Let's Explore the Cost of Living in Tenerife! How Does it Compare?
Tenerife is the largest of Spain's Canary Islands. It is located south of Spain and adjacent to North Africa, surrounded by the North Atlantic Ocean. Its unique position has captivated tourists and expatriates for generations.
Tenerife is famous for its black sand beaches, a natural phenomenon which is caused by the volcanic landscape that covers most of the island. With its warm climate, tropical atmosphere and vibrant mix of cultures, Tenerife stands out as a unique destination. However, with its seamless fusion of modern amenities and island charm, you may be wondering how affordable it is to live in Tenerife.
Whether you're looking to move to Tenerife for a few months, a year, or even longer, understanding the cost of living is essential in determining whether this island paradise will suit your budget and lifestyle.
In this blog we will explore the cost of living in Tenerife, comparing it to life in the UK and other popular destinations in Spain. We will explain key costs, such as rent, food, drink and local salaries to provide you with a comprehensive understanding of what it costs to live in Tenerife.
Table of Contents:
How Does the Cost of Living in Tenerife Compare to the UK?
For many Brits, Tenerife is an appealing alternative to the often-overcast skies in the UK. The cost of living is a significant draw for those looking to move abroad, with rent, dining out, utility and transport costs being significantly lower than in locations within the UK.
Let's compare the costs of life in Tenerife vs the UK a little further...
Cost of Rent in Tenerife, Spain
On average, rent in Tenerife is considerably cheaper than in the UK. A one-bedroom apartment in the island's capital, Santa Cruz de Tenerife, typically costs between €500 and €700 (£415 - £580) per month, compared to the £1,200 to £1,500 minimum you would have to spend to rent an apartment in London, for example.
Like most places in Europe, the cost of renting in Tenerife will vary depending on the location and property type you decide on. Popular areas like Santa Cruz, and La Laguna, and tourist hotspots such as Los Cristianos and Costa Adeje tend to have higher rental prices.
Note: Long-term rentals offer better value rates, as holiday lets can be significantly pricier during peak seasons.
One-Bedroom Rent Prices in Tenerife
| Location | Rent (Av.) € | Rent (Av.) £ |
|---|---|---|
| City Centers | €500 - €700 | £415 - £580 |
| Suburban/Rural Areas | €350 - €500 | £291 - £415 |
Dining Out Costs in Tenerife, Spain
Dining out in Tenerife is not only a treat for the palate but for your wallet too!
A three-course meal for two at a mid-range restaurant will cost you around €30 to €40, whereas in the UK, you should expect to pay upwards of £50. This price difference is only exemplified when considering fine dining. Tenerife offers high-quality meals with local ingredients for a fraction of the cost of an average restaurant in the United Kingdom.
Many restaurants in Tenerife provide diners with affordable daily menus, known locally as 'menu del dia', which feature multiple courses and a drink for as little as €10 to €15. The affordability of dining out makes it a regular occurrence for visitors and residents alike, contributing to the island's colour culinary scene.
Grocery Prices in Tenerife, Spain
For those who prefer to cook at home, Tenerife's grocery prices are another highlight and much more affordable than the UK. Supermarkets such as Mercadona, Hiperdino and Lidl, offer competitive prices, while local markets provide fresh produce and regional specialties at great rates.
Tip: Shopping at farmer's markets throughout Tenerife can yield even fresher produce at lower prices, making it an attractive option if you want to stick to a budget without compromising on quality.
Cost of Food and Drink in Tenerife
| Food/Drink Type | Av. Cost € | Av. Cost £ |
|---|---|---|
| Budget Meal | €10 - €12 | £8 - £10 |
| Mid-Range Dining | €30 - €40 | £25 - £33 |
| Milk (1 Liter) | €1.00 | £0.83 |
| Eggs (a dozen) | €2.56 | £2.12 |
| Beer (0.5 Liters) | €1.18 | £0.98 |
Utilities and Transport in Tenerife, Spain
The cost of utilities in Tenerife, including electricity, heating and water, average between €60 and €100 per month. This is significantly lower than the average cost of utilities in the UK, which is around £150-£200 per month. The costs of bills lower even more during warmer seasons as there is no need for extensive heating.
When it comes to transport, the island offers an efficient and affordable public transportation system. Buses across the island, and the tram services in Santa Cruz de Tenerife and La Laguna, provide reliable connections across Tenerife's most popular areas. Fares are budget-friendly, averaging €1.50 per trip, with discount travel cards allowing for even cheaper fares.
If you plan on driving, you'll be pleased to hear fuel prices in Tenerife are among the lowest in Europe, thanks to reduced taxes in the Canary Islands. However, car ownership does come with additional costs such as insurance, maintenance and parking.
How Much Money Do You Need to Live in Tenerife?
Based on average prices and assuming you are renting, you would need approximately £2,909 in Santa Cruz de Tenerife to maintain the same standard of living that would cost £6,800 in London.
How Does the Cost of Living in Tenerife Compare to the Rest of Spain?
It is no secret that Spain boasts many desirable locations for expats from all parts of the world, including cities like Madrid, Barcelona and Valencia, as well as coastal hotspots like Malaga. However, the growing interest in these locations has seen a rise in the cost of living. Here is how the cost of living in Tenerife compares to other locations in Spain.
