While Lanzarote is one of the favourite holiday destinations for Northern Europe travellers, it has also called attention to those looking for a sunny place to live. That’s why so many people want to know the cost of living in Lanzarote, and here is the detailed information for you.
Why Consider Lanzarote for Living?
Imagine living all year long like it was spring, enjoying paradisiacal beaches any time, and admiring the volcanic landscape wherever you go. This and much more is what Lanzarote has to offer.
But Lanzarote is not just about nature. The island has a welcoming community that will make you feel at home since the moment you step in. The quality of life of the inhabitants of Lanzarote is excellent, thanks to the exceptional health and education services they have.
Some people have chosen to settle on the island permanently, which gives them certain advantages throughout the Canary archipelago. For example, discounts to move between the different islands. Others, such as digital nomads, opt to stay for a few months, enjoying the benefits of Lanzarote and affordable prices.
Overview of Living Costs in Lanzarote
The cost of living for a family or a couple in Lanzarote is much less than in Northern Europe. A single person could expend around €1200 – €1600, and can go up to 2000 euros depending on the zone, including rent, expenses, food, transportation, and leisure.
For a couple, the monthly expenses can be between €1600 — €2800 monthly. And for a family of 4, the budget can go up to €3000 – €4200
There are plenty of free and low cost activities to do in Lanzarote. Also, the prices of consumer goods and housing are competitive. For this, and more, you could consider moving to the island and enjoying its easy lifestyle.
Comparing Lanzarote with Other Destinations
In general, living in Lanzarote is cheaper than in other Spanish cities like Madrid or Barcelona, even cheaper than other tourist destinations like Palma de Mallorca. But can be more expensive than other small or rural zones of the Iberian Peninsula.
But consider the salaries can also be lower than in main cities.
Housing Costs
Considering the housing costs is essential when moving to a new place. It would be different if you plan to rent or buy a house. But, in general, both options could be cheaper compared to the rest of Spain.
Rental Prices
If your plan is to rent a place to live, you would need around €900 – €1.100 per month. This would be enough for one bedroom studio in the centre. It could be cheaper, depending on the area you choose to live. Also, the price may change depending on the size of the home.
Buying Property
But if you are planning to stay long term, you need to know how much a property costs in Lanzarote. It also depends on the zone and size of the real estate.
Lanzarote is not such a big island, but the prices can change from a town to another. Coastal areas can be the most expensive. The price of a house in Arrecife could be around €2,150/m2, while in Costa Teguise could be €2,835/m2.
After buying a property, you have to pay the annual property tax. The IBI or Impuesto sobre Bienes Inmuebles is based on the size of the home. For a big house, the IBI could be 400 euros per year.
Utilities and Household Expenses
Electricity and Water Costs
The price of amenities is quite affordable. Again, they are cheaper than what they would cost in the UK and other Northern European countries.
In Lanzarote, there is no natural gas, so you will always use electricity. In a small house without a pool, the monthly cost can be between 60 and 90 euros.
On a monthly basis, the water bill is 40 euros. This price increases if the property has a pool.
Internet and Mobile Services
In this section, we can say that the prices are similar to the rest of Europe, as is the quality of the service. You can get internet packages for 40 euros per month.
Rubbish and Other Miscellaneous Costs
When settling in Lanzarote, you must also pay the tax on rubbish collection. This can add another 100 euros per month to your budget.
Transportation
Transportation isn’t expensive either, but the annual cost will depend on how you prefer to get around the island. In any case, upon arrival, you can request a Lanzarote airport transfers to Costa Teguise with us. Then evaluate the possibility of having your own car or using public transportation.
Owning a Car
If you choose to buy or take your car to Lanzarote, you should know that you have to pay the annual road tax, which can cost on average between 90 and 100 euros. Likewise, you must do a technical inspection of the vehicle, which can cost around 35 and 60 euros. Additionally, you must take out car insurance.
