Gibraltar is a British Overseas Territory located on the southern tip of the Iberian Peninsula, with a rich history and a strategic location. If you are considering moving to or living in Gibraltar, one of the most important factors to consider is the cost of living. In this article, we will explore the local currency in Gibraltar, compare the cost of living in Gibraltar to the cost of living in the UK and the USA, break down costs for singles, couples, and families of 4 in various categories, and explain the most common forms of payment in Gibraltar.
Local Currency in Gibraltar
The local currency in Gibraltar is the Gibraltar Pound (GIP). It has been the official currency since 1934 and is pegged to the British Pound (GBP) at a 1:1 exchange rate. The exchange rate of the British Pound to other currencies, such as the US Dollar (USD), can fluctuate daily, but as of February 27, 2023, 1 GBP is equivalent to approximately 1.38 USD.
Cost of Living in Gibraltar Compared to the UK and the USA
The cost of living in Gibraltar is generally higher than the cost of living in the UK and the USA. According to data from Numbeo, a crowd-sourced database on the cost of living worldwide, the cost of living index in Gibraltar is 90.08, which is higher than London, UK, with a cost of living index of 80.87, and New York City, USA, with a cost of living index of 100.00. However, it is important to note that the cost of living can vary greatly depending on the region, the lifestyle, and the individual preferences.
Breakdown Costs in Gibraltar
To give a more detailed overview of the cost of living in Gibraltar, we will break down costs for singles, couples, and families of 4 in various categories.
Housing
The cost of housing in Gibraltar can vary greatly depending on the location and the type of accommodation. In the city center, the average monthly rent for a one-bedroom apartment is around 1,000 GIP, while outside of the city center, it can be as low as 700 GIP. A three-bedroom apartment in the city center can cost around 2,000 GIP per month, and outside of the city center, it can be around 1,500 GIP per month. For couples and families, the cost of housing can increase accordingly.
Food
The cost of food in Gibraltar is generally higher than in the UK and the USA. A basic meal at a local restaurant can cost around 15 GIP, while a fast food meal can cost around 8 GIP. The average cost of groceries for a single person per month is around 300 GIP, while for a family of 4, it can be around 800 GIP.
Utilities
The cost of utilities in Gibraltar can vary depending on the region and the usage. The average monthly cost for basic utilities, such as electricity, heating, water, and garbage, for a small apartment is around 150 GIP. Internet can cost around 30 GIP per month, and a mobile phone plan with unlimited data can cost around 20 GIP per month.
Leisure
The cost of leisure in Gibraltar can vary depending on the individual preferences. For example, a cinema ticket can cost around 10 GIP, while a fitness club membership can cost around 50 GIP per month. A cultural event, such as a concert or a theater performance, can cost around 40 GIP per ticket.
Transport
The cost of transport in Gibraltar is generally affordable, with a variety of options available. A single bus ticket costs 1.50 GIP, while a monthly pass costs around 30 GIP. Taxis can be quite expensive, with a starting fee of around 3 GIP and a kilometer rate of around 1.50 GIP. However, ride-sharing services such as Uber and Bolt are available and can be more affordable.
Clothing
The cost of clothing in Gibraltar can vary depending on the brand and quality. The average cost of a pair of jeans is around 60 GIP, while a dress can cost around 40 GIP. Basic shoes can cost around 50 GIP, and sneakers can cost around 80 GIP.
Household Goods
The cost of household goods in Gibraltar can vary depending on the brand and quality. The average cost of a liter of milk is around 0.80 GIP, while a loaf of bread can cost around 1 GIP. Basic toiletries such as toothpaste, shampoo, and soap can cost around 2-3 GIP each.
Forms of Payment in Gibraltar
The most common forms of payment in Gibraltar are cash and card. Credit and debit cards are widely accepted in most places, including shops, restaurants, and public transportation. Contactless payment is also very common, with many stores and restaurants offering it as an option. It is important to note that some small businesses, such as market stalls and street vendors, may only accept cash.
Mobile payment apps such as PayPal and Apple Pay are also gaining popularity in Gibraltar. These apps allow users to pay for purchases and transfer money through their mobile devices. Bank transfer is another popular payment method, often used for paying bills, rent, and other larger expenses.
In conclusion, the cost of living in Gibraltar is generally higher than in the UK and the USA, but can vary greatly depending on the region and the individual preferences. The most common forms of payment in Gibraltar are cash and card, with mobile payment apps also gaining popularity. By considering these factors and planning accordingly, individuals and families can make informed decisions about the cost of living in Gibraltar.