Cost of living in Spain compared to Italy - 2025

Deciding where to live or retire in Europe involves weighing up numerous factors, with the cost of living often topping the list. Spain and Italy, both Mediterranean countries rich in culture and history, present differing landscapes. But beyond the shared sunshine and Latin roots, what are the real financial and day-to-day differences between life in Italy and Spain? This article compares their cost of living in 2025 across key categories.

Is it cheaper to live in Spain or Italy in 2025?

The most surprising difference when comparing Spain and Italy is the overall cost of living: Spain tends to be slightly more affordable. Global cost-of-living indices consistently place Spain as a more affordable country compared with Italy. The cost of living index (excluding rent) from Numbeo as of May 2025 places Spain at 43.5 compared to Italy's 51. When rent is included, Spain's index is 33.6, while Italy's is 36.3.

On average, recent data from Numbeo and other sources place Italy's cost of living (excluding rent) at 18% above Spain's. Italy remains more expensive at 9.1% higher than Spain when rent is factored in too. Even when comparing major cities, Spain tends to be cheaper than its Italian counterparts. This cost differential can mean your Euro will stretch further in Spain, potentially allowing for a different lifestyle or increased savings compared with living in Italy.

Property rental costs between Spain and Italy in 2025

Renting property in Spain is typically the largest expense for most individuals and families. Here, Italy generally presents more budget-friendly options compared to Spain, though significant regional variations exist in both countries. Rental prices are generally higher across Spain compared with Italy, averaging about 17.2% higher in Spain. Nationally, expect to pay around €921.40/month for a one-bedroom city-centre apartment in Spain, compared with the Italian average of approximately €743.61. Need more space? A three-bedroom city-centre apartment averages around €1,469 in Spain, versus approximately €1,309 in Italy. The margin narrows the larger the property.

Outside urban cores: one-bedrooms average around €712 in Spain compared with approximately €571 in Italy, and three-bedrooms average around €1074 in Spain, versus approximately €944 in Italy. While rents in Italy are generally cheaper, this should not deter you. Budgeting for rent in Spain will typically involve higher figures. However, it doesn’t necessarily mean you must sacrifice space or location, as Italy still has a 9% higher overall cost of living than Spain, even when factoring in rent. So, the increase in rental costs is very quickly offset by other savings in other living expenses.

Grocery costs between Spain and Italy in 2025

When grocery shopping in Spain, prices differ considerably from those in Italian supermarkets, with Spanish supermarkets proving to be 20% more affordable on average. Everyday items like milk, bread, eggs and rice cost significantly less than you would be used to paying in Italy. On the other hand, certain fruits might not represent such a significant saving when compared to Italy. How much you save on groceries in Spain will depend on your specific shopping habits. Taking advantage of local produce can lead to noticeable savings compared with your Italian grocery bills.

Dining out in Spain often presents another welcome saving compared with Italy. While average restaurant costs vary, a meal at an inexpensive restaurant or a typical three-course dinner for two generally costs around 29% less than in Italy. Spain's popular 'menú del día' (menu of the day) also offers very affordable multi-course lunch options during the week (between €15 and €20), contributing to lower overall dining expenses.

Transportation costs between Spain and Italy in 2025

Compared with the Italian public transport system, getting around in Spain is generally cheaper. Single tickets for local transport usually cost less in Spanish cities than what you would pay in Italy. You will find even more significant savings with monthly public transport passes, which are considerably less expensive in Spain. Taxi fares also tend to be lower in Spain. If you plan to drive, petrol prices in Spain are typically 14% cheaper than in Italy. Whether you rely on public transport, taxis, or your own car, you can expect your transportation expenses to be lower in Spain.

Utility costs between Spain and Italy in 2025

Monthly bills for essentials like energy, water, and rubbish collection will likely be much lower in Spain than in Italy. Basic utilities, which cover electricity, heating, cooling, and water for a typical 85m2 apartment, cost considerably less each month in Spain (around €129) than in Italy (around €193). Mobile phone plans tend to be slightly more affordable in Italy than typical Spanish plans. Similarly, you can expect broadband internet services to be marginally more expensive in Spain than the rates typical in Italy. However, these latter costs carry much less weight when analysing overall living expenses in Spain.

