Cost of living in Spain compared to the Netherlands - 2025

Deciding where to live, work, or retire in Europe involves weighing numerous factors, with the cost of living often topping the list. Spain, known for its sunny climate and relaxed lifestyle, and the Netherlands, famed for its picturesque canals, tolerance, and economic efficiency, are both popular destinations. However, they present vastly different financial landscapes. This article compares their cost of living in 2025 across key categories.

Is it cheaper to live in Spain or the Netherlands?

The most striking difference when comparing Spain and the Netherlands is the overall cost of living: the Netherlands is significantly more expensive. Global cost of living indices consistently place Spain as a more affordable country. Data from Numbeo for 2024 illustrates this gap clearly: Spain's Cost of Living Index (100 represents the highest cost of living) score was 48.4, while the Netherlands scored 64.3 (excluding rent). The disparity remains substantial when rent is factored in, with Spain at 36.6 and the Netherlands at 50.2. The Netherlands' average cost of living, including rent, is 44.8% higher than in Spain.

Even comparing capital cities, Madrid is estimated to be around 31% cheaper than Amsterdam. This significant cost differential means your Euro will stretch further in Spain, potentially allowing for a different lifestyle or increased savings compared to living in the Netherlands.

Property rental costs between Spain and the Netherlands in 2025

Spain's rental market can offer significant relief for many Dutch residents grappling with the high cost and scarcity of housing. Rental prices are markedly lower across Spain compared to the Netherlands.

Nationally, expect to pay around €960/month for a one-bedroom city centre apartment in Spain, a considerable saving compared to the Dutch average of €1,366. A three-bedroom city centre apartment averages €1,503 in Spain versus €2,157 in the Netherlands. The savings extend outside urban cores: one-bedrooms average €715 in Spain compared to €1,100 in the Netherlands, and three-bedrooms average €1,058 versus €1,697.

While rents in Dutch cities like Amsterdam can reach €1,800 to €2,030 for a one-bedroom, Spanish cities offer more breathing room. Even desirable locations like Valencia range from €816 to €1,057, and while Madrid and Barcelona are Spain's priciest cities, they generally remain more affordable than Amsterdam. Beyond the lower cost, the Spanish rental market, while having regional pressures, may feel less strained than the high-demand areas of the Netherlands, where finding affordable housing can be a significant challenge.

Beyond renting, if you're considering buying a 1-bed property, Spain generally offers significantly lower prices compared to the Netherlands. Even in major Spanish cities, average property prices per square metre tend to be considerably more affordable than in Dutch urban centres like Amsterdam or the Randstad region. While Spanish property values have risen and vary significantly by location, the overall cost of purchasing a home is typically much less prohibitive than in the often overheated Dutch market, potentially making homeownership more accessible.

Grocery costs between Spain and the Netherlands in 2025

When grocery shopping in Spain, prices differ from Dutch supermarkets, although overall, Spain tends to be slightly more affordable. Some everyday items like bread and wine might cost less than you're used to paying. Other staples, such as rice and eggs, are also generally cheaper in Spain.

Chicken is significantly less expensive in Spain, which can make a real difference to your budget. Certain fruits like apples and oranges might sometimes be less expensive back in the Netherlands, depending on the season and availability.

Ultimately, how much you save on groceries in Spain depends on your shopping habits and diet. Focusing on consistently cheaper items and taking advantage of local produce can lead to noticeable savings compared to your Dutch grocery bills.

Dining out in Spain often presents another welcome saving compared with the Netherlands. While average restaurant costs vary, a meal at an inexpensive restaurant or a typical three-course dinner for two generally costs around 35% less than in the Netherlands. 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 the Netherlands in 2025

Compared with the efficient but often costly Dutch public transport system, getting around in Spain is generally cheaper. Single tickets for local transport usually cost less in Spanish cities than what you'd pay in the Netherlands. You'll find even more significant savings with monthly public transport passes, which are considerably less expensive in Spain compared with the prices you're likely accustomed to in the Netherlands.

