Cost of Living: Costa del Sol vs London, New York and Toronto in 2026

“Living on the Costa del Sol in 2026 costs roughly half as much as life in London, New York or Toronto — while offering 300 days of sunshine, outdoor living and a far better quality of life.”

As we head into 2026, more people than ever are reassessing where and how they want to live.

The rising cost of everyday life in cities like London, New York and Toronto – combined with harsh winters, busy commutes and growing financial pressure – has pushed a simple question to the surface:

“Is there somewhere I can live better — not just cheaper?”

Increasingly, the answer is yes: the Costa del Sol.

Known for sunshine and Mediterranean living, what surprises many newcomers is how much further their money goes here – often by a substantial margin.

This guide explores how the Costa del Sol compares with London, New York and Toronto across:

• Daily living costs
• Utilities, insurance & telecoms
• Property prices
• Real-life worked examples
• Lifestyle & wellbeing benefits

Cost of Living on the Costa del Sol vs London, New York and Toronto

Groceries and Eating Out in Spain vs UK, US and Canada

In Málaga, a realistic weekly food shop for two adults in 2025–2026 now sits around €95–110 for groceries, plus around €45–60 for one good-quality meal out. Together this gives a real-world weekly spend of around €140–170 and a monthly total of €600–700.

By comparison:

• London: £160–200 per week (≈ €185–230)
• New York: $260–320 per week (≈ €240–300)
• Toronto: C$220–270 per week (≈ €150–185)

Summary: Málaga remains significantly more affordable for food, typically 25–40% cheaper than London or Toronto and up to 45% cheaper than New York.

Utilities, Internet and Mobile Costs in Spain vs the UK, US and Canada

Utilities in Andalucía remain one of the region’s biggest advantages thanks to mild winters. Most two-adult households spend:

• Utilities: €120–150
• Internet: €30–35
• Two mobile plans: €30–45

Total: €180–230 per month.

By comparison:

• London: £300–400 per month (≈ €350–470)
• New York: $300–400 per month (≈ €275–365)
• Toronto: Utilities C$300–400 + Internet C$150 + Mobiles C$200 = C$650–750/month (≈ €440–515)

Summary: Utilities and telecoms on the Costa del Sol are often 40–65% cheaper than London and Toronto and substantially lower than New York.

Insurance, Transport and Day-to-Day Costs Compared

Insurance is another major area where Spain is dramatically more affordable:

• Home insurance: €150–300/year
• Car insurance: €430–530/year

Compare this with:

• London: Home £200–400/year; Car £600–1,000/year
• New York: Home $1,000–1,500/year; Car $1,500–2,500/year
• Toronto: Home C$3,000–3,600/year; Car C$2,400+/year per vehicle

Public transport:

• Málaga: €30–40/month
• London: £160+/month
• New York: $132/month
• Toronto: C$150–160/month

Summary: Insurance and transport alone can save Spanish residents several thousand euros per year compared with the UK, US or Canada.

Property Prices: Costa del Sol Compared With London, NYC and Toronto

What a Two-Bedroom Apartment Costs in the Costa del Sol vs London, NYC and Toronto

• Costa del Sol: €280,000–380,000
• London: £550,000–700,000
• New York (Manhattan): $1.8–2.3m
• Toronto: C$800,000+

Three-Bedroom Townhouse Prices Compared

• Costa del Sol: €550,000–650,000
• London: £1.0–1.2m
• New York (brownstone areas): $2.0–2.5m
• Toronto: C$1.2m+

Detached Home Prices Compared Across Regions

• Costa del Sol: €700,000–1.0m
• London: £1.5–1.8m
• New York: $2.0–3.0m
• Toronto: C$1.5–2.0m+ depending on neighbourhood

Summary: In many cases, sellers can buy outright in Spain and still retain a significant cash buffer.

Real Example: Selling a London Home and Moving to the Costa del Sol

A typical 3–4 bedroom semi-detached London home worth around £1.2m may leave sellers with roughly £1.17–1.18m after fees.

Purchasing a modern Costa del Sol townhouse: €650,000 purchase price + €65,000 purchase costs = €715,000 (≈ £627,000).

Capital released: approx. £550,000 (≈ €640,000).

Invested at 3–4% annually: £16,500–22,000/year (≈ £1,375–1,830/month).

Monthly living costs:

• London: £1,450–1,550
• Costa del Sol: €900–1,050 (≈ £780–910)

Summary: Lower living costs + released equity often allow UK movers to live mortgage-free,
reduce annual spending, and enjoy a higher quality of life.

Real Example: New York to Costa del Sol Cost of Living Comparison

A two-bedroom Manhattan condo selling for $1.9m may net the owner about $1.78m after closing costs.

A Costa del Sol townhouse costing €715,000 all-in equals roughly $780,000.

Capital released: approx. $1.0m (≈ €920,000).

Invested at 3–4% annually: $30,000–40,000/year (≈ $2,500–3,333/month).

Monthly living costs:

• New York City: $3,200–3,500
• Costa del Sol: €900–1,050 (≈ $950–1,200)

Summary: Many New Yorkers can free up significant capital, cut living costs by half,
and enjoy a Mediterranean lifestyle with year-round sunshine.

Real Example: Toronto to Costa del Sol Cost of Living Comparison

A 3-bed detached Toronto home in a desirable location might sell for around C$1.45m, leaving sellers with approximately C$1.395m after fees.

A comparable Costa del Sol townhouse costs around €715,000 (≈ C$1.16m) all-in.

Capital released: approx. C$235,000 (≈ €145,000).

Monthly living costs in Toronto for a typical two-adult household often reach:

• C$650–750 utilities + telecoms
• C$900–1,000+ groceries + dining
• C$150–160 transport
• C$650–750 home & car insurance (combined)

➡️ Total: C$2,300–2,600 per month (not including property tax, water charges and other municipal costs, which can add another C$450–550 per month).

On the Costa del Sol, the same couple lives comfortably on: €900–1,050 per month (≈ C$1,450–1,700).

Summary: Toronto movers often cut living costs by 40–50% or more, while enjoying a milder climate and a more outdoor-focused lifestyle.

Why the Costa del Sol Offers a Better Lifestyle Than London, New York or Toronto

The numbers make a strong case on their own, but the lifestyle shift is arguably even more powerful:

• Around 300 days of sunshine each year
• Outdoor cafés, beach walks, golf and hiking as part of normal life
• Excellent public healthcare and affordable private options
• A more relaxed pace, with strong international communities
• Easy flight connections back to the UK, Europe and beyond

For many movers from London, New York or Toronto, the biggest change is not just lower bills,
but a calmer, more enjoyable day-to-day existence.

Final Summary: Why the Costa del Sol Wins on Cost of Living in 2026

When you combine lower living costs, better-value property, predictable household expenses, sunshine, outdoor living and a calmer pace of life, the Costa del Sol becomes one of the most compelling relocation and retirement choices for 2026.

For many people leaving London, New York or Toronto, the reality is simple:
life on the Costa del Sol is not only cheaper — it is richer, healthier and more enjoyable.

“In 2026, the Costa del Sol offers a richer lifestyle — for half the cost.”
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