Cost of Living: Costa del Sol vs London, New York and Toronto in 2026
“Living on the Costa del Sol in 2026 costs significantly less than life in London, New York or Toronto — while offering 300 days of sunshine and a calmer, more outdoor lifestyle.”
More people than ever are asking a simple question:
“Is there somewhere I can live better — not just cheaper?”
For many, the answer is yes: the Costa del Sol. Sunshine, lower everyday costs, Mediterranean food culture and strong international communities make the region one of Europe’s most appealing places to relocate.
This guide compares the cost of living on the Costa del Sol vs London, New York and Toronto using realistic 2026 figures, so you can see how far your money really goes.
Living Costs on the Costa del Sol (2026)
The Costa del Sol remains one of Europe’s best-value regions for day-to-day living, especially when you compare it with major English-speaking cities. Mild winters help keep utility bills down, fresh produce is affordable, and household insurance is typically a fraction of what residents pay in the UK, US or Canada.
Typical monthly spending for a couple (Costa del Sol)
For two adults living a comfortable, non-extravagant lifestyle in Málaga and surroundings, a realistic monthly budget looks like this:
- Groceries & eating out: €700–850
- Utilities & telecoms (electricity, water, internet, mobiles): €200–260
- Local transport: €35–50
- Insurance (home + car combined): €650–1,050/year (≈ €55–88/month)
Typical total monthly spend (excluding rent or mortgage): €1,000–1,200
For most people moving from London, New York or Toronto, that alone is a big adjustment: bills become more predictable and manageable, and a larger share of your income goes on lifestyle rather than fixed costs.
Jump to your city
See the full cost of living breakdown, lifestyle notes and real examples:
London: Cost of Living Breakdown (2026)
London remains one of the world’s most expensive cities. Energy prices, transport and insurance are all significantly higher than in southern Spain, and many households feel that most of their income disappears on basics before they even think about going out.
Monthly costs for a couple in London (excluding rent)
- Food & dining: £760–950/month
- Utilities & telecoms: £320–450/month
- Public transport (Zone 1–3 style pass): £170+/month
- Insurance (home + car): £900–1,600/year (≈ £75–133/month)
Typical total monthly spend (excluding rent or mortgage): £1,450–1,800 (≈ €1,700–2,100)
Property snapshot: London vs Costa del Sol
- London 2-bed flat: £575,000–750,000
- London 3-bed townhouse: £1.05–1.30m
- Costa del Sol 3-bed townhouse: €575,000–725,000
For many London homeowners, selling a family house can fund an outright purchase on the Costa del Sol with money left over, turning a mortgage payment into additional income.
Real example: selling in London → moving to Spain
Imagine a London couple selling a £1.2m semi-detached home. After agent and legal fees, they might walk away with roughly £1.16–1.17m.
On the Costa del Sol, they buy a modern townhouse in a gated community for around €700,000, plus approximately €70,000 in purchase costs. Their total outlay is roughly €770,000.
That leaves a substantial amount of released equity which, invested modestly at 3–4% per year, can help offset monthly costs and provide a meaningful lifestyle cushion.
Monthly non-housing costs:
- London: £1,450–1,800
- Costa del Sol: €1,000–1,200 (often noticeably lower even with a similar lifestyle)
Summary
In this scenario, the couple lives mortgage-free, reduces monthly spending and can often cover a meaningful part of their new lifestyle from investment income alone.
New York City: Cost of Living Breakdown (2026)
New York offers incredible energy and opportunity, but everyday costs add up fast — especially groceries, eating out and insurance. For many New Yorkers, moving to Spain feels like taking the pressure off without giving up big-city connections.
Monthly costs for a couple in NYC (excluding rent)
- Food & dining: $1,250–1,650/month
- Utilities & telecoms: $360–500/month
- Public transport (MetroCard / OMNY): $132+/month
- Insurance (home + car): $2,800–4,500/year (≈ $235–375/month)
Typical total monthly spend (excluding rent or mortgage): $2,100–2,800 (≈ €1,950–2,600)
Property snapshot: New York vs Costa del Sol
- 2-bed condo (Manhattan): $1.9–2.6m
- Costa del Sol 2-bed apartment: €300,000–420,000
- Costa del Sol detached villa: €750,000–1.15m
Real example: selling in NYC → moving to Spain
A New York couple sells a two-bedroom Manhattan condo for around $2.0m and nets roughly $1.85m after closing costs. They purchase a high-quality Costa del Sol townhouse for around €770,000 all-in (roughly $830,000–860,000, depending on exchange rate).
Capital released: often close to (or above) $1.0m. Invested at 3–4% annually, that can generate meaningful income — frequently enough to offset a large share of living costs in Spain, before considering pensions or other income.
Monthly non-housing costs:
- New York City: $2,100–2,800
- Costa del Sol: €1,000–1,200 (≈ $1,080–1,320, exchange-rate dependent)
Summary
Many New Yorkers find they can reduce fixed expenses dramatically, turn home equity into income, and swap crowded commutes for a Mediterranean lifestyle with sunshine and outdoor living.
