Going to Spain? Whether you’re making the move or just planning a trip, there are many things you can do to prepare for your voyage. When mapping out your short-term or long-term budget for any trip, it’s important to know how far your money will go in your destination. Learn how to calculate the cost of living in Spain so you can get a good sense on how to manage your money.
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What currency does Spain use?
Like most countries in the European Union, Spain uses the euro as their official currency. Spain joined the European Union in 1986 and officially transitioned to using the euro in 2002. Before the euro, the Spanish peseta was primarily used as money. Existing pesetas were allowed to be exchanged into euros until 2021.
How much is the U.S. dollar worth in Spain?
The euro is one of the strongest currencies in the world, which means it can be exchanged for less in other currencies. As of October 2023, one U.S. dollar is worth about 0.95 euros. Although this may not seem like a big difference, this disparity can add up when exchanging larger amounts of money. For instance, 1,000 U.S. dollars can only be exchanged for roughly 950 euros. When spending money in Spain, always keep in mind that the prices are slightly higher in the U.S. dollar you’re familiar with.
How much do things cost in Spain?
Calculating the cost of living in Spain involves considering various factors like food and transportation. Costs can vary significantly depending on your location within Spain, your lifestyle, and the size of your family. Here are the main components to consider:
Restaurant bills
The cost of groceries can vary depending on where you shop, but Spain is known for its fresh and affordable food. If you eat out often and frequently dine in at restaurants or tapas bars, the expenses can add up. The average cost for one meal at an inexpensive restaurant is approximately 12 euros, and a meal at a mid-range restaurant for two people can cost anywhere between 30 to 80 euros.[1]
Housing
Rental and mortgage costs will typically depend on the city or region. Larger cities like Madrid and Barcelona will have higher rents compared to smaller towns. In general, expect to allocate a significant portion of your budget to housing.
It’s also important to factor in utilities as a part of your housing expenses as well. On average, basic monthly costs like heating, electricity, water, garbage, and air conditioning can cost anywhere between 85 to 220 euros per month for a standard one-bedroom apartment.1 These expenses will also vary on where you stay in Spain.
Transportation
Spain offers an extensive public transportation system, including buses and trains. Most big cities including Madrid, Barcelona, Seville, and Granada have their own public transit systems that offer inexpensive pass plans and tickets for both travelers and residents. The Alsa bus system is also an option for traveling across Spain or to nearby countries like France, Portugal, and Andorra.
If you prefer to travel by car, you should also look into the costs of cars and fuel. Fuel costs in particular will vary based on where you are living. Keep in mind that European countries charge for gasoline by the liter, not by the gallon.
Entertainment and travel
Entertainment costs will also vary depending on your interests. Spain offers a rich cultural scene, and expenses may include theater tickets, movie outings, and other leisure activities. Be sure to do your research on how much your favorite activities and hobbies can cost when budgeting for life in Spain. If you are interested in traveling and plan to explore neighboring countries, factor in the costs of transportation, hotels or hostels, and activities. Use our guide on managing money abroad to help you stay within your budget.
Managing your money in Spain
Knowing how to calculate the exchange rate before going to Spain will help you stay prepared financially. After learning the exchange rate, you can go cashless, withdraw money from an ATM, or make a money transfer to Spain to purchase the things you need. If you need to make a money transfer, Western Union makes it easy to send and receive money whenever you need. You can send money online, in the money transfer app, or find an agent location to make your transaction.
