Cost of Living in Spain vs the UK

Day-to-day groceries in Spain are typically 20–30% cheaper than in the UK, with fresh produce seeing the biggest savings. The Mediterranean climate means locally grown fruit, vegetables, and olive oil are abundant and affordable year-round.

Typical price comparisons (2025–2026):

• A litre of full-fat milk: €0.85 in Spain vs £1.15 in the UK
• A loaf of white bread: €0.95 vs £1.20
• A dozen eggs: €2.00 vs £2.80
• 1kg of chicken breasts: €5.50 vs £7.50
• A bottle of decent Spanish wine: €3–5 vs £6–8 for equivalent quality in the UK
• A kilo of oranges: €1.00 vs £2.00

Supermarkets like Mercadona, Lidl, Aldi, and Carrefour are all present on the Costa del Sol. Mercadona, Spain's largest chain, is particularly good value and stocks an increasing range of British staples. Local markets (mercados) offer even better prices on fresh fish, meat, and seasonal produce — and the quality is outstanding.

A retired couple can comfortably budget €350–450 per month for groceries in Spain, compared with £450–600 in the UK.

Restaurants and bars in Spain are 30–40% cheaper than the UK, and this is one of the areas where the lifestyle difference is most noticeable. A menú del día — a three-course set lunch with bread and a drink — costs just €10–14 at most local restaurants on the Costa del Sol. The equivalent in England would be £15–22.

Typical dining costs:

• Coffee and a pastry in a café: €2.50–3.50 vs £4.00–5.50 in the UK
• A caña (small draft beer): €1.50–2.50 vs £4.00–5.50 for a pint
• Dinner for two at a mid-range restaurant: €40–60 vs £60–90
• Takeaway pizza: €8–12 vs £12–18
• Cinema ticket: €7–9 vs £10–14

The Spanish culture of eating out regularly makes this a meaningful saving. Many retired British couples on the Costa del Sol eat out 3–4 times a week without it straining their budget — something they would think twice about in the UK. Budget approximately €250–400 per month for dining out and entertainment, versus £350–550 in England.

Utility costs in Spain are a nuanced comparison. Electricity is actually more expensive per kWh in Spain (around €0.25–0.30/kWh vs £0.24–0.28/kWh in the UK), but your consumption patterns differ dramatically. With mild winters on the Costa del Sol, you spend far less on heating — most homes need only a few months of light heating per year, rather than 6–7 months of central heating in the UK.

Monthly utility comparison for a 2-bed apartment:

Utility	Spain (Costa del Sol)	UK (South England)
Electricity	€80–120	£100–150
Water	€25–40	£30–45
Gas (bottled butano in Spain)	€15–20	£50–80 (mains gas)
Internet + mobile	€40–55	£45–65
Total	€160–235	£225–340

Air conditioning in summer does increase electricity bills (July–August can see €150+ for electricity), but this is more than offset by the minimal heating costs across the rest of the year. Overall, annual utility costs are typically 20–30% lower in Spain.

If you plan to drive on the Costa del Sol — and most expats do — you will find motoring costs notably cheaper than in the UK:

• Petrol: Approximately €1.45–1.55/litre vs £1.40–1.50/litre in the UK — broadly similar, though diesel is slightly cheaper in Spain
• Car insurance: Comprehensive cover for a standard family car costs around €350–600/year in Spain vs £500–900 in the UK
• Road tax: The Spanish Impuesto de Vehículos varies by municipality but is typically €60–150/year — far below the UK's £165–590
• ITV (MOT equivalent): Around €35–50 vs £54.85 in the UK

Public transport is also affordable. Malaga's commuter train (Cercanías) connects Fuengirola to Malaga city for under €4, and local bus routes are frequent and inexpensive. A monthly transport pass for the Malaga metropolitan area costs approximately €40.

One cost that catches some people out is toll roads — the AP-7 motorway between Malaga and Estepona was free but some stretches now have variable tolling. The coastal A-7 remains free.

Healthcare is one area where Spain offers excellent value. The Spanish public health system (Sistema Nacional de Salud) consistently ranks among the best in Europe, and private healthcare is remarkably affordable by UK standards.

As a non-resident property owner, you will most likely need private health insurance. Typical costs on the Costa del Sol:

• Comprehensive private health insurance: €100–200/month per person (age-dependent; a couple in their 60s might pay €300–400/month combined)
• GP consultation (private, no insurance): €50–80
• Specialist consultation: €80–150
• Dental check-up and clean: €40–60

If you become a tax-resident of Spain, you are entitled to register with the public healthcare system. UK retirees in receipt of a State Pension can use an S1 form to have Spain's public healthcare funded by the UK, effectively giving you free access to the public system.

Compare this with the UK, where the NHS is nominally free but private health insurance for a couple in their 60s costs £250–500/month — and waiting times for specialist appointments are considerably longer. Many British expats in Spain report that the quality of private healthcare is better than the UK's NHS, at a lower cost.

The Spanish equivalent of UK council tax is the IBI (Impuesto sobre Bienes Inmuebles), and it is dramatically lower. A 2-bedroom apartment on the Costa del Sol typically attracts an IBI bill of €300–700 per year, compared with council tax of £1,500–2,500 per year for an equivalent property in England.

Other property-related charges to factor in:

• Community fees (cuota de comunidad): €50–200/month depending on the development and shared facilities (pool, gardens, security)
• Rubbish collection tax (basura): €50–150/year
• Non-resident imputed income tax: Even if you do not rent out your property, non-residents must pay an annual tax based on the valor catastral — typically €200–500/year for a standard apartment

For a full breakdown of all purchase and ongoing taxes, see our costs and taxes guide and use the purchase cost calculator for a personalised estimate.

Putting it all together, here is a realistic monthly budget comparison for a retired couple living modestly but comfortably — in a 2-bedroom property on the Costa del Sol versus the south of England:

Category	Costa del Sol (€)	South England (£)	Saving
Groceries	€400	£525	~30%
Eating out / entertainment	€300	£450	~35%
Utilities (electric, water, gas, internet)	€195	£280	~25%
Private health insurance	€350	£400	~15%
Transport / motoring	€200	£300	~30%
Property tax (IBI / council tax)	€50	£170	~70%
Community fees	€120	n/a	—
Miscellaneous / personal	€200	£250	~20%
Total monthly	€1,815	£2,375	~25%

At current exchange rates (approximately £1 = €1.17), the Spanish monthly spend of €1,815 equates to roughly £1,550, representing a saving of approximately £825 per month or £9,900 per year. Your actual savings will vary based on lifestyle, property type, and exchange-rate movements, but the direction is clear: you genuinely get more for less on the Costa del Sol.