Cost of living in Malaga, Spain: July 2015

Posted on July 20, 2015 by Marianne under Axarquía, Cost of Living

If you are considering a move to Spain, either to purchase a property or just to rent for a couple of months, the cost of living will be very much in your mind.

Prices may be different in other parts of Spain, especially in bigger cities such as Madrid and Barcelona, so bear in mind that the prices you are reading here are applicable to the area of La Axarquía – to the east of the city of Málaga on Andalucía’s Mediterrean coast.

The kind of lifestyle you choose to embrace is also an important ingredient in the financial mix.

My family eat fresh, locally-grown seasonal produce, buy mostly Spanish-branded foods at the supermarket, and eat and drink in bars and restaurants where the locals hang out. This has not only saved us money, but we feel has also enhanced our experience of moving abroad. If your choice would be to only buy internationally-branded foods and eat in tourist areas then you will find costs are considerably higher.

So, whether you’ve always dreamed of moving to southern Spain or you’re just curious, here is my up-to-date cost of living report.

ACCOMMODATION

Whether you choose to rent or buy is a matter of personal choice depending on how long you want to stay.

My advice would be to rent for a full twelve months prior to buying so that not only will you get a good feel for the area, but also you’ll experience it through all the seasons. This summer, Spain has been experiencing a long heatwave, but temperatures can be surprisingly chilly inside the house during the winter months.

It’s no secret that Spain has been gripped by a financial crisis over the past few years, but the signs are that things are improving. House prices are up to 20% lower than they were in 2006/2007 and there are plenty of houses on the market for sale. (For an idea of individual prices, search for estate agents on Google using the search terms: Axarquia, east of Malaga, or by the name of any of the villages or towns in the area including Nerja, Frigiliana, Competa, Torrox or any of the others I have written about previously on this blog).

Another key factor to bear in mind is the fluctuating currency exchange rate between your home currency and the Euro, especially if you need to transfer large amounts of money into Spain. As I write, the exchange rate stands at an 8-year high and would give more than €1.43 for each British pound sterling (£1). This has made a considerable difference to our income from when the rate stood around €1.08 a few years ago.

You can easily rent a lovely furnished apartment with 2-3 bedrooms, 1-2 bathrooms and a communal pool, on the coast but away from the main tourist area, for €450- €500 per month (on an 11 month contract). If you choose somewhere further inland or nearer the city, prices will vary, but there’s no substitute for actually being here and asking around. Lots of people know of places available for rent that will never make their way onto websites or an estate agent’s rental list.

If you are looking for somewhere to rent in the Axarquía area for a month or two, I have had dealings with, and can recommend Anubis in Torre del Mar. Speak to Anna and tell her I sent you (and no, I won’t earn anything for saying that)!

UTILITIES

Electricity: For a 3 bedroom/2 bathroom detached house in the countryside with a swimming pool, we pay around €100 per month. Our consumption is generally higher in the summer than in the winter as we have air conditioning units (cooling in summer and heating in winter) plus the swimming pool pump running for 8 hours a day. We try to use the air conditioning sparingly – preferring to open windows during early morning and late evening and make use of the ceiling fans. Although sometimes, especially in July and August, you just have to put the air-con on!

Gas: We do not have a piped gas supply here, so we use bottles of gas. This is a common feature throughout many areas in this part of Spain. Gas prices in Spain are strictly controlled by the government, rather than the gas companies. A year ago, a 12.5kg bottle of Butane gas cost €17.50. They are now €14.11 (a reduction of almost 20%), with an 11kg bottle of propane gas costing a mere €12.42. For us, one bottle lasts (on average) four weeks for two people, although this could be longer in summer (depending on how many visitors we have), for all hot water, showers and cooking on a gas hob.

Water: Because we live in the countryside, approximately five kilometres from our home village of Cómpeta, we do not have mains water. When we bought our house, part of the purchase cost was for a share in a local water company. We have a 14,000 litre water deposit in which to store our house water. Our water share gives us an allowance of up to 17,500 litres of water each week at reduced cost, though if we use more than this, the price rises steeply. Needless to say, we don´t use this amount of water, even allowing for swimming pool top-ups and garden irrigation in the summer months. Our water company, Patamalara, send out their bills every two months, and some of the cost depends on the amount of repairs that have been undertaken on the system. Over the past twelve months our annual water bill has amounted to €119.

IBI or Council Tax: Paid yearly to the local council. This year’s bill is €337 – the same as it has been for the past nine years. We don’t have a rubbish collection here as we live in the countryside, so we have to take all our household waste to one of the collection centres in a local village.

