Wiktor Wise
The cost of living is an important consideration when relocating to another country. Spain has long been a popular destination for UK nationals, with the warmer climate, attractive lifestyle, and lower cost of living all drawing people in. While the overall cost of living in Spain is cheaper than in the UK, there are some notable exceptions. For example, electricity prices in Spain have been reported to be up to 75% cheaper than in the UK and other European countries. However, this may not be a straightforward comparison, as usage habits and local salaries should also be considered.
| Characteristics | Values |
|---|---|
| Electricity prices in Spain compared to the UK | According to government data, the UK had the highest electricity prices globally at 25.46 pence per kWh in 2023, which was much higher than in Spain (13.31 pence per kWh). |
| Electricity prices in Spain compared to other European countries | While some sources claim that electricity prices in Spain are up to 75% cheaper than in other European countries, others state that electricity costs in Spain are some of the highest in the EU. |
| Average electricity bill in Spain | €67.63 according to a survey by Ofertia.com; €63.06 according to the Organisation of Consumers and Users OCU for October 2024. |
| Spain's rank among European countries in terms of electricity prices | 14th out of 39 European countries according to Bankinter. |
| Average electricity bill in the UK | £50 for a 4-bed detached property according to a source. |
| Average monthly net income in Spain | €1,476. |
| Average monthly net income in the UK | €2,312. |
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What You'll Learn
- Spain's electricity prices are up to 75% cheaper than in other European countries
- In 2023, the UK had the highest electricity prices globally
- Spain's electricity prices are driven up by high taxes and tariffs
- Spain's mains gas is not very common, so few properties have central heating
- Spain's cost of living is cheaper than the UK, but salaries are lower
Spain's electricity prices are up to 75% cheaper than in other European countries
Spain's electricity prices are significantly cheaper than in other European countries, including the UK. As of September 2022, Spain's electricity price was 193 €/MWh, compared to 284 €/MWh in Austria, 274 €/MWh in Belgium, and 279 €/MWh in Bulgaria, making it up to 75% cheaper in relative terms. This price difference is due to several factors, including Spain's stable electricity supply and energy infrastructure.
Spain's electricity supply is more stable than many other European countries due to its diverse energy sources and lack of reliance on Russian energy imports. In May 2022, Spain also capped the price of gas sold to the electricity system, reducing electricity bills for citizens and businesses. Additionally, Spain has been improving its energy infrastructure with the +SE Plan, which aims to boost energy exports and increase energy autonomy.
Compared to the UK, Spain's electricity prices are considerably lower. According to government data, the UK had the highest electricity prices globally at 25.46 pence per kWh in 2023, while Spain offered electricity at 13.31 pence per kWh. This price difference is partly due to the UK's higher reliance on gas and central heating, as well as the difference in climate between the two countries.
The cost of living in Spain is generally lower than in the UK, with lower day-to-day expenses. However, there are exceptions, such as technology and high-street fashion, which can be more expensive in Spain due to higher taxation rates. Additionally, while eating at local restaurants in Spain is affordable, meals at big chains like McDonald's and Burger King can be pricier than in the UK.
Overall, Spain's electricity prices are up to 75% cheaper than in many other European countries, including the UK. This price difference is due to Spain's stable electricity supply, diverse energy sources, and proactive energy policies, making it an attractive option for those seeking lower utility costs.
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In 2023, the UK had the highest electricity prices globally
The cost of living in Spain is significantly cheaper than in the UK. While the cost of high-street fashion is more or less the same in both countries, day-to-day costs are lower in Spain, and property is also cheaper. In addition, the warmer climate in Spain means that less money is spent on heating and hot water.
Electricity prices in Spain are up to 75% cheaper than in other European countries. In 2022, the electricity price in Spain was 193 €/MWh, while in the UK, the average household paid around £717.60 (€858.46) per year for gas. In 2023, the average water bill in England and Wales was £473 (€565.42) per year, compared to variable water costs in Spain, which depend on the region.
The high electricity prices in the UK have impacted industries such as steelmaking, with British companies paying the highest electricity prices in the developed world. The cost of power for industrial businesses has increased by 124% in five years, according to government figures. This has raised concerns about the future of UK industries, as high energy prices affect domestic manufacturers.
To address the issue of high electricity prices, the UK government introduced the Energy Price Guarantee (EPG) in October 2022. The scheme aimed to reduce price increases for domestic customers by setting maximum prices for gas and electricity. While energy prices have fallen since the summer of 2023, they remain above pre-'energy crisis' levels, and significant bill reductions are unlikely in the near future.
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Spain's electricity prices are driven up by high taxes and tariffs
Spain's electricity prices have traditionally been higher than in the rest of Europe. However, since 2022, this is no longer the case. In 2023, Spain's electricity prices were up to 75% cheaper than in other European countries.
