Cost of Living in Mallorca vs the United Kingdom: A Realistic Comparison 2026

One of the most common questions from British buyers considering a move to Mallorca is: “Is it actually cheaper than the UK?” The answer, like most things in life, is “it depends” — but on balance, yes. Most British expats in Mallorca report living well on less than they would spend in the UK, with lower housing costs, cheaper dining, and affordable groceries more than compensating for a few areas where Spain is pricier. This guide provides a detailed, realistic comparison to help you plan your budget.

The Exchange Rate: The Elephant in the Room

Before comparing any costs, you need to understand the impact of the GBP/EUR exchange rate on your finances. If your income is in pounds (a UK pension, rental income from UK property, or remote work paid in sterling), the exchange rate directly affects your purchasing power in Spain.

GBP/EUR Rate	£2,000/month =	Impact
1.20 (strong pound)	€2,400/month	Comfortable budget for a couple
1.16 (average 2025)	€2,320/month	Solid budget, some savings possible
1.12 (weaker pound)	€2,240/month	Tighter but manageable
1.08 (weak pound)	€2,160/month	Noticeable squeeze on spending power

The difference between a strong and a weak pound can be €200–€300 per month on a typical pension or income. This is real money that affects your daily life. To mitigate this risk:

• Use a specialist currency broker (Currencies Direct, Wise, CurrencyFair) rather than your UK bank. The difference in exchange rate margins saves you 2–3% on every transfer.
• Set up a regular payment plan that transfers a fixed amount monthly. This averages out exchange rate fluctuations over time.
• Consider building up a euro buffer — transfer a lump sum when the rate is favourable and keep it in a Spanish bank account for months when the rate is poor.
• If buying property, use a forward contract to lock in the exchange rate between agreeing the purchase and completing. A rate movement of just 2% on a €500,000 purchase costs you £8,000–£10,000. For detailed advice, see our buying costs guide.

Property Prices: Buying

Property is where Mallorca can offer either dramatic savings or comparable costs relative to the UK, depending on what part of the UK you are comparing to and where on the island you are looking.

Location	Average Price/m²	2-Bed Apartment (80m²)	3-Bed Villa (150m²)
London (Zone 2–3)	£8,000–12,000 (€9,400–14,100)	€750,000–1,130,000	€1,400,000+
South-East England	£4,000–6,000 (€4,700–7,050)	€375,000–565,000	€700,000–1,050,000
Manchester/Birmingham	£2,500–4,000 (€2,940–4,700)	€235,000–375,000	€440,000–705,000
Palma de Mallorca	€3,800–6,500	€300,000–520,000	€570,000–975,000
Calvià (south-west)	€3,800–6,500	€300,000–520,000	€570,000–975,000
Alcúdia/Pollença (north)	€2,800–5,200	€225,000–415,000	€420,000–780,000

The takeaway: If you are relocating from London or the south-east of England, Mallorca property prices are significantly lower. You can buy a modern villa with a pool and sea views for what you would pay for a modest terraced house in Surrey. If you are moving from the north of England, Scotland, or Wales, the price difference narrows or even reverses in Mallorca’s premium areas. For current prices in any area, use our property valuation tool.

Remember to budget for buying costs of approximately 12–14% on top of the purchase price in Spain, compared to roughly 5–8% in the UK (stamp duty, solicitor, survey).

Property Prices: Renting

If you prefer to rent before buying (strongly recommended for at least 6–12 months to get to know the island), here is what to expect:

Property Type	Mallorca (monthly)	London (monthly)	UK Regional City (monthly)
1-bed apartment (central)	€800 – €1,200	£1,600 – £2,500 (€1,880–2,940)	£700 – £1,100 (€825–1,290)
2-bed apartment (good area)	€1,000 – €1,800	£2,200 – £3,500 (€2,585–4,115)	£900 – £1,400 (€1,060–1,645)
3-bed house/villa	€1,500 – €3,000	£3,000 – £5,000+ (€3,525–5,875)	£1,200 – £2,000 (€1,410–2,350)

Important note: Mallorca’s rental market is extremely tight. Long-term rental properties are scarce, particularly in Palma and the south-west coast, where tourist lets and the general housing shortage have squeezed supply. Rents have risen sharply since 2022. Be prepared to act quickly when you find a suitable property, and budget at the higher end of these ranges for desirable areas.

