Saving money in Spain as an expat

For expats in Spain, everyday expenses, from rent and utilities to groceries and transport, can quickly add up, especially when dealing with international transfers, fluctuating exchange rates, and unfamiliar banking systems. Smart financial planning is essential to make the most of your income, reduce unnecessary fees, and stretch your budget further. Tools like Wise can simplify sending money abroad and help you avoid hidden costs, while local strategies such as choosing affordable supermarkets, public transport, and regional services offer additional savings. This guide will cover practical tips, tools, and strategies to help expats save money and enjoy life in Spain without financial stress.

Understanding the cost of living in Spain

The cost of living in Spain can vary considerably depending on where you choose to settle. Major cities like Barcelona and Madrid tend to be more expensive, especially when it comes to rent, dining, and entertainment. In contrast, smaller towns and rural areas usually offer a lower cost of living, with more affordable housing and everyday expenses. Even within cities, living outside the centre can significantly reduce costs while still providing good access to public transport and amenities.

For newcomers or anyone looking to manage their budget wisely, understanding local prices and adopting a few practical habits can make a big difference. Some of the best ways to save money include comparing prices across regions, cooking at home, and choosing accommodation outside main tourist areas, though the right approach will depend on your personal goals and lifestyle. Seasonal variations mainly affect utility costs — heating in winter or air conditioning in summer — and food prices, as fresh produce tends to be cheaper in season. Tourism season has a stronger impact in major cities, coastal regions, islands, and well-known cultural destinations, where accommodation, transport, and everyday services tend to be busier and more expensive.

Below is an overview of the main expense categories and money saving tips to consider:

• Housing: The cost of buying and renting homes in Spain has seen one of the steepest increases in the EU. The average rent for a 50 m² apartment is around 700 EUR, but in Madrid it can go beyond 1 000 EUR for the same size. Research the local market carefully and consider neighbouring municipalities, where prices are often significantly lower.

• Food: Food prices in Spain are slightly below the EU average. When shopping for groceries, buying seasonal produce and taking advantage of coupons and discounts are effective ways to save money. When eating out, although prices have been rising, it is possible to find good restaurants offering a menú del día – typically including a starter, a main course, bread, a drink, and dessert or coffee – for around 12-16 EUR. 

• Transportation: Public transport in Spain is generally inexpensive, efficient, and a great way to get around, including travel to smaller towns. Monthly passes offer good value for regular commuters. Alternatives to public transport include driving, cycling, or using a scooter, depending on where you live. 

• Utilities: Costs vary across services, although expenses for electricity, water, and internet are generally below the European average. Household energy consumption shows seasonal peaks, with higher costs typically associated with winter heating and, increasingly, with summer cooling during periods of extreme heat. Choosing energy-efficient appliances and monitoring consumption can help reduce expenses.

If you’re managing international finances, using Wise can be an excellent ally to help you save money. With the mid-market exchange rate and no hidden markups, Wise offers a reliable and low-cost way to send money home, manage multiple currencies, and spend while travelling abroad.

Saving on housing and accommodations costs

Housing is often the largest expense for anyone living in Spain, especially in major cities, popular islands, and coastal areas, where rents and property prices have risen sharply in recent years. One of the most effective ways to save money is to consider areas outside the city centre, where rental prices can be significantly lower while still offering good access to public transport. For example, apartments in peripheral districts of Madrid, such as Hortaleza, or in nearby municipalities like Leganés, are generally more affordable than those in central districts.

Another practical option is to share accommodation. Renting a room in a shared apartment or house can cut monthly costs by half or more compared with renting a one-bedroom apartment alone. In more affordable regions, such as Andalusia (Granada, Almería, Córdoba), Extremadura (Badajoz, Cáceres), or Castile and Léon (Palencia, Zamora), entire apartments or small houses can also be surprisingly affordable, providing more space for the same price as a studio in a major city. Another way to reduce upfront costs is through rent-to-buy contracts, which are quite popular in Spain. These allow you to rent a property with the option to purchase it later, with part of the rent often deducted from the final purchase price.

