Last Updated on September 17, 2024 by Maryam Siddiqui
A city known to be the “European dream” – Madrid is always the first city that comes to mind when expats think of relocation to Spain. Euromonitor International ranked Madrid the fourth-best city among the best urban cities globally. That leaves behind Barcelona, Rome, Berlin, New York, and even London. But is the cost of living in Madrid worth it?
Despite the comparison above, Madrid still offers plenty of options that offer better value for money than the most expensive cities mentioned. From affordable neighborhoods to high-end areas, this city is a dream come true for many.
By planning carefully and being mindful of your expenses, you can enjoy all Madrid has to offer without breaking the bank. Would you like an in-depth breakdown of the cost of living? Keep reading to get an estimate.
How expensive is Madrid?
While that is entirely dependent on your lifestyle and comfort level, Madrid is generally more affordable than other major European capitals.
Like everywhere else, rent prices in central areas are higher. However, due to efficient public transport, transport costs are relatively low. As for food expenses, groceries are moderately priced, and there are lots of farmer’s markets with healthier options.
Needless to say, if you compare Madrid to other Spanish cities, it is the most expensive one since it is the capital and also very popular among tourists. Let’s break down the cost of living in Madrid by each category.
What is the cost of living in Madrid for expats?
Some factors that you’re going to want to consider are: groceries, utilities, insurance, healthcare, transport, and entertainment.
Madrid’s healthcare system is well-regarded and expats can access public healthcare if they work or contribute to social security. Private insurance is also an option, costing around €50-€200 per month, depending on the coverage.
Utilities like electricity, water, and gas often include indirect taxes in their bills, though VAT is sometimes listed separately, depending on your provider. The cost of living in Madrid offers a balanced urban life with reasonable expenses for expats.
| Expenses | Costs |
|---|---|
| 1-bedroom apartment rent in the city center | €1,361 |
| 1-bedroom apartment rent outside of the city centre | €1,001 |
| Groceries | €250 |
| Utilities (Electricity, Heating, Cooling, Water, Garbage) | €156 |
| Mobile Phone Monthly Plan with Calls and 10GB+ Data | €14 |
| Public Transport Pass | €40 |
| Gym Membership | €42 |
Estimates are from Numbeo (as of September 2024).
Cost of rent in Madrid
Rentals in Madrid come fully furnished or unfurnished. Furnished apartments are ideal for expats and digital nomads who don’t want the hassle, but they come at a higher price.
Rental agreements may include community fees for maintenance and elevator services, but utility bills are often excluded from rent and paid separately.
Spanish rental laws require a deposit (usually one to two months’ rent), which is returned at the end of the lease if no damages are found. Many landlords require proof of income or a guarantor for expats without a Spanish credit history.
Leases typically run for one year, with the option to renew. If you use a real estate agent to find a rental, there is often a fee equivalent to one month’s rent. These agency fees are standard in Madrid and are an extra cost to consider during your apartment search.
Madrid follows national regulations on rent increases and tenant rights. Once you sign a contract, rent is usually locked in for the year, with controlled increments in subsequent years. Landlords must also comply with Spanish tenant protection laws, making renting secure for expats.
Take a look at some average prices to rent in different municipalities:
| Municipality | Rent Price per m2 |
|---|---|
| Madrid | €22.50 |
| Alcobendas | €15.42 |
| Alcorcón | €12.14 |
| Boadilla del Monte | €13.58 |
| Tres Cantos | €15.28 |
Price estimates are from Idealista (as of September 2024).
The average price of purchasing real estate properties
In Madrid’s city center, smaller apartments cost more per square meter. Larger properties with terraces or additional amenities come at a premium.
Newer properties are pricier due to modern amenities, energy efficiency, and upgraded materials. However, older homes in emerging neighborhoods requiring renovation may offer better deals, but renovation costs should be considered.
When purchasing real estate in Madrid, consider additional costs such as property transfer taxes (6%-10%), notary fees, and registration costs (10%-15%). Non-resident expats should be aware that lenders typically require a 20%-30% down payment.
Madrid’s real estate market is dynamic, with property prices steadily increasing. Here’s what to expect:
| Municipality | Property Price per m2 |
|---|---|
| Madrid | €5,763 |
| Alcobendas | €3,320 |
| Alcorcón | €1,864 |
| Boadilla del Monte | €2,941 |
| Tres Cantos | €2,641 |
Price estimates are from Idealista (as of September 2024).
House bills
Community fees for shared building maintenance are common in apartment complexes and cover costs for cleaning, security, and upkeep of communal areas. These fees can vary significantly depending on the property’s size and amenities, and add to the cost of living in Madrid.
Internet and TV services are essential for modern living and can vary widely in cost based on the provider and the package selected. You should consider available packages to find one that suits their needs and budget.
| Expenses | Costs |
|---|---|
| Electricity, Gas, and Water | €156 |
| TV channel package and wifi | €31 |
| Mobile internet and phone calls package | €14 |
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Average spending on food
Remember to consider your daily expenses, which include groceries that may vary based on your dietary preferences and shopping habits. Additionally, frequent food-related expenses like café visits or takeout can impact your budget.
