Woman who moved to Spain breaks down the true cost of living there

A British expat who moved abroad to Spain in 2023 is continuing to reap the rewards of her bold decision.

Holly Cope made the move from Sheffield to the Spanish capital of Madrid in May last year, and has discovered a huge gulf in the cost of living.

Leaving her 9-5 law job in the UK, she has since become what is known as a digital nomad, starting a podcast called More Than a Lawyer, while based in her new home country.

She has revealed how big the difference is between living in Spain or in the UK. (Holly Cope)

31-year-old Holly currently lives in a spacious two-bedroom flat in Madrid that has a balcony, is situated in a 'nice part' of the city, and is just a 10-minute drive from the bustling city centre.

All of that for just £770 a month, and she doesn't even have to pay council tax. With heating in Spain being almost obsolete due to the warm weather, her monthly bills sit at £42 for WiFi, electricity and water.

But what other positives does the Brit benefit from?

Rent is significantly less than the UK

The qualified lawyer revealed that despite the fact that she pays more tax in Spain than she would back home, she feels better off.

She highlighted that a two-bedroom apartment in Zone 1 in Central London would cost around £3,500 per month, and £4,000 after bills.

But Holly stated: “In Spain I’m paying a quarter of that. The rent on my apartment is half what my friend is paying for a one-bed flat without a terrace in Sheffield."

With an increasing amount of people moving abroad, it seems like the cost of living crisis, the housing crisis, and other crises are catching up to Brits.

Holly's apartment gives her a much better value for money than her previous apartments in the UK. (Holly Cope)

Cheap commutes

The podcast host says that 'a lot' of 'everyday expenses' are more affordable in Spain, and it all adds up.

She explains: "Public transport is amazing. It's capped at 40p a journey and you can travel right across Madrid for that. I checked and a zone 1-6 travel card is £15.60 in London.

"Standard class here is like first class in England. When you go to the train station it's like going to an airport, your bags get checked, your tickets get checked before boarding the train, it's a great service and there's no strikes."

That last bit about no strikes will be music to the ears of many Brits, who have been suffering from the on-and-off train schedules over the past year or so.

She also drops the magic numbers of how much it costs for a coffee and a pint, which respectively sit at £1 for a coffee and just £2.50 for a pint in the capital.

Holly says that she doesn't really worry about going out for a drink anymore, justifying it by saying: “It’s true that the rate of taxation is higher in Spain but overall the quality of life and standard of living is so much higher.”

But what about the high tax?

Spain have social security payments, which is the equivalent to the UK's National Insurance, of which Holly pays £74 a month - which is set to rise to about £260 in two years' time.

Holly has been reaping the benefits of living abroad since her move. (Holly Cope)

The lawyer also spent over £2,000 on a Digital Nomad visa to stay in the country. She was supposed to pay 15% income tax on this, but instead pays 21%, which is higher than what she paid in the UK.

Also, the tax-free amount in Spain is just £4,700, which looks miniscule when compared to the UK's tax-free figure of £12,500.

Holly admits that she feels 'short-changed' by the tax situation, but it hasn't affected her love for the country, which she has had since she was a teenager.

It also hasn't deterred her from living there, and after learning Spanish and spending a year teaching English there in 2015, she knew she would always come back.

Despite this, she admits that the tax situation may eventually cause her to leave, explaining: “Whether I will I stay in Spain forever is a hard question to answer. It would be a balance between my head and my heart.

“I’d consider looking at Gibraltar or look at other visas around the world and think what is the most tax efficient."

Calling the way of life in Spain 'undeniably amazing', she is aware that it may not make the most financial sense, and it really does depend on the person at the end of the day.