Groceries and Food Shopping

Groceries are one of the areas where Mallorca is noticeably cheaper than the UK, particularly for fresh produce, meat, and local products.

Item	Mallorca	UK
Bread (1kg, fresh bakery)	€1.20 – €2.50	£1.20 – £2.00 (€1.40–2.35)
Milk (1 litre)	€0.85 – €1.20	£0.80 – £1.30 (€0.94–1.53)
Dozen eggs (free range)	€2.00 – €3.50	£2.80 – £4.50 (€3.29–5.29)
Chicken breast (1kg)	€5.50 – €8.00	£6.00 – £9.00 (€7.05–10.58)
Olive oil (1 litre, good quality)	€7.00 – €12.00	£8.00 – £14.00 (€9.40–16.45)
Bottle of wine (decent table wine)	€3.00 – €7.00	£5.50 – £10.00 (€6.46–11.75)
Bottle of beer (33cl, shop)	€0.60 – €1.20	£1.20 – £2.00 (€1.41–2.35)
Fresh fruit (1kg, seasonal)	€1.00 – €2.50	£1.50 – £3.50 (€1.76–4.11)
Local cheese (1kg)	€8.00 – €15.00	£8.00 – £16.00 (€9.40–18.80)

Monthly grocery budget (couple): €350–€550 in Mallorca vs £400–€700 (€470–€825) in the UK. The savings come primarily from cheaper fruit, vegetables, meat, wine, and beer. Imported British products (Marmite, PG Tips, HP Sauce) are available at larger supermarkets but cost more.

Supermarkets in Mallorca: Mercadona (the most popular, great quality and value), Lidl and Aldi (discount options), Carrefour and Eroski (large hypermarkets), and El Corte Inglés (premium department store with an extensive food hall). For the freshest produce, visit one of Mallorca’s weekly markets — Palma (Mercat de l’Olivar), Santa Catalina, Sineu, Pollença, and Santanyí are among the best.

Dining Out

Eating out is one of Mallorca’s great pleasures — and it is significantly cheaper than in the UK, particularly for everyday dining.

Meal Type	Mallorca	UK
Coffee (café con leche)	€1.50 – €2.50	£3.00 – £4.50 (€3.53–5.29)
Menú del día (3-course lunch + drink)	€12 – €18	Not commonly available
Casual dinner for two (with wine)	€40 – €70	£50 – £90 (€59–106)
Fine dining for two (with wine)	€100 – €200	£120 – £250 (€141–294)
Beer (draught, bar)	€2.00 – €4.00	£4.50 – £7.00 (€5.29–8.23)
Glass of house wine	€2.50 – €5.00	£5.00 – £9.00 (€5.88–10.58)

The menú del día is a Spanish institution that has no real UK equivalent. For €12–€18, you get a starter, main course, dessert, and a drink (including wine or beer) at a local restaurant. It is available at lunchtime on weekdays at most non-tourist restaurants and represents extraordinary value. Many expats eat out for lunch several times a week thanks to this tradition.

Utilities

Utility costs in Mallorca are a mixed bag: electricity is expensive (Spain has some of the highest electricity prices in Europe), but water is cheap and gas (where it exists) is cheaper than in the UK.

Utility	Mallorca (monthly, 2-bed apt)	UK (monthly, 2-bed flat)
Electricity	€80 – €180	£70 – £120 (€82–141)
Gas (mains)	N/A (most homes use electric/butane)	£50 – £90 (€59–106)
Butane gas (cooking/hot water)	€15 – €20 (per 12.5kg cylinder)	N/A
Water	€20 – €40	£25 – £50 (€29–59)
Internet (fibre, 300Mbps+)	€30 – €50	£30 – £50 (€35–59)
Mobile phone (contract, 20GB+)	€15 – €30	£15 – £30 (€18–35)

Key considerations:

• Air conditioning: Summer electricity bills in Mallorca can be shocking. Running air conditioning in a villa from June to September can add €100–€300/month to your electricity bill. Ceiling fans and good insulation make a big difference.
• Heating: Mallorca winters are mild but not warm. Many properties rely on electric heaters or estufas de pellets (pellet stoves), which are efficient and atmospheric. Central heating is uncommon in older properties.
• Solar panels: Increasingly popular in Mallorca. A solar installation can cut electricity bills by 50–70% and is particularly effective given the island’s 300+ days of sunshine per year.
• No mains gas: Most of Mallorca does not have mains gas. Cooking and hot water are typically provided by electricity, butane cylinders, or propane tanks.
• Internet: Fibre optic broadband is available in Palma, most towns, and many rural areas. Speeds of 300–600 Mbps are standard. Major providers include Movistar, Orange, Vodafone, and MasMovil.