Telephone: Living in a mountainous area of the countryside, Telefónica (the largest fixed phone and ADSL operator in Spain) are unable to supply us with land-line telecommunications. We therefore rely on Skype (via the internet) for most calls (which are free to other Skype users, or by using credit, if not) and have a mobile phone contract with Movistar (also owned by Telefonica) which costs €11 per month for 800 MB of data and free calls (after an initial connection charge of €0.18).

Internet: We use a 4G wireless internet option from Orange costing €34.95 (inclusive of IVA tax) per month, which gives us 35 GB of data. Orange provide us with a small router which we just plug into an electrical plug socket, and which has the benefit of using the mobile telephone system, thus making it portable.

House and Contents Insurance: Based on the re-building costs of the house, including contents, we pay €241 per annum with Linea Directa.

MOTORING COSTS

The cost of motoring in Spain has fluctuated considerably over the past few years.

New cars which until the last year or two were relatively expensive in Spain, now cost a similar amount in euros as their UK equivalent does in sterling. But, the currency exchange rate is €1.43 for each British pound, meaning that at present, some new cars in Spain are considerably cheaper than in the UK, though this is not true of all marques – BMW for example.

Second-hand vehicles (often with high mileage) hold their values well in Spain, making a comparable model of the same age in the UK (for example) much cheaper.

FUEL: Unleaded petrol (gasolina sin plomo) 95 Octane was €1.52 per litre last year. It is now €1.33 at the Repsol garage in Torre del Mar.

Diesel: (gasoil) at the same garage was €1.42 per litre last year and is now €1.16.

As in most countries, branded petrol stations such as Repsol are often more expensive for petrol and diesel compared to supermarkets and hypermarkets such as Carrefour. The cheapest fuel prices in the Axarquía area at the moment are:

Unleaded: 1.269 €/l at BALLENOIL, Camino Higueral El, 28 Vélez-Málaga
Diesel: 1.087 €/l at EROSKI, Avenida Juan Carlos I (at the El Ingenio shopping centre) because you can get a further 2% discount by using your credit card if you use the self-service, pay-at-the-pump option.

Click HERE for an interesting interactive map displaying the current cheapest petrol/gas stations in the area.

Car tax (Impuesto vehiculos traccion mechanica) is based on fiscal horsepower (which bears no resemblance to the mechanical horsepower of the vehicle) and is a means by which the taxation is calculated. This rate of taxation differs from village to village, depending on where you live. For our car, a Peugot 308, the cost is €51.12 per annum.

Car insurance for a two year old Peugot 308 1.6 E-HDI (with Linea Directa – the Spanish equivalent of Direct Line in the UK), for fully comprehensive cover with legal assistance included, and an excess of €150, cost €570 two years ago. However, last year we thought we could do better. We asked for quotes from other insurers and threatened to leave Linea Directa unless they matched the price. After initially refusing, they eventually relented and this year our premium was €426.

PUBLIC TRANSPORT

Spain’s public transport system is relatively cheap and reliable.

Trains: Because of the mountainous terrain there are no trains running through La Axarquía, though you can catch a train from Málaga to many other Spanish cities, including Granada, Seville, Córdoba, and Madrid. I can certainly recommend the AVE train (Spain´s equivalent of the Bullet Train) as an alternative to budget flights, with favourable prices being found in advance, online, via state-owned train operator, RENFE.

Buses: The main bus operator here is Alsina Graells (ALSA). Their website is in English, and from here you can study bus schedules and purchase tickets in advance of your trip. There are generally plenty of buses between towns and cities, and they usually leave on time. Buses may be infrequent to remote villages in the Axarquía, with often only one bus per day or none at all at the weekend. The cost of a bus ticket with ALSA, from Nerja to Málaga, (approx. 60 kms) one way is 4.52 € or €8.18 for a return trip.

MY TIP: If you are over 65 years of age, a resident in Andalucía and registered on the Padron of your local town hall, you can apply for an Andalucía Tarjeta 65 (full information, link to download the form and address to send it to, HERE) Once you have the card, you will not only be able to get 50% off bus fares with ALSA, but showing the card will get you a discount at many local attractions 🙂

ENTERTAINMENT

Eating out: Menu del Día (menu of the day, usually at lunch time) 3 course meal, including bread and one glass of beer, wine or a bottle of water) 8 – 10 €

Evening dinner for 2: (three courses) at a mid-priced restaurant, including a glass of wine 45 €

Tapas: small beer or glass of wine including a tapa 1-2 € (depending on whether it’s a tourist area or not).

Cinema ticket (International release, Yelmo cinema, Malaga) 4.90 €

Round of GOLF (18 holes, 2 players + buggy, Baviera Golf course at La Caleta de Vélez) 100 €

Cigarettes (pack of 20, Marlboro) 4.85 €

STANDARD GROCERY LIST

This is the up-to-date Standard Grocery List I have published previously. The first price shown in black is as it was in February 2014, with this month’s prices in RED alongside.

