A new Cost of Living Calculator from Moving to Spain will show you the best places to live in Spain. Pictured here: Exploring Madrid's old town.gettyMoving to Spain cofounder Alastair Johnson describes himself as a “serial expat.” He was born in South Africa and later lived in London and Sydney. In 2015, Johnson and his wife Alison decided to move from Australia to Spain with their son. What was originally supposed to be a one-year sabbatical quickly turned into something more permanent.“The amazing lifestyle, low cost of living and access to good schools made it an easy pick,” Johnson told me in an interview. “Three months into the sabbatical, we decided we were in our new home and started making a permanent life in Spain.”Part of that new life involved creating Moving to Spain, a relocation platform that helps other expats navigate the process. Spain’s reputation for affordability is a big part of the draw. Johnson estimates that a like-for-like lifestyle can be about 28% less expensive than in the U.S.But after years of advising clients, the couple realized something. People didn’t just want to know if Spain is cheaper. The real question, says Johnson, is far more specific: What will your life actually cost and where can you afford to live? To answer that, Johnson and his team have built a new interactive Cost of Living Calculator that compares expenses across 11 Spanish cities, including major hubs like Madrid and Barcelona, as well as smaller, more affordable destinations like Granada and Badajoz.Alison and Alastair Johnson, founders of Moving to Spain.Courtesy of Moving to SpainHow Spain’s Cost Of Living Calculator WorksRather than relying on broad averages, Moving to Spain’s Cost of Living Calculator is built as a behavioral spending tool designed to reflect how people actually live.Housing is calculated using rental prices per square meter and typical property sizes, allowing for realistic comparisons across different home types. Utilities are based on real numbers and scaled by household size. Groceries are benchmarked using a standardized basket of everyday items across major supermarket chains.The model also factors in lifestyle costs—from healthcare and gyms to entertainment—and includes car ownership expenses like insurance, fuel and maintenance.The goal is to show what day-to-day life actually costs at different income levels and lifestyle choices.Alcazaba Castle in Badajoz, an affordable place to live in Spain.gettyHow Much It Really Costs To Live In SpainWhile Spain is often described as cheaper than the U.S., the data tells a more nuanced story, where geography plays an outsized role in shaping costs.Housing, in particular, is the biggest swing factor. According to Moving to Spain’s data, a comfortable one-bedroom apartment costs roughly $2,284 (about €1,950) a month in Madrid, compared to about $702 (€600) in Badajoz. That’s a difference of more than $18,740 (€16,000) a year within the same country.Outside of housing, costs don’t vary nearly as much as people expect. Groceries, gyms and dining out tend to cluster within a relatively narrow range from city to city. “What makes this important for expats is that groceries do not triple between cities. Gym memberships do not triple. Coffee does not triple,” he says. “Housing does.”That disparity quickly reshapes the bigger picture. A comfortable lifestyle in a place like Palma de Mallorca can run around $5,387 (€4,600) a month, while a similar standard of living in a smaller inland city like Badajoz comes in closer to $3,396 (€2,900).The result is a gap that can exceed $1,991 (€1,700) per month within Spain or more than $23,423 (€20,000) a year, turning geography into one of the most important financial decisions expats make.A panorama of Ribadesella in Asturias on Spain's Costa Verde, a popular destination for Americans.gettyWhere You Live In Spain MattersFor Americans in particular, Spain is very appealing. Johnson says roughly 90% of his clients over the past year have come from the U.S., drawn by a combination of lifestyle, healthcare, safety and cost of living. In recent years, I’ve spoken with Americans making the move for exactly these reasons, from retirees stretching fixed incomes to remote workers rethinking where their dollars go.But even here, the fine print matters. In Spain, taxes are often higher than in the U.S, which many newcomers don’t fully anticipate. There are also upfront costs that many people overlook. Moving expenses and setting up a new home can add up quickly. Currency risk is another factor. If your savings or income are in U.S. dollars but your expenses are in euros, exchange rate shifts can have a real impact. “A 10% drop in the value of the dollar means that your cost of living in Spain just jumped by 10%,” says Johnson.So where does that leave prospective movers looking for the best value? According to Johnson, the biggest opportunities lie outside Spain’s most obvious destinations. Inland cities and less tourist-heavy regions tend to offer significantly lower housing costs without sacrificing quality of life.“Head inland and outside the most popular expat and tourist destinations,” he says. “The coasts have a premium as do larger cities with the best facilities. Spain isn’t very different from most countries in this regard.”A view of Granada, an appealing place to live in Spain.gettyMost Affordable Places To LiveOne area gaining traction with Americans is the Costa Verde, Spain’s northern coast along the Atlantic between Portugal and France. “Lower prices and cooler weather are a winning combination for many people,” says Johnson.Mid-sized cities like Granada also stand out, offering a strong balance between lifestyle and affordability.Another idea to consider: “Smaller towns around bigger centers are normally discounted,” says Johnson.On the flip side, some destinations are surprisingly expensive. “San Sebastian and Bilbao are outliers on the Costa Verde—stunningly beautiful and priced to match,” says Johnson. “Popular retirement destinations like Deia on the island of Mallorca, Estepona near Malaga and Sitges outside Barcelona carry a hefty premium on rents.”For remote workers and expats earning in U.S. dollars, Spain’s lower cost of living can unlock a higher quality of life. Pictured here: a rooftop in Barcelona.gettyWho Benefits The Most From Moving To SpainThe financial upside of moving to Spain also depends on how you earn your money. Remote workers, retirees and expats earning U.S. dollars are often best positioned to take advantage of the country’s lower cost base.For people hoping to earn money locally, however, the equation can shift significantly, as Spanish salaries are generally lower.At the same time, rising housing costs and slower wage growth have made affordability more challenging for many locals—a reminder that Spain’s reputation as a cheap destination depends heavily on perspective.“For many locals living in Spain has become incredibly expensive as local wages have not kept pace with inflation or with rapidly rising housing costs,” says Johnson. “So, just be aware and sensitive to the fact that there is a very different experience for expats with income from U.S. pensions, investments or remote work.”And that, ultimately, is the takeaway. Spain can offer a lower cost of living than the U.S., but the real advantage comes from understanding where, and how, to make it work.MORE FROM FORBES: Forbes9 Breathtaking Hotels With Some Of The Best Stargazing On EarthBy Laura Begley BloomForbesThe 11 Easiest Countries To Get Citizenship In 2026, According To An International Living ReportBy Laura Begley BloomForbesThe 50 Best Cities In The World To Raise A Family—According To A New Report From Compare The MarketBy Laura Begley Bloom