Finding affordable housing

Securing affordable housing in Spain requires a good understanding of how the rental market works and where to look. Property portals like Idealista and Fotocasa are useful for exploring current rental listings and getting a sense of prices across different neighbourhoods. House-sharing is quite common, especially in cities, and can be a great way to save money and meet people shortly after moving. For students, many universities offer residences, though costs vary depending on the institution and housing type, so it’s important to check with your university and contact the international office for details.

Being proactive and responding quickly to listings can make a significant difference, particularly in competitive markets like Madrid and Barcelona. Other practical strategies include negotiating lease terms with landlords, for example adjusting the deposit, including utilities, or agreeing on a longer-term contract for a reduced monthly rent. Finally, networking through local expat groups or social media communities can help uncover housing opportunities that aren’t always listed on mainstream platforms.

Reducing utility costs

Utility costs in Spain vary by region and season. Electricity and natural gas are generally moderate compared with other European countries, but winter heating can increase bills, especially in older, poorly insulated houses. Energy-saving tips include using programmable heaters, energy-efficient appliances, sealing windows and doors, and taking advantage of natural light. In warmer regions like Andalusia, air conditioning costs can rise during summer, so using fans or shading windows can help reduce consumption. Online simulators can also help compare electricity and gas providers to find the best options.

For internet, TV, and mobile services, many providers offer bundled packages, which can save money compared with separate contracts. Understanding billing cycles and opting for direct debit or prepaid options can also help avoid late fees. For mobile and internet needs, free Wi-Fi is widely available in cafés, libraries, and co-working spaces across the country, which can reduce mobile data usage. For accessing content from your home country, VPN services provide a cost-effective way to maintain access to streaming platforms and other online services.

Food and grocery savings

Food and grocery costs in Spain are slightly below the EU average, though prices can vary depending on the region and type of store. Major cities, such as Barcelona and Madrid, and popular tourist hubs, like Palma de Mallorca, tend to be particularly expensive. For some products, local markets may be more affordable than larger supermarkets, but this is not always the case, so it’s important to compare prices in your area.

How to save money on everyday expenses includes buying seasonal produce, planning meals ahead, and watching out for discounts. When eating out, check prices online and use platforms like TheFork, where you can often find deals and discounts when booking in advance.

Smart grocery shopping

To save money on groceries, consider these practical strategies:

• Budget-friendly supermarket chains: Dani (present in Granada, Jaén, Almería, and Málaga) and Alcampo are among the most affordable supermarket options in Spain. Other chains that might be convenient depending on your location include Mercadona, Carrefour, Lidl, El Corte Inglés, Eroski, Dia, Consum, and Aldi. Supermarkets provide the convenience of finding everything in one place, and savings can be increased by using loyalty programmes and taking advantage of special offers and discounts.

• Local markets and seasonal produce: Buying seasonal items or shopping at farmers’ markets can be fresher and sometimes cheaper. Comparing prices across different stores in your neighbourhood can help you find the best deals for each product type.

• Bulk buying and meal planning: Stocking up on non-perishables such as rice, pasta, and olive oil (especially when discounted) and planning weekly meals can reduce both waste and overall costs.

Eating out and entertainment on a budget

Eating out and enjoying life in Spain doesn’t have to be expensive if you plan ahead. Take the following into consideration:

• Lunch specials: These are very common in Spain (menú del día) and often include an entrance, a main course, bread, a drink, and dessert or coffee. While increasingly rare, it’s still possible to find full meals for under 12 EUR, even in central areas of major cities.

• Tapas: Tapas are a key part of Spanish food culture and can be a budget-friendly way to eat out. In some places, ordering a drink comes with a small tapa at no extra cost. Elsewhere, tapas are ordered separately and shared, allowing you to manage costs while sampling different dishes. Choosing local bars away from tourist areas can help keep prices low.

