Cost of Living in Spain: Budgets and Capital Needed in 2026

These amounts are not Spanish average costs. I show three transparent planning examples. What matters is whether you find a suitable home in the place you want, available all year, and whether the budget covers your daily life.

Three monthly budgets for one person

The examples apply to a single adult without children. You rent long term and do not keep a second home in your home country. Health and insurance are placeholders at first, which you must replace with your actual premium. Buying property or a car is not included.

Three monthly budgets for one person

Monthly cost	Lean	More room	More comfortable
Monthly costRent	Lean€700	More room€1,000	More comfortable€1,500
Monthly costElectricity, water, internet, mobile	Lean€150	More room€180	More comfortable€230
Monthly costGroceries and eating out	Lean€300	More room€380	More comfortable€500
Monthly costTransport	Lean€80	More room€170	More comfortable€300
Monthly costHealth insurance and health	Lean€160	More room€200	More comfortable€250
Monthly costLeisure, clothing, personal spending	Lean€130	More room€170	More comfortable€230
Monthly costSavings for trips home	Lean€80	More room€100	More comfortable€140
Monthly costReplacements and running buffer	Lean€100	More room€100	More comfortable€150
Monthly costTotal	Lean€1,700	More room€2,300	More comfortable€3,300

All table figures are editorial assumptions in today's euros, not measured household spending. The lean example assumes in particular a cheap home and low transport costs. If you need a car, €80 is not enough as an unchecked flat amount for purchase, insurance, fuel and repairs.

For two people, I would first fix the shared home. Then add groceries, individual insurance and travel for both. A household budget prevents you from counting shared costs twice and personal costs only once.

Alicante, Valencia and Málaga: rent data instead of a national average

Idealista publishes its own market data on asking rents. For August 2026, the portal reports the following figures for each city:

Alicante, Valencia and Málaga: rent data instead of a national average

City	Asking rent per square metre	Example for 60 m²
CityAlicante / Alacant	Asking rent per square metre€13.9	Example for 60 m²€834
CityValencia	Asking rent per square metre€16.3	Example for 60 m²€978
CityMálaga	Asking rent per square metre€16.5	Example for 60 m²€990

Sources: Idealista Alicante, Idealista Valencia and Idealista Málaga, accessed on 6 September 2026. The reports contain city and province figures. Above, I deliberately use the city figures.

The last column is a multiplication, not a specific listing. Small furnished apartments can cost a different amount per square metre than large unfurnished ones. Location, condition and contract type also change the price. A market indicator therefore replaces neither the search for a home nor a review of the lease.

Within the same region, the figures differ widely. In the linked Alicante report, Alcoy / Alcoi is at €8.4 per square metre. That explains why a smaller town can lead to different numbers. Whether it suits you also depends on medical care, distances and social contacts. Cheaper rent that makes an extra car necessary does not automatically save money.

A holiday rental is not yet a permanent home

For the calculation, I would only compare offers whose lease length fits your actual stay. Ask explicitly whether the home is also available in summer, which costs are billed separately and which documents the landlord requires.

Temporary accommodation can make sense for a trial stay. But do not let its price mix unnoticed with a long-term rent. For each offer, note living space, neighbourhood, term, furnishing, deposit and utilities. That way you compare homes that are actually similar.

Heating, cooling and the quality of the home also belong in the viewing. Ask to see past bills if possible. A low rent helps little if running costs change your plan or you have to move again after a short time.

From monthly budget to the portfolio you need

If you want to live without earned income, your assets must fund the uncovered costs. Personal taxes and later pensions are still missing from the following table. All capital figures are rounded to the nearest hundred euros.

From monthly budget to the portfolio you need

Monthly budget without other income	Capital at 4%	Capital at 3.5%	Capital at 3%
Monthly budget without other income€1,700	Capital at 4%€510,000	Capital at 3.5%€582,900	Capital at 3%€680,000
Monthly budget without other income€2,300	Capital at 4%€690,000	Capital at 3.5%€788,600	Capital at 3%€920,000
Monthly budget without other income€3,300	Capital at 4%€990,000	Capital at 3.5%€1,131,400	Capital at 3%€1,320,000

For the middle example, the calculation is: €2,300 × 12 = €27,600 a year. Divided by 0.035, that gives about €788,600. The rate describes an assumed initial withdrawal, not a promised return. None of these columns proves that the money will last a lifetime.

If you already receive €1,200 in other net income, the gap first drops to €1,100 a month. At 3.5%, that would be about €377,100 in capital. An additional tax reserve worked out for your situation raises the gap again. Make sure you do not deduct taxes from your net income and then enter them again as a reserve.

If your pension only starts later, you must fund the years until then separately. The financial independence calculator shows both phases of life. For long-term withdrawals, the withdrawal plan calculator runs the numbers over a set period. Their model assumptions do not replace a stress test with falling markets.

Living in Spain without a job

For EU citizens, the EU rules on free movement apply. If you want to live in another EU country without working, you must, among other things, show sufficient resources and comprehensive health insurance. The EU information on economically inactive citizens also describes registration and the later right of permanent residence. If you are not an EU citizen, these rules do not apply to you. Check Spain's national residence rules instead. This article does not cover them.

For your plan, this means: calling yourself a private investor proves nothing. Your actual funding is the proof. Clarify locally which documents are required for your situation. Residence registration, tax identification and registering with the town hall serve different purposes. A single number does not replace full preparation.

Health insurance before and after your pension starts

As a pensioner, the S1 form can give you access to care in your new EU country of residence under certain conditions. What matters is your insurance status and which country is responsible. The EU overview of health insurance abroad explains how this is assigned and how to register.

If you already live off your portfolio before your pension, do not simply assume this pensioner route. Get written confirmation from your health insurer or a private insurer of how you are covered after the move and what you pay. Ask about permanent residence, pre-existing conditions, co-payments and treatment during visits home.

That is why the health amount in the budget table is deliberately not a supposed standard rate. Enter the premium that applies to your specific status. Extra reserves for treatment that is not covered also belong in the plan.

Taxes: check residence and wealth separately

According to the Spanish tax agency AEAT, tax residence can arise from more than 183 days of stay in a calendar year or from the centre of your economic interests, among other things. The day count is therefore not the only switch. Spanish tax residents are generally taxed on their worldwide income.

If you live off your capital, wealth tax can matter as well as the tax on current income. The AEAT sets out filing requirements and regional differences. So I would not have a larger portfolio calculated with a flat capital gains tax rate alone.

Before you move, have your whole picture checked: securities, pensions, property, income that remains in your current country and the specific Spanish region. A home you keep available in your current country can also matter for tax. For residents of Germany, the basis of unlimited tax liability is § 1 EStG (in German). The tax treatment follows from the applicable rules and the relevant double tax treaty, not from deregistering alone.

Start-up costs and a sound decision

Besides the monthly budget, there are travel, temporary accommodation, deposit, furnishings and advice. Existing contracts in your current country can keep running during the move. Budget this transition phase separately, so it does not have to come out of the capital meant for ongoing withdrawals.

I would first compare two specific places and test the same daily life there. Record shopping, transport, trips to the doctor and housing costs. Then check whether you could cut spending in a weak market phase and which costs remain unavoidable.

The comparison with Thailand and Cyprus only helps if you use the same household as the basis. The shared country overview for retiring on your investments puts these differences in context. You find your full funding plan in the guide to becoming financially independent.