Euro banknotes and coins spread out on a surface, illustrating currency and money-saving tips for living in Spain

How To Save Money In Spain: Cost Of Living Tips For Expats

Expat Tips Published: 18 June 2013 15:07 CET Updated: 04 May 2026 15:07 CET

Living in Spain can still offer excellent value, but it is no longer the bargain-basement dream some older expat stories suggest. Rents have risen in popular areas, supermarket prices have climbed, energy costs can bite hard in summer and winter, and poor planning can quietly drain your bank account month after month.

The good news is that there are still many practical ways to save money in Spain without turning your life into a joyless spreadsheet. The biggest savings usually come from choosing the right place to live, using supermarkets wisely, reviewing your electricity contract, avoiding unnecessary bank fees, using smarter currency transfers and not getting caught by avoidable fines or tax mistakes.

This updated guide explains how to save money in Spain, including cost of living tips, cheaper places to live, supermarkets, menu del dia, electricity bills, fuel prices, money transfers, removals, family discounts, Spanish classes and affordable private health insurance.

If you are still planning your move, you may also find our moving to Spain checklist and our guide to things to know before moving to Spain useful.

How To Save Money In Spain: Quick Overview

If you want to save money in Spain, start with the expenses that repeat every month. A one-off bargain is nice, but the real savings come from rent, mortgage costs, electricity, water, food, transport, insurance, banking and tax planning.

For many expats, the biggest mistake is assuming that Spain is cheap everywhere. It is not. A couple living in an inland town in Jaen, Murcia or Extremadura will have a very different monthly budget from a family renting near Marbella, Barcelona, Madrid, Palma or central Valencia.

The best strategy is not to cut everything. It is to stop wasting money on things that do not improve your quality of life. That means comparing tariffs, avoiding tourist prices, checking local benefits, using public transport where practical, choosing supermarkets carefully and getting paperwork right the first time.

Is Spain Cheap To Live In?

Spain can be cheaper than the UK, Ireland, the United States, Canada or northern Europe in many everyday areas, but the answer depends heavily on where you live and how you spend.

Eating local, using public transport, living outside the most expensive coastal zones and shopping in the right supermarkets can make Spain feel very affordable. Renting in a fashionable city centre, eating out in tourist zones, running air conditioning all summer and sending money through expensive bank transfers can quickly remove that advantage.

So, is Spain cheap? In some places, yes. In others, not really. The smarter question is whether your chosen part of Spain matches your income, pension, savings or salary.

If you are retired or planning your long-term budget, our guide to retiring in Spain may also help.

Cost Of Living In Spain

The cost of living in Spain is shaped by housing, food, utilities, healthcare, transport, taxes and lifestyle. Housing is usually the biggest variable. Some inland towns remain good value, while major cities and prime coastal locations have become much more expensive.

Food can still be reasonable if you shop carefully, buy seasonal produce and avoid relying only on imported products. Local fruit, vegetables, rice, legumes, olive oil, fish and simple Spanish staples can keep costs under control. Imported British, American or specialist international items are often far more expensive.

Utilities are another area where expats need to pay attention. Electricity bills can rise sharply if you have high contracted power, inefficient appliances, poor insulation or heavy air-conditioning use. Water costs are usually manageable, but drought restrictions and regional pricing can affect some areas.

Healthcare also needs planning. Some residents have access to Spain’s public healthcare system, while others may need private medical insurance for visas, residency or personal peace of mind.

Choose A Cheaper Place To Live In Spain

Location is one of the biggest money-saving decisions you will make in Spain. Many expats naturally head for the Costa del Sol, Costa Blanca, Barcelona, Madrid, Mallorca or Valencia, but these are not always the cheapest places to live.

Popular coastal areas often come with higher rents, higher property prices, more seasonal demand and more businesses aimed at tourists. Inland towns and smaller cities can offer lower housing costs, cheaper parking, lower restaurant prices and a more local lifestyle.