For the sake of comparison, I have once again used the largest Spanish supermarket – Mercadona.

Milk (semi–skimmed UHT, own brand), 1 litre 0.60 € 0.61 €

Loaf (white, baguette 250g) 0.45 € 0.45 €

Loaf (white, Bimbo brand, 460g 100% natural) 1.49€ 1.49 €

Butter (250g, own brand) 1.25 € 1.15 €

Sugar (1kg, white) 0.93 € 0.76 €

Coffee (ground, 250g, Santa Cristina) 1.89 € 1.89 €

Eggs (12, own brand caged, medium) 1.35 € 1.20 € (special offer)

Olive oil (1 litre, extra virgin, own brand) 3€ 3.85 € (5 litres 14.50 €) (5 litres 19 €) **

Rice (1kg, long grain, own brand) 0.71€ 0.71 €

Pasta (1kg, own brand) 0.75 € 0.85 €

Pasta (500g, wholewheat) 0.99€ 0.99 €

Tinned tuna (6 x 80g, own brand in sunflower oil) 3.35 € 2.98 € (special offer)

Chicken breasts (1kg, boneless, skinless, packaged)) 5.80 € 5.10 € (or bought loose at the counter 4.65 € per kg)

Pork chops (1kg, packaged) 4.75 € 4.10 €

Beef mince (Store brand, pre-packed, 700g) 3.80 € 4.95 € (now packaged as 1kg pack)

Fish (1kg Salmon steaks) 10.75 € 11.65 €

Fish (1kg Dorada, Gilt-head bream) 6.95€ 7.50 €

Apples (1kg, green, Golden Delicious) 1.85 € 1.39 € **

Oranges (loose) (1kg) 0.79 € 1.15 € (or 0.91 € per kg if purchased as a 5.5kg bag for 4.99 €) **

Bananas (loose) (1kg) 1.39 € 1.25 € **

Potatoes (loose) (1kg) 0.89 € 0.89 €

Lettuce (1 head, Iceberg) 0.87 € 0.49 € (special offer)

Red Peppers (1kg, loose) 1.89 € 1.99 € **

Green pointed “Italian” Peppers (1kg, loose) 1.99 € 0.99 € (special offer)

Tomatoes (1kg, loose) 1.29 € 0.79 € (special offer)

Coca-Cola (1.5 litre bottle) 1.09 € 1 €

Water (2 litre bottle) 0.42 € 0.42 €

Domestic Beer (1 litre bottle, Cruzcampo) 1.25 € 1.37 € (now bottled as 1.1 litre)

Imported beer (6 x 25cl bottles Heineken) 3.65 € 3.15 €

Bottle wine (medium priced) 3.00 – 3.50€ 3.00 – 3.50 €

Colgate toothpaste (100 ml) 1.75€ 1.55 € (now packaged as 75ml)

Pantene shampoo (300 ml) 3.00€ 2.90 € (now packaged as 270ml)

Toilet rolls (pack of 6, own brand) 1.98 € 1.98 €

Washing powder (Box, 35 washes, Elena brand) 4.87 € 4.87 €

** Seasonal changes

Currency Conversion from XE €1 = 1.08 USD
0.70 GBP
1.47 AUD
1.40 CAD
1.64 NZD
13.46 ZAR

So, tell me – HOW DO PRICES COMPARE WHERE YOU LIVE?

Direct bus service from the Axarquía to Málaga airport

Posted on July 28, 2014 by Marianne under Axarquía, Cost of Living, Places

If you’re searching the internet for information about buses from Málaga airport heading to the eastern Costa del Sol, here’s the current situation for Summer 2014 (until 28th August).

Yes, there´s good news for visitors arriving at Málaga airport who don´t want to hire a vehicle to continue their travels. During the summer months, Alsina Graells (ALSA) operate an airport bus service along the coast between Málaga airport and Maro, with lots of stops along the way.

The bad news is that the service only operates twice a day in either direction, though that’s twice as many buses as there were last year – so I guess there is some progress!

Travelling from La Axarquía to Málaga Airport (AGP)

Starting in Maro ten minutes before, the bus leaves Nerja at 8.10am and 3.10pm, and calls at Torrox Costa, El Morche, Lagos, Mezquitilla, Caleta de Vélez and Torre del Mar before proceeding to the airport without further stops (arriving at 9.40am and 4.40pm respectively).

The cost (from Nerja) is €4.52 one-way (ida) or €8.18 return (ida y vuelta).

Although there are only two buses each day direct from the coast of the Axarquía region to Malaga airport – don’t let this worry you. There are plenty of buses ALL YEAR ROUND to Málaga bus station in the city centre, from where you can get another bus to the airport. This second bus (every 20 minutes) will drop you off right outside the new terminal (T3) building.

