Moving to Madrid? 2023 Living Costs & Relocation Tips

Madrid is the capital of Spain, and the home of pristine boulevards and parks. As a World Heritage Site, it is home to the oldest restaurant in the world, while enjoying the scenic beauty of the area.

If you are considering moving to Madrid, the various costs listed below will help you make an informed decision on what costs are involved when moving and living in Spain’s capital city.

Quick Madrid Facts:

Population: 3.223 million (2018 estimate). The whole metro area has an estimated population of 6.5 million.
Official Language: Spanish (de facto) with many other languages being spoken by expat residents, including English, French, German, Italian, Arabic, Portuguese and Polish.
GDP Per Capita: $37,883 USD (2021)
Random Fact: Madrid is thought of as the capital of Flamenco dance.
Currency: Euro (EUR). As of early 2023, $1 USD = €0.95 EUR, £1 = €1.14 EUR, $1 CAD = €0.70 EUR, $1 AUD = €0.64 EUR

Sections

1. Moving and Shipping Costs to Madrid

Here are some estimated moving costs to Madrid from other major European cities. For moves from further away have a look at out international container shipping rates page.

From City	Estimated Cost
London, UK	€1,500
Paris, France	€1,200
Berlin, Germany	€1,800
Rome, Italy	€1,600
Amsterdam, Netherlands	€1,400
Stockholm, Sweden	€2,000
Vienna, Austria	€1,700
Warsaw, Poland	€1,300
Lisbon, Portugal	€1,400
Zurich, Switzerland	€1,900

2. Madrid Housing Costs

Housing prices are very affordable compared with other major cities around the world and there’s a large selection of different housing types, from small studios to palatial mansions. Prices obviously vary from area to area but the figures below will indicate what’s available at what price.

Monthly Rental Prices in Madrid:

1 bedroom flat (apartment) in City Centre: €1,000+
1 bedroom flat outside the City Centre: €780+
3 bedroomed flat in City Centre: €1,700+
3 bedroomed flat outside the City Centre: €1,200+

Madrid Home Purchase Prices:

Price per square metre (10.7 square feet) to buy in City Centre: €5,400+
Price per square metre (10.7 square feet) to buy outside City: €3,600+

Madrid Housing Cost Comparison:

This is how rents in Madrid compare with other cities around the globe.

London is 56.2% more expensive
New York is 70% more expensive
Los Angeles is 59.1% more expensive
Toronto is 38.5% more expensive
Vancouver is 42.6% more expensive
Sydney is 46.7% more expensive
Melbourne is 24.9% more expensive
Dubai is 37.3% more expensive
Paris is 31.8% more expensive

Source: Numbeo

How to Save on Housing Costs:

Share a Flat or House: House and flat shares are very common in Madrid, especially among students and young professionals. With a house/apartment share you will have your own room, or, for a cheaper option, you can share a room. The bathroom/s will be shared with other people in the house. There are many flats available for shared rental as well. Have a look at Spotahome, Piso Compartido, Erasmusu, RoomLaLa and Go Madrid to find someone you can get on with to share the costs with you.
Different Areas – Different prices: Affordable areas, particularly suited to students and young professionals who enjoy the nightlife, include La Latina, Malasaña, Lavapies, Moncloa and Gran Vía. At the other end of the scale are areas such as Salamanca, Opera, Justicia – Almagro and Las Letras – Cortes which are districts full of history, grandeur, designer shops, excellent restaurants and upmarket houses and apartments. If you move out to the suburbs, Pozuelo is an affluent suburb in the northwest of the city and La Moraleja is the equivalent in the northeast of the city. See section 12 below for areas which are family-friendly.

3. Madrid Food, Grocery and Restaurant Costs

Madrid has some excellent restaurants where you can spend hours sitting, eating and drinking, while soaking up the atmosphere. Nothing is rushed here.