• Free museum entry: Be sure to check the specific conditions for free admission, as many museums offer it at certain times or for certain groups. For example, the Museo del Prado and the Museo Reina Sofía in Madrid have free entry during the last two hours before closing (normally 15 EUR and 12 EUR, respectively). The National Museum of Art of Catalonia in Barcelona is free on Saturdays from 3 p.m. and on the first Sunday of every month (instead of 12 EUR). The Bilbao Fine Arts Museum is currently free (instead of 7 EUR) due to ongoing expansion works. Many museums also offer free or discounted entry for students, people under 25 or over 65, unemployed visitors, and certain professional groups.

• Student discounts: Discounts are widely available for students across sectors, including transport, museums, cinemas, events, and sports facilities. You’ll usually need to show a valid student card or proof of enrolment for the current academic year.

• Cultural events and festivals: Many local events are free or low-cost. Keep an eye on your municipality’s social media or subscribe to event newsletters. For example, annual book fairs are held in many cities, often featuring food trucks and live performances. Across Spain, you’ll also find cinema, music, and arts festivals throughout the year.

• Outdoors: Spain’s diverse landscape makes it perfect for outdoor activities all year round. Along the Mediterranean and Atlantic coasts, you’ll find plenty of beaches for a low-cost day out. Inland, urban parks, hiking trails, and mountain areas offer opportunities to enjoy nature for free. If you’re up for winter adventure, the Pyrenees and Sierra Nevada offer skiing and snowboarding, though these activities are usually pricier than other outdoor options.

Transportation costs

Getting around Spain can be quite affordable, especially if you make use of public transport and available discounts. Some cities have well-developed metro systems, as well as extensive bus and tram networks, while trains and intercity buses connect most regions. To help you plan, here are a few useful options:

• Public transportation passes and discounts: Monthly passes offer excellent value. In Madrid, for example, a 30-day pass covering all transport managed by the Consorcio Regional de Transportes de Madrid costs 32.70 EUR for the most central zone, with higher fares for additional zones. In Barcelona, the T-usual card works similarly, starting at 22 EUR for one zone. Many cities also offer extra discounts for young people, seniors, and other groups, making commuting even more affordable.

• Regional travel deals and discount cards: Renfe, the national state-owned railway company, offers various passes that can be customised to suit your travel needs. For example, the BonoAVE (high-speed) Pass allows 10 journeys within 4 months on a selected route and is valid for AVE and Avlo trains. The Regional Monthly Pass provides unlimited medium-distance journeys on your chosen route for a month. In Madrid’s Cercanías (commuter) network, a monthly pass costs 28.90 EUR for 1 or 2 zones (based on your selected route) and covers up to 2 trips per day. If you are travelling by bus, Alsa is the most widespread operator.Both Renfe and Alsa have free loyalty programmes that offer discounts and special promotions for frequent travellers.

• Bike sharing: Bike-sharing schemes have been expanding across Spain, offering a convenient and affordable way to get around cities. For example, Bicimad in Madrid costs 10 EUR/month for rides up to 30 minutes, while Bicing in Barcelona charges 50 EUR/year for rides up to 30 minutes on manual bicycles.

• Car sharing and ownership: Car-sharing services are available in some Spanish cities. Popular providers include Free2Move and Zity in Madrid. Pricing is usually based on time and distance, with options for short trips around the city or longer journeys. Most services require a smartphone app to book and unlock vehicles, and some offer monthly subscription plans for frequent users. If you need to drive daily, owning a vehicle may be more cost-effective in the long term, but remember to factor in expenses such as fuel, tolls, insurance, and parking.

Banking and financial costs

Banking costs in Spain are generally moderate, but they can add up depending on the bank and the type of account you hold. Many banks charge monthly maintenance fees, typically between 10 EUR and 20 EUR. However, some accounts are free or offer special conditions if your salary or pension is directly deposited, or if you are under a certain age. Additional fees often apply for card issuance, purchases and ATM withdrawals abroad, or international transfers. Credit cards are less commonly used for everyday purchases than debit cards, and many people avoid carrying balances to prevent interest charges.

To save on banking costs, consider the following:

• Compare account types: Some banks, like Santander, BBVA, and N26, offer accounts with no opening or monthly fees. Another option are operators such as Wise, which offers a multi-currency international account with no opening or maintenance fees.

