Cost of living in Madrid

One of the sunniest cities in Europe, Madrid boasts an average of 350 days of sunshine annually. It’s no wonder people from all over Europe and the world relocate to Madrid to soak up the sun in the Spanish capital and take advantage of its wonderful way of life. With the high quality of life, however, comes a relatively high cost of living, particularly in the prime areas of the city.

Still, Madrid remains relatively affordable compared to other Western European capitals, particularly when compared to cities such as Bern and London. As Spain’s commercial and political hub, Madrid also offers plenty of lucrative job opportunities, helping many expats maintain a comfortable lifestyle.

Cost of accommodation in Madrid

Accommodation in Madrid is the second priciest in Spain, making Barcelona the country’s most expensive city to rent in. Securing well-priced and quality accommodation in the city centre is notoriously challenging. The properties in the city centre are usually older with few modern amenities, but they offer quick access to Madrid’s commercial hub.

Housing in the city’s outlying areas tends to be more popular among expats, as the apartments and houses are often larger and better equipped at a lower price than in the city centre. Madrid’s transport system is also well-developed and affordable, making commuting easy. In addition to their monthly rent, expats must also budget for utility costs.

Accommodation in Madrid 
Areas and Suburbs in Madrid

Cost of transport in Madrid

Life in Madrid without a car is easy and even preferable. With a population of 6.8 million, Madrid’s roads are congested, while parking is scarce and expensive. The efficient public transport system includes buses, a metro, and taxis, all of which offer day and night access to all the districts in the city.

To buy a car, you should prepare to navigate the infamous Spanish bureaucracy. Those who are interested in avoiding this will typically pay a small additional fee to the dealership, which handles all the paperwork.

Getting Around in Madrid 
Buying a Car in Spain

Cost of groceries in Madrid

Spanish cuisine is one of the most famous in the world. Some staples include olive oil, seafood, fresh produce and wine. Expats looking to adopt a Mediterranean diet can expect to spend significantly less than on a diet that contains a lot of red meat and dairy products, as these can be costly in Madrid.

The cost of groceries in Madrid will also vary depending on where you choose to shop. You can find budget supermarkets like Lidl and Aldi and higher-end shops such as Mercado San Miguel.

Cost of entertainment and eating out in Madrid

Madrid is well known for its art museums, nightlife, and theatre scene. Sport is a big part of the city’s entertainment, as it’s home to two world-famous football teams, Real Madrid and Atlético Madrid.

The city also offers multiple manicured parks ideal for running, walking or picnicking. Most of these green spaces are free to access, making them an excellent option for expats on a tight budget.

Eating out in Madrid is generally more affordable than in other European cities, and the capital enjoys fresh fruit and vegetables throughout the year thanks to the sunny climate.

Shopping, Attractions, and Activities in Madrid

Cost of education in Madrid

Madrid offers several education options catering to different needs and preferences. These range from public and private to international schools. Public education is accessible to all residents and offers a cost-effective solution for families. These institutions provide a high standard of education, with the curriculum focusing on a broad range of subjects.

Private schools in Madrid are known for their academic excellence and offer a more personalised educational experience. These institutions often boast smaller class sizes and a variety of extracurricular activities, fostering an environment that encourages student engagement and creativity. These institutions are pricier than their public counterparts.

International schools are a popular choice among expat families. They provide an international curriculum that includes the International Baccalaureate (IB), among others. These schools offer a global perspective on education, with a diverse student body and languages of instruction that typically include English, Spanish, and other languages.

The facilities at international schools are state-of-the-art, contributing to a well-rounded educational experience. Parents looking to go for this option should be prepared for its hefty costs.

Education and Schools in Madrid 
Best International Schools in Madrid

Cost of healthcare in Madrid

Madrid’s healthcare system is distinguished by its high quality and accessibility, comprising both public and private sectors. The public healthcare system is widely acclaimed for its comprehensive coverage and minimal costs, which are attributed to Spain’s social security system. This network ensures that healthcare services are readily available to residents, focusing on preventive care and universal access to essential medical treatments.

The private healthcare sector in Madrid offers an alternative for those seeking more personalised care or shorter waiting times. Private healthcare facilities have advanced technology and provide a broad spectrum of medical services. These services are accessible through various insurance plans tailored to meet different needs and budgets.

Healthcare and Health Insurance in Madrid

Cost of living in Spain chart

Prices may vary across Spain, depending on the product and service provider. The list below shows the average prices for Madrid in February 2025.