The Balearic Islands are one of the most popular places to live in Spain and the high demand, along with popularity among tourists, makes it one of the most expensive places to live too, on par with the largest cities of Madrid and Barcelona.

Ibiza sits on the southwestern edge of the Balearic chain and is closest to the tiny island of Formentera. It has become synonymous with a glamorous lifestyle and vibrant nightlife, but it also has a wild and natural side with two nature parks.

Because of all of this, Ibiza has become a big destination for digital nomads, and with the introduction of Spain’s digital nomad visa, prices have been driven up even more. Remote workers earning salaries from places such as the US or the UK are able to pay much higher accommodation costs than locals, meaning that prices have increased significantly. 

Obviously, prices will vary depending on where in Ibiza you choose to live, as some are a lot more expensive than others, but for the purposes of this article, we have taken the island average. 

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How do costs in Ibiza compare with other cities in Spain?

According to Yes Mallorca estate agency, Ibiza is the third most expensive Balearic Island to live on after Formentera and Mallorca.

Living Cost website states that a single person would need a total of €1,806 per month to live in Ibiza, while a family of four would need €4,612.

Looking at the price comparison website Numbeo, both rental prices and restaurant prices are higher in Ibiza than they are in the Catalan capital of Barcelona, while groceries are lower. When compared with Madrid again both rental and restaurant prices are significantly higher, and similarly groceries are lower.

So, we’ve established that Ibiza is one of the most expensive places to live in Spain, but surely that means that the salaries are one of the highest too?

Unfortunately not, the latest data suggests that the Balearic Islands have only the sixth highest average salary in Spain, at €1,721 per month, which is just below the amount Numbeo suggested you would need to live in Ibiza. It’s also below the national average which is currently €1,822 per month.

Rental prices in Ibiza

One of the biggest costs is of course accommodation and in the summer of 2023 rental prices in Ibiza are some of the highest they’ve ever been.

According to the website RealAdvisor, 80 percent of the properties for rent in Ibiza are between €1,125 and €6,697 per month.

The latest data from property portal Idealista agrees stating that the average rental price per month is 33.70 eur/m2. This means that if you were to rent an apartment of 80m2 it would cost you a total of €2,696 per month.

Buying a property in Ibiza

Buying a property in Ibiza is a similar story as it’s also one of the most expensive places to buy in the country. Holiday apartments, second homes and luxury villas are all in high demand.

The latest stats from Idealista show that the average price to buy in Ibiza in August 2023 was 5.859 €/m2. And the prices are climbing, this is two percent more than in July and 0.9 percent more than in June. In fact, properties in Ibiza have risen by a staggering 9.1 percent in the last year, since August 2022.   

This means that if you’re looking for an apartment of around 80m2 you’d be looking at paying €468,720. If you’re dreaming of a villa or anything bigger then it’s likely to set you back at least half a million euros or significantly more.

Groceries

Surprisingly, groceries are one of the cheapest things when living in Ibiza, even though prices in supermarkets have skyrocketed across the whole of Spain over the last year.

According to Numbeo, grocery prices in Ibiza are 8.4 percent lower than in Madrid and 12.3 percent lower than in Barcelona.

But when compared with Spain’s other islands such as the Canary Island of Tenerife, food was 9.7 percent higher.

The latest data suggests that when food shopping in Ibiza on average a loaf of bread costs €0.76, a dozen eggs will set you back €2.48 and a block of local cheese will be €4.54.

Transport  

If you live in Ibiza it’s likely that you will get your own car as getting around will be easier, but there is a local bus network of over 50 different lines. Tickets for various routes vary between €4 for a 45-minute journey to €1.55 for a 10-minute journey.