Taxi fares also tend to be lower in Spain, even though the initial starting charge may be slightly higher on average. If you plan to drive, petrol prices in Spain are typically more affordable than the high prices common in the Netherlands. While specific costs vary, Spain generally avoids the combination of high fuel costs and taxes that can make driving notably more expensive in the Netherlands.

Whether you rely on public transport, taxis, or your own car, your transportation expenses will generally be lower in Spain.

Utility costs between Spain and the Netherlands in 2025

Monthly bills for essentials like energy, water, mobile phone, and internet will likely be lower in Spain compared with what is paid in the Netherlands.

Basic utilities, which cover electricity, heating, cooling, and water for a typical apartment, generally cost considerably less each month in Spain than the standard range in the Netherlands. This difference is partly due to lower energy prices in Spain and different climate needs – less intensive heating is required compared with the Netherlands. However, air conditioning costs during Spanish summers are a factor.

Mobile phone subscription plans are also more affordable in Spain than typical Dutch plans. Similarly, you can expect to find broadband internet services substantially cheaper per month in Spain than the rates typical in the Netherlands. Overall, budgeting for monthly utilities in Spain generally means anticipating lower total costs than in the Netherlands.

Healthcare costs between Spain and the Netherlands in 2025

The Spanish healthcare system operates differently from the mandatory private insurance model in the Netherlands. Spain has a tax-funded National Health System (SNS) providing universal coverage based on residency.

For Dutch pensioners receiving a state pension, access is typically arranged via the S1 form, allowing you to register and use the SNS largely free of charge, with costs covered by the Netherlands. For others, such as employees paying social security, early retirees on the pay-in scheme '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), care within the public system is also mostly free at the point of delivery. This contrasts with the Dutch system of monthly premiums and annual deductibles ('eigen risico').

However, the SNS has limitations. Co-payments apply to prescriptions. Crucially, most dental and optical care is not covered, meaning you'll need to pay out-of-pocket or get private insurance, a significant difference from some Dutch supplementary packages. Out-of-pocket spending forms a larger part of health costs in Spain (20.6% in 2021).

Education costs between Spain and the Netherlands in 2025

For Dutch families, education costs in Spain present a different picture, especially regarding childcare. Public primary and secondary schools are generally free for residents, similar to the Netherlands.

Higher education involves tuition fees at Spanish public universities, set regionally (€500–€1,300+/year for Bachelor's first enrolment, varying by course/region). While potentially lower than the Dutch statutory fee (around €2,300-€2,500 recently), Spanish fees are less predictable. Grants are available based on need or merit.

International schools are an option in Spain, but fees are substantial, though more manageable given savings elsewhere compared with potentially higher fees in the Netherlands. The most significant difference for families with young children is childcare. While Dutch childcare costs are notoriously high (private preschools can exceed €2,300/month), Spanish childcare is generally far more affordable. Even with Dutch subsidies ('kinderopvangtoeslag'), the net cost in the Netherlands often remains very high. This dramatic cost difference in Spain can free up a substantial portion of a family budget.

Therefore, while university fees might be comparable or slightly lower in Spain, the potential for massive savings on childcare makes Spain particularly attractive financially for Dutch families with young children.

Tax rate differences between Spain and the Netherlands in 2025

Moving to Spain means navigating a different tax system. Both countries have progressive income tax, but the structures differ.

Spanish personal income tax combines national rates (19%-47%) with regional ones, potentially leading to high top marginal rates (up to 54% in some regions). This might seem higher than the Dutch top rate of 49.5%. However, Spain's basic personal allowance (€5,500) is lower than the threshold often effectively created by Dutch tax credits ('heffingskortingen'). These Dutch credits, especially the labour credit, significantly reduce the tax burden for many employees, meaning your effective tax rate in the Netherlands might be lower than headline rates suggest, particularly at low-to-middle incomes. A direct comparison requires calculating the impact based on your specific income and residency status.