• Avoid unnecessary credit products: Some credit cards carry annual fees and high interest rates. Debit cards are usually sufficient for daily use. If you need a credit card, look for options with no monthly or annual fees and always pay your balance on time.

• Check for student or youth accounts: If you’re under 30 or enrolled at a university, some banks offer free or discounted accounts.

• Be cautious with international operations: Banks can charge high fees and unfavourable exchange rates for sending money abroad. Always compare options before making transfers.

While not a bank, Wise offers a convenient and low-cost solution for international people living in Spain. The Wise Account is free to open and maintain, allowing you to hold and convert money in 40+ currencies. When converting or sending money abroad, Wise uses the mid-market exchange rate and applies only a small, transparent fee.

With Wise, you can also create up to 3 digital cards within the app for safer spending. For a one-time fee of 7 EUR, you can order a physical debit card, which allows you to spend both in Spain and abroad and withdraw cash at ATMs. 

Choosing the right account

Setting up an account in Spain is usually simple, but picking the right one can save you time and money in the long run. Here’s what to look out for:

• Compare fees and features: Don’t just look at the monthly cost. Some banks also charge for card renewal, international transfers, or ATM withdrawals abroad. Check whether there’s a minimum initial deposit requirement as well.

• Look for expat-friendly options: Online banks and operators usually offer English-language apps and customer support, which can make them easier to manage if you’re new to Spain. However, if you prefer banking in person, visit branches near your home to get a sense of the service and accessibility.

• Multi-currency flexibility: Accounts like Wise let you hold, receive, and send money in different currencies. They’re especially useful if you’re paid from abroad, need to send money home, or travel frequently.

Managing your finances internationally

If you earn, save, or send money across borders, managing your finances efficiently can make a big difference to your overall budget. Exchange rates, transfer fees, and timing can all affect how much of your money actually reaches its destination. With a bit of planning, you can avoid unnecessary costs and keep your funds working for you wherever you are.

Here are some practical tips:

• Avoid currency conversion fees: When possible, receive and hold money in the same currency you’re paid in. Multi-currency accounts like Wise let you do this easily, helping you avoid repeated conversion charges.

• Check the mid-market rate: Always compare the exchange rate you’re offered with the mid-market rate — the one you see on Google. Services such as Wise use this rate and show their small, transparent fee upfront, avoiding hidden markups. Wise also offers discounted fees for transfers of 22,000 EUR (or equivalent) and above.

• Time your transfers: Exchange rates fluctuate daily. If possible, monitor trends and transfer money when rates are most favourable, especially for larger amounts.

• Be mindful of tax-efficient savings: Research local tax rules and seek professional advice if you hold assets or income in multiple countries. Planning ahead can help you avoid double taxation.

Saving on healthcare and insurance costs

Spain has a high-quality public healthcare system, the Sistema Nacional de Salud (SNS), which provides free access to medical care for residents, including consultations with general practitioners and specialists, hospital care, surgeries, and emergency treatment.

Many people choose to complement public care with private health insurance, which offers faster access to specialists, private clinics, and additional coverage such as dental or ophthalmology. Dental care in Spain, in particular, is widely regarded as high quality, with modern facilities and relatively affordable prices, making the country a popular destination for dental tourism. Private insurance premiums vary depending on age and coverage, but comparing policies carefully can help you find good value for money.

To keep your healthcare costs manageable:

• Choose cost-effective insurance plans: If you opt for private health insurance, compare policies from different providers and select coverage tailored to your needs. Employers, universities, or professional associations sometimes offer discounted rates.

• Use preventive care: Regular check-ups, screenings, and vaccinations can help prevent more expensive treatments in the future.

• Opt for generic medications: When possible, ask if a generic version is available. They’re medically equivalent but typically much cheaper than branded drugs.

Building an emergency fund as an expat

Living abroad comes with unique financial uncertainties, from sudden travel needs and visa issues to unexpected changes in employment. That’s why having a solid emergency fund is especially important for expats. A common recommendation is to set aside 3–6 months of living expenses in an account that is easily accessible, so you can cover unexpected costs without stress. In Spain, this could include high-yield savings or current accounts that offer reasonable interest while allowing you to withdraw funds without penalty.

