These are the cheapest cities to live in Spain in 2026

Spain is a very varied country in terms of geography, gastronomy, traditions and climate. This diversity is reflected in the prices in different parts of the country. Prices can vary considerably between different regions of Spain in important aspects of people's lives such as housing, transport, food and leisure. This is why it’s essential to know not only what property you want to buy, but also where you want to buy it and whether the cost of living in that area fits your budget. In this article, we want to tell you about some of the cheapest cities to live in Spain.

Spain's cheapest city to live in

According to the latest Kelisto study updated in 2025, Lugo is the cheapest city in Spain to live in, with a cost of living 14.13% lower than the Spanish average. The same study ranks the city 45th in terms of the income level of its citizens, with an average net income of 33,085 euros. Despite this, the low cost of the five categories analysed (housing, transport, taxes, leisure and shopping) allows the people of Lugo to have greater purchasing power than the rest of Spain.

Zamora is followed by Zamora, Oviedo and Cáceres, all with a cost of living between 10% and 12% below the Spanish average.

In contrast, the cities where it’s currently most expensive to live are Barcelona, Palma de Mallorca, Madrid and San Sebastian. Barcelonais the most expensive city, with a cost of living 38.13% above the average. It’s important to note that these cities are among the top cities with the highest income levels with San Sebastian having the highest income level.

However, the fact that Lugo is the cheapest city to live in doesn’t mean that it has the lowest prices in all of the above categories. Therefore, we want to analyse in which other cities it’s cheaper to buy a property or where they have the lowest taxes.

Where is the cheapest place to buy a property in Spain

To determine the price of housing, the Kelisto study analysed the average purchase and rental price of a 90-square-metre home. The average purchase of a home of these characteristics in Spain costs 228,527 euros. According to this data, the cheapest city in which to buy such a property is Zamora at €123,210 (46.1% below the average).It’s followed by Ávila at €131,130.

On the other hand, the cities where it’s most expensive to buy property are San Sebastian (€610,560), Madrid (€540,990) and Barcelona (€457,470). The price in San Sebastian is 167.2% higher than the Spanish average.

In addition to the price per square metre, there are other factors that make buying a property cheaper in some areas of Spain. For more information, we invite you to read our article on which are the cheapest areas to buy a property in Spain.

The cheapest areas for rentals in Spain

If we look at rental prices, Teruel is also the cheapest city, with an average price of €640 for a 90m² property, 39.2% below the average.

In contrast, Palma de Mallorca and Barcelona are the most expensive cities in the country in this respect. If we continue with the same criteria, renting a house of 90m² in Palma de Mallorca would cost €2,110 and in Barcelona €1,975. This means that the cost of renting a similar property in Palma de Mallorca is 100.3% higher than the Spanish average.

Cities with the lowest taxes

In Spain, many taxes are ceded to the autonomous communities or municipalities. This leads to differences in the percentage paid for the same tax in different parts of the country. One of the taxes that varies depending on the area is the IBI (Impuesto sobre Bienes Inmuebles).

IBI is a municipal tax payable annually by the owners of any type of property. The municipal nature of this tax means that not all property owners pay the same tax as it depends on the location of the property. For this reason, it’s an aspect to take into account when choosing where to buy your house, as it’s one of the fixed costs that the owners will have to assume. According to data from the Ministry of Finance in 2025, the provincial capitals with the cheapest IBI are Santander (0.4%) and Zaragoza(0.4%).

It’s worth mentioning that the Basque Country and Navarre can set their own tax rates, as they have a foral regime which allows them to exceed the limits established for this tax (0.4% minimum and 1.3% maximum).

The road tax is another tax that varies based on location. The cities with the lowest road tax are Santa Cruz de Tenerife and Melilla. On the other hand, San Sebastian is the city with the highest tax. There are also differences in the rubbish tax and other taxes related to the purchase of a property, such as the AJD (Impuesto de Actos Jurídicos Documentados). You can read more about this tax in our article on taxes you will pay when you buy a house.

Differences in utility bills, transport and shopping baskets

Although prices have risen across the board, differences between communities mean that residents of some cities pay more than others to buy food products.

According to this report, the cheapest city for grocery shopping is Jaén, where filling the shopping basket is 4.3% cheaper than the Spanish average. In contrast, the most expensive city is Palma de Mallorca, being 5.9% higher than the average.

Household utility bills can vary depending on the location. Gas bills tend to be higher in cities such as Albacete, Ávila or Badajoz, while in places like A Coruña, Bilbao or Lugo, the cost is lower. There are also variations in electricity bills, which are higher in cities such as Alicante, Almería or Barcelona.

However, there are other expenses that do not depend on location but show significant differences. For instance, Barcelona has the highest average home insurance cost at €229.4 per year, while Castellón de la Plana records the lowest, at €129.5 annually.

In terms of transport, car insurance averages €174 annually. The cheapest prices are found in Guadalajara and Castellón de la Plana, where the average price drops to €150. Meanwhile, there are significant differences in public transport prices if we compare, for example, the cost of a single bus ticket. Lugo is the city with the lowest price, 0.64 euros per ticket. In contrast, the highest price is found in Barcelona, where it reaches 2.65 euros.

Now that you know some of the cheapest cities to live in Spain, you can start looking for the house that best suits your needs. The wide variety of properties and filters available on our website makes it easy to find what you are looking for. If you need help making the most of all the options available on our website, take a look at our article How to find your ideal property with thinkSPAIN.