However, in 2025, Spain's electricity prices have been on an upward trajectory. In January 2025, a 21% IVA sales tax was applied to electricity bills, reversing the reductions introduced in 2021 to mitigate the effects of the war in Ukraine. The Special Electricity Tax (IEE), which had a reduced rate of 2.5% in the first quarter of 2024, is also moving toward its general rate in 2025. Additionally, the Electricity Generation Tax (IVPEE) remains at 5.25%, indirectly raising the final cost. These factors have contributed to the upward trend in electricity prices observed in Spain at the beginning of 2025.
The Spanish government's decision to increase taxes and tariffs on electricity has had a significant impact on consumers, resulting in higher electricity bills. The wholesale market in Spain also experienced price increases in December 2024, reaching 111.24 euros/MWh. The average price of electricity on the regulated market averaged over 100 euros/MWh for almost 20 days in December 2024, contributing to the overall increase in electricity costs.
While the Spanish government had implemented tax rebates and reductions to provide relief during the energy crisis, these measures have now been phased out, leading to higher electricity prices in 2024 and 2025. The Iberian derogation policy, implemented in 2022, played a crucial role in bringing Spain's electricity prices below the European average. However, the current upward trend in prices has raised concerns among consumers.
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Spain's mains gas is not very common, so few properties have central heating
Spain has a much lower cost of living than the UK, with day-to-day costs lower and property cheaper. This is one of the main reasons people move from the UK to Spain. Utility bills are also significantly cheaper in Spain. According to government data, the UK had the highest electricity prices globally at 25.46 pence per kWh in 2023, while Spain offered electricity at a much lower rate of 13.31 pence per kWh.
However, while Spain's electricity supply is more stable than in many European countries, electricity can still be expensive. This is especially true if you're using an electric heater, which is inefficient and costly to run.
Spain's mains gas is not very common, and in some parts of the country, it is non-existent. This means that few properties have central heating or gas-powered kitchen appliances. According to the National Institute of Statistics, approximately 70.3% of Spanish homes have some type of heating, leaving almost 30% without. Newer homes are more likely to have heating, and some methods are expensive to run. For example, oil-fired boilers and radiators are considered high-end, while infrared heating plates are inefficient. Homes in inland areas are more likely to have central heating, while coastal homes often do without.
In the colder and wetter regions of Spain, the lack of heating in flats can be surprising. In Galicia, for example, temperatures can be colder inside than outside. In the south, where temperatures are milder, many people use small portable heaters during the day and duvets at night. In the north, electric radiators and a chimney are often enough to keep warm.
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Spain's cost of living is cheaper than the UK, but salaries are lower
The cost of living in Spain is significantly cheaper than in the UK. This is true across a range of areas, including property, utilities, transport, and food.
Property in Spain is notably more affordable than in the UK, with a four-bedroom villa and pool, for example, costing under £160,000. Renting is also likely to be cheaper in Spain. Utility costs are also lower in Spain, with electricity prices up to 75% cheaper than in European countries, including the UK, which had the highest electricity prices globally in 2023. The average monthly utility cost in Spain for a one-bedroom apartment is around £121, compared to £245 in the UK.
Public transport in Spain is also a lot cheaper than in the UK, especially for short journeys. A normal municipal bus journey costs around €1.20, and there are further discounts available for residents or on multi-journey tickets. In some municipalities, residents can even travel for free.
Food is also more affordable in Spain, although eating at restaurants serving international cuisine can be more expensive, and meals at big chains such as McDonald's and Burger King can be pricier than in the UK.
However, salaries in Spain are lower than in the UK. The average after-tax salary in Spain covers living expenses for 1.3 months, compared to 1.5 months in the UK. The average salary in Spain in 2024 is €2,250 per month, compared to an annual average wage of around £33,000 in the UK. In Barcelona, the average salary is €3,130, while in Bilbao, it is €2,690. Despite the lower wages, the lower cost of living in Spain means it is possible to live comfortably on a lower income, especially in less urbanized areas.
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Frequently asked questions
Yes, electricity prices in Spain are up to 75% cheaper than in the UK and other European countries. According to government data, the UK had the highest electricity prices globally at 25.46 pence per kWh in 2023, while Spain offered electricity at 13.31 pence per kWh.
Spain has a warmer climate than the UK, so Spanish households spend less on heating and hot water in the winter. Additionally, mains gas is not common in Spain, so fewer properties have central heating or gas-powered appliances, which reduces energy consumption.
Yes, the cost of living in Spain is generally cheaper than in the UK. Rents are 41.7% lower, groceries are 16% cheaper, and public transportation is also less expensive, especially for short journeys and with resident discounts.