If you prefer to continue your journey from Málaga city to the airport by train, right next door to the bus station in Málaga is the Maria Zambrano railway station, where you can jump on one of the frequent trains direct to Terminal 3 of the airport. You will need to catch the local commuter train (known as Cercanias) C-1 in the direction of Fuengirola. Trains to the airport leave every half hour between 5:23am and 10:33pm. The journey only takes 10 minutes and the fare costs between €1.70 and €2.60 depending on the time and day of travel.

Travelling from Málaga Airport to La Axarquía

The journey on the direct-bus to the coastal areas of the Axarquía begins at Málaga airport, Terminal 3 (Arrivals Llegadas) at 11.45am and 5.15pm travelling via Torre del Mar, Caleta de Vélez, Mezquitilla, Lagos, El Morche, Torrox Costa and through to Nerja (arriving at 1.20pm and 6.50pm respectively). The service actually terminates in Maro ten minutes later.

The cost (to Nerja) is €4.52 one-way (ida) or €8.18 return (ida y vuelta).

If the limited direct-bus times don’t fit in with your schedule, then just hop on the C19 Malaga city bus (every 20 minutes) from right outside Terminal 3 and for approx.€1.20 you’ll soon be at the Estación de Autobuses (bus station) in the city, from where you can catch a bus to anywhere in Spain (including other towns and villages of the Axarquía).

Alternatively, to get into Málaga city from the airport, jump on the local train (the station is just across the road from the bus stop) heading towards Málaga Centro and get off at Maria Zambrano railway station (the journey takes approximately 10 minutes and costs between €1.70 and €2.60 depending on the time and day of travel).

The bus and railway stations in Málaga city are next door to each other.

The Alsina Graells (ALSA) website is in English, where you can study bus schedules and often purchase tickets in advance of your trip.

Disclaimer: It says on the ALSA website “These timetables are for guidance purposes only”, so please check the times before you travel as they may be subject to change.

Cost of Living in Spain Series: Watching The Currency Market When Buying And Selling Spanish Property

Posted on July 15, 2014 by Marianne under Axarquía, Cost of Living, Laws and Customs

When I got to point #2 in a recent article entitled 10 Ways To Save Money When Buying Your Spanish Property, it had me casting my mind back almost nine years to when we were about to buy our first property abroad, here in Andalucía.

We had sold our house back in the UK in record time, and were renting a town-house in the pretty, mountain village of Frigiliana.

Having never rented a property before, it seemed sensible to see if we liked the area as a place to put down roots, as well as to experience the full range of the seasons of the year, before we actually bought somewhere. After all, the weather may have been hotter in summer or cooler in winter than we had imagined – and indeed, it was!

We made many house-hunting trips to various towns and villages, both inland and along the coast towards Málaga, and eventually as far along the western Costa del Sol as Estepona. For various reasons, but mainly because of fewer high-rise buildings and built-up areas, we decided that the Axarquía region, to the east of Málaga, was the place for us.

We knew we would be transferring a sizeable chunk of the proceeds of our UK house sale via a currency firm (into Euros) to pay for our new house, so we took the opportunity to keep an eye on the fluctuating currency market.

As a result, we were able to jump in right at the top, to bag a cool €1.50 euros for each £1 sterling. This gave us almost ten thousand euros more than we had originally been expecting, which was enough to put a brand new kitchen with matching appliances into our new property. Quite a bonus!

And yes, I do know that the market could have gone the other way, but on this occasion, it didn’t.

Over the next few years, the British Pound made a steady decline against the Euro until it almost hit parity (when £1 only bought €1.08, at its lowest rate). This meant that for many British expats living in Spain and relying on an income, savings or a pension from the UK, their income in real terms had reduced by almost one third.

Then, of course, came La Crisis, as it is known in Spain, when the difficult economic situation has meant that some British expats who may not have carefully planned for their future (as well as some who did) have been left in the unfortunate position of having to sell up and return to the UK.

Things have improved a little over the last few years, with the current exchange rate against the British Pound being €1.26 as of today’s date (15th July 2014). But there are still anguished mutterings amongst British expat house sellers that they are having to accept lower prices than they paid for their properties, several years ago.

I want to look at this in more detail, using reverse psychology to see if the situation is really as bad as they think.

Back when I bought my house in January 2006, with the exchange rate at £1 buying €1.50, a €300,000 euro house in Spain actually cost £200,000. To keep the figures simple, let’s assume that almost nine years later the price of that house has not risen at all and is sold today for €300,000. Converted back into British Pounds (again keeping it simple, so let’s use €1.25 for each £1) then the initial £200,000 investment now converts from the €300,000 sale price, to £240,000 – an increase of 20%, due entirely to currency fluctuations.

