It’s no secret that most places in Spain are becoming more expensive to live in. Property prices, rents, food, petrol and pretty much everything has been increasing in recent years and you need a lot more money than you once did in order to live comfortably here.
But just how much exactly do you need in order to have a very comfortable life in each of the major cities in Spain and not have to worry about spending at all?
A recent report from financial services company Remitly, based on a study about money and happiness from Purdue University in the United States revealed just much you need to earn in each city to feel satisfied and have enough to live very comfortably.
Using Purdue's income and happiness research, Remitly identified the income level at which more money stops increasing happiness for countries around the world and adjusted them for local purchasing power and inflation.
The study looked at the top amount you would need to feel completely satisfied and compared it to other cities around Spain and the rest of the world.
It also showed that incomes over these certain amount wouldn’t necessarily improve your life any further and there’s a point at which even more money wouldn’t make any difference to your happiness.
This refers to income satiation, the threshold at which earning more money no longer results in increased life satisfaction or emotional well-being.
Purdue's results revealed that the average amount most people would need to have no financial stresses and achieve the optimal perception of well-being Spain is €77,192 per year.
This of course is much higher than the average Spanish salary. According to data from Spain’s National Institute of Statistics (INE), the average is just €29,540 gross per year. This is €47,652 less than the optimal amount.
Data from financial services company Remitly, however, puts the average salary in Spain at around €40,000 instead.
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Of course, the amount of money you would need in Spain differs depending on where you live. The more expensive the city, the more you would need to achieve full financial stability.
Here is what the study found you would need to earn in some of the major cities across the country:
Madrid: €89,759
Barcelona: €88,562
Palma de Mallorca: €88,263
Bilbao: €81,680
Oviedo: €80,184
Málaga: €76,893
Santa Cruz de Tenerife: €76,744
Alicante: €76,145
Valencia: €75,696
Seville: €74,649
Las Palmas de Gran Canaria: €73,752
Granada: €73,153
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The capital Madrid, unsurprisingly tops the table, being the most expensive city and therefore the one where you’d need the most money.
It’s worth noting, however, that it’s estimated that only 5 to 10 percent of Madrid residents actually earn €89,759 or more, so it’s perfectly possible to live in the capital with much less, it may just not be the optimal amount to live a completely stress-free existence when it comes to finances.
While money does of course help and relieve a lot of financial stress and pressures, Spaniards seem to value a more relaxed way of life and more free time than more money.
A recent report prepared by researchers David Martínez de Lafuente and Ainhoa Osés and published by news site 20 Minutos revealed that Spaniards would sacrifice 21 percent of their salaries for a more relaxed paced job without stress and would sacrifice 13 percent to be able to get to work quickly rather than spending time commuting.
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