Cost of Living in Madrid

Is Madrid expensive?

Madrid is the 2nd most expensive city in Spain but only ranks 100th in Europe, making it more affordable than many other major cities. For a family of four, monthly expenses are around €2,821, with rent adding €2,289, totaling €5,110. A single person’s costs are roughly €798 per month, plus €1,368 for rent, totaling €2,166 (Source: Numbeo).

Compared to London, Madrid is much cheaper. In London, a single person’s monthly expenses are about €3,875, which is €1,708 more than in Madrid. Berlin is slightly more expensive than Madrid, with a single person's total costs around €2,277 — just €110 more than in Madrid. Overall, Madrid offers a more budget-friendly option in Europe. It’s worth noting, that Madrid can be expensive if you are earning a local salary – expats that are benefiting from Madrid’s lower cost of living are working remotely or for a Multinational company.

Rent per month

Here’s a look at the average monthly rent in Madrid, depending on apartment size and location (source: Numbeo):

• Apartment (1 bedroom) in the city center: €1,368
• Apartment (1 bedroom) outside of center: €1,001
• Apartment (3 bedrooms) in the city center: €2,289
• Apartment (3 bedrooms) outside of center: €1,625

Lately, renting in Madrid is getting pricier, with average costs at €20.74 per square meter. Central areas like Salamanca are especially expensive, so make sure to budget carefully, and prepare to be persistent when looking for affordable options.

Best areas to live in Madrid:

• Salamanca — Luxurious, safe, upscale, ideal for families and professionals.
• Chamberí — Traditional, community-focused, beautiful parks, perfect for relaxed family living.
• Retiro — Peaceful, green, near El Retiro Park, great for tranquility.

Up-and-coming neighborhoods:

• Malasaña — Trendy, affordable, Bohemian vibe, popular with young professionals and artists.
• La Latina — Historic, vibrant, tapas bars, ideal for authentic Spanish culture lovers.

Areas with potential downsides:

• Villaverde — Affordable, farther from the center, fewer amenities, budget-friendly.
• Lavapiés — Diverse, buzzing, higher crime rates, constant noise, less family-friendly.

How to find an apartment in Madrid

Start your search with Idealista and SpotaHome to find available apartments. These sites let you filter by price, location, and features, making the search easier. It's best to contact landlords directly through phone or WhatsApp for a quicker response and to secure a viewing. Be sure to have your documents like proof of income, NIE (foreign identity number), and school placement ready (if you are a student) since the market moves fast. Knowing basic Spanish rental terms can also help with communication.

When visiting potential apartments, keep a checklist of what matters most to you — like proximity to public transport, noise levels, and necessary amenities. Expect to view multiple places to help you find the right fit, and have your documents prepared so you can move quickly. Before signing a lease, it's a good idea to have someone experienced to check the contract for any hidden fees. You may want to check Facebook groups and Badi.com for flatshares, if you don’t mind living with others. And, if you are struggling to find accommodation, Uniplaces, Airbnb, and Beroomers are good for short-term stays.

If you need support during your housing search in Madrid, we’re here to help. We can provide you with a quote or connect you with our trusted providers who have successfully helped many of our users find housing in the city.

Property prices

The average price per square meter to buy an apartment in Madrid is around (Source: Numbeo):

• City center: €5,930/sqm
• Outside of the city center: €3,635/sqm

When buying property in Madrid as a non-resident, you’ll need a NIE (foreign identity number), which is essential for any legal or financial activities in Spain. Be ready to put down 30-40% of the property's price as a down payment, especially if you're getting a mortgage. Moreover, budget for an extra of the property price to cover taxes and fees. These costs include property transfer tax (6-10% for existing homes) or VAT (10% for new builds), plus notary fees, title deed taxes, and legal expenses. Non-residents can obtain a mortgage, but typically with a lower loan-to-value (LTV) rate, meaning a larger deposit is usually required. Make sure any debts linked to the property are cleared, and double-check that all legal documents are in order. It’s a good idea to get help from a registered lawyer to handle this.

If you’re an EU citizen, the process is generally easier, and you may access better mortgage rates and terms. EU citizens also don’t need a visa to live in Spain, which can be an advantage if you plan to spend a lot of time in the country. For non-EU citizens, investing €500,000 or more in property can qualify you for the Golden Visa program, which leads to permanent residency. Use reliable sites like Idealista and Kyero for property searches, and consider professional help from Mortgage Direct to help you navigate the legal and financial aspects. And, always verify property details with the Spanish Land Registry to make sure that everything about your purchase is secure.