Inexpensive Restaurant: €12.00 – €15.00
Takeout Coffee: €2.20 – €2.50
Bottle of Coke: €2.40 – €2.50
1L of Milk: €0.90 – €1.00
Loaf of Bread: €1.10 – €1.30
12 Eggs: €2.40 – €2.50
1kg Chicken: €7.50 – €8.00
1kg Beef: €12.00 – €17.00
1kg Apples: €2.20 – €2.50
1kg White Rice: €1.30 – €2.50

This is how restaurants and food prices compare with other major cities in the world.

New York restaurants are 45.7% more expensive and groceries are 53.8% more expensive than Madrid.
Los Angeles restaurants are 40% more expensive and groceries are 39.9% more expensive than Madrid.
London restaurants are 33% more expensive and groceries are 18.4% more expensive than Madrid.
Paris restaurants are 25% more expensive and groceries are 39.5% more expensive than Madrid.
Toronto restaurants are 27.5% more expensive and groceries are 32.3% more expensive than Madrid.
Vancouver restaurants are 25.5% more expensive and groceries are 35% more expensive than Madrid.
Sydney restaurants are 28.4% more expensive and groceries are 40.6% more expensive than Madrid.
Melbourne restaurants are 27.3% more expensive and groceries are 41.5% more expensive than Madrid.
Dubai restaurants are 23.8% more expensive and groceries are 5.6% more expensive than Madrid.

Source: Numbeo

Bonus Tips for Cheaper Food, Restaurants and Groceries:

Know Your Supermarkets: El Corte Ingles is a supermarket chain similar to the UK’s Marks & Spencers. Carrefour and Dia also have several well-stocked, reasonably priced stores in Madrid. The city has some excellent food markets which are well worth shopping at for variety and good prices. Mercado de San Miguel is a fabulous market set under iron and glass, selling every food imaginable. The recently opened Platea is a food market which also has restaurants from around the globe. Mercado de San Ildefonso is a trendy food emporium in the Malasaña area. Mallorca Market is in Chamberi and is a gourmet food market, deli, bakery, restaurant and bar in one. Mercado de la Paz is one of Madrid’s oldest food markets and some of the stalls have been run by the same family for generations.
Find Cheap Eats: If you search, you will find excellent food at good prices in the city. Have a look at the following sites to see which restaurants tantalise your taste buds – Timeout, Trip Advisor, Hostel Bookers and Budget Traveller.

4. Madrid Alcohol Costs

Madrid has a large selection of bars, clubs and nightlife. The following is a list of basic prices of beer and wine from the supermarket and restaurants.

Pint (0.6L) domestic beer at a restaurant/pub: €3.50 – €4.00
Bottle of imported beer at a restaurant/pub: €3.50 – €4.00
Pint (0.6L) domestic beer at a supermarket: €1.00 – €1.50
Bottle of imported beer at a supermarket: €1.50 – €2.00
Mid-range bottle of wine at a supermarket: €5.60 – €8.90

How To Drink For Less in Madrid:

Keep an eye on the local papers and websites for specials over weekends and public holidays.
Madrid has many bars and clubs which offer their guests specials at certain times of the day or evening. Have a look at the following sites to find where your favourite tipple is on special – Four Square, Yelp, Hostel Bookers and City Life Madrid.
Walk around the areas which house the tertiary institutions to find the best alcohol deals.

5. Madrid Transportation Fares

Madrid has a well-run public transportation system which consists of 13 Metro lines, 3 tram lines, 10 local trains that link the centre of Madrid with the suburbs and over 170 bus routes.

Here are some example ticket costs.

Adult single – €1.50
One day ticket for bus, tram and metro – €5.00
Monthly season ticket for bus, tram and metro – €54.55

How To Save Money on Public Transport:

Buy a 10-trip ticket. This can be shared by several people – €12.20
Buy a bike. There is a good system of cycle lanes all around the city
Walk. Depending on where you live and work, walking is certainly an option.

6. Cost of Internet in Madrid

Here are some sample broadband internet prices from early 2023 for unlimited downloads, based on a 12-month contract:

Ono: €33.40 a month (fiber broadband up to 600mb)
Orange: €30.95 a month (fiber broadband up to 500mb)

7. Cost of Clothing, Personal Items, Gym and Leisure

Madrid enjoys a pleasant climate, even the winters are a little colder than in many parts of Spain. The hottest month is August, where the average high is around 31°C. Winter days are usually between 10°C – 15°C but the nighttime temperature can actually fall below zero. Snow is rare but not unknown.

