Cost of living in Spain. Property and basic costs

Main housing costs in Spain

Spain beckons with its charm, which perfectly combines the sea and mild climate, megacities and small villages, southern charm of locals and freedom-loving character of northerners.

Having made the decision to become a part of this life, questions about the financial side of moving inevitably arise. Of course, we are all different, and what may be expensive for some people may not be so expensive for others, and that is normal. It happens and not only in the case of moving. Let's start with the most important question - the cost of housing.

How much does a property in Spain cost?

One of the most important advantages in Spain is the affordable price of housing relative to other European countries. Although everything has become more expensive recently, and property is no exception, it is difficult but possible to find a suitable option at an affordable price.

Madrid, Barcelona, the Basque Country and the Balearic Islands top the list of the most expensive neighbourhoods. For example, in the suburbs of Madrid you can look at buying a 1 bedroom flat or studio for 60000 euros (1.700 €/m²). And this may not be the best way to live. In the city itself, flats range from 2,500 €/m² to 4,500 €/m². In the case of rentals, the price for a studio, if you are lucky, will be from 800 € per month, a 2 bedroom flat - 1200 or more.

However, most people from other countries are attracted to live in coastal areas with developed infrastructure, such as Valencia and Malaga, and therefore 2.000 €/m² - 3.500 €/m² is a decent price for property in these regions, given the proximity of the Mediterranean Sea.

In quieter, but no less developed areas, housing costs from 1,500 €/m² - 2,500 €/m². Such cities include Alicante, Torrevieja, Murcia. Rent for example a 2 bedroom flat in these regions will cost from 700 € and above out of season. In small towns this price is reduced by many times.

The north of Spain is also not devoid of the sea, but these regions are not all chosen for a new stage in life. The cost per square metre in Galicia, Asturias, Cantabria from 1.800 - 3.500 euros. Again, these prices are for flats in large cities. In small settlements, housing is cheaper.

In the north of Spain, closer to France, property prices are very high - from 3,700 eur/m² - 4,500 eur/m². The rents here start from 1,000 euros per studio.

Payment of utility bills in Spain

In Spain, the system of public utilities and housing services is somewhat different from the system we are used to. Electricity, gas, water and internet are a significant part of the monthly housing costs. These payments are usually debited monthly from a bank account and invoices are provided with an estimate of consumption.

You usually pay 40-70 euros for electricity. Of course, it depends a lot on the size of the flat, how often you use the air conditioner, how often you switch on the cooker (if it is electric), whether you have an electric water heater. If you feel that your electricity bill is unreasonably high, you have the right to call and find out the reason or change the company (it is very quick and easy).

Gas in Spain is used not only for cooking, but also for heating systems and water heating. In the south of Spain gas heating is not widespread, in winter people mostly warm themselves either by air conditioning or electric heaters. But in the north of Spain such heating is very common. Everything is very individual and the cost is calculated on the basis of the available data. The average monthly gas bill is between 50 and 80 euros.

Water bills are different in each province - once a month, once every two months and once a quarter. On average, the water bill in Spain does not cost more than 40-60 euros per month, again depending on the number of residents and frequency of use.

There are plenty of internet providers in Spain, but it's important to know that almost every internet provider signs you up for a mandatory 12-24 months. And, if you want to change it sooner or terminate the contract, you can be fined. So it is very important when signing a contract, to consider not only a good price, but also the terms of the contract. Monthly payments range from 30 to 60 euros, plus the company you choose can connect you to cable or satellite TV for an additional 20-40 euros per month.

Also, if your accommodation is in a block of flats, you must pay a community charge (Gastos de comunidad). This is a monthly fee to keep the building itself clean and tidy. Also depends on many factors, but on average every month 30-60 euros minus from the family budget. If you rent a flat, you should always check whether these payments are included in the rent.

You also have to pay for rubbish collection in Spain. On average it is between 30 and 150 euros per year, depending on whether it is a small settlement or a large and developed city.

Other payments

When buying a home, there are major expenses that are only paid once. These are: VAT, notary costs, registration and administration fees. If you take out a mortgage - the costs of registration. For example, if you want to buy a flat worth 150000 euros, you will spend about 20000 euros on these expenses. In the case of a mortgage, you should also include a 20% down payment.

Property tax(IBI — Impuesto de Bienes Inmuebles). Mandatory annual payment of all property owners. It ranges from 0.442% to 1.141% of the cadastral value of the property.

Property insurance. Housing taken out as a mortgage must be insured - this is a mandatory condition for mortgages. In other cases, it is optional. However, despite the fact that home insurance in Spain is not mandatory, 7 out of 10 Spaniards prefer to pay insurance once a year and be confident in the future. Depending on the type and size of the property, the payment will be between 150 and 350 euros per year.