The estimated annual budget needed to cover housing and related household expenses in Ibiza increased by €6,613 in 2025, a rise of almost 32% in just one year, according to a study by CCOO included in the 2025 report of the Balearic Islands Economic and Social Council (CESIB).

The study puts the estimated annual cost of this category at €27,392.73 in Ibiza, equivalent to €2,282.73 per month when divided into 12 months. In 2024, the estimate stood at €20,779.53 a year, or €1,731.63 a month.

The difference amounts to €551.10 more per month.

Importantly, these figures cover housing and associated household expenses, not rent alone. The category combines an estimated rental cost with services, utilities and household equipment expenses. The reported increase therefore cannot be attributed entirely to rising rents.

Ibiza Overtakes Formentera for Housing Costs

In 2024, Formentera had the highest estimated housing and household expenses among the four Balearic Islands. By 2025, Ibiza had overtaken it.

Formentera’s estimated annual budget for this category rose from €21,152.22 in 2024 to €25,370.49 in 2025, an increase of €4,218.27, or 19.94%. That is equivalent to approximately €2,114.21 per month, with an increase of €351.52 per month compared with the previous year.

The study’s 2025 estimates for the other islands were considerably lower. Mallorca recorded €16,705.16 annually, while Menorca stood at €14,408.05.

The figures highlight the particularly high estimated cost of maintaining a home in Ibiza and Formentera compared with the other Balearic Islands.

Housing Accounts for Most of Ibiza’s Estimated Living Budget

Housing and related household expenses represented 65.31% of Ibiza’s total estimated annual budget in 2025, according to the study. In Formentera, the category accounted for 60.88%.

The report estimates that a person working and living independently in Ibiza would need €41,944.89 per year to cover all eight spending categories included in the Reference Salary calculation. That represents an increase of €7,359.23, or 21.28%, compared with 2024.

For Formentera, the estimated annual budget reached €41,672.94, up €4,822.15, or 13.09%, year on year.

Housing and associated expenses accounted for the largest share of the overall increase in both islands, according to the study.

How the Figures Were Calculated

The Reference Salary study, prepared by CCOO, estimates the money a working person would need to cover essential living expenses on each Balearic Island. Its eight categories include food, clothing and footwear, housing and household expenses, transport, education, leisure and culture, health and personal care, and extraordinary expenses.

For the housing category, the researchers use rental prices per square metre from RealAdvisor, weighted according to each municipality’s population. They then add household expenditure estimates for services, utilities and equipment based on Spain’s National Statistics Institute Household Budget Survey.

The resulting figures are estimates produced using the study’s methodology. They should not be interpreted as a record of what every resident actually paid, or as a measure of rent alone.

Nevertheless, the latest calculation places housing and related expenses at the centre of the estimated cost of living in Ibiza, with a particularly sharp year-on-year increase in 2025.