These are the cheapest cities to live in Spain in 2024

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 2023, Lugo is the cheapest city in Spain to live in, with a cost of living 17.44% lower than the Spanish average. The same study ranks the city 35th in terms of the income level of its citizens, with an average net income of 28,176 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.

Lugo is followed by Palencia, Zamora and Cáceres, all with a cost of living between 13% and 10% below the Spanish average.

In contrast, the cities where it’s currently most expensive to live are San Sebastian, Barcelona and Madrid. San Sebastianis the most expensive city, with a cost of living 33.44% above the average. It’s important to note that these three cities are among the top five cities with the highest income levels with Madrid 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 183,621 euros. According to this data, the cheapest city in which to buy such a property is Zamora at €114,880 (37.5% below the average).It’s followed by Jaén at €115,290.

On the other hand, the cities where it’s most expensive to buy property are San Sebastian (€511,830), Barcelona (€393,030) and Madrid (€387,720). The price in San Sebastian is 178.7% 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.

The cheapest areas for rentals in Spain

If we look at rental prices, Lugo, Teruel, Cáceres, Zamora, Ourense and Cuidad Real are the cheapest cities, with an average price of €540 for a 90m² property.

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 €1,800 and in Madrid €1,620. This means that the cost of renting a similar property in Barcelona is 104.7% 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 2023, the provincial capitals with the cheapest IBI are Santander (0.4%), Zaragoza(0.4%) and Toledo (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 Santa Cruz de Tenerife and Melilla. On the other hand, San Sebastian is the city with the highest tax, with a difference of more than 50 euros compared to the two cities mentioned above. 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 public 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 cities for shopping are Badajoz, Granada and Castellón. In contrast, the most expensive cities are Soria, Las Palmas de Gran Canaria, San Sebastián and Bilbao, among others.

As for public transport, there are significant differences if we compare, for example, the price of a single bus ticket. Lugo is the city with the cheapest price, 0.64 euros per ticket. In contrast, the highest price is found in Barcelona, where it reaches 2.40 euros, a difference of 275%.

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.