Moving to Madrid, Spain

Madrid, the lively capital of Spain, is more than just a city, it is a thriving hub where history, innovation, and community coexist. With over 3.3 million residents in the city proper and nearly 7 million in the metropolitan area, Madrid is the largest urban center in Spain and one of Europe’s most influential capitals. Its reputation as a financial powerhouse is matched by its growing strength in technology and digital industries, making it a highly attractive destination for professionals considering relocation.

For tech professionals, Madrid is emerging as a serious contender among Europe’s innovation hotspots. The city hosts a dynamic startup ecosystem supported by public investment and EU funding. Madrid is home to over 3,000 startups and global tech companies, especially in fintech, cybersecurity, cloud services, and AI. The presence of international giants such as Google, Amazon, and Microsoft alongside homegrown unicorns like Cabify, demonstrates the city’s ability to attract and retain talent. A key asset is Madrid’s international connectivity, with one of Europe’s busiest airports (Adolfo Suárez Madrid-Barajas) linking professionals to over 200 destinations worldwide.

For those drawn by lifestyle, Madrid is just as appealing. The city is famous for its Mediterranean rhythm of life, balancing hard work with vibrant leisure. Residents enjoy long evenings of tapas with friends, cultural events nearly every night, and countless outdoor spaces thanks to the city’s many parks. Madrid consistently ranks high in quality of life indices, offering safety, healthcare, and excellent public transport at affordable rates compared to other European capitals.

What makes Madrid especially attractive for relocation is the combination of professional opportunity and personal enrichment. Tech professionals benefit from a flourishing job market and innovation ecosystem, while individuals and families can immerse themselves in a city known for its warm climate, cosmopolitan energy, and cultural richness. With its balance of career growth and lifestyle satisfaction, Madrid truly delivers the best of both worlds.

City Lifestyle

Madrid is loud, warm, alive. Because of its central location on the Iberian Peninsula, high altitude (~650 m), and being landlocked, its climate tends to have hot summers, crisp winters, and strong daylight contrast between seasons. The city pulses from morning cafés to late terraces, from cultural mornings to nightlife that starts after dinner. Spaniards (especially Madrileños) enjoy a social rhythm built around long meals, sobremesa (the relaxed talking after eating), and evenings spent outdoors.

Public life is very visible in the plazas, cafés, parks, and on balconies. Efficiency of transport (metro, buses, Cercanías trains) means owning a car is optional for many. And Madrid’s location gives access to the rest of Spain fairly easily via train from Atocha or Chamartín.

Education and academic life are strong too: over 10 major universities draw in students from around Spain, Europe, Latin America, etc.

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Cultural Highlights and Attractions

• The Golden Triangle of Art: El Prado, Reina Sofía, and Thyssen-Bornemisza museums offer world-class art collections.
• Royal Palace, Plaza Mayor, and Bernabéu Stadium are iconic landmarks for both tourists and locals.
• Retiro Park and Casa de Campo give large green havens for walking, running, relaxation, or weekend cultural events.
• Festivals and traditions remain strong: e.g. San Isidro (Madrid’s major patron saint festival), Veranos de la Villa (summer events), and plenty of neighborhood fiestas and markets.

Popular Neighborhoods

Madrid is not one city but a collection of very distinct neighborhoods, each with its own identity.

• Salamanca is the city’s most prestigious area, known for its wide boulevards, elegant 19th-century buildings, and designer boutiques along Calle Serrano. It is the neighborhood of choice for those seeking luxury living, exclusivity, and convenience.
• Chamberí offers a quieter, family-friendly atmosphere while still being very central. Its charming plazas, traditional markets, and cultural venues make it one of Madrid’s most livable areas, ideal for professionals and families who value community.
• Justicia has become one of the trendiest parts of the city. With independent boutiques, art galleries, and stylish cafés, it appeals to young professionals, creatives, and anyone who wants a contemporary lifestyle while still close to Madrid’s historic core.
• Cortes (Huertas) is the literary heart of Madrid, where cobblestone streets, tapas bars, and proximity to the Prado and other cultural landmarks create an energetic, bohemian vibe. This neighborhood is especially attractive to culture lovers.
• Malasaña and Chueca are known for their youthful, multicultural, and artistic energy. Packed with nightlife, independent shops, and creative spaces, they are hubs for students, digital nomads