REVEALED: The cheapest city in Spain to live in

We all know where the most expensive places to live in Spain are - yes we’re looking at you Madrid and Barcelona - but where are the cheapest? 

REVEALED: The cheapest city in Spain to live in
Palencia is the cheapest city in Spain. Photo: pilar Rodíguez / Pixabay

A new study by the price comparison website 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. 

The cost of living is 30 percent cheaper in Palencia. Photo: Alejandro Polanco / WikiCommons

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. 

The Camino de Santiago passes through the province of Palencia. Photo: Burkard Meyendriesch / Unsplash

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.

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Energy prices drive up inflation in Spain in September

Spanish inflation jumped in September due mainly to higher electricity and fuel prices, preliminary data showed Thursday.

Energy prices drive up inflation in Spain in September

Consumer prices rose 3.5 percent year-on-year, figures from the National Statistics Institute (INE) showed, up from 2.6 percent in August.

Spanish inflation has been rising again since falling to 1.9 percent in June, just below the European Central Bank’s two-percent target. It stood at 2.6 percent in August.

The increase in prices in September was due mainly to a rebound in electricity prices, which had fallen in September 2022, and to a lesser extent to an uptick in fuel prices, INE said in a statement.

Spanish inflation soared after Russia’s invasion of Ukraine, hitting a record 10.8 percent in July 2022, its highest level since 1985.

Acting Prime Minister Pedro Sánchez’s leftist government has implemented a series of measures to curb inflation, including free commuter rail travel and scrapping the value-added tax on basic food items.

He is trying to cobble together enough support among smaller parties to stay in power following an inconclusive early general election in July.

The Bank of Spain warned last week that inflation will be faster than it had anticipated this year and next due to a pickup in oil prices that will also drag down economic expansion.