Even if that self-same house were sold for only €280,000 (€20,000 less than was paid for it) the conversion into British Pounds would be £224,000 – which is still an increase of 12% over the £200,000 that was initially paid for the property.

So maybe the situation is not quite as bad as some people imagine.

Of course, my example above is a simple one and does not take into account any of the following:

Capital gains (or any other) tax which might become due once the house is sold.
Where under-declarations were made at the time of purchase (when everyone in Spain was expected to pay for part of the price of the house in cash, and furtively sneak €80,000 to the vendor in a plastic, Mercadona shopping bag).
Legal and/or estate agents fees.

Whilst the above example is only applicable if someone is selling up in Spain and moving back (or at least sending their money back) to the UK, if you are selling and want to re-purchase in Spain, because of the current housing market, you are now in a powerful position to negotiate prices when buying your next property.

To illustrate my point, I have only used simple, rounded figures, and it’s always wise to take legal and financial advice when making substantial property purchases.

The purpose of this post is to indicate the advantage of never under-estimating the fluctuation of the currency market, which is a point often missed, or at least not discussed, as it should be.

This post is not meant to offer legal advice, merely an observation.

Cost of Living in Spain: February 2014

Posted on February 24, 2014 by Marianne under Axarquía, Cost of Living

EDITED TO ADD: My most up-to date COST OF LIVING report for JULY 2015 can be found HERE.

Every day, around one hundred people find themselves visiting my blog after typing the search term “Cost of Living in Spain” into Google. It’s a popular subject, and for that reason each year I publish a list of the current prices of a number of items here in southern Spain.

It’s worth bearing in mind that the following information is relevant to the kind of lifestyle and area where I live, east of Málaga. We choose to live like locals, eating fresh, seasonal produce and frequenting bars full of Spaniards rather than tourists. Similarly, if your choice would be to only buy internationally branded foods and eat in tourist areas then you will find costs are considerably higher.

So …. whether you are fed up of the wet weather in the UK, have been dreaming of living in southern Europe for many years or you’re just curious – here’s my updated list of standard grocery items for your perusal.

For the sake of comparison, I have once again used the largest Spanish supermarket – Mercadona.

STANDARD GROCERY LIST

This is the up-to-date Standard Grocery List I have published previously. The first price shown is as it was in August 2013, with this month’s prices in RED alongside.

Milk (semi–skimmed UHT, own brand), 1 litre 0.59 € 0.60 €

Loaf (white, baguette 250g) 0.45 € 0.45 €

Loaf (white, Bimbo brand, 460g 100% natural) 1.49€ 1.49 €

Butter (250g, own brand) 1.05 € 1.25 €

Sugar (1kg, white) 0.93 € 0.93 €

Coffee (ground, 250g, Santa Cristina) 1.89 € 1.89 €

Eggs (12, own brand caged, medium) 1.35 € 1.35 €

Olive oil (1 litre, extra virgin, own brand) 3.35€ (5 litres 15.50€) 3 € (5 litres 14.50 €) **

Rice (1kg, long grain, own brand) 0.71€ 0.71 €

Pasta (1kg, own brand) 0.79€ 0.75 €

Pasta (500g, wholewheat) 0.99€ 0.99 €

Tinned tuna (6 x 80g, own brand) 3.39€ 3.35 €

Chicken breasts (1kg, boneless, skinless, packaged)) 5.80 € 5.80 €

Pork chops (1kg) 4.60€ 4.75 €

Beef mince (Store brand, pre-packed, 700g) 3.80 € 3.80 €

Fish (1kg Salmon steaks) 10.75 € 10.75 €

Fish (1kg Dorada, Gilt-head bream) 6.95€ 6.95 €

Apples (1kg, green, Golden Delicious) 2.00 € 1.85 € **

Oranges (1kg) 1.19 € 0.79 € **

Bananas (1kg) 1.29 € 1.39 €

Potatoes (1kg) 1.25 € 0.89 € **

Lettuce (1 head, Iceberg) 0.85 € 0.87 €

Red Peppers (1kg, loose) 1.95 € 1.89 €

Green pointed “Italian” Peppers (1kg, loose) 1.35 € 1.99 € **

Tomatoes (1kg, loose) 0.99 € 1.29 € **

Coca-Cola (1.5 litre bottle) 1.09 € 1.09 €

Water (2 litre bottle) 0.42 € 0.42 €

Domestic Beer (1 litre bottle, Cruzcampo) 1.25 € 1.25 €

Imported beer (6 x 25cl bottles Heineken) 3.05€ 3.65 €

Bottle wine (medium priced) 3.00 – 3.50€ 3.00 – 3.50 €

Colgate toothpaste (100 ml) 1.75€ 1.75 €

Pantene shampoo (300 ml) 3.00€ 3.00€

Toilet rolls (pack of 6, own brand) 1.95 € 1.98 €

Washing powder (Box, 35 washes, Elena brand) 4.87 € 4.87 €

** Seasonal changes

For the costs of accommodation, utilities, motoring, public transport and entertainment – prices are largely unchanged since last time. Please see HERE.

