Question, mostly for those currently working and living in Spain. The Euro, now very close to the American dollar, is quite a change for Spain. Instead of the millions of pts. one earned a year, now, like in the us, its in the thousands. I'm used to understand pesetas and about how much money a year one can make and how they can live on that, because I also understood the prices.

However, now with the Euro, I'm having trouble not understanding prices (although its harder for me to figure out what seems expensive and not with the new prices) but yearly earnings. I mean, here, $15,000 USD a year is not good, and at 18,000 you're still well, let's say poor. Living is a struggle. Now I know that the salaries have never been comprable, but what I'm trying to figure out, is that with as much as it costs to live over there (especially Madrid) how hard/easy have you found it to live on whatever you salary is. I know that 18,000E is about 3,000,000pts and an average salary in Spain even though it wouldn't get you very far over here. Have you seen much difference now with the new currency? How is the whole 'rondeo' issue doing? Does it seem the same? Do you spend $$ the same? Are you still able to save (if you saved before)? Do the prices seem to be settling? (from what I noticed the last time I was over there, the prices, with me on my american salary were super inexpensive, but couldn't imagine having half of what I earn and get by!) My fi still tells me everything in pts. which is fine, but I make him tell me in euros because in the end, that's what matters now in the real world. Because I'm in the US, I also never got used to the idea of converting euros to pts. or pts. to euros, so I'm a bit lost when coming to correlating things directly into euros and therefore CLUELESS when it comes to spending money.

I'm worried that when I go over there I'll spend my money and not have enough to make ends meet! :o Thanks for your help!

Espe - I don't live in Spain but I go there a lot and my wife's from Andalucia. The introduction of the Euro has increased prices, no doubt about it. It's shown in official figures, but you can also just "tell" that its true. I think in many places a single salary of 18,000 euros doesn't go far. Just take house prices. I was looking recently in Malaga (not one of Spain's more expensive cities). Assuming approximately a 3 x income multiple, that gives you 60,000 euros (say 10,000,000 ptas). You'd be hard pressed to find a flat in a half-decent area of Malaga at that price (though this may not be true in some cheaper cities, or in pueblos. However, in Madrid it would be much worse). It's been reported that more and more Spanish people are still living at home way into their 30's and the main reason given for this is the cost of buying - people stay with their parents while they save for the "entrada". I know people there who are doing it, and they've told me about the problems they have affording a decent home of their own, even when both partners in a couple are working. All the same, property prices are still rising, and the euro has affected that due to the "black money" being invested.

So the basic problem of people with median salaries seems to be affording to buy a place to live.

Thanks for your reply! I already own an apartement there, so until I get married and it gets too small, that won't be a problem. I'm more worried about thinking of everything comparing in $USD and not thinking in Euros as I'm not familiar with what would be a good price (or salary offer) and what's not. Like in Zara I see the $ amount and know its a steal, but I'm going over there with an American salary and for a visit, and don't have to think about having to make my money last the whole month!

I know what you mean about prices, like at Zara, for example. I lived in Spain for many years and know my limits in pesetas based on the salary I made. Now that it's in Euros, I can't help but compare it more to the dollar and my current salary. I made a hotel reservation earlier in the year and didn't think twice about spending 150 Euros on a room per night. When I lived there and was "poor", I wouldn't have dreamed of spending 25.000 pts. for a room unless it was a special occasion.
Once you get there and start earning a Spanish salary, you'll soon forget the dollar and know your limits. The really hard part will be when you have to return to the US for a visit and convert those hard earned Euros into dollars. It used to kill me thinking about how little you got for your money.