Cost of Living in Spain to rise from today

Fresh produce aisle in Spanish supermarket

New IVA/VAT rates came into force throughout Spain today, meaning that already-cash-strapped families will have to tighten their belts still further.

Here´s what´s changed:

The general rate rises from 18% to 21%.

The reduced rate rises from 8% to 10%.   Many items previously included in the reduced rate list are now excluded, with their tax rate rising to 21%.   This means that entrance tickets for theatres, cinemas, shows,  attraction parks etc;  hairdressing; flowers, plants and funeral services will all cost considerably more.

The super reduced rate of 4% remains unchanged.  Again, many items in this category previously have now been excluded and placed within the general rate of 21%.   The cost of many stationery items and school materials will rise steeply  – which won´t go down well with parents as their children return to school shortly.

You can read the full list of changes here .

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Cost of Living: East of Málaga, Spain August 2012

Shopping trolley in Lidl supermarket, Spain

Whenever I travel, I´m always interested to know how much things cost, and every day, people from around the world find my blog by searching for the cost of living in Spain.

I was interested in an idea I saw on My Sardinian Life, where Jennifer published receipts for her everyday grocery shopping.   Alyson at the Algarve Blog and Diana of Canadian Travel Bugs also posted their grocery receipts from Portugal and Shanghai, China respectively.

I wanted to do something a bit different, so I decided that rather than post the prices of random items of shopping that you may, or may not be interested in, I would come up with a list of standard grocery items, which I will update the prices of, three or four times a year.   This list can easily be changed, so if there are any other basic items you would like me to include, please let me know in the comments section, below.  This way, if anyone else wants to do something similar, we can have a direct comparison between countries.

For this month´s prices, I used the Spanish Supermarket – Mercadona

Standard Grocery List

Milk (semi –skimmed UHT, own brand), 1 litre  0.54 €
Loaf  (white, baguette 250g)   0.45 €
Eggs (12, medium) 1.35  €
Chicken breasts (1kg, boneless, skinless)  5.50 €
Apples (1kg, green, Golden Delicious) 1.35 €
Oranges (1kg) 1.39 €
Bananas (1kg) 1.25 €
Potatoes (1kg) 0.92 €
Lettuce (1 head, Iceberg) 0.85 €
Water (1.5 litre bottle) 0.45 €
Domestic Beer (1 litre bottle, Cruzcampo) 1.29 €
Fish  (1kg Salmon steaks) 8.75 €
Toilet rolls (pack of 6, own brand) 1.95 €
Washing powder (Box, 35 washes, Elena brand) 5.94 €
Olive oil (1 litre, extra virgin, own brand) 3€
Coca-Cola (1.5 litre) 1.09 €
Butter (250g, own brand) 0.98 €
Sugar (1kg, white) 0.95 €

Mercadona supermarket receipt.   August 2012

I´ve also included my store receipt for the few groceries I bought – mostly of items not included on my standard shopping list.

Currency Conversion from XE €1 = 1.23   USD
0.78   GBP
1.17   AUD
1.22   CAD
1.52   NZD
9.99   ZAR

Other household expenses

Gas:  We don´t have mains gas here, so we use bottles of butane gas.   A 12.5kg bottle of  Butane gas costs 16.45 €.   One bottle lasts (on average) 21 days (for two people… though around 4 weeks in summer) for all hot water, showers and cooking.

Electricity:  For a 3 bedroom/2 bathroom detached house in the countryside with a swimming pool, we pay an average of 80-90 € per month.  The cost of consumption for us is slightly lower in winter with heating/lighting, as opposed to air conditioning/lighting/swimming pool pump running for 8 hours a day, in the summer months.

Water: We are not connected to mains water, so when we bought our house part of the purchase cost was for a share in a local water company.  We have a water deposit to store our house water.  Our water share gives us an allowance of up to 17500 litres of water each week at reduced cost, after which 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.  Our annual water bill is approximately  60 €

Typical Andalucian villa and pool

IBI – Council Tax:   Paid yearly to the local council.  This year´s bill is 338€

Internet:  29 € per month with unlimited downloads (within reason).  Speeds up to 3 Mbps

Petrol/Gasoline:  1 litre of 95 octane petrol is 1.49 €

Vehicle excise duty:  We have a Peugot 307 1.6 and pay 51 € per year.

Eating out:  Glass of wine or beer, including one tapa is 1 € – 1.50 €.  Menu of the day (three course meal, served at lunchtime, including bread and one glass of beer, wine or a bottle of water) 8 – 10 €

How do prices compare where you live? 

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