Moving inland does not mean disappearing into the wilderness. Many Spanish towns have good shops, schools, health centres, cafés, markets, sports facilities and transport links. The trade-off is that you may need more Spanish, a car, and a realistic view of local employment if you are not retired or working remotely.

Cheapest And Most Affordable Places To Live In Spain

Searches for the cheapest places to live in Spain are common, but the cheapest area is not automatically the best choice. You need to balance cost against healthcare access, transport, climate, schools, safety, language, internet, airport distance and whether the place suits your lifestyle.

Some inland areas of Andalucia, Murcia, Castilla-La Mancha, Extremadura, Galicia and parts of inland Valencia can offer better value than prime coastal towns. Smaller cities can also work well because they offer services without the highest rents of Madrid, Barcelona or luxury resort areas.

If you are moving with children, factor in school access. If you are retired, factor in healthcare and transport. If you work online, check internet reliability before signing a long-term rental contract. A cheap house with bad internet and a 90-minute drive to the nearest useful service is not cheap. It is just a trap with terracotta tiles.

For rental planning, read our guide to renting long term in Spain.

Save Money On Supermarkets In Spain

Food shopping is one of the easiest areas to control once you understand how supermarkets work in Spain. Prices vary by chain, region, product type and whether you buy branded or own-label goods.

Large supermarkets such as Mercadona, Lidl, Aldi, Carrefour, Alcampo, Consum, Dia and regional chains all have strengths. Some are better for fresh produce, some for own-brand basics, some for bulk offers and some for imported items.

The best approach is to split your shop. Use one supermarket for staples, another for offers, local markets for seasonal produce, and specialist shops for meat, fish or fresh bread if prices and quality work better locally.

Cheapest Supermarkets In Spain

There is no single cheapest supermarket in Spain for everyone. OCU’s supermarket price studies regularly show that the cheapest option varies by city and by basket. Regional chains can be excellent value in some areas, while national chains may be more practical elsewhere.

As a general rule, compare your local options rather than assuming one chain is always cheapest. Look at the items you actually buy each week, not a theoretical basket designed for someone else’s household.

Own-label products can save a lot, especially for basics such as pasta, rice, cleaning products, dairy, tinned goods, frozen vegetables and household items. Be more selective with fresh produce, meat and fish because the cheapest item is not always the best value if quality or shelf life is poor.

Best Supermarket In Spain For Value

The best supermarket in Spain for value is the one that gives you the best balance of price, quality, location and product range. Driving 20 minutes to save €3 is not always smart once fuel and time are included.

Use supermarket apps and loyalty schemes, but do not let them trick you into buying things you do not need. A discount on something you would never normally buy is not a saving. It is marketing with a nice hat on.

Also watch unit prices. Larger packs are not always cheaper. Look at the price per kilo, litre or unit, especially on detergents, pet food, toilet paper, cereal, coffee and cleaning products.

Use Menu Del Dia To Eat Out For Less

The menu del dia is still one of the best ways to eat out affordably in Spain. It usually offers a set lunch menu with a starter, main course and dessert or coffee for a fixed price.

Prices vary heavily by area. In worker cafés, inland towns and less touristy neighbourhoods, the menu del dia can still be good value. In city centres, beach resorts and tourist-heavy areas, prices are often higher and the quality can vary.

Look for restaurants used by local workers rather than places with laminated tourist menus in five languages. The food is often better, the portions more sensible and the prices less theatrical.

Eating out at lunchtime is usually better value than dinner. If you enjoy restaurants but want to save money, make lunch your main meal out and eat simply at home in the evening.

Save Money On Electricity Bills In Spain

Electricity is one of the bills most likely to surprise expats in Spain. Air conditioning in summer, heating in winter, pool pumps, electric water heaters and old appliances can all push bills up quickly.

