Everybody thinks that the cost of living here in Spain is low. Thats because 5 years ago it was, now however the cost of living is quite high here. Prices have doubled in the last 5 years. Fuel when we first arrived here, was approx half the price of what it was in the U.K. now it is more expensive in Spain than in the U.K.
Food, once cheap here, has become very expensive and any british foods that you can get here, are twice the price that they are in the U.K. This makes a large dent in your budget if you are not prepared.
The price rises combined with the strength of the euro makes the standard of living a lot lower than it has been in the past.
While prices have skyrocketed the average wage has not changed that much in 5 Years.
Electricity has always been an expensive commodity here, expect to pay between 250 and 300 euros every two months for an average home if you have a pool. A pool pump will always put up your bill to the tune of about 40-50 euros every month depending on how many hours its running.
Since Jan this year electricity has been charged on a monthly basis, even though the meter is only read once every 2 months. In the 2 months between readings the first month is an estimated bill and the second month you pay the remainder of the balance.
The high price of electricity here makes it quite a good idea to look into the cost of solar power, you might even get a grant to install it. Another alternitive is wind power. Before being called the Costa Tropical this part of Spain was known as the windy coast and most days there is a wind or breeze that could be used to generate power.
Take into consideration the amount of electricity you will consume before installing solar or wind generated electricity. If you intend to have air conditioning or electric water heaters etc the cost of installation may be astronomical because of the number of kilowatts you will need to run these appliances.
If you need small amounts of hot water and live in the countryside then an inexpensive way is to buy 100 meters of 60mm black plastic pipe coil it up and place it in a sunny spot. connect a cold feed to one end and connect the other to a tap where you need the hot water wait 20 mins and you will have enough hot water for a shower make sure you have a cold feed to mix it with, because the water will be very hot and could scald you.