One of the main reasons British expats choose Spain is cost — for many, day-to-day life works out noticeably cheaper than in the UK. But it is not uniformly cheaper, and the picture has shifted in recent years. Here is the 2026 reality.
Housing — Generally Cheaper
Outside of central Madrid, Barcelona and parts of the Costa del Sol, property prices and rents in Spain are significantly lower than equivalent UK locations. A two-bed flat in many Spanish coastal towns rents for €600–€900/month; the UK equivalent would often be 50–100% more. Buying remains substantially cheaper outside the most popular expat hotspots.
Groceries — Slightly Cheaper
Spanish supermarkets (Mercadona, Lidl, Aldi, Carrefour) are generally cheaper than UK equivalents on staples, especially fresh produce, bread, olive oil and wine. Imported British products are noticeably more expensive when found. Local market shopping is often the best value of all.
Eating Out — Significantly Cheaper
Lunch menú del día (three courses + drink) typically runs €12–€18. A coffee is €1.50–€2.50. A glass of wine €2–€3. The same in the UK is usually 2–3x the price.
Utilities — Mixed
Electricity in Spain is on a par with or sometimes higher than the UK, particularly during peak hours and summer AC season. Water is generally cheaper. Internet is competitive (around €25–€50/month for fibre). Heating costs are lower simply because the climate demands less.
Healthcare — Much Cheaper
Spanish private health insurance for an adult under 50 typically costs €50–€120/month — a fraction of the equivalent in the UK or US. Add public access via social security contributions (if working) and the total healthcare cost picture is very favourable.
Transport — Cheaper
Petrol and diesel are generally cheaper than in the UK. Public transport in cities is good and affordable. Domestic flights to the islands and between regional cities are competitive.
Cars and Insurance
Cars are similarly priced new but used cars are often cheaper. Car insurance in Spain is typically cheaper than the UK for equivalent cover.
The Overall Picture for 2026
For most British expats moving outside of Madrid/Barcelona/Marbella, the total cost of living in Spain still works out 20–40% cheaper than the UK, depending on lifestyle. The biggest drivers are housing, eating out and healthcare. Utilities and groceries are roughly even, with utilities slightly worse and groceries slightly better.
Cost-of-living comparisons depend heavily on lifestyle, region and exchange rates. Use this as a starting point, not a final budget.