Start by checking your contracted power, known as potencia contratada. This is the maximum amount of electricity you can use at one time and forms part of the fixed cost on your bill. If your contracted power is much higher than you need, you may be paying more every month than necessary.

Next, compare your tariff. Spain has regulated and free-market electricity options, and prices can vary between providers. The CNMC has an official energy offer comparator that can help you compare electricity and gas offers.

Also shift heavy usage where possible. Washing machines, dishwashers, dryers, electric water heating and EV charging may cost less during off-peak periods depending on your tariff. Smart meters and supplier apps can help you see when your home is using the most electricity.

For a deeper guide, read our article on saving money on electricity in Spain.

Find The Cheapest Petrol In Spain

Fuel prices in Spain vary by petrol station, province, brand and motorway location. Motorway service stations are often more expensive, while independent stations and supermarket-linked fuel stations can sometimes be cheaper.

The Spanish government provides an official fuel price portal through MITECO. It allows users to check petrol, diesel and other fuel prices by location, which is useful if you drive regularly or live in a rural area.

Other ways to save include keeping tyres properly inflated, avoiding unnecessary roof boxes, driving more smoothly, using supermarket fuel discounts where they genuinely work for you, and planning errands together rather than making multiple short trips.

If you drive in Spain, avoiding fines is also part of saving money. Our guide to traffic fines in Spain is a useful reminder.

Save Money On Currency Exchange And Transfers

If your pension, salary, savings or property funds are held outside Spain, exchange rates and transfer fees can make a big difference. Banks are not always the cheapest option for international transfers.

Before transferring money to Spain, compare the exchange rate, transfer fee, receiving fee, speed and whether the provider is regulated. For small regular transfers, app-based providers may be useful. For larger sums, such as a property purchase, a currency broker may offer forward contracts or rate alerts.

Do not focus only on “no fee” claims. A provider can hide the cost in the exchange rate. Always compare the final amount that arrives in euros.

For more detail, read our guide to transferring money to Spain.

Reduce Moving And Removal Costs

International removals can be expensive, especially if you move furniture, tools, large appliances or a full household. The cheapest move is often the one where you bring less.

Before paying for removals, ask what is genuinely worth transporting. Some bulky furniture may cost more to move than to replace. Electrical items may be unsuitable, old or not worth the space. Books, garden tools, sentimental items and specialist equipment may be different.

Ask removal companies about part-loads, shared loads, flexible delivery dates and storage. A fixed urgent delivery usually costs more than a flexible consolidated load.

Get several quotes and check insurance carefully. The cheapest quote is not a bargain if your belongings vanish into a warehouse mystery novel.

Use Discounts And Family Benefits

Spain has various discounts and benefits that can reduce everyday costs, especially for families, pensioners, young people and people with disabilities.

Larger families may qualify for the familia numerosa title, which can provide access to public and private discounts depending on the region and category. Benefits may include transport discounts, tax deductions, education-related support and local reductions.

People over 60 may be eligible for Renfe’s Tarjeta Dorada, which offers discounts on many train journeys. If you travel regularly by train, this can be a simple saving.

Some town halls and regions also offer discounts for sports centres, cultural events, public transport, libraries, adult education and local activities. These are easy to miss if you only look at national-level schemes.

Avoid Costly Tax And Paperwork Mistakes

Saving money in Spain is not only about shopping around. It is also about avoiding fines, missed deadlines and paperwork problems.

If you become tax resident in Spain, you may need to file a Spanish income tax return. Depending on your situation, you may also need to declare overseas assets using Modelo 720 if the value in relevant asset categories exceeds the reporting threshold.

Modelo 720 is an information return, not a tax bill by itself, but getting it wrong can still be costly. If you have foreign bank accounts, investments, pensions, life insurance or property, take professional advice rather than relying on pub wisdom from someone called Dave who “never bothered and was fine”. Dave is not a tax strategy.