Toronto: Cost of Living Breakdown (2026)
Toronto’s cost of living has risen sharply over the past decade. Groceries, utilities, mobile phone plans and insurance are among the highest in the world — and homeowners also face substantial property tax and water bills.
Monthly costs for a couple in Toronto (excluding mortgage)
The figures below reflect a typical two-adult household with two cars and a detached or semi-detached home:
- Food & dining: C$1,700–2,300/month
- Utilities & telecoms (heat, electricity, internet, mobiles): C$700–900/month
- Insurance (home + 2 cars): C$720–900/month (based on ~C$8,600–10,800/year)
- Public transport (TTC): C$160–175/month (more if paying for parking and tolls when driving into the city)
Core monthly spend (excluding property tax & water): C$3,280–4,275
Property tax, water and other municipal charges
On top of that, most Toronto homeowners pay significant municipal charges:
- Property tax: typically C$4,800–7,200/year (≈ C$400–600/month)
- Water & sewage: typically C$1,300–2,000/year (≈ C$110–170/month)
When you include property tax and water, the true non-mortgage monthly cost for many Toronto households rises to around C$3,850–5,050 per month (≈ €2,600–3,400, exchange-rate dependent)
Property snapshot: Toronto vs Costa del Sol
- Toronto 2-bed condo: C$850,000+
- Toronto 3-bed townhouse: C$1.25m+
- Toronto detached house: C$1.6–2.2m+ (area-dependent)
- Costa del Sol 3-bed townhouse / semi-detached: €575,000–725,000
Real example: selling in Toronto → moving to Spain
A Toronto family sells a 3-bedroom detached home in a desirable neighbourhood for around C$1.55m and nets roughly C$1.49m after fees. They purchase a Costa del Sol townhouse in a modern community with pool and gardens for about €770,000 all-in.
Their everyday costs also change dramatically. Instead of spending C$3,850–5,050 each month on food, utilities, telecoms, insurance, transport, property tax and water, they now spend around €1,000–1,200 per month in Spain (often roughly C$1,500–2,000, exchange-rate dependent).
Summary
For many Toronto households, moving to the Costa del Sol meaningfully reduces monthly outgoings, while swapping long winters for a climate where outdoor life is possible most of the year.
Why So Many People Choose the Costa del Sol
The financial savings are important, but for most people the real attraction is how different everyday life feels. Instead of planning your week around bills, weather and commuting, you start planning it around daylight, terraces and time outside.
- Around 300 days of sunshine per year
- Outdoor cafés, coastal walks, golf and hiking as part of normal life
- Excellent public healthcare and affordable private options
- Safe, international communities with English widely spoken
- Easy flights back to the UK, Europe, Canada and the US
Many people who move from London, New York or Toronto say the biggest change is not just lower costs, but a lighter, calmer daily rhythm: fewer long commutes, more time outside, and the feeling that they are finally getting value from the money they spend.
How much do I need per month on the Costa del Sol?
Everyone’s lifestyle is different, but these ballpark figures are a useful starting point:
- Comfortable couple (excluding housing): most two-adult households live well on around €1,000–1,200 per month for food, utilities, telecoms, local transport and insurance.
- Comfortable couple (including rent or mortgage): adding a mid-range long-term rental or modest mortgage, many couples find that a total budget of around €2,100–2,800 per month provides a very comfortable lifestyle in much of the Costa del Sol.
- Single professional or remote worker: a single person can often cover non-housing costs on €750–950 per month, with total budgets from around €1,600–2,050 including rent (depending on location and housing choice).
These are guide figures only, but the pattern is clear: for many people relocating from London, New York or Toronto, the Costa del Sol offers a noticeably lower monthly outlay for a similar – or better – standard of living.
Snapshot: Monthly Cost Comparison (Two Adults, Excl. Housing)
This snapshot brings everything together. It shows realistic 2026 monthly costs for two adults, excluding rent or mortgage payments.
(guide for two adults living comfortably)
(≈ €1,700–2,100)
(≈ €1,950–2,600)
(≈ €2,600–3,400)
Key Takeaways for 2026
- Costa del Sol living costs are typically 35–55% lower than in London, New York or Toronto for similar lifestyles (excluding housing).
- Food, utilities and insurance are dramatically cheaper in southern Spain, and bills are more predictable.
- Property prices often offer significantly better value than in major English-speaking cities, especially for two- and three-bedroom homes.
- Many movers can sell once, buy outright in Spain and release equity to invest or use as a lifestyle cushion.
- Beyond the numbers, most people report a better quality of life — more time outside, less financial pressure and a calmer daily rhythm.
Related Guides & Resources
Planning a move to the Costa del Sol?
Download our guide to moving to Spain, which includes sections on visas, healthcare, education and retirement. These resources will also help:
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 less”