Here are some clothing prices, together with other useful prices.

Pair of Jeans: €75
Summer Dress: €35
Running Shoes (Trainers): €75
Business Shoes: €90
Short Doctor’s Visit (15 mins): €65
Deodorant: €3
Shampoo: €3
Toilet Paper (4 rolls): €1.50
Gym Membership: €40 per month
Movie (cinema) Ticket: €9

Source: Numbeo and Expatistan

8. Cost of Owning a Car and Driving a Car in Madrid

Everyone in Spain drives on the right. Driving in Madrid is fine but parking is nearly impossible and, should you be lucky enough to find a space, it’s very expensive.

If you’re moving to Madrid from within Spain, you’ll be able to keep your license but need to update your address with our new Madrid one at your nearest traffic office.

If you live outside the EU, then you can drive on that licence for six months. If your foreign licence is not in Spanish, then you must obtain a Spanish translation or get an International Driving Licence. After this six-month period, you must obtain a Spanish driving licence.

If you are from an EU country then you will need to get a Spanish licence after being in the country for two years. However, you must register your details with the Central Register of Drivers and Minor Offenders after six months. Note that persons under the age of 18 are not allowed to drive in Spain.

Residents of certain countries can exchange their licence, other people will need to take a Spanish driving test – both written and practical. Expatica.com has useful information in English for expats wanting to drive in Spain.

If you are taking a car with you to Spain, you can drive it for 6 months without registering it in Spain. After the 6 months period, you have 30 days to register it.

Here are some other sample costs of owning and operating a car in Madrid:

Volkswagen Golf: €25,000+
1 litre (¼ gallon) of Gas (petrol): €1.85
Registration Fee (if any): the cost depends on the size of the vehicle and its CO2 emissions.

Source: Expatistan

Ways To Save Money on Driving in Madrid:

Car sharing or pooling is one way to save money. Try BlaBla Car, Carpoolworld and Carpling.
Taxis can sometimes be a cheaper option, especially if you are going to have to park all day. Try Uber.

9. Taxes in Madrid

No matter where you live in Spain, you will pay the same rate of tax. Sales Tax, or VAT (Value Added Tax) is 21% in Spain and is included in the price that is advertised.

If you own a property in Spain you will need to pay IBI tax. The amount varies depending on the size of the property, the services you receive and the area it’s in. Note if you rent a property, it is the owner who pays IBI, not the tenant.

Finally, if you decide to buy a flat or house in Spain, you must pay various taxes and fees. There is a property transfer tax of between 5% and 10%, VAT is payable at 10% on new properties, notary costs, title deed tax and land registration fees are between 1% and 2.5% of the purchase price and legal fees will cost between 1% and 2%.

10. Flight Costs from Madrid

If you do make the move to Madrid, here’s approximately how much it will cost to fly to other major world cities based on the lowest, one-way fares from Skyscanner as of early 2023:

New York: €168
Los Angeles: €350
London: €30
Paris: €30
Toronto: €350
Vancouver: €430
Dubai: €180
Sydney: €490
Melbourne: €660
Cape Town: €440
Hong Kong: €450

Other Tips on Moving to Madrid:

The costs and pricing above should give you a good idea of the cost of living in Madrid but perhaps the following extra tips will make your move go smoothly.

11. Moving to Madrid Alone

Moving anywhere can be a lonely experience, but moving to a new city can be rather daunting. Here are a few tips about settling into Madrid.

Meetups: Madrid has lots of free meetup groups you can find on Meetup.com. Join Keep Coding, Madrid Trekkers, Spanish Startups and many more.
Attend Local Events: Madrid is a vibrant city with lots of events happening every day. Find out what’s going on from Es Madrid, Spain, Resident Adviser, Eventbrite and Frommer’s.