Healthcare costs between Spain and Italy in 2025

The Spanish healthcare system (Sistema Nacional de Salud - SNS) is a tax-funded universal system, providing coverage based on residency. For Italian pensioners, access to the Spanish public healthcare system is generally possible once legal residency is obtained and you are registered with the system, often through the registration certificate (empadronamiento) and obtaining an individual health card (Tarjeta Sanitaria Individual - TSI). The public system covers a wide range of services, including emergency care, surgeries, and childbirth. However, there are limitations: co-payments apply to prescriptions, and crucially, most dental and optical care is not covered by the public system, meaning you'll need to pay out-of-pocket or consider private insurance. This is a key aspect to consider compared to the Italian system.

The quality of healthcare in Spain is generally high, but waiting times for specialists or non-urgent procedures in the public system can sometimes be longer. Private health insurance is available in Spain as a supplement or alternative, offering faster access to specialists and private facilities. Costs for private insurance vary, but range between €50 and €200 per month, depending on cover and age.

Italian pensioners moving to Spain should obtain an S1 form from their Italian INPS office. Registering this S1 form with the Spanish social security authorities (INSS) grants them access to the Spanish SNS under the same conditions as Spanish pensioners. Italians who work and pay social security contributions in Spain will be directly covered by the SNS, along with their dependent family members. If not eligible for an S1 form, Italians would need to secure comprehensive private health insurance or opt for the 'Convenio Especial' (the monthly fee for this scheme depends on age: approximately €60 for those under 65 and around €157 for those 65 and older).

For Italians looking at temporary stays, the European Health Insurance Card (EHIC), or Tessera Europea Assicurazione Malattia (TEAM) as it's known in Italy, will cover all medically necessary healthcare during visits to Spain.

Education costs between Spain and Italy in 2025

Education costs in Spain and Italy present varied financial landscapes for individuals and families, encompassing university tuition, international school fees, and childcare. Both nations offer publicly-funded education, yet the specifics of fees and structures differ.

For EU citizens pursuing a university degree, Spanish public universities generally charge between €750 and €3,500 annually for Bachelor's degrees, and Master's degrees range from €600 to €2,600 per year. Italian public universities have Bachelor's fees typically between €900 and €4,000 annually, and Master's fees from €1,000 to €5,000, averaging around €1,630. Notably, Italy employs a means-tested system (ISEE indicator), potentially leading to significantly reduced or waived fees for lower-income students.

Private universities in Spain exhibit a wide cost spectrum, from €2,400 to €30,000 annually for Bachelor's and €1,388 to a staggering €105,000 for some Master's programmes. In Italy, private university tuition for both levels typically ranges from €6,000 to €20,000, with prestigious institutions exceeding €35,000.

Regarding schooling for resident families, both Spain and Italy offer free and compulsory public education for those aged 6 to 16. Spain also provides a wide range of free public preschools for children aged 3 to 6. International schools in Spain average around €8,109 annually for primary education (range: €5,000 - €14,500), while in Italy, fees range from €6,000 to €25,000 (€6,000 - €15,000 for primary, €12,000 - €25,000 for high school).

For Italian families considering Spain, the free public preschool from age 3 presents a clear financial advantage compared with childcare costs at private nurseries in Italy. Public university costs are broadly similar, though Italy's means-tested system could offer greater affordability for eligible families. Private education at all levels represents a substantial investment in both countries.

Tax rate differences between Spain and Italy in 2025

For Italians considering a move to Spain, understanding the Spanish tax system is crucial. Like Italy, Spain has a progressive income tax system alongside other taxes that new residents must navigate. Tax residency in Spain is typically established by spending over 183 days there or having your primary economic interests in the country.

Regarding personal income tax (IRPF) in Spain, Italians will find a progressive structure with national rates for 2025 ranging from 19% on income up to €12,450 to 47% on income exceeding €60,000. It's important to note that Spanish autonomous regions have the authority to set their own income tax rates, which can significantly impact the final amount paid. Spain also offers a basic personal allowance, currently €5,550. While Italy's 2025 income tax (IRPEF) structure is expected to maintain its 2024 three-bracket system (23%, 35%, 43%), Spain's higher top rate and the impact of regional variations are key differences to consider.

