The estimated budget needed for a person to cover basic expenses and live independently in Ibiza reached €41,944.89 in 2025, more than €11,600 above the equivalent figure for Mallorca. The difference reflects the growing cost of living on the island, with housing and household expenses accounting for the largest share of the budget.

The figures come from the 2025 reference salary study prepared by CCOO and included in the annual report of the Balearic Islands Economic and Social Council (CES). The study estimates the resources a person needs to cover everyday expenses, including accommodation, food, transport, clothing, healthcare, education and leisure.

Ibiza’s Estimated Annual Budget Rises by More Than €7,300

The reference budget for Ibiza increased from €34,585.66 in 2024 to €41,944.89 in 2025. This represents an increase of €7,359.23 in one year, or 21.28%.

Based on the study, a person in Ibiza would need approximately €3,495.41 net per month if the annual amount were distributed across 12 payments.

The increase was not uniform across the Balearic Islands. Formentera’s estimated annual budget rose to €41,672.94, while Mallorca reached €30,326.21 and Menorca €27,258.38.

The study therefore places Ibiza at the top of the archipelago in terms of the estimated resources required to cover basic needs and maintain an independent life.

The Difference Between Ibiza and Mallorca Widens

In 2024, the estimated annual budget for Ibiza was €7,518.78 higher than Mallorca’s. By 2025, the gap had widened to €11,618.68.

The estimate for Mallorca increased by €3,259.33 over the same period, compared with the €7,359.23 rise recorded for Ibiza.

The resulting difference is equivalent to approximately €968 more per month in Ibiza than in Mallorca, using the study’s annual figures divided into 12 payments.

These figures represent the study’s reference budgets rather than average household spending or the salaries people actually earn.

Housing Is the Largest Expense

Housing and associated household expenses are the main factor behind the difference between the islands.

In Ibiza, this category reached €27,392.73 annually in 2025, compared with €16,705.16 in Mallorca. The difference between the two islands for this category alone was €10,687.57.

In Ibiza, housing and household expenses accounted for 66.31% of the total reference budget. The category includes accommodation and related costs such as utilities, supplies and household equipment.

The study’s figures show that housing-related expenses increased substantially in Ibiza between 2024 and 2025, making them the largest contributor to the rise in the estimated budget.

How Much Does the Study Allocate to Other Expenses?

Beyond housing, the Ibiza reference budget includes several other categories:

• Transport: €4,030.41 per year.

• Extraordinary expenses: €3,719.16.

• Food and non-alcoholic drinks: €3,204.73.

• Leisure, culture and communications: €1,688.72.

• Clothing and footwear: €1,065.18.

• Health, hygiene and personal care: €646.68.

• Education: €197.28.

These categories form part of the overall estimate of the resources needed to cover everyday needs and live independently.

Formentera Also Records a High Reference Budget

Formentera’s estimated annual budget reached €41,672.94 in 2025, an increase from €36,850.79 the previous year. Housing and household expenses represented the largest category there as well, at €25,370.49.

The study estimates that Formentera’s overall reference budget was approximately €272 lower than Ibiza’s in 2025. However, Formentera recorded higher estimated costs for transport and food.

Menorca had the lowest reference budget among the four islands, at €27,258.38 annually, while Mallorca stood at €30,326.21.

The Gap Between Wages and Living Costs

The study highlights the distance between the resources estimated to be necessary for independent living and the wages workers actually receive. Its authors argue that wage negotiations and public policies both have a role in helping residents cope with rising costs.

The proposals discussed include expanding public housing, improving transport, strengthening social services and measures to contain the costs of housing and food.

The findings underline the financial pressure facing residents in Ibiza, particularly as housing absorbs such a large share of the estimated budget. While individual circumstances vary, the reference salary study provides a way to compare the resources needed to cover everyday expenses across the Balearic Islands.