“Spain is so cheap” is a common phrase seen on social media forums and even among tourists on the streets of major cities.
"I can't believe X only costs me so much". "It's a lot more affordable than back home".
While Spain may seem cheap to you, it’s important to remember that for the local people living here, earning average Spanish wages, it’s not cheap at all. In fact, Spain is expensive for them.
To keep extolling the virtues of a ‘cheap Spain’ is more than a little insensitive.
And is it true that Spain is still really that affordable?
According to the latest data from Spain’s National Statistics Institute (INE), in 2024 (the latest data available), the average salary here was €29,540.26 gross per year.
This is very different to the stats from the US example. According to the Bureau of Labor Statistics in the US, the average salary there was $62,192 per year. This is equivalent to €53,961.51 using today’s exchange rate. That means on average people in the US earn around €20,000 more per year.
The second question to ask is, is Spain still actually an affordable country?
The reality is no, not really. While it might seem more affordable to you, the truth is that prices and cost of living have risen considerably over the last couple of decades.
Those bargain properties, that cheap weekly shop and eating out have all become a lot more expensive. So even if you earn more, your money now won’t necessarily go as far.
READ ALSO - Americans in Spain: How the Spanish cost of living compares to the US
A recent study by money transfer platform Remitly shows that Spain has seen a 78 percent increase in the cost of living in the last decade. This means that it’s among the countries where cost of living has risen most in the last 10 years.
It’s only beaten by Hungary, where costs rose by 110 percent and Portugal, where they increased by 99 percent.
Living costs in Spain rose more than in Ireland, Slovenia, Estonia, where the cost has increased between 74 and 77 percent.
Also more than Lithuania (65 percent), Poland (61 percent), Greece (56 percent) and the United States (48 percent).
Unsurprisingly, the biggest increase has been property.
According to real estate website FotoCasa, the cumulative price of homes for sale in Spain rose by around 29 percent between 2014 and 2024.
READ ALSO: How much does it cost on average to live in Spain in 2026?
For example, if we compare the prices for a home in February 2014 with the prices now in 2026, we can see exactly how much they’ve increased.
In February 2014, a property cost €1,726/m² on average, while in February of this year it cost €2,950/m2 on average, according to Fotocasa.
That means that back in 2014 a 100-sqm home cost an average of €172,000 and will now cost you €295,000 in 2026.
The EU recently confirmed that housing costs in Spain have increased three times more than the European average, and salaries are not keeping pace in most cases.
It’s not just buying a home which has become increasingly expensive in Spain, renting is too.
According to the Bank of Spain, Spaniards are spending between 40 and 50 percent of their salary on rent, while they suggest the ideal amount should be 25 to 35 percent of net monthly income.
A room now costs between €400 and €700 in cities like Madrid, Barcelona and Valencia where demand is growing rapidly.
READ ALSO - Salaries vs cost of living: The cities in Spain where it's easiest to save up
Of course food has increased considerably in Spain too. In fact, you might be shocked when visiting the supermarket or even in a bar how much items cost you.
In 2010, a coffee in any bar in Spain cost €1, while now it averages between €1.30 and €1.80. In the centre of popular cities like Madrid and Barcelona, you can easily spend between €2-3 on a speciality coffee too. That’s not to mention iced lattes, alternative milks etc, which will all cost more.
The same is true for loaves of bread. 20 years ago, the price was less than €0.40, while now a loaf of bread easily exceeds €0.60.
In fact Spaniards are now paying the highest amount for their weekly shop in history after food prices soared by 41.5 percent since 2018 according to data from the INE.
The same data also shows that water, electricity and other fuels have increased by 23.1 percent since 2018, furniture and other household items have increased by 15.9 percent, transport by 22.5 percent and eating out and staying in a hotel by 32.6 percent.
The only item on the list that decreased was information and communication services which dropped by 3.4 percent
It's true that wages have increased in Spain, but it seems the increase is not enough to meet these price rises and current costs.
So next time to you think of Spain as being a cheap or affordable country, you might want to do a reality check before you say this in front of locals or write it on social media.
Comments (1)