If you’re curious about the cost of living in Spain in 2025, especially in a major city like Madrid, this post is for you. Since moving to Spain with my husband, cat, and dog in October 2024, I’ve received a lot of questions about how much it actually costs to live here — from groceries and rent to eating out and transportation.

In this blog, I’m breaking down exactly what I spend in a month living in Madrid as an expat. Whether you’re planning a move abroad, comparing European cities, or just curious about expat life in Spain, this personal budget will give you a realistic look at everyday living costs in the Spanish capital.

Quick Overview: My Setup in Madrid

There are a couple of things to keep in mind before we dive in. First of all, depending on the type of visa you have, and whether you earn in USD or euros makes a big difference. I’m currently on a fixed Spanish work contract, making a Spanish salary (much lower than US standards). For this reason, my expenses are proportional to what I’m earning here, compared to earning a huge US salary and spending much less on expenses here in Spain. If you’re a Digital Nomad working in Spain, the latter could very well be your situation.

I live in the Madrid city center and have a 2 bed/2 bath apartment right in the heart of La Latina, which adds to the cost. Living outside the city, you’ll find much more affordable places to live.

We generally cook about half of the week and eat out for the other half (weekends are really Thursday – Sunday here in Spain), and we use public transport instead of owning a car. For the purposes of this guide, I’m going to assume that this is a normal month without international or major travel involved, and only factor in small things like day trips.

Now, let’s dive in.

Fixed Expenses

• Rent: 1,500 euros/month
• Phone plan & internet: 80 euros/month
• Pet insurance: 40 euros/month
• Gym: 50 euros/month
• Health Insurance*: 0 euros/month

*We get private health insurance at no cost through my husbands employer. This may not be the case for everyone.

Variable Expenses:

• Utilities: this depends based on the season, but we usually pay anywhere between 60-200 euros total per month for water, gas, and electric.
• Eating out (cafes, restaraunts, coffee, bars): This is where we tend to spend the most. We love going out with friends, grabbing coffee on a Friday, and enjoying a meal out for date night. We typically spend about 300 euros per month.
• Groceries: we typically go to the neighborhood grocery story every day, and average at about 10 euros per day or 70 per week.
• Transportation: for me this is a variable expense since I work from home, but I usually spend about 10 euros per month on my metro card for a pack of 10 trips.
• Entertainment (events, train tickets, concerts, etc.): this also depends on the season and what we’re doing for entertainment, what we average about 100 euros per month.
• Pet expenses (food, cat litter, vet visits, etc.): we usually spend about 60 euros per month. Depending on what we need at the vet, this could fluctuate.

Full Monthly Budget Breakdown

Category	Monthly Total
Rent & Utilities	€1,700
Groceries	€210
Phone Plan + Internet	€80
Pet Insurance & Expenses	€100
Transportation	€10
Entertainment	€100
Gym	€50
Eating Out/Bars	€300
Total	€2,550

Proportional to our salaries and expenses in Indiana, our monthly cost of living is much less than it used to be. Cutting out things like car payments and health insurance go a long way in easing our financial burden abroad. Plus, in Spain I find myself consuming less — I’m not impulse buying things from Amazon or seeing ads that influence online shopping habits in the way I experienced in the US.

I find things like groceries to be much more affordable here, in particular fresh fruit, meat and vegetables. And while Madrid rivals Barcelona as one of the most expensive cities in Spain, I still find it extremely affordable to live in the city center and have a great quality of life. If you’re wondering how much does it cost to live in Spain, I hope you found your answer.

Tips for Managing Your Budget in Madrid

• Opt for more affordable grocery chains like Dia and Carrefour instead of Mercadona (although it is my favorite)
• Look for an apartment outside of peak season if you can manage it. Looking for apartments between October – March usually will help you find better rent prices and less competition. Naturally, areas slightly outside the city center are more affordable than apartments downtown.
• Take advantage of government discount programs. Spain offers programs like “verano joven” where people under the age of 30 get discounted rates on trains, flights, and buses during the summer season. Programs like this also exist for students and retirees, so do your research to see where you can save on travel and entertainment.
• Use apps like Wise or Revolut to help with international transfers when you’re just getting started building your new life in Spain. These have lower fees, helping you move money quickly and efficiently.

Final Thoughts: Cost of Living in Spain in 2025

To be honest, this is a bit of a complicated question. By American standards, Madrid is extremely affordable, especially if you make a US salary or are planning your retirement here. For locals, the rising housing prices and steadily increasing cost of living is cause for concern. If you’re on a Spanish salary, you can still live a good life and live in the city center on one income, although your budget will need to be a bit tighter.

In the case of my husband and I, we’re able to live comfortable lives in the heart of the city based on our dual-income, Spanish salary household. If you’re curious about why we moved here or or how we did it, read more on the blog!

If Madrid is your dream destination and you’re worried about the cost of living, you can easily find roommates in the city center or move farther away to dramatically lower your fixed costs. I think it’s an ideal destination to start your new life abroad, especially compared against other European cities.

So, what do you think? Does this surprise you, or sound about right? I’m curious to hear from others who moved abroad about how this compares to your experience — please let me know in the comments!