Question
Cost of Living in Spain: Spaniards claim they don’t make much money, yet they’re always out drinking, traveling, and driving expensive cars. What’s the secret? Generational wealth? Living with their parents until 40?
Answers
These are the answers of Spainguru’s Facebook group members:
“It’s amazing what people can do when they’re not paying $750+ a month for health insurance or $2500+ a month for a small apartment in a U.S. city.”
“My husband and I were paying $2800 per month for health insurance. It killed us financially.”
“It’s funny how people act like skipping a $750 health insurance bill magically funds designer clothes, vacations, and brand-new cars in Spain (for Spaniards—not for expats, of course).
Rent in major cities? €600–€1,050+. Utilities? Not exactly cheap. Private health insurance to avoid endless wait times? Another expense. Food prices have skyrocketed. Meanwhile, the average salary in Spain sits at around €24,000 a year before taxes (which are much higher than in the U.S.).”
“If you take into account having to pay for health insurance out of your paycheck in the US it’s pretty similar. I just used a tax calculator for Spain and then one for the US. €24k salary in Spain, after taxes, works out to roughly €1612 per month, or around $1759 usd.
On the US calculator a similar salary ($26k in usd) works out to roughly $2072 usd/month or €1899. But then factor in that insurance to the US salary and that’s going to drop at least a couple hundred a month.”
“Yes, many Spaniards can afford a good lifestyle despite lower wages because they own their homes (often inherited), live with family longer, avoid debt, and benefit from a lower-cost social life. Some also earn undeclared income or have family financial support.”
“Most enjoy going out, just like Americans, but instead of high-priced fast foods and coffees, they go out for tapas. Traveling throughout Europe is not expensive if you travel off-season which is what most of the adult travelers with no kids do.”
“The family is much more nuclear in Spain, they’re not moving around as much and generally real estate isn’t appreciating as rapidly as in US. Most Spanish I know are taking care of their elderly parents and you see them with their parents in the streets.”
“Most younger people live with their parents until they’re in their 30s, unless they get married earlier. Parents also tend to keep helping their children financially one way or another even after they move out.”
“They don’t rely on food delivery apps. Instead, they cook at home. They use public transport and walk. Homes are smaller because houses in the U.S. are huge. They go out, have a couple of glasses of wine with a free tapa (no need to dinner at the restaurant), and head home happy after sharing time with friends.”
“Traveling and going out are way cheaper. Very few have expensive cars. Yes salary is lower but everything is cheaper.”
“Just because people are out having a drink or food, doesn’t mean they aren’t living paycheck or paycheck or broke even. Many Spanish are struggling to meet rising rent costs.”
“Some lease their cars. They don’t spend money on boats, Hobby Lobby stuff, or a garage full of tools and toys like many Americans.”
“Spaniards have tons of safety nets that come from society and family. They have healthcare, rent control, first-time home buyer promotions. Housing passed on from ancestors. They hate wasting money, which is why they’d go to a cafe/bar that’s a better value.”
“In Spain we live for life and not a credit score.”
“Homes are smaller and have less space for ‘stuff’. Americans have a habit of constantly buying stuff.”
“Europeans in general don’t spend money on unnecessary things. There is no extensive seasonal decorating. European budget is well thought, structured, and focused on experiences rather than things.”
“Wine is cheaper than water there.”
“Many people don’t see the point in saving money. They’ve resigned themselves to the fact they might never be able to own a home and would rather spend what little they have and enjoy it while they can.”
“They don’t buy super expensive cars and they don’t eat out every day, they usually cook their own food.”
“Some live paycheck to paycheck. Most enjoy a drink or meal outside, but they do so frugally—one beer or wine with free tapas, long sobremesas.”
“The average car on the road is not a luxury car—Spain has the most outdated cars on the road in Europe.”
“Spanish people often drive cars far beyond what people in the US would (or other wealthier EU countries). They are so old and in bad shape.”
“In times of crisis, people go out more to the street to be distracted.”
“Living with mom and dad for free until 40 gives you the chance to have a luxury life.”
“They rent their properties out to unsuspecting expats. One Spanish friend has 5 apartments all rented out at 1800pm.”
“Spanish don’t have the ‘keeping up with the Jones’s’ attitude. They live in modest homes and use discretionary income to enjoy life.”
“Spain is culturally different. Most Spaniards are very social and enjoy the outdoors. Travel within Spain is inexpensive.”
“Education, housing, and healthcare are more accessible and affordable. They may earn less, but they have fewer financial burdens.”
Conclusion
Despite modest wages and high taxes, many Spaniards manage to enjoy a vibrant lifestyle through a mix of cultural habits, financial priorities, and systemic advantages.
Living with parents longer, inheriting property, using public transportation, embracing modest housing, and focusing spending on social experiences rather than material goods all contribute to a lower cost of living.
Free or subsidized healthcare and education also reduce personal debt, while affordable travel and dining options help stretch limited incomes.
The Spanish lifestyle reflects a different philosophy: living within one’s means, valuing time with loved ones, and spending on experiences instead of possessions.
While not everyone is thriving, and economic disparity certainly exists, the overall cultural framework allows for more social enjoyment—even on smaller salaries.