Many people dream of moving to southern Spain with the promise of better weather coupled with a healthier, outdoor Mediterranean lifestyle. There are many other considerations to bear in mind when trying to compare living costs, and the following may be some of them:

Unemployment in Spain is currently running at record levels with 25% of the adult population out of work. If you are considering moving to Spain, you would need to be confident that your finances are secure or you might end up having to return to your home country after failing to find employment.
Tied in with the issue of employment, comes health cover. Unless you are employed, self-employed or retired, (thus qualifying for cover under the Spanish health system), you will be required to take out private health cover.
The cost of living is really only half of the equation. Salaries and wages may be very different in Spain from what you are used to elsewhere. What is important is what is left each month after you have paid for your essentials.
Fluctuation in currency exchange rates can make a huge difference to you if your source of income comes from outside of Spain. For example, when we first came to live in Spain ONE BRITISH POUND bought us ONE EURO AND FIFTY CENTIMOS. Very handy when we were purchasing our house. However, a couple of years ago, and completely outside of our control, we only received just ONE EURO AND EIGHT CENTIMOS for each BRITISH POUND – a staggering drop in income of almost one third.
Spanish houses in this area are built to keep out the sun in summer rather than to retain heat in winter. With tiled floors, small windows and inadequate heating systems, houses can be surprisingly chilly during the winter months, making them expensive to heat.
Whilst some costs are much more favourable in Spain (for example our cost of IBI is about one quarter of the cost of a similar property in the UK for Council Tax), other costs are significantly more (i.e. when purchasing a property, costs amount to approx 11% of the purchase price).
You might have to factor in the cost of flights back home to the UK (or your home country) to visit friends and relatives. Often these can be bought through budget airlines for reasonable prices – but what if you need to return quickly for a family emergency?
Then there is the question of taxes – not only of the personal variety, but also related to any property purchase. There are many factors at play, depending on personal circumstances, and whilst I often receive messages from visitors to my blog regarding such matters, I am not a tax expert and would always recommend you seeking professional advice given your own personal financial situation.

MY ADVICE: There are many more things to bear in mind when considering the cost of living in Spain, than the price of bread and milk. DO YOUR RESEARCH FIRST!

How does the cost of living compare where you live? Have you ever considered moving abroad?

You might also enjoy reading this article:

Cost of Living in Spain Series: Watching The Currency Market When Buying And Selling Spanish Property

Cost of Living in Spain: August 2013

Posted on August 23, 2013 by Marianne under Axarquía, Cost of Living

Edited to add: When you’ve read this article, make sure you also look at my up-to-date Cost of Living in Spain: (Málaga edition) for July 2015, now available HERE.

Many people find themselves reading my blog because they have searched for the term “Cost of living in Spain“. In August 2012, I posted my first article about the cost of living here in the Axarquía region, east of Málaga, and have continued to write updates every four months throughout the past year. They have proved to be some of my most popular posts. Of course, all the information is relative. What is right for one person will be totally different for another. We have found that living like locals – eating seasonal fruits and vegetables, buying Spanish brands and eating out in bars and restaurants full of Spaniards, has enhanced our experience of moving abroad. If you move to Spain and your choice is to buy only international branded food and drink, or dine out at tourist restaurants, then your cost of living will be considerably more expensive than mine. Bear in mind that the costs I will publish are relevant to me, living here on the eastern Costa del Sol. Prices in other areas of Spain may be different.

ACCOMMODATION: Buy or rent?

We moved to Spain eight years ago, and for the first twelve months rented a townhouse in the village of Frigiliana. We wanted to experience a full year, during every season, before we committed to purchasing our current home. I would recommend that course of action to anyone considering moving abroad. Most people know about the financial crisis affecting Spain at the moment, so I wont go into the price of houses or apartments. Search Google for estate agents in Spain if you´re interested, and you´ll find out far more information than I can give you here. If you do decide to purchase, you will most likely need a sizeable deposit and may find difficulty obtaining a mortgage, should you need one. Bear in mind also the fluctuating currency exchange rate between your home currency and the Euro if you need to transfer large amounts of money into Spain. Fortunately for us, when we bought our house, the exchange rate was €1.51 for each British pound sterling (£1). Today’s rate would only give €1.16 for each British pound – a considerable difference. You can find a lovely apartment to rent, with 2-3 bedrooms, 1-2 bathrooms and a communal pool, on the coast but away from the main tourist area, for €450- €500 per month (on an 11 month contract). In more rural areas it would cost less, or in urban/touristy areas the prices would be higher. It’s easy to find a detached villa with a private pool and a large garden for €1000 a month (and often less). So, when you compare the price of some rented accommodation, in a not very nice area of many cities in the UK (for example), you can see the attraction for people wanting a cheaper option, living in Spain. MY TOP TIPS: It´s only when you are actually here in Spain that you can discover the full selection of rental options that are available. Almost everyone you meet knows someone who has an apartment to rent, and many of these will never find their way onto any English language website. If you´re serious about renting a place in Spain, get yourself over here and start asking around. You could also try haggling over the cost of the rent – the worst they can say is ¨No”!