Utilities

A big chunk of the Madrid cost of living is the monthly utilities (Source: Numbeo):

• Basic utilities (electricity, heating, cooling, water, garbage) for 85m² apartment: €156
• Mobile phone monthly plan with calls and 10GB+ Data: €14
• Internet (60 Mbps or more, unlimited data, cable/ADSL): €31

These costs can add up throughout the year. However, you can lower them by following these tips:

• Compare electricity providers: Switch to Energy Nordic for green energy and lower bills, or try Iberdrola for fair prices and cash-back deals. Use off-peak hours to cut costs further.
• Bundle services: Combine electricity, gas, and internet for discounts. Movistar and Avatel offer good bundled deals that include extras like mobile data and Amazon Prime.
• Watch your gas usage: Endesa and Total Energies provide competitive rates, especially when bundling. Double-check your bills to avoid overcharges.
• Save on water: Stick with reliable providers like Aqualia and monitor usage to keep costs down.
• Pick the right internet plan: Movistar and Avatel offer good deals, especially when bundled with other services.

Public transport

Getting around Madrid is straightforward and budget-friendly. The public transport system is reliable and includes the Metro, buses, light rail, and suburban trains. For longer stays, the monthly transport pass is ideal. You can order your transport card online or get it at a metro station. For more detailed information on how to get your transport card and travel around Madrid, visit the official site.

Madrid travel ticket (Source: EMT Madrid):

• Abono Joven (Youth Pass): €20/month for unlimited travel across all zones for those under 26.
• Abono Normal (Standard Pass): Starts at €54.60/month for Zone A, with prices increasing for additional zones. More info here.

• Multi card:

  ◦ Single ticket: €1.50-2 per ride

  ◦ 10-trip ticket: €12.20

• Madrid tourist travel pass: Unlimited travel for 1-7 days across zones A and T, with prices varying by duration. Details here.

Taxi (Source: Numbeo):

• Taxi start (normal tariff): €3.50
• Taxi 1 km: €1.30
• Taxi 1 hour waiting: €23.75
• From the Airport to the city center: €30

Food

Popular supermarket chains like Mercadona, Carrefour, and Alcampo are widely available across the city. Discount stores like Lidl and Aldi are great for finding deals, while high-end options like El Corte Inglés cater to specialty dietary needs. If you prefer fresher, local produce, visiting one of Madrid’s markets, such as Mercado San Miguel, is a great option for quality goods at lower prices.

Monthly grocery costs vary depending on your lifestyle, but you can expect to spend approximately (Source: Pagoda Projects):

• For a single person: €200-€300
• For a couple: €400-€600
• For a family of four: €700-800€

Here are some typical grocery items to give you an idea of price (Source: Numbeo):

• Milk (1 liter): €1
• Loaf of fresh white bread (500g): €1.40
• Rice (1kg): €1.50
• Eggs (12): €2.90
• Chicken fillets (1kg): €7.80
• Domestic beer (0.5 liter draught): €3.50

Childcare

Childcare options in Madrid (and all of Spain) are available for children as young as 4 months, with both public and private nurseries to choose from. Public nurseries are government-subsidized and affordable, but spots can be competitive.

Here’s what you can choose from (Source: Coming to Spain):

Public Nurseries (Preschool):

• Age: 0 to 3 years old
• Cost: €150-€200 per month
• Schedule: Usually from 9 am to 1 pm, with an option to extend until 5 pm for an extra fee.

Private Nurseries:

• Age: 0 to 3 years old
• Cost: Around €300 or more per month
• Schedule: Similar hours to public nurseries, with extended hours available.

Mixed or "Centros Concertados":

• Cost: €100-€200 per month (excluding meals)
• Additional services: Some offer extracurricular activities for a small additional fee.

For private preschools or kindergartens, expect to pay around €527 per month. Working parents can benefit from a tax deduction of up to €1,000 per year to help with costs. To enroll your child in a nursery, you'll need documents like the child's birth certificate and your ID (DNI or NIE). Visiting nurseries during open days (April to June) can help you get a feel for the environment and make an informed decision. For more information on child support, check here.

International yearly school fees (Source: International Schools Database):

• Thames British School: €4,950-€13,000
• Lighthouse American School: €8,600-€9,800
• International School of Madrid: €5,765-€13,685
• The Global College: €20,940
• Colegio Internacional Aravace: €3,950-€9,600
• International primary school, yearly for 1 child: €9,240

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