Madrid is the capital of Spain, and many people from around Spain and other countries move to Madrid for work, love, the lifestyle, and more! With more than 3 million people living in the city, and a metropolitan population of over 6 million, there’s no doubt that it’s one of the biggest and most popular cities in Europe.
If you’re trying to budget for a potential move to Madrid, discover the cost of living in Madrid below:
The country’s minimum wage as of 2020 is 900 euros per month and the average yearly salary in Spain is around 23,000 euros.
In Madrid, positions in international companies or in competitive industries such as banking or technology will draw above-average salaries. Starting positions can be more than 30,000 euros, while higher-up positions could draw 50,000-80,000 euros.
Entry-level positions or in services industries (restaurants, hospitality) tend to pay lower-than-average salaries. Of course, this figure always depends on your level of experience, language skills, connections, and other factors. Discover English-speaking jobs for expats in Madrid.
Depending on what you’re looking for (location, size, furnished, etc.), the price of renting an apartment in Madrid varies heavily. The perks of living downtown include walkability, nightlife, and beautiful architecture. Living in other areas like the outer ring of Madrid or the suburbs is more affordable, and offers larger living spaces and green areas. Learn more about Madrid’s different neighborhoods.
For renters
Renters will be expected to pay a security deposit of 1-2 months rent, and a fee of around 1 month’s rent to an agency if they help you in your search. Discover typical rent prices for Madrid:
For home-buyers
Buying a home in Madrid for your family will set you back between 200,000 and 600,000+ euros, depending on the number of rooms, bathrooms, features, and location. Within the city center, your search is mostly limited to apartments. The market is competitive and moves very fast.
For example, for a 2-bedroom, 2-bathroom apartment in Vallecas or Carabanchel, you might find something around €180,000, while the same apartment in more central areas will cost you double (or even triple!)
They are constantly doing new builds around the city’s outer ring in places like Ensanche de Vallecas, and these apartments may feature amenities like pools, playgrounds, and padel courts. Expect to pay between 300,000-400,000 euros for homes like these with 2-3 bedrooms.
Outside the city, you can find chalets adosados (semi-detached houses) in places like Rivas-Vaciamadrid or Las Rozas, where there are more offerings due to more space. A chalet adosado of 3-4 rooms in these areas could cost between 350,000-500,000 euros.
Home insurance is another expense you must consider when both renting or buying a home.
As you can already assume, your utilities bill will rise or fall depending on usage; for example, electricity will be higher in the summer months when your air conditioning is on full blast throughout Madrid’s hot summers. Discover typical costs:
Spain's health system is among the world's best, and public healthcare is guaranteed to all residents and citizens of Spain. People normally get private health insurance in Spain to avoid waiting times, see specialists, and get faster treatment for non-emergency procedures. Furthermore, many foreigners moving to Spain are required to show proof of health insurance when applying for the NIE. Europeans must also keep in mind that their EU Health Card is only valid for temporary visits or studies.
Private insurance plans can range from 30-60 euros per month for an individual, but prices vary with the number of people on the policy and co-payments.
While Madrid can offer a wonderful lifestyle for locals and expats alike, the cost of living in Madrid can be accessible or not mostly depending on your salary and housing expenses. Don’t underestimate your expenses! Before making the move, make sure you take everything into account, plus the costs of getting yourself and your things to Spain.