Not only does everything feel pricier nowadays, but the reality is that most goods, from food to housing, have indeed become more expensive in the U.S. and the United Kingdom. In 2022, the United Kingdom witnessed an annual inflation rate of 11.1 percent, reaching a 41-year high. Given these circumstances, now might be the ideal moment to consider relocating abroad, particularly to this sunny country on the Iberian Peninsula, recently identified as having the lowest cost of living in Europe.

Property Guides comprehensive analysis compared living expenses across 13 countries with the United Kingdom. Following a thorough examination of the data, Property Guides identified Spain as the leading destination for those seeking a more affordable lifestyle.

To reach this conclusion, the researchers conducted a thorough comparison of "everyday living expenses" to provide a genuine insight into the actual cost of "living" rather than merely "visiting" a destination. This assessment involved compiling a comprehensive "basket" of goods and services, encompassing various aspects such as the price of basic groceries like milk and bread, expenses associated with setting up a new household, hiring a house cleaner, local fuel prices, and even the cost of a Netflix subscription in each country. Additionally, the analysis included entertainment expenses like movie tickets to gauge the overall expenditure required to sustain oneself in each location.

“We found Spain to have the lowest cost of living compared to the other countries analyzed,” the team wrote in the findings. “To put that into context for U.K. buyers, the same ‘basket of goods’ that cost £1,996 (about $2,500) in the UK costs just £1,295 (about $1,621) in Spain.”

Additionally, the team highlighted that food and essential pantry items in Spain, such as bread, butter, milk, apples, dog food, chocolate, and laundry detergent, are significantly more affordable compared to those in other countries examined. The team elaborated, "It's hardly surprising that the identical basket of supermarket essentials costs 53 percent more in the U.K. than in Spain." Furthermore, they emphasized that certain items like dog food, gin, and dark chocolate are priced at more than double in the U.K. compared to Spain.

The team ranked Italy as the second most affordable place to live in terms of cost of living, with Portugal, Greece, and Germany following closely behind to complete the top 5. To explore the rankings of all analyzed nations and access the complete cost of living report, visit propertyguides.com.

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