12. Moving to Madrid with a Family

Madrid has a lot to offer families. History, culture, architecture, green spaces and parks and a choice of good schools and universities. Here’s some extra food for thought.

New Parents (or parents to be): Mum Abroad is an excellent site which will give you information on antenatal classes, postnatal classes and general parenting. It’s an interactive site so you can ask for information directly.
Live in a Family-friendly Area: Salamanca is a great neighbourhood for families, albeit expensive. It is quiet, close to good schools and close to the centre of the city. Retiro is just south of Salamanca and very similar in style. It has the added bonus of having a large park running through it. Chamberi isn’t as upmarket as the former neighbourhoods but it is a place where the traditional Madrid way of life can be experienced. Every Sunday until 2.00 p.m. the main street and square are closed to traffic and the area is turned into a children’s playground. If you move a little further out of the centre, areas like Conde de Orgaz, Arturo Soria, El Viso, Puerta de Hierro and Mirasierra are very popular with expat families.
Find Things To Do With The Kids: Timeout, Go Madrid and Globetrotting all have great ideas for activities and events your kids will love.

13. Moving to Madrid for Work

Moving to Madrid for work is one of the most common reasons people choose to move. Madrid’s unemployment rate in the first quarter of 2017 stood at 14.42%, which was up from the previous quarter. The unemployment rate in Spain as a whole rose to 18.75%. If you want to guarantee getting a job, you really need to speak Spanish as there are very few jobs available for those who don’t speak the language. While it is possible to move without a job, it makes sense to ensure there are jobs in your field before you make the move.

Here are a few things to consider when moving for work:

Salary: The costs we outlined above should give you a rough idea of how much more you’ll want to make the move worthwhile. You can also check salary ranges on sites such as Glassdoor and Payscale.
How to Find Work: If you want to have a job lined up before you move to Madrid, but aren’t sure where to begin, the following sites are good places to start: Jobs in Madrid, Go Abroad, Indeed and Think Spain. You may also want to Google recruiters in your industry, as they can often help land you some initial interviews as well.

14. Moving to Madrid from Australia

There’s a large group of Australians living in Madrid. Here’s more food for thought:

Size Comparison: If you compare the population size of Madrid with the population of a city in Australia, you’d be looking at a city mid-way in size between Brisbane and Melbourne. If you look at the whole metro area, then you’d be looking at a city with 1.5 million more people than Sydney.
Join Expat Groups: Both InterNations and Expat.com offer ways of meeting up with other Australians in Madrid.

15. Moving to Madrid from Canada

Quite a few Canadians are living in Madrid. Here are a few extra points to consider:

Size Comparison: If you compare the population size of the city of Madrid with the population of a city in Canada, you’d be looking at a city slightly small than Montreal. If you look at the whole metro area, then you’d be looking at a city with a million more people than Toronto.
Join Expat Groups: Both InterNations and Expat.com offer ways of meeting up with other Canadians in Madrid.

16. Moving to Madrid from the United States

There’s a small American contingent living and working in Madrid. If you’re considering it, here are a few bonus tips:

Size Comparison: Madrid’s population is roughly the same as Los Angeles, and the whole metro area is around twice the size of LA.
Expat Groups: Meeting Americans who are already living and working in Madrid is an excellent way to make friends and learn how to integrate quickly into your new life. InterNations and The American Club of Madrid will enable you to meet other expats from the States and other countries.

17. Moving to Madrid from the United Kingdom

They are a lot of Brits living and working in Madrid. If you’re considering it, here are a few bonus tips:

Size Comparison: If you compare the population size of Madrid with a city in the UK, you’d be looking at a city three times the size of Birmingham. If you look at the population of the whole of the Madrid metro, you’d be looking at a city 25% smaller than the London metro.
Expat Groups: Meeting Brits who are already living and working in Madrid is an excellent way to make friends and learn all about living in the city. Have a look at the following sites to find people from home – InterNations and Expat.com.

Hopefully, the tips and costs above are helpful. If want to get started pricing out how much it will cost you to move to Madrid you can start by comparing moving quotes here.