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These are the cheapest cities to live in Spain in 2025

6 min read

  1. Spain's cheapest city to live in
  2. Where is the cheapest place to buy a property in Spain
  3. The cheapest areas for rentals in Spain
  4. Which cities have the lowest taxes
  5. Differences in utility bills, transport and shopping baskets

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 house we want to buy, but also where we want to buy it and whether the cost of living in that area fits our 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 2024, Zamora is the cheapest city in Spain to live in, with a cost of living 7.55% lower than the Spanish average. The same study ranks the city 52nd in terms of the income level of its citizens, with an average net income of 29,763 euros. Despite this, the low cost of the five categories analysed (housing, transport, taxes, leisure and shopping) allows the people of Zamora to have greater purchasing power than the rest of Spain.

Lugo is followed by Ciudad Real, Lugo and Palencia, all with a cost of living between 6% and 7% below the Spanish average.

In contrast, the cities where it’s currently most expensive to live are San Sebastian, Madrid and Barcelona. San Sebastianis the most expensive city, with a cost of living 13.92% above the average. It’s important to note that these three cities are among the top five cities with the highest income levels with San Sebastian having the highest income level.

However, the fact that Zamora 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.

Lugo Cathedral, Galicia, Spain
Lugo Cathedral in Galicia, Spain. Photo: GettyImages

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 209,430 euros. According to this data, the cheapest city in which to buy such a property is Zamora at €117,090 (44.1% below the average).It’s followed by Ciudad Real at €123,030.

On the other hand, the cities where it’s most expensive to buy property are San Sebastian (€578,160), Madrid (€488,610) and Barcelona (€423,900). The price in San Sebastian is 176.1% 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.

City of Zamora as seen from the beach of Los Pelambres
Zamora seen from Los Pelambres beach. Photo: ShutterStock

The cheapest areas for rentals in Spain

If we look at rental prices, Zamora is the cheapest cities, with an average price of €540 for a 90m2 property, 53.6% below the average.

In contrast, Barcelona and Madrid are the most expensive cities in the country in this respect. If we continue with the same criteria, renting a house of 90m2 in Barcelona would cost €1,980 and in Madrid €1,890. This means that the cost of renting a similar property in Barcelona is 73.84% higher than the Spanish average.

Which cities have 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 our 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 2024, the provincial capitals with the cheapest IBI are Santander (0.4%), Zaragoza(0.4%) and Madrid (0.44%).

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). This usually results in percentages below the minimum. With this in mind, Pamplona is the city with the lowest IBI in Spain.

The road tax is another tax that varies based on location. The cities with the lowest road tax are Soria and Alicante. 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.

Santander city promenade, northern Spain
Santander city promenade in northern Spain Photo: iStock

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 shopping is Castellón, where filling the shopping basket is 6.8% cheaper than the Spanish average. In contrast, the most expensive city is Las Palmas de Gran Canaria, being 8.5% higher than the average.

The cost of household utility bills can vary depending on location. For example, gas bills tend to be higher in inland and northern Spanish cities, such as Madrid, Vitoria, or Pamplona, where temperatures are colder. While in warmer cities like Palma de Mallorca, Barcelona, or Málaga, gas expenses are typically lower. A similar pattern can be observed with electricity bills, which are often more expensive in cities like San Sebastián, Bilbao, or A Coruña.

However, there are other expenses that do not depend on location but show significant differences. For instance, Cádiz has the highest average home insurance cost at €221.30 per year, while Santa Cruz de Tenerife records the lowest, at €138.90 annually.

In terms of transport, car insurance averages €183 annually. The cheapest prices are found in Palencia and Segovia, where the average price drops to €158. 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 2.55 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.

The information contained in this article is for general information and guidance only. Our articles aim to enrich your understanding of the Spanish property market, not to provide professional legal, tax or financial advice. For specialised guidance, it is wise to consult with professional advisers. While we strive for accuracy, thinkSPAIN cannot guarantee that the information we supply is either complete or fully up to date. Decisions based on our articles are made at your discretion. thinkSPAIN assumes no liability for any actions taken, errors or omissions.

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  4. These are the cheapest cities to live in Spain in 2025