Cost of Living: Tenerife vs Barcelona
The cost of living in Santa Cruz de Tenerife offers a notable advantage when compared to Barcelona.
Excluding rent, the overall cost of living in Santa Cruz de Tenerife is 21.9% lower than in Barcelona. This significant difference extends to various daily expenses, highlighting Tenerife's appeal as a budget-friendly destination. With rent included, the cost of living in Santa Cruz de Tenerife is 24.5% lower than in Barcelona. Rent prices are particularly different, with Tenerife offering rental rates that are 30.2% lower than in Barcelona.
Dining out is also more economical in Santa Cruz, with restaurant prices averaging 16.8% lower than in Barcelona. Similarly, grocery prices reflect the affordability of daily essentials, coming in 21.9% lower than in Barcelona. These savings extend across staples such as fresh produce, dairy and pantry items.
Cost of Living: Tenerife vs Malaga
When comparing the cost of living between Tenerife and Malaga, Tenerife once again proves to be the more affordable option in several key aspects. The overall cost of living in Santa Cruz de Tenerife, excluding rent, is around 6% lower than in Malaga. When factoring in rent, the cost of living is 9.1% lower in Tenerife.
Rent prices in Santa Cruz de Tenerife stand out as a major factor contributing to the reduced cost of living. They are 15.6% lower than in Malaga, with competitive rates whether you're looking for an apartment or suburban rental.
When it comes to dining out, restaurant prices in Santa Cruz de Tenerife are slightly higher, by 0.9% than in Malaga. Groceries in Tenerife are more affordable than in Malaga, with prices being 3.8% lower. Staples like fruits, vegetables and locally sourced items tend to be cheaper in Tenerife.
While restaurant prices might be slightly higher in Tenerife, the significant savings on rent and groceries make Tenerife a more economical choice for residents compared to Malaga.
Cost of Living: Tenerife vs Madrid
When compared to Madrid, the overall cost of living in Tenerife is 18.9% lower, when excluding rent. With rent factored in, the affordability becomes even more pronounced, with the cost of living including rent being 23.8& lower than in the Spanish capital.
Housing in Santa Cruz de Tenerife is 33.6% more affordable than in Madrid, allowing residents to secure accommodation at significantly lower rates.
Dining and grocery shopping also offer notable savings. Restaurant prices in Tenerife are 15.9% lower than in Madrid, meaning that dining out is not only more accessible but can also be a regular part of the lifestyle without straining budget. Similarly, groceries are 15.2% cheaper, allowing residents to enjoy local produce without breaking the bank.
One area where Tenerife drops behind is local purchasing power, which is 26.4% lower than in Madrid. A reflection of lower average incomes in Tenerife compared to the busting economy of Spain's capital. However, the reduced overall cost of living often offsets the difference in earnings, enabling residents to still maintain a comfortable lifestyle.
What Does the Average Person Earn in Tenerife?
The average salary in Tenerife reflects the cost of living, as expected, it is lower than in mainland Spain and quite a lot below that of the UK average earnings.
What is the Average Yearly Salary in Tenerife, Spain?
The typical net salary for full-time employees in Tenerife is around €32,239, of course, this can fluctuate depending on the type of job and industry. Roles in sectors like hospitality, which dominate the local economy, tend to fall on the lower end of the ranges.
What is the Minimum Wage in Spain?
Spain's minimum wage is reviewed yearly, currently, it is set at around €1,000 per month for a full-time job. In Tenerife, a minimum wage, based on the cost of living, would provide a relatively modest lifestyle.
A Look at the Tourism and Seasonal Work in Tenerife
A significant portion of Tenerife's workforce is employed in the tourism industry, which includes hotel staff, restaurant workers, and tour operators. These positions often offer seasonal or part-time contracts with hourly wages ranging from €7 to €10. Although not high-paying, flexibility is offered and a lot of people see a boost in wages through tips.
A Look at Skilled Professions in Tenerife
Those in skilled professions such as healthcare, education or technical fields, earn slightly higher salaries, typically between €1,500 to €2,000 per month, depending on experience and qualifications. However, these opportunities are less abundant than in mainland Spanish cities.
While salaries in Tenerife may seem modest, the lower cost of living helps balance out income disparities. Additionally, expats often supplement their earnings with remote work or pensions from abroad.
The Cost of Living in Tenerife: A Summary
Tenerife offers an enticing cost of living for those seeking an affordable yet high-quality lifestyle. The island's appeal lies in its lower rents, budget-friendly food and grocery prices, combined with an overall relaxed pace of life that resonates with both expats and retirees.
Rent prices in Tenerife, particularly in areas like Santa Cruz and La Laguna, remain significantly lower than in many other European cities, providing residents with diverse options that cater to different preferences and budgets.
While salaries in Tenerife are relatively low compared to the UK or mainland Spain, this is countered by the lower living costs.
The island's picturesque beauty combined with its affordability, makes it an increasingly popular choice for those looking to escape the high costs of urban life in larger cities or other European destinations. For expats, retirees, and even digital nomads, Tenerife provides a harmonious blend of cost efficiency and natural charm, ensuring it remains a sought-after haven for those in search of a tranquil yet vibrant living experience.
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