UTILITIES

Like many places in the world, the cost of household utility bills has risen considerably over the past few years. Electricity: For a 3 bedroom/2 bathroom detached house in the countryside with a swimming pool, we pay around €100 per month. The cost of consumption for us in winter is for heating and lighting, whereas in summer it’s for lighting and the swimming pool pump running for 8 hours a day. Added to that, we also have air conditioning units in the living room and master bedroom, though we use them sparingly – preferring to open windows during early morning and late evening. Sometimes though, especially in July and August, you just have to put the air-con on! Gas: We are not connected to a piped gas supply here, so we use bottles of butane gas. This is a common feature throughout many areas in this part of Spain. A year ago, a 12.5kg bottle of Butane gas cost €16.45. They are now €17.50. For us, one bottle lasts (on average) three to four weeks for two people, although this could be longer in summer, (depending on how many visitors we have), for all hot water, showers and cooking on a gas hob. Last September we had a new, much more efficient gas water heater fitted and, even though it has a larger capacity for water heating than the previous one, it uses significantly less gas. Water: We are not connected to mains water because we live in the countryside, so when we bought our house part of the purchase cost was for a share in a local water company. We have a 14,000 litre water deposit in which to store our house water. Our water share gives us an allowance of up to 17,500 litres of water each week at reduced cost, though if we use more than this, the price rises steeply. Needless to say, we don´t use this amount of water, even allowing for swimming pool top-ups and garden irrigation in the summer months. Our water company, Patamalara, send out their bills every two months, and some of the cost appears to depend on the amount of repairs that have been undertaken on the system. Over the past twelve months our annual water bill has amounted to €97. IBI or Council Tax: Paid yearly to the local council. This year’s bill is €337 – the same as it has been for the past five years. Bear in mind, we don’t have a rubbish collection here as we live in the countryside, so we have to take all our household waste to one of the collection centres in a local village – but this is no problem as we take it when we are on our way somewhere. When we lived in the UK, we used to pay four times this amount – over eight years ago! Telephone: Living in a mountainous area of the countryside, Telefónica (the largest fixed phone and ADSL operator in Spain) are unable to supply us with land-line telecommunications. We therefore rely on Skype (via the internet) for most calls (which are free to other Skype users, or by using credit, if not) and have a pay-as-you-go mobile phone with Movistar (also owned by Telefonica). Internet: We use a wireless internet option costing €29 (inclusive of IVA tax) per month, with unlimited downloads (within reason). Speeds up to 3 Mbps. House and Contents Insurance: Based on the re-building costs of the house, including contents, we pay €227 per annum with Linea Directa.

MOTORING COSTS

The cost of motoring in Spain has risen considerably over the past few years. The price of Diesel (gasoil) at the Repsol garage at Torrox Costa is €1.42 per litre. Unleaded petrol (gasolina sin plomo) 95 Octane is €1.52 per litre. As in most countries, branded petrol stations such as Repsol are often more expensive for petrol and diesel compared to supermarkets and hypermarkets such as Carrefour. New cars are expensive in Spain, and even though advertising billboards might seem to offer competitive prices (for example using Plan PIVE – a government help scheme offered when trading in a ten-year-old car for a brand new one), the reality is that many special deals are often only available when taking out expensive finance agreements. We found this out for ourselves this summer when we changed our 9 year-old Peugot 307 for a six-month-old Peugot 308. Cash is NOT king around these parts, it seems. Second-hand vehicles (often with high mileage) hold their values well in Spain, making a comparable model of the same age in the UK (for example) much cheaper. Car tax (Impuesto vehiculos traccion mechanica) is based on fiscal horsepower (which bears no resemblance to the mechanical horsepower of the vehicle) and is a means by which the taxation is calculated. For our Peugot 308 the cost is €51 per annum. Our car insurance for an almost new Peugot 308 1.6 E-HDI (with Linea Directa – the Spanish equivalent of Direct Line in the UK), for fully comprehensive cover with legal assistance included, and an excess of €150 costs €570 per year. There are some toll roads on the western Costa del Sol, but fortunately none in the Axarquía, east of Málaga.

