Spain one of EU’s cheapest countries for expat life

Not only is life in Spain culturally enriching, it can also save you a pretty penny, too.

Living costs for expats in Spain have fallen sharply in the past 18 months, making the country one of the cheapest in the European Union (EU).

The relative devaluation of the euro, particularly against the British pound, has made Spain a cheaper country in which to live, nowhere more so than in the country’s two biggest cities of Madrid and Barcelona…

According to international consulting firm Mercer’s global rankings, Madrid is now ranked 115^th in terms of cost of living, falling from 63^rd place in 2014. Barcelona is down to 124^th, having been in 71^st place last year.

In Western Europe, both cities are among the top ten most affordable – a ranking that is topped by Germany’s Leipzig. It is the euro’s weakness against other leading currencies that is responsible for the plummet, the report added.

“Despite moderate price increases in most of the European cities, European currencies have weakened against the US dollar, which pushed most Western European cities down in the ranking,” said Mercer principal Nathalie Constantin-Metral.

“Other factors like the Eurozone’s economy, falling interest rates and increasing unemployment have impacted these cities,” the principal added. Oddly, however, four German cities made the top ten, despite Germany having one of the strongest economies in the Eurozone.

Only one British city – Belfast – made the top ten list, which was also rounded out by cities from Portugal (Lisbon) and France (Lyon). The most expensive cities for expats were, unsurprisingly, located in Asia, including Hong Kong, Singapore and Shanghai. In Europe, Switzerland’s Zurich, Geneva and Bern were the most expensive, while London was the UK’s priciest city, coming in at 12^th place globally.

Interestingly, Birmingham – the UK’s second city – ranked highly due to the strong pound and average wages found in the city.

The Costa del Sol remains an affordable location for both expats and holidaymakers, and was ranked recently as one of the cheapest destinations for a family package holiday in Europe.