It’s important to balance home-cooked meals with dining out to effectively manage overall food costs. You can shop at farmers’ markets to stock up on fresh groceries for the week and plan your meals accordingly.
| Expenses | Costs |
|---|---|
| Milk (1 liter) | €1.08 |
| Loaf of Fresh White Bread (500g) | €1.39 |
| Rice (1kg) | €1.51 |
| Eggs (1 dozen) | €2.91 |
| Chicken Fillets (1kg) | €7.67 |
| Beef Round (1kg) | €13.78 |
| Apples (1kg) | €2.36 |
| Banana (1kg) | €1.87 |
| Tomato (1kg) | €2.22 |
| Potato (1kg) | €1.67 |
| Onion (1kg) | €1.60 |
| Lettuce (1 head) | €1.21 |
| Water (1.5-liter bottle) | €0.86 |
| Bottle of Wine (Mid-Range) | €7 |
| Domestic Beer (0.5-litre bottle) | €1.16 |
Estimates are from Numbeo (as of September 2024).
Expected transport cost in Madrid
Next, if you’re not planning on buying a car, you will need to factor in transport costs in the cost of living in Madrid.
Generally, public transport, including metro, buses, and trains, is affordable and efficient. Monthly Passes are a great way to use public transport efficiently.
Madrid is also a very walkable city so feel free to explore whichever way you find best!
| Expenses | Costs |
|---|---|
| Bus ticket in the center of Madrid | €1.5 |
| Subway ticket in the center of Madrid | €1.5 |
| Monthly Transport Pass | €40 |
| Taxi 1km (Normal Tariff) | €1.3 |
| Average price per litre of gasoline | €1.69 |
Leisure Expenses
Madrid has affordable recreational centers and sports facilities with membership fees as low as €20 to €40 per month. These offer gyms, swimming pools, tennis and basketball courts. Some facilities offer free basic access, while others charge for specialized classes.
The city also has free public parks like Retiro Park and Casa de Campo, perfect for outdoor activities, jogging, cycling, and picnics, as well as hosting cultural events and festivals.
Here are a few options for leisure you could be interested in:
| Expenses | Costs |
|---|---|
| Gym monthly fee | €42 |
| Movie theater ticket | €10 |
| Streaming platform basic price | €8 |
| Fast food combo | €10 |
| Meal at a simple restaurant | €15 |
| Three-course meal at a mid-range restaurant | €30 |
| Beer | €4 |
What are the cheapest areas of Madrid?
Vallecas in Madrid is known for its affordable rent. It offers a lively community vibe, perfect for budget-conscious expats. It also houses the renowned Hospital Infanta Leonor.
Carabanchel is an up-and-coming area and boasts cheap housing and excellent metro connections. Then there’s a multicultural district, Usera, known for its low cost of living in Madrid and diverse dining options.
Puente de Vallecas is another affordable and well-connected area, ideal for expats seeking budget-friendly living. Lastly, with growing infrastructure and accessible schools, Villaverde is a practical option for families.
What are the most expensive areas of Madrid?
Salamanca is one of the most expensive areas in Madrid, known for its luxury shopping and upscale dining options. Chamberí offers a refined, traditional atmosphere with elegant homes and high-end amenities.
Chamartín, home to international schools and embassies such as the British Council School, provides a prestigious lifestyle.
Retiro, famous for its proximity to El Retiro Park, is a prime location, contributing to the high cost of living in Madrid. Lastly, Pozuelo de Alarcón offers exclusive suburban villas ideal for families.
Is Madrid more expensive than Barcelona?
Barcelona is another popular and expensive city in Spain. In fact, you’ll find that the cost of living is more or less equal. The only varying factor is the biggest expense: accommodation.
Whether you decide to rent or buy a property, you will find that Madrid is more expensive. And the real estate market is also much more competitive, with listings being signed within hours.
Rent prices in Barcelona are 6.9% lower than in Madrid, which isn’t a lot, but it is still a difference. Almost all other expenses in Madrid and Barcelona are similar.
- Read More: Cost Of Living In Barcelona: Estimates And Tips.
Is Madrid more expensive than Valencia?
The comparison between Madrid and Valencia is more drastic. Rent prices in Madrid are 30.2% higher than in Valencia, which is a significant difference.
A one-bedroom apartment in the center of Valencia would cost you nearly €1,069 while in Madrid, it would be €1,351. And, of course, buying property is also a lot more expensive.
As a result of the overall cost of living, restaurant prices and grocery prices are also nearly 15% more expensive in Madrid.
Is it worth the price of living in Madrid?
To be realistic, this depends entirely on your preferences and lifestyle choices. Despite being on the pricey side, Madrid is still home to over 3.23 million people and a temporary home to thousands of tourists every year. The magic of Spain’s capital is very hard to resist!
However, choosing it as your new home is a decision that requires a lot of research and reflection. We recommend that you visit Madrid before making a long-term decision. A scouting trip is a good way to assess whether the price of living in Madrid is worth it for you.
When are you moving to Spain?
Spain has something for everyone – whether you’re looking to move to Madrid or somewhere else!
We recommend that you take your time to pick a city you like best. Thoroughly research your options and get advice from experts who can manage your concerns well.
Whenever you’re ready, feel free to book a consultation with Viv Europe and plan your relocation journey with ease. From visa applications to finding a property that makes you feel like home, we’re here every step of the way. See you soon!