You should also avoid fines for late vehicle taxes, missed ITV inspections, cash payment breaches, rental non-compliance and incorrect tax filings.

Useful follow-up guides include how to file an income tax return in Spain, cash payment limits in Spain and declaring foreign assets to the Spanish tax office.

Save Money On Banking In Spain

Bank fees can creep up if you are not paying attention. Some accounts charge monthly maintenance fees, card fees, transfer fees or ATM withdrawal fees unless you meet conditions such as salary deposits, direct debits or minimum balances.

Compare accounts carefully before opening one. Check whether the bank charges for debit cards, international transfers, account maintenance, branch services or cash withdrawals outside its network.

Online banks and low-fee accounts can work well for some residents, but make sure the account supports the direct debits you need, especially for utilities, insurance, taxes or community fees.

If you are new to Spain, read our expat guide to opening a bank account in Spain.

Learn Spanish To Avoid Paying Expat Prices

Learning Spanish can save money in ways that are not always obvious. You can compare local tradespeople, read official notices, understand bills, ask for local recommendations and avoid relying only on English-speaking services.

English-speaking professionals are often worth paying for when the issue is legal, tax or medical. But for everyday things such as local markets, repairs, appointments, classes and town hall services, basic Spanish can make life cheaper and easier.

Many town halls offer free or low-cost Spanish classes through adult education centres. Language exchanges and local groups can also help you improve without spending heavily.

Even basic phrases can help you ask for prices, check discounts, query a bill or understand whether a quote includes IVA. That alone can save more than another loyalty card you will forget to use.

Affordable Health Insurance In Spain

Private health insurance is not always the cheapest monthly bill, but choosing the wrong policy can cost more in the long run. Expats should compare cover carefully, especially if they need insurance for visa, residency or family healthcare reasons.

For some people, the public healthcare system will be available through work, Social Security, an S1 form or another entitlement. For others, private health insurance may be needed before arrival or during the residency process.

If you are trying to reduce costs, do not look only at the monthly premium. Check whether the policy includes co-payments, hospital cover, waiting periods, regional access, family options and whether it is suitable for your residence situation.

Looking For Affordable Private Health Insurance In Spain?

Saving money does not mean gambling with healthcare. HealthPlanSpain can help you compare affordable Sanitas health insurance options for expats, residents, families and people moving to Spain.

View affordable Sanitas health insurance options

Common Money Mistakes Expats Make In Spain

Assuming Spain Is Cheap Everywhere

Spain has expensive areas and affordable areas. Choose the location carefully before committing to rent or property.

Ignoring Electricity Contracts

Old tariffs, excessive contracted power and poor usage habits can add unnecessary costs every month.

Shopping In One Supermarket Only

No single supermarket is best for everything. Compare local options and use unit pricing.

Using Banks For Every Currency Transfer

Traditional banks can be expensive for international transfers. Compare the final euro amount before sending money.

Missing Tax Deadlines

Late filings, Modelo 720 mistakes and missed tax obligations can be far more expensive than good advice.

Buying In Tourist Areas Without Checking Local Costs

Restaurants, property services, tradespeople and shops in tourist-heavy areas can cost more than in local neighbourhoods.

Choosing The Cheapest Insurance Without Checking Cover

A cheap policy is not a saving if it does not meet your needs, excludes important services or fails visa requirements.

Final Thoughts

There are still many ways to save money in Spain, but the best savings come from planning rather than panic. Choose your location carefully, compare supermarkets, review your electricity contract, use fuel price tools, avoid bad transfer rates, check local discounts and keep your tax paperwork in order.

Spain can still offer a very good quality of life for expats, retirees, families and remote workers. But it rewards people who understand local systems and punishes those who assume everything will be cheaper just because the sun is out.

Small monthly savings add up. A better electricity tariff, cheaper supermarket routine, smarter transfer provider, sensible health insurance choice and fewer avoidable fines can save hundreds or even thousands of euros over time.