To make your emergency fund truly effective, it’s important to ensure it is accessible across borders. Many expats find multi-currency accounts, such as Wise, useful for holding funds in different currencies, converting when convenient, and accessing money internationally. Keep your emergency fund separate from daily spending or investment accounts to avoid dipping into it for non-urgent expenses. By planning carefully and choosing accounts that are liquid, safe, and internationally accessible, you’ll create a financial buffer that provides peace of mind and flexibility while living abroad.

Long-term financial planning

Thinking long‑term is crucial when you’re living abroad. Creating a roadmap for your future gives you peace of mind and ensures that your life in Spain isn’t just about today, but also about what comes next: retirement, property, repatriation, or staying global. Whether you’re exploring investment opportunities, planning your transition into retirement, weighing property ownership versus renting, or considering returning home (or elsewhere), setting a strategy now helps you stay in control.

Here are some key areas to focus on:

• Investment opportunities for expats: Spain offers a variety of investment options, from real‑estate to investment funds to high-yield savings accounts. Be sure to consider currency risk, tax implications (local and home country), and how easy the investment is to manage from abroad. 

• Retirement planning considerations: If you plan to retire in Spain or elsewhere, think about your income sources, how pensions or savings will be taxed, and your long-term healthcare or insurance needs. Consider early whether you intend to remain in Spain or return home, as this affects how you structure your savings.

• Property investment vs. renting: Buying property can be appealing, especially if you plan to stay for many years or rent it out. In Spain, the process for foreigners to purchase property is usually simple. But also weigh the costs: property taxes, maintenance, and lifestyle implications. For some expats, renting provides flexibility, especially if they might move again or aren’t sure how long they’ll stay.

• Repatriation financial planning: Even if you plan to stay in Spain indefinitely, circumstances may change. Family, health, economic conditions, or personal decisions may lead you back home or elsewhere. Think now about how assets will be handled across borders: where your pension will be paid, how you’ll access savings, whether investments are portable, and how currency or tax changes might impact you. Planning ahead reduces stress and gives you more options if the unexpected occurs.

Conclusion

Living in Spain as an expat can be both rewarding and affordable with the right planning. By understanding local systems and making informed choices, it’s possible to enjoy a high quality of life while keeping your finances under control. Here are the key takeaways from this guide:

• Housing choices matter most: Living outside city centres, sharing accommodation, or choosing more affordable regions can significantly reduce monthly expenses.

• Make the most of public services: Spain’s public healthcare and transport systems offer good quality at relatively low cost.

• Plan utilities and daily spending wisely: Monitoring energy use, shopping seasonally, and taking advantage of loyalty programmes and promotions can make a real difference.

• Choose the right banking option: Look for accounts with low or no fees, and consider a multi-currency account if you manage your money internationally.

• Build an emergency fund and think long-term: Set aside 3–6 months of living expenses and plan ahead for retirement, investments, and potential repatriation.

By implementing these strategies, you’ll be better equipped to manage your finances and gain peace of mind as an expat in Spain. To make international money management even easier, consider exploring Wise’s multi-currency account for cost-effective transfers and convenient access to your funds across borders.

Useful resources

• Energy supplier comparison tool – Compare electricity and gas tariffs across providers (last checked 15th December 2025)
• TheFork – Compare menus and find restaurant discounts (last checked 15th December 2025)
• Madrid public transport tickets and fares – Madrid public transport tickets and fares (last checked 15th December 2025)
• Barcelona public transport tickets and fares – Barcelona public transport tickets and fares (last checked 15th December 2025)
• Renfe – Spanish national railway company (last checked 15th December 2025)
• Alsa – Largest intercity bus operator in Spain (last checked 15th December 2025)
• Bicimad – Bike sharing in Madrid (last checked 15th December 2025)
• Bicing – Bike sharing in Barcelona (last checked 15th December 2025)
• Free2Move – Car sharing in Madrid (last checked 15th December 2025)
• Zity – Car sharing in Madrid (last checked 15th December 2025)
• Wise – Landing page for Wise Spain (last checked 15th December 2025)