Public Transportation Options
Using public transportation is another option. Moving around Lanzarote this way is safe, and buses are good quality. Fares are between 2 and 4 euros, but you can buy a Bono Bus to save yourself some money.
You can spend yearly up to 120 euros in public transportation.
Biking and Walking
You can also move around the island by bicycle. The roads are safe, and you can go anywhere on your bike. Likewise, there are many places you can walk to, so you can save some money.
Food and Dining
Grocery Shopping
There are plenty of options to buy food in Lanzarote, and because of that, the prices are low. Two persons could need around 700 euros to buy food at the supermarket, for one person you can estimate half of it, while for a family the food can get to cost up to 1000 euros.
Eating Out
Eating out is very common between locals. A dinner can cost you on average 22 euros. In touristic areas, it can be much more expensive, around 50 euros.
Local Markets
Lanzarote is an agricultural and fishing area, so you will find a wide variety of local products. You can buy them at a very good price in local markets.
Health and Education
Healthcare Services and Insurance
Like the rest of Spain, Lanzarote has an excellent health system, one of the best in Europe.
In addition, it is recommended to hire a health insurance when you arrive. The price will vary according to each case.
Schools and Education Options
There are many educational options on the island. You can find private and public schools, including some institutions that teach in Spanish and English. Also, you can find schools that teach exclusively in English, and other that offer the International Baccalaureate diploma.
Leisure and Entertainment
Lanzarote is full of places and activities that you can enjoy without paying anything. You can go to the beach, hiking, and practice water sports.
In addition, throughout the year, there are festivals and celebrations that you can enjoy.
On leisure time, a single person might spend €50 – €250 per month, a couple up to €250 – €400, while a family will spend around €300 – €500 per month on activities and recreation.
Cost of Living in Lanzarote
Monthly Estimates of the main expenses of living on the island
| Category | Single Person | Couple | Family (4 People) |
|---|---|---|---|
| Overall Living Costs | €1200 – €1600 (up to €2,000) | €1600 – €2800 | €3000 – €4200 |
| Housing (Rent) | From €900 | €1200 – €1800 | €1800 – €2500+ |
| Utilities (Electricity + Water) | €100 – €130 | €120 – €150 | €150 – €200 |
| Internet & Mobile | €40 | €40 | €40 |
| Public Transport | €2–4 per trip ~€120/year (Bono Bus) | Same | Same |
| Groceries | ~€350–500 | ~€700 | ~€1000 |
| Eating Out | ~€22 per dinner (local) €50 (tourist area) | €200–400/month | €300–500/month |
| Leisure/Entertainment | €50 – €250 | €250 – €400 | €300 – €500 |
Tips for Saving Money While Living in Lanzarote
- Choose your location wisely: housing is the biggest expense, so avoid tourist hot spots that can be expensive. On the other hand, Arrecife has many rental prices. While inland villages like Tias or Tinajo offer a true local lifestyle at lower rent prices.
- Shop like a local: you can cut on groceries by buying on budget friendly supermarkets over convenience stores. Also, visit local markets for fresh and cheaper products.
- Residential status: when you are registered as resident of the island, you can get discounts, like 75 % on travel tickets between the Canary Islands, or local discounts on attractions and transportation.
- Enjoy Lanzarote’s gastronomy without overspending: when out for lunch, ask for “Menú del día” it costs around €12-15; opt for tapas over dinner, which are cheaper and a social way to eat. If you want to go out for a date, prefer coffee to cocktails, cheaper and affordable.
- Use public transport over renting or buying a new car, but if you want your own vehicle, buy second handed.
To sum up…
The island of Lanzarote is an affordable destination to live. Whether you want to settle in for a while or want to stay long-term, you will enjoy an affordable cost of living compared to the rest of Europe.
Renting or buying a home, food, basic amenities and transportation represent the most important part of your monthly budget, which will obviously vary depending on how many people there are.
Knowing the cost of living in Lanzarote, would you move to this beautiful island? Comments below.
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