The three numbers
Annual cost
$36,000
average across our cities
FIRE target
$900,000
25× annual spending
Effective tax
18%
on employment income
Living in Spain costs roughly $36,000 a year across the 6 cities we track, which puts a full FIRE target near $900,000 at a 4% withdrawal rate. Income is taxed at roughly 18% effective, which is what actually decides how fast you get there.
Spain is the 18th cheapest of the 36 countries we hold cost data for — about 34% less than the average US city. A portfolio that funds an ordinary American life funds a longer one here, which is the whole arithmetic behind moving.
The spread inside the country is $16,000 a year — Barcelona against Canary Islands — which is large enough to move your FIRE date by years on its own.
| City | Per year | FIRE number |
|---|---|---|
| Barcelona | $44,000 | $1,100,000 |
| Madrid | $42,000 | $1,050,000 |
| Valencia | $36,000 | $900,000 |
| Seville | $34,000 | $850,000 |
| Málaga | $32,000 | $800,000 |
| Canary Islands | $28,000 | $700,000 |
Every FIRE number here is 25× the annual cost, the standard 4% rule. Change the withdrawal rate and the whole column moves — a 3.5% rule multiplies by 28.6 instead.
Retiring in the average US city takes about $1,364,775. Retiring in Spain takes $900,000 — a saving of $464,775. That difference is not a discount on your lifestyle, it is years off the front of your working life, because it is the portfolio you no longer have to build.
Put differently: a $1,000,000 portfolio funds about 28 years of life in Spain at a 4% withdrawal rate, against 18 years in the average US city.
On cost, Spain sits just above South Korea and just below Italy — worth checking both if the country matters less to you than the number does.
The cost figure is annual spending for one person living an ordinary middle-class life — housing, food, transport, healthcare, the rest — not a backpacker budget and not a luxury one. The tax figure is an effective rate on employment income, not a marginal bracket, so it already accounts for the allowances most people get.
Both are estimates, and they are the right kind of estimate for a decision this size: close enough to tell you whether Spain shortens your timeline, not precise enough to budget a month on. Put your own income and savings in and the answer becomes yours rather than the average's — find your freedom date or model the move directly with the Expat FIRE calculator.