointed and some elected. It has less legislative power than the Congress of Deputies.
The government of Spain is headed by the Prime Minister (Presidente del Gobierno), who the monarch appoints but must be a member of the Congress of Deputies. The Prime Minister leads the executive branch of government.
Current Government
The present head of the government is Prime Minister Pedro Sánchez of the Spanish Socialist Workers’ Party (PSOE). Sánchez heads a coalition government with the left-wing party Unidas Podemos.
Spain is divided into autonomous communities, each with its own government and parliament, responsible for certain aspects of local administration, such as education and healthcare.
Certain regions, such as Catalonia and the Basque Country, enjoy a higher degree of autonomy compared to others. Elections in Spain are held regularly to select representatives for both the Cortes Generales and regional governments. The country’s electoral system is based on proportional representation.
Taxes and Expenses
Navigating taxes and expenses in Spain is essential for residents and expatriates alike. From income tax and value-added tax to property taxes and social security contributions, understanding the intricacies of the Spanish tax system can help individuals manage their finances effectively.
Awareness of other expenses, such as utilities, healthcare, and education, can contribute to a comprehensive financial plan. Let’s discuss some of the common taxes for expats and what you need to know about them.
Read also: Spain Beckham Law: Tax Benefits And More
Tax Regime
The Spanish system for taxing individuals directly consists mainly of two types of personal income taxes: Spanish Personal Income Tax (PIT) for residents and Spanish Non-Residents’ Income Tax (NRIT) for non-residents earning income in Spain.
Individuals earning income in Spain are subject to either the Spanish Personal Income Tax (PIT) or Non-Resident Income Tax (NRIT). Residents are generally taxed on their worldwide income under the PIT system, regardless of its source, at progressive rates following statutory deductions.
Non-residents, by contrast, are taxed only on income derived from Spanish sources under NRIT. For the Spanish PIT, taxable income is categorized into two types: general taxable income and savings taxable income.
Savings taxable income includes:
- Dividends and other income from owning interests in companies.
- Interest and other income from lending capital to third parties. However, when the capital lent to a related company exceeds three times the latter’s equity, the excess interest is taxed as general taxable income.
- Income from capitalization transactions and life and disability insurance.
- Capital gains from asset transfers.
General taxable income includes:
- All income that is not classified as savings is taxable income.
- Income allocations, attributions, or imputations as defined by law.
- Interest and other income from lending capital to a related company when the capital exceeds three times the latter’s equity, but only for the excess part.
Personal Income Tax (IRPF)
Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas or IRPF) in Spain is a direct tax that individuals who are tax residents in Spain must pay on their income. You are considered a tax resident in Spain if you meet any of the following conditions:
- You spend more than 183 days in Spain in a calendar year.
- Your main center of business or economic interests is in Spain.
IRPF is levied on your worldwide income, including income from employment, self-employment, investments, and real estate. Certain income, such as scholarships and certain capital gains, may be exempt or have special rules.
IRPF rates are progressive, ranging from 19% to 47%. The rates and brackets can vary depending on your region of Spain. In some autonomous communities, the top marginal rate can exceed 47%, reaching close to 49% when regional surcharges are included.
Spain has tax treaties with many countries to avoid double taxation. These treaties may allow you to credit taxes paid in another country against your Spanish tax liability.
Read more about taxes in Spain here.
Indirect Tax
Indirect taxes in Spain primarily consist of Value Added Tax (VAT) and Special Taxes. Known as Impuesto sobre el Valor Añadido (IVA) in Spain, VAT is a consumption tax that applies to most goods and services.
Spain’s standard Value Added Tax (VAT) rate is 21%, with reduced rates of 10% and 4% applied to specific goods and services, including food, books, and public transportation. Additionally, the country levies special taxes on certain products, such as alcohol, tobacco, and hydrocarbons. These taxes are generally incorporated into the final retail price of the products.
There are other indirect taxes in Spain, such as the Tax on Certain Means of Transportation (Impuesto sobre determinados Medios de Transporte) and the Tax on Insurance Premiums (Impuesto sobre las Primas de Seguros).
Spain is part of the European Union’s single market, so there are no customs duties or import taxes on goods moving between EU member states. However, there are customs duties and taxes on goods imported from outside the EU.
Social Security
Social Security in Spain, known as Seguridad Social, is a system that provides social protection to residents and workers. The Social Security system in Spain covers various benefits, including healthcare, pensions, unemployment benefits, maternity and paternity leave, and disability benefits.
Both employees and employers contribute to the Social Security system. The contributions are based on a percentage of the employee’s salary, with the exact rates depending on the type of work and the benefits covered.
Spain has a universal healthcare system funded through Social Security contributions. Residents are entitled to healthcare services provided by the National Health System (Sistema Nacional de Salud) upon registering with the Social Security system.
The Spanish Social Security system also provides pensions to retirees based on their contributions. Pension amounts are calculated according to the number of contribution years and the average salary earned during that period.
Workers who lose their jobs may be eligible for unemployment benefits, which are also provided through the Social Security system. The amount and duration of the benefits depend on the worker’s contributions and the circumstances of their unemployment.
Spanish Healthcare System
The Spanish healthcare system is known for providing universal coverage to residents and foreign nationals. It is ranked among the best in the world by the World Health Organization (WHO).
The Spanish healthcare system offers coverage to all residents, including foreign nationals, who are registered with or benefit from the Social Security system.
Consequently, access to healthcare is not dependent on employment status or income level. Spain operates a dual healthcare system, comprising both public and private providers.
The public healthcare system is funded through taxes and provides free or low-cost healthcare services to residents. The private healthcare system is also available for those who prefer or can afford it.
Hospitals and specialized medical centers provide specialist care. Patients are referred to specialists by their GPs or pediatricians. Specialist care includes surgery, oncology, cardiology, and others.
Emergency care is provided by hospital emergency departments, which are open 24/7. It is free for everyone, regardless of their insurance status or nationality.
Read also: Accessing Healthcare In Spain As An Expat
Do you need help moving to Spain?
Now that you know what it’s like to live in Spain is like, the next order of business is getting yourself here. Viv Europe has assisted many individuals and families in realizing their relocation dreams, and you could be next!
For those considering Spain as their new home, many questions naturally arise. Our services are designed to provide comprehensive support, ranging from visa assistance to real estate transactions, ensuring a seamless transition as you establish your new life in Spain.
Our team of experts will support you every step of the way. Schedule a meeting with Viv Europe’s immigration representatives to begin working towards providing you with a better life.
Portugal and Spain are two of the most popular destinations for expats in Europe and are similar more often than not. Foreigners are moving to either country to enjoy a peaceful lifestyle. If you want to get in touch with expats living in Spain, be sure to join our Facebook Group – All About Spain For Expats. See you soon!
