Living in Spain - Incomes & Cost of Living

In 2004, total household expenditure increased by 4.9% compared to 2003, signifying an increase of 6% in the fourth quarter of 2004 in comparison with the same period in the previous year. To give an idea, each household had an average expenditure of EUR 5 791.00 in the fourth quarter of 2004. 21% of this amount is spent on food, drink and tobacco consumed at home, and the remainder on other goods and services.

On the other hand, some 38.6% of households set some money aside for savings (highest percentage since 2001), with the Basque Country, Castilla-León, and La Rioja being the communities that save the most, while the Canaries and Madrid have the lowest percentages of households which save. 

In the fourth quarter of 2004, some 44.5% of households clearly have some degree of difficulty in making it to the end of the month, with Extremadura, Castile-La Mancha and Madrid being the communities showing the greatest improvement in this respect.

To give you an idea of the general cost of living in Spain, we have selected the prices of some everyday items, the price of which, logically, will vary from shop to shop, from region to region and from city to city. 

These are as follows:

• Loaf of bread: EUR 0.55
• Milk (1 litre): EUR 0.73
• A dozen eggs: EUR 1.75
• Kilo of apples: EUR 0.74
• Kilo of tomatoes: EUR 2.5
• Bottle of shampoo: EUR 3
• Deodorant: EUR 2
• Skirt or trousers: EUR 60
• 24 hr flat rate ADSL connection: EUR 39
• National or regional newspaper: EUR 1
• Aspirin: EUR 2.70
• Cinema ticket: EUR 6
• Coffee: EUR 0.90
• Beer: EUR 0.65
• Hamburger: EUR 2.80
• Set menu: from EUR 7

Salaries comprise the total economic earnings that the worker receives for services supplied. Their structure is established by collective bargaining, and comprises the basic salary and fringe benefits, such as for length of service, special payments (normally two, one at Christmas and the other in summer), share in profits, bonuses, and other perks specific to the job. 

Salary payments must be made at intervals no greater than one month, with monthly payment being the most common in Spain.

The government sets a minimum wage each year, which is EUR 513 gross per month or EUR 17.10 gross per day for 2005. It is illegal to contract a worker for a salary lower than this. 

There are also many sectors that have fixed adequate salaries for each professional group or category through collective bargaining.

Text last edited on:06/2005

Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.