Spain taxes income from savings and investments separately at progressive rates from 19% to 28%, with a planned increase to 30% for income above €300,000 in 2025. This differs from Italy's generally flat 26% substitute tax on financial income and capital gains. However, Italy does offer a special "€100k flat tax" regime for new residents, allowing a fixed annual tax of €100,000 on all foreign-sourced income, which could be attractive to some high-net-worth individuals moving from Italy.

A significant difference is Spain's annual wealth tax on net assets, a tax Italy does not have in a comparable form. The rates and exemptions for Spain's wealth tax vary considerably by autonomous region, with some even offering 100% relief. This tax applies to the worldwide assets of Spanish residents. While Italy taxes financial assets (IVAFE) and real estate (IVIE) held abroad by its residents, it doesn't have a general wealth tax on domestic assets.

In summary, Italians moving to Spain will encounter a progressive income tax system with potentially higher top rates and the added complexity of regional variations. The presence of a wealth tax in Spain is a significant departure from the Italian system. Given these tax implications, seeking professional tax advice tailored to individual circumstances is highly recommended for Italians relocating to Spain.

Salary levels and purchasing power between Spain and Italy in 2025

In 2025, average net salaries in Spain (€1,712.65 - €1,765 monthly) appear broadly similar to or slightly higher than in Italy (€1,616.41 monthly), though data sources vary. Gross average salaries also show a similar trend, with Spain around €2,555 and Italy around €2,729. However, these are national averages masking regional disparities and the impact of high earners.

A key difference lies in minimum wage regulation. Spain has a statutory minimum wage of €1,381 per month (January 2025), while Italy relies on sectoral collective bargaining agreements, resulting in an estimated average minimum wage of €7-€9 per hour, making direct comparison challenging. Crucially, purchasing power indices suggest that Spain generally offers a higher standard.

Therefore, despite potentially similar average net salaries, the lower cost of living in Spain translates to a greater ability to purchase goods and services, indicating a higher purchasing power for residents compared to Italy. This suggests that the same income may afford a better quality of life in Spain.

Regional variations: Finding your place in Spain

Just as costs vary between different regions of Italy, Spain has significant regional differences. Don't assume all of Spain is the same. As with Italy, Spain boasts every landscape possible, from beaches to mountains. Major cities like Madrid and Barcelona, along with some popular coastal expat hubs, are the most expensive areas in Spain. Although more reasonable than many other European capitals, they are still slightly more expensive than many major Italian cities.

Many other attractive cities, like Valencia, Seville, or Malaga, offer a high quality of life at a considerably lower cost. Inland and rural areas are typically the cheapest but may offer fewer job opportunities or amenities familiar to Italian city dwellers. Researching specific regions within Spain is crucial. Consider factors like climate, proximity to airports with connections to Italy, local job markets, and existing Italian or international communities if that's important to you. Read our guide to the regions of Spain to get a better understanding.

Considerations for Italian pensioners retiring in Spain

The lower cost of living in Spain allows your Italian pension to go much further. Combined with the favourable climate and established Italian communities in many areas, retirement in Spain can offer a high quality of life. Once residency is obtained, healthcare is managed by accessing the Spanish public system (SNS). Remember the limitations (dental/optical often excluded) and consider if supplementary private insurance is needed for peace of mind or faster access. Your pension income will generally be taxed in Spain under the Double Taxation Agreement. Seek professional advice to understand how different types of pension income are treated and ensure tax compliance. Planning healthcare access and understanding tax obligations are key steps for a smooth retirement transition.

Is Spain the right move for you?

Relocating from Italy to Spain in 2025 involves more than finances, but the cost of living is a key factor. Spain generally offers lower costs for groceries and utilities, leading to higher purchasing power despite potentially similar average salaries. Beyond finances, cultural nuances differ despite shared Mediterranean roots. The linguistic similarity between Italian and Spanish is a practical benefit for Italian expats. The "right" move depends on individual factors: income, career, family needs (schooling, childcare), retirement plans (taxation, healthcare), and lifestyle preferences (city, coast, rural). If you have already decided, why not look at property in Spain?