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Spain is becoming popular amongst those looking to start a new life in a different country. Thanks to the affordable cost of living and the spectacular views, food, and weather, it’s no surprise that more people want to relocate. Here are a few of the most significant expenses you will encounter when moving to Spain for business.
Depending on where you are coming from, there’s a good chance you will have to fly to Spain, and certainly to the Canary Islands. One of the first decisions you will need to make is whether to travel on a commercial flight or take a different route and travel privately.
Accommodation in Spain is, on average, far more affordable compared to other parts of Europe. Depending on the length of your stay and what your company will and won’t pay for, you will most likely need to choose between renting or buying a property.
The centre of Madrid and Barcelona are the most expensive places to rent in the country, but rental prices drop substantially once you move out of these hubs and into the outskirts of the less popular Spanish cities and onto the islands.
For example, areas like Tenerife and Lanzarote can have rental prices between €900 and €1,500 a month. If you have the flexibility to live in these areas, the island lifestyle and slower way of life are worth the extra euros you would spend.
If you plan on staying in Spain for several years or moving to the country permanently, your company will most likely not cover the cost of a house. Fear not; Spain has few restrictions on foreigners buying property, and the rates are incredibly competitive.
Once again, rates can be cheaper as you move away from the main cities, and even on islands like Fuerteventura and Gran Canaria, you can purchase a stunning property for you and your family for as little as €200,000.
There are two main factors surrounding tax in Spain; if you are or become a resident, you need to pay tax on your worldwide income. However, if you are a non-resident, you only need to pay taxes on income you earn within Spain. The rate varies between 24%, or 19% if you are a resident of another EU country.
For example, if you use a platform like Tradingview to make trades, you will need to pay taxes on the money you earn through trading.
Another part of Spanish life that makes it famous for its low cost of living is how inexpensive groceries and food are. Groceries can cost between €200 and €300 per month, depending on what you buy and how many people you shop for.
If you are someone who enjoys eating out, that won’t cost you an arm and a leg either. Even though Spain is famous for having so much delicious food and a few of the best restaurants in the world, a meal for two at a mid-range restaurant can set you back as little as €40.
Transport costs will differ depending on which costs your employer will and won’t cover. However, beyond a car, you also have the chance to use public transport if you need to cover your own transport.
Renting a car in Spain may seem affordable on the surface, but many costs are often hidden until you finalise the rental. If possible, a company car is a far more affordable route, even if you have to cover some of the fees.
Speaking of fees, parking in major cities can be challenging at the best of times, with paid parking being very common due to the shortage of regular parking. Costs differ, but most paid parking is affordable.
Toll roads aren’t that common in Spain, especially in and around major cities. However, if you often travel to more “remote” parts of the country, you can expect to pay around €10 per 100km.
Much like most of Europe, public transport is very popular in Spain because it’s much easier than driving. Most major cities have bus and train services, and a high-speed train connects Madrid to Barcelona, with tickets being as cheap as €65 depending on when you book.
The cost of healthcare will depend on what your employer will and won’t contribute. Most employers will pay a portion of your salary towards your social security, but you may have to pay extra depending on the treatment you need.
On the other hand, many expats choose private health insurance as it provides more comprehensive coverage. This cover typically costs between €30 and €50 for people between 20 and 30 years old. The cost rises as you get older and the state of your health changes.
While there are more costs involved when moving to Spain for business, these are a few of the most important ones you will encounter. As mentioned before, Spain, including the Canary Islands, is not only a fantastic place to live but also far more affordable than many may think. It’s one of the most ideal places to move for work or to start a business, and with the lower cost of living, you’ll struggle to find a reason to leave.
