A new study by the price comparison website Kelisto.es has analysed prices in the categories of housing, public and private transport, taxes, leisure and shopping. 

The results revealed that the city of Palencia in Castilla y León is the cheapest Spanish city to live in.  

Palencia sits at the top of Castilla y León, almost equidistant between Burgos and Valladolid. It also lies within an easy distance of the capital León, taking approximately 40 minutes by train and 1hr 30min by car. 

You can also easily reach the capital of Madrid from Palencia in just 1hr 30min by train or 2hr 30min by car.

It turns out that living in Palencia is actually 30 percent cheaper than the national average. 

The average wage in Palencia is approximately €23,500 per year, meaning that people there can enjoy greater purchasing power than in other areas of the country. 

Palencia particularly stood out for its cheaper housing and public transport. According to the online housing agency Enalquiler, the average price of renting an apartment in Palencia is €524 per month. While property site Idealista states that buying a home in Palencia costs €1,085 per metre squared. 

A one-way bus ticket there costs just €0.70, which is 41.67 percent less than the average in Spain. It was also the cheapest for a ten-trip multi-ticket, which costs just €4,45.65 percent less than the national average. 

Palencia is a relatively small city with a population of around 77,000 according to the latest data available. 

Known for its historic monuments, Palencia lies at the start of the Romanesque-style route around northern Spain and is surrounded by many churches, monasteries and other religious buildings. It is also revered for its spectacular Roman ruins – the Roman Villa of La Olmeda. 

Just a two-hour drive to the spectacular Picos de Europa mountain range and national park, the city, and surrounding area is ideal for nature lovers and outdoor enthusiasts too. 

The enclave of Melilla and the Galician city of Lugo took joint second place in the Kelisto study, where the cost of living was found to be 17 percent below the national average.

This was followed by Logroño in La Rioja, Teruel in Aragón, Cáceres in Extremadura, Zamora, Ávila, Soria and León, all in Castilla y León. 

READ ALSO: How much does it really cost to live in Barcelona?

Unsurprisingly, at the other end of the scale, the most expensive cities to live in, in Spain were revealed to be Barcelona and San Sebastián and Madrid. 

Barcelona was found to be 35.51 percent more expensive than the national average, San Sebastián was 29.9 percent more expensive and Madrid was 25.22 percent.