If you are thinking of investing in Spain and moving to this country, one of the aspects you should consider is the cost of living in Spain. In this article, we will highlight the key aspects of the cost of living in Spain, covering topics such as accommodation, lifestyle, healthcare, taxes and education.
1. Accommodation in Spain
One of the first things to consider when exploring the cost of living in Spain is the question of accommodation. In this country, the range of options is extensive, from urban apartments to rural villas. Monthly rental costs vary according to location, size and amenities.
It is important to evaluate the different areas according to your business and personal needs. Major cities, such as Madrid and Barcelona, may have a higher cost of living, but offer convenient access to business opportunities and services. On the other hand, more remote areas may offer a more relaxed and affordable experience.
In addition to rent, it is essential to consider associated costs such as utilities (water, electricity, gas), community and possibly local taxes. We recommend that you carry out thorough research to fully understand the costs and benefits of each accommodation option before making a decision, to ensure that you make a choice that suits both your business needs and your personal lifestyle.
2. Living Expenses and Lifestyle
When setting up a business in Spain, it is essential to understand and manage daily living expenses in order to maintain a healthy financial balance. For example, the cost of food can vary considerably. Dinner in a local restaurant can cost between €15 and €30 per person, while shopping for a week’s worth of groceries for one person can cost between €40 and €60, depending on the choice of products and shops.
Transport costs should also be carefully considered. Using public transport, such as the metro or bus, can cost around €60 per month, while owning a car has additional costs, including fuel, parking and maintenance. These are just a few examples and it is important to tailor these costs to individual needs and preferences.
It is also important to consider leisure and recreational activities. Spain offers a rich cultural and social life, but it is important to budget for events, dining out and other experiences. Managing these expenses will not only contribute to personal wellbeing, but will also allow effective control over the business budget, ensuring a smooth and comfortable transition to Spanish life.
3. Health System in Spain
The Spanish healthcare system is renowned for its quality and accessibility. Spain offers universal access to health care, guaranteeing expatriates and foreigners virtually the same health services as Spanish citizens.
It is also common to take out private health insurance, which can cost between 50 and 150 euros per month, depending on the level of cover and the age of the insured.
Read more about How to obtain a Social Security Number in Spain in our last blog article.
4. Taxes and Fiscal Obligations
An understanding of taxation and fiscal obligations is essential for any foreign entrepreneur established in Spain. The Spanish tax system includes Personal Income Tax (IRPF) and Value Added Tax (VAT). IRPF is levied on personal and business income, while VAT is added to the price of goods and services. Tax rates vary according to income and business activity, and specialist tax advice is essential to optimise the tax burden.
In addition to taxes, it is important to understand regular tax obligations and to file tax returns on time. Failure to comply with these obligations can result in financial penalties. At Legal Advisory, we strongly recommend that you leave this part in the hands of professional accountants and tax advisors. Having experts in this field not only ensures strict compliance with tax regulations, but can also result in significant savings and more efficient tax management for the company.
5. Education
For foreign business people coming to Spain with their families, choosing the right education for their children is an important consideration. Spain offers a variety of educational options, from international schools to local programmes. The costs associated with education vary considerably depending on the choice of school and the level of education.
International schools tend to have higher tuition fees, which can range from 5,000 to 20,000 euros per year, depending on the institution and academic level. On the other hand, public schools in Spain are free, but some local public schools may have more affordable tuition fees. It is important to consider not only the cost of education, but also the quality and pedagogical approach that best suits your children’s educational needs and goals.
In short, researching and understanding the cost of living in Spain is essential to a successful business move. From accommodation costs to taxes and education, every financial aspect needs to be carefully considered. We reiterate the importance of detailed planning and consultation with professionals in each area.
By leaving the management of tax and fiscal obligations and all other aspects in the hands of experts, you can ensure an experience in Spain that not only meets your business objectives, but also contributes to your personal and family well-being.