Corporate tax rates are similar (Spain 25.0%, Netherlands 25.8%). VAT is also comparable (21%). Spain retains a wealth tax (though its application varies regionally and thresholds apply), which differs from the Dutch Box 3 system, which taxes deemed returns on assets. Understanding how your assets and income (including pensions, potentially taxed under the Double Taxation Agreement) will be treated in Spain requires careful planning and professional advice.

Salary levels and purchasing power between Spain and the Netherlands in 2025

While the cost of living is lower in Spain, average salary levels are also significantly lower than in the Netherlands.

The average Dutch monthly salary (around €3,666 gross, €3,180 net in Haarlem) is considerably higher than in Spanish cities (e.g., €2,174 net in Madrid). The Dutch minimum wage (€2,193/month) is nearly double the Spanish equivalent (€1,381/month).

Does this mean you'll be worse off? Not necessarily. Despite lower wages, Spain's lower cost of living means purchasing power can still be good. If you move to Spain with a Dutch pension, remote work income paid at Dutch rates, or significant savings, you directly benefit from the lower Spanish costs. Even if working locally for a Spanish salary, the substantial savings on major expenses like rent and childcare can offset the lower income, potentially leaving you with similar or even more discretionary income than you had in the Netherlands, especially if you weren't a high earner back home. The key is to compare your expected Spanish income against the much lower Spanish expenses.

Regional variations between Spain and the Netherlands

As costs vary between Amsterdam and Groningen, Spain has significant regional differences. Don't assume all of Spain is the same.

Major cities like Madrid and Barcelona, along with some popular coastal expat hubs, are the most expensive areas in Spain. However, they are still generally cheaper than the Randstad. 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 Dutch city dwellers.

Researching specific regions within Spain is crucial. Consider factors like climate (it varies significantly across Spain), proximity to airports with connections to the Netherlands, local job markets (if applicable), and existing Dutch or international communities if that's important to you. An 'affordable' Spanish city will almost certainly be significantly cheaper than even 'affordable' options back in the Netherlands.

Considerations for Dutch pensioners retiring in Spain

The lower cost of living in Spain allows your Dutch pension (AOW/Algemene Ouderdomswet and supplementary pensions) to go much further. Combined with the favourable climate and established Dutch communities in many areas, retirement in Spain can offer a high quality of life.

Healthcare is manageable via the S1 form if you receive a Dutch state pension, granting access to the Spanish public system (SNS). If retiring early before state pension age, you'll need to arrange cover via the Convenio Especial pay-in scheme or private insurance.

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 compliance.

Considerations for Dutch families moving to Spain

For Dutch families, Spain offers compelling advantages but also requires adjustments. The most significant financial draw is the potential for huge savings on childcare compared to the Netherlands. Combined with lower housing costs, this can dramatically improve family finances.

Education involves choosing between immersing your children in the free Spanish public school system (great for integration but requires navigating the system in Spanish) or opting for 'concertado' or international schools. While international schools have fees, the overall family budget might handle them more easily due to savings elsewhere.

Is Spain the right move for you?

Moving from the Netherlands to Spain involves trading high living costs and efficiency for lower expenses, a warmer climate, and a potentially more relaxed lifestyle. Spain offers significant financial advantages, notably lower housing costs and dramatically cheaper childcare, making your Euro stretch further, especially if you have Dutch-sourced income or are raising a family.

However, it also means potentially lower local salaries if you plan to work in Spain, navigating a different healthcare system with specific coverage gaps, dealing with potentially slower bureaucracy, and adapting to a different culture and language.

The "better" choice is entirely personal. Weigh the substantial cost savings and lifestyle benefits against potential income differences and the practicalities of adapting to a new system. Spain presents a very compelling opportunity for many Dutch citizens seeking affordability, sunshine, and a change of pace. Thorough research into specific regions, healthcare options, and tax implications will pave the way for a successful move. If you have decided already, why not start looking at property in Spain?