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Spain among Europe’s cheapest nations: study

Spain is one of the cheapest places to live in Western Europe and is 35 percent cheaper than New York according to new figures.

Published: 21 January 2015 10:29 CET

A new cost of living index produced by Numbeo reveals life in Spain is a third cheaper than in the Big Apple.

The index determined the difference in living costs between countries taking into account the prices of groceries, transportation, restaurants and utilities.

According to Numbeo, Spain has a rent index of 21.53 which means renting in the country come in at a fifth of the price of New York and puts Spanish rents roughly on par with those in China and Trinidad and Tobago.

SEE ALSO: The cost of expat food in Spain

Spain's cheap rents have even prompted some Londoners to consider commuting to the UK capital from Spain. 

Spain’s overall Restaurant Price Index is 71.09, making it 30 percent cheaper to eat out in Spain than in New York. It costs around the same amount to eat out in Mozambique and Russia as it does in Spain.

The Consumer Price Index in Spain (65.70) is on par with Zimbabwe (65.89) and Slovenia (65.15).

Obviously there are significant regional differences within Spain. In Madrid, for example, rents are 70 percent cheaper than in New York while local purchasing power is at 76.27.

Compare this to Barcelona, where rents are almost 75 percent cheaper than in New York. While Barcelona does have cheaper rents than Madrid, local purchasing power is very similar, at 76.14.

If you are after a good deal in Spain, it might be best to head to the south of the country: rents in Malaga are 82 percent cheaper than in New York while local purchasing power is actually higher than that of Barcelona, at 76.25, in other words, your euro will stretch much further in the south of Spain. 

Renting a one bedroom apartment in the centre of Malaga will set you back around €440 a month, whereas for the same kind of flat in Madrid, you would be looking at spending around €730. 

Switzerland tops the list of the most expensive countries. It is 26 percent more expensive than New York and is the most expensive place to buy groceries in the world. The top three is rounded off by two oil-rich nations: Norway, in second place and Venezuela in third.

Down at the bottom of the list, India comes in as the cheapest country in the world with a consumer price index of 26.27, followed by Nepal with 28.85 and Pakistan with 30.71.

An interesting map from MoveHub reveals living costs around the world.

Global Living Costs Map

For members

ENERGY

EXPLAINED: How high will heating bills be this winter in Germany?

The cost of energy is expected to rise again this coming winter, even though the government's price cap is supposed to be in effect until April 2024. Here's what households can expect.

Published: 31 October 2023 10:31 CET
Updated: 5 November 2023 22:45 CET
EXPLAINED: How high will heating bills be this winter in Germany?

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing. 

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

READ ALSO: Germany looks to extend energy price cap until April 2024

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary. 

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres. 

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said. 

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

READ ALSO: Why people in Germany are being advised to switch energy suppliers

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”

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