While prices in Spain have increased recently, it is still one of the least expensive Western European countries in which to live. In a recent study, Madrid's cost of living ranked lower than London, Paris and 11 other Western European cities. Madrid is ranked 26th overall, and Barcelona is ranked 31st. Smaller cities outside of Madrid and Barcelona are considered to be even less expensive.

In line with the cost of living, average salaries in Spain are quite low by American or Western European standards. A recent government survey found the average annual salary across all industries to be about 15,700 EUR (approximately 23,000 USD). Moreover, the study found a significant disparity in the salaries of men and women. Men in the study made nearly 18,000 EUR (about 26,500 USD) per year whereas women made only about 12,500 (approximately 18,300 USD) per year.