PUBLIC TRANSPORT

Spain’s public transport system is relatively cheap and reliable. Trains: Because of the mountainous terrain there are no trains running through La Axarquía, though you can catch a train from Málaga to many other Spanish cities, including Granada, Seville, Córdoba, and Madrid. I can certainly recommend the AVE train (Spain´s equivalent of the Bullet Train) as an alternative to budget flights, with favourable prices being found in advance, online, via state-owned train operator, RENFE. Buses: The main bus operator here is Alsina Graells (ALSA for short). Their website is in English, and from here you can study bus schedules and purchase tickets in advance of your trip. There are generally plenty of buses between towns and cities, and they usually leave on time. Buses may be infrequent to remote villages in the Axarquía, with often only one bus per day or none at all at the weekend. The cost of a bus ticket with ALSA, from Nerja to Málaga, (approx. 60 kms) one way is 4.43 € or €8.02 for a return trip.

ENTERTAINMENT

Eating out: Menu del Día (menu of the day, usually at lunch time) 3 course meal, including bread and one glass of beer, wine or a bottle of water) 8 – 10 € Evening dinner for 2: (three courses) at a mid-priced restaurant, including a glass of wine 40 € Tapas – small beer or glass of wine including a tapa 1-2 € (depending on whether it’s a tourist area or not). Cinema ticket (International release, Yelmo cinema, Malaga) 8.60 € Round of GOLF (2 players + buggy, Baviera Golf course at La Caleta de Vélez) 97 € Cigarettes (pack of 20, Marlboro) 4.75 €

STANDARD GROCERY LIST

This is the Standard Grocery List I have published previously. The first price shown is as it was in August 2012, with this month’s prices in RED alongside. If there is only one price indicated, this is a new introduction to the list. For the sake of comparison, I used the Spanish Supermarket – Mercadona. Milk (semi–skimmed UHT, own brand), 1 litre 0.54 € 0.59 € Loaf (white, baguette 250g) 0.45 € 0.45 € Loaf (white, Bimbo brand, 460g 100% natural) 1.49 € Butter (250g, own brand) 0.98 € 1.05 € Sugar (1kg, white) 0.95 € 0.93 € Coffee (ground, 250g, Santa Cristina) 1.79 € 1.89 € Eggs (12, own brand caged, medium) 1.35 € 1.35 € Olive oil (1 litre, extra virgin, own brand) 2.75 € (5 litres 12.99€) 3.35 € (5 litres 15.50 €) Rice (1kg, long grain, own brand) 0.71 € Pasta (1kg, own brand) 0.79 € Pasta (500g, wholewheat) 0.99 € Tinned tuna (6 x 80g, own brand) 3.39 € Chicken breasts (1kg, boneless, skinless, packaged)) 5.50 € 5.80 € Pork chops (1kg) 4.60 € Beef mince (Store brand, pre-packed, 1kg) 5.43 € 3.80 € (for 700g) Fish (1kg Salmon steaks) 8.75 € 13.50 € Fish (1kg Dorada, Gilt-head bream) 6.95 € Apples (1kg, green, Golden Delicious) 1.35 € 2.00 € Oranges (1kg) 1.39 € 1.19 € Bananas (1kg) 1.25 € 1.29 € Potatoes (1kg) 0.92 € 1.25 € Lettuce (1 head, Iceberg) 0.85 € 0.85 € Red Peppers (1kg, loose) 2.29 € 1.95 € Green pointed “Italian” Peppers (1kg, loose) 1.99 € 1.35 € Tomatoes (1kg, loose) 1.19 € 0.99 € Coca-Cola (1.5 litre bottle) 1.09 € 1.09 € Water (1.5 litre bottle) 0.45 € 0.42 € (for a 2 litre bottle) Domestic Beer (1 litre bottle, Cruzcampo) 1.29 € 1.25 € Imported beer (6 x 25cl bottles Heineken) 3.05 € Bottle wine (medium priced) 3.00 € to 3.50 € Colgate toothpaste (100 ml) 1.75 € Pantene shampoo (300 ml) 3.00 € Toilet rolls (pack of 6, own brand) 1.95 € 1.95 € Washing powder (Box, 35 washes, Elena brand) 5.94 € 4.87 € Currency Conversion from XE €1 = 1.34 USD 0.85 GBP 1.48 AUD 1.40 CAD 1.70 NZD 13.70 ZAR So, tell me – HOW DO PRICES COMPARE WHERE YOU LIVE? Whilst you’re here, you might be interested in these articles: Cost of Living in Spain Series: Watching The Currency Market When Buying And Selling Spanish Property AVE: Taking the Fast Track from Málaga to Madrid