It is widely accepted that the cost of living in Spain is very reasonable, and that day-to-day living expenses prove favourable in comparison to other European countries. There is much controversy in the Spanish media surrounding the economy and many are unhappy about the increases in living costs since the introduction of the Euro. Costs here are still relatively low however, depending on where you settle, with inland areas proving particularly inexpensive against coastal or city destinations, where like everywhere else in the world, costs are higher.

Day to day costs such as housekeeping are still cheaper, and a general grocery bill will be around a third cheaper than say the UK. The only time this differs is if you choose imported items, and certainly off the beaten track, you are less likely to find unusual products from other countries. Domestic appliances will normally be comparable in cost to other European countries, and furniture is similarly priced if you buy from a recognised high street retailer. Vehicle costs are similar if viewed as an annual cost, although diesel and petrol are cheaper.

Property related costs are very cheap, and whilst electric and water are around the norm within Europe, council taxes are nothing in comparison. Expect to pay around €100 a year council tax for a 300m² village property in Seville province.

Other financial matters like taxation, pensions and private health care will depend very much on your personal situation, your place of residence and other contributory factors. It is strongly recommended that you seek independent advice on such matters.

VAT, or IVA in Spain is currently 16%.

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