Total utilities (couple, 2-bed apartment): €150–€280/month in Mallorca vs £180–£300 (€212–€353) in the UK. The net difference is modest, though Mallorca benefits from much lower heating costs in winter (offsetting higher summer cooling costs).

Transport

Mallorca is a car-dependent island. Public transport exists (bus network, Palma metro, and the Sóller train), but outside Palma, you will need a car for daily life.

Transport Cost	Mallorca	UK
Petrol (per litre)	€1.45 – €1.65	£1.40 – £1.55 (€1.65–1.82)
Diesel (per litre)	€1.35 – €1.55	£1.45 – £1.60 (€1.70–1.88)
Car insurance (annual, comprehensive)	€350 – €700	£500 – £1,000 (€588–1,176)
ITV (MOT equivalent, annual)	€30 – €50	£55 (€65)
Road tax (IVTM, annual)	€60 – €200	£0 – £590+ (€0–694)
Bus fare (single, Palma)	€1.50 – €2.00	£1.50 – £2.80 (€1.76–3.29)

Key differences:

• Car insurance is significantly cheaper in Spain. Comprehensive cover for a standard family car costs €350–€700, compared to £500–£1,000+ in the UK.
• The ITV (Spain’s equivalent of the MOT) is cheaper and simpler than in the UK. Cars under 4 years old are exempt; after that, it is every two years until the car is 10 years old, then annually.
• Parking in Palma can be expensive and scarce. If you live in the city, a parking space (€80–€200/month) may be an additional cost.
• No commute costs: One of the biggest savings for many expats is the elimination of the daily commute. If you are retiring or working remotely, the savings from not commuting (train season tickets in the south-east of England can exceed £5,000/year) are substantial.

Taxes

Tax is one area where the comparison is nuanced. Spain’s headline income tax rates are similar to the UK’s, but additional taxes (wealth tax, property taxes, the autónomo self-employment regime) can increase the overall burden.

For Retirees on a UK Pension

If you become a Spanish tax resident (spending 183+ days per year), your UK pension is taxed in Spain (not the UK), under the double taxation treaty. Spanish income tax rates on pensions are progressive: 19% on the first €12,450, rising to 47% on income above €300,000. The personal allowance is lower than the UK’s (€5,550 vs £12,570). For a typical UK State Pension plus modest private pension (£20,000–£30,000/year), the tax bill is broadly similar to what you would pay in the UK, though the exact position depends on your individual circumstances.

For Property Owners (Non-Resident)

Non-resident property owners pay annual imputed income tax, IBI (council tax equivalent), and potentially wealth tax. For a full breakdown, see our tax guide for property owners.

Council Tax Comparison

Spain’s IBI (based on cadastral value) is typically €400–€2,000/year, compared to UK council tax of £1,500–£3,500/year (€1,764–€4,115). This is one of the clearest savings.

Healthcare Costs

Healthcare is free at the point of use under the public system (if you qualify), similar to the NHS. If you need private insurance, expect to pay €50–€200/month depending on your age. Private consultations and treatments are generally cheaper than in the UK. For a comprehensive guide, see our healthcare guide for British expats.

Monthly Budget: Realistic Scenarios

Here are three realistic monthly budgets for life in Mallorca, based on actual expenditure reported by British expats on the island:

Scenario 1: Retired Couple, Comfortable Lifestyle (Own Property, No Mortgage)

Category	Monthly Cost (€)
IBI + community fees (amortised monthly)	€200
Utilities (electric, water, internet, phone)	€220
Groceries	€450
Dining out (2–3 times/week)	€300
Car (fuel, insurance, maintenance, amortised)	€250
Private health insurance (two people)	€300
Home insurance	€40
Entertainment, hobbies, socialising	€200
Clothing, personal	€100
Flights to/from UK (amortised)	€120
Miscellaneous / contingency	€150
Total	€2,330/month (£2,010 at 1.16)

UK equivalent: A comparable lifestyle in southern England (owning a property outright, dining out regularly, running a car, private health extras) would cost approximately £2,500–£3,000/month, driven primarily by higher council tax, energy costs, dining costs, and car insurance.

Scenario 2: Working Couple, Renting, One Child at International School

Category	Monthly Cost (€)
Rent (2-bed apartment, Calvià/Palma)	€1,400
Utilities (electric, water, internet, phones)	€200
Groceries	€500
Dining out (1–2 times/week)	€200
Car	€250
International school fees (amortised monthly)	€1,000
School meals, transport, activities	€250
Private health insurance (family)	€250
Entertainment, activities	€200
Flights to/from UK (amortised)	€200
Miscellaneous	€200
Total	€4,650/month (£4,010 at 1.16)

UK equivalent: A similar setup in the south-east of England (private school at £1,200–£1,500/month, renting a 2-bed in a commuter town) would cost approximately £5,500–£7,000/month. The school fees alone save £200–£500/month, and rent is likely £300–£600/month cheaper.

Scenario 3: Single Person, Modest Budget, Renting

Category	Monthly Cost (€)
Rent (1-bed apartment, Palma)	€900
Utilities (electric, water, internet, phone)	€130
Groceries	€250
Dining out (once a week)	€100
Transport (bus, bicycle, occasional taxi)	€60
Private health insurance	€80
Entertainment, socialising	€100
Miscellaneous	€100
Total	€1,720/month (£1,483 at 1.16)

UK equivalent: Renting a 1-bed in a regional UK city (Manchester, Birmingham, Bristol) would cost approximately £1,400–£1,800/month for a similar lifestyle, making the costs broadly comparable. In London, the same lifestyle would cost £2,200–£2,800/month — significantly more.

What Is More Expensive in Mallorca?

It is not all savings. Some things cost more in Mallorca than in the UK:

• Electricity: Spain has among the highest electricity prices in Europe. Without solar panels, electricity bills can be higher than in the UK, especially in summer (air conditioning) and winter (electric heating).
• Imported goods: Anything shipped to the island from the mainland or abroad carries a premium. Electronics, furniture, and some household goods can be 10–20% more expensive than on the mainland, and 5–15% more than in the UK.
• Books, clothing (UK brands): UK high street brands that have a Spanish presence (Zara, Mango are fine as they are Spanish) tend to be similarly priced. But UK-specific brands or Amazon UK deliveries incur higher shipping costs and longer delivery times.
• Building and renovation work: Tradespeople in Mallorca are in high demand and charge accordingly. Renovating a property can be more expensive than you might expect, particularly if you want English-speaking contractors.
• Flights home: Budget for 4–8 return flights per year to the UK. From Palma, return flights to London cost €50–€200 with Ryanair, easyJet, or BA, depending on the season and how far ahead you book. Budget €100–€200/month for regular travel.

What Is Cheaper (or Free) in Mallorca?

And the many things that are cheaper — or free:

• Dining out: Consistently 30–50% cheaper than the UK, especially at local restaurants.
• Wine, beer, and coffee: Dramatically cheaper. A decent bottle of Spanish wine is €3–€5; a café con leche is €1.50.
• Fresh food: Fruit, vegetables, meat, and fish at local markets are excellent quality and great value.
• Council tax (IBI): Typically 50–70% less than UK council tax.
• Car insurance and running costs: Noticeably cheaper across the board.
• Outdoor activities: Beaches, hiking, cycling, swimming — the Mediterranean climate means you spend far less on indoor entertainment because you live outdoors for most of the year.
• Vitamin D: Free, and in unlimited supply. Mallorca has over 300 days of sunshine per year. The impact on wellbeing is hard to quantify but hard to overstate.

Summary: The Bottom Line

For most British expats, the cost of living in Mallorca is 15–30% lower than in southern England, and broadly comparable to (or slightly cheaper than) the Midlands and the north of England. The savings are most dramatic if you are coming from London or the south-east, own your property outright, and embrace the local lifestyle (eating at Spanish restaurants, shopping at Mercadona and local markets, enjoying the outdoors).

The savings are less dramatic if you maintain an entirely “British” lifestyle (importing UK products, eating at international restaurants, frequenting expat bars), if you are renting in a high-demand area, or if the exchange rate moves against you.

But cost of living is only part of the equation. The quality of life — the climate, the pace, the food, the sea, the mountains, the light — is what brings people to Mallorca. And on that score, no spreadsheet comparison can do it justice.