Is there a provider that gives the handset free and then just the monthly tariff? All of the places i've looked have a monthly price (which isn't cheap) and then charge at least 400€ for the handset on top of that. I would be happy with the 4G, it doesn't have to be the 4GS. I just wanted to upgrade as i've just managed to smash the screen on my 3GS and don't want to buy a new handset outright so thought i'd upgrade and get a contract instead.

can anyone recommend somewhere to get a good deal and hopefully a free (or heavily discounted!) handset?

Movistar will let you have one for €29 on their €100/mth tarif - not exactly a good deal though unless you are a very heavy user.

There may well be better deals but they won't be cheap.

I got a £21 a month contract in england from tesco, unlocked the phone and put my spanish sim in. If you go direct to apple you can buy a new 3gs unlocked for £310

even better- you can get your old iPhone fixed for around £30 or buy a new screen on ebay for around £20 inc del to spain and DIY!

Screen fix kit here>
http://www.play.com/Mobiles/Mobile/4-/21403657/Trixes-iPhone-3G-Replacement-LCD-Touch-Glass-Screen-Digitizer/Product.html?_%24ja=tsid:11518|cat:21403657|prd:21 403657

YouTube DIY, here>
http://www.youtube.com/watch?v=fus3zh9mv5E

Even better, get a Samsung Galaxy s2, once you play with one you won't go back to Apple.

If you are an Apple fan though and not ready for new and better phones just get a new screen, not hard to fit, videos on youtube showing how

how much would I be looking at for a contract with a Samsung S2 then?

Not sure about Spain, in the UK free S2 for about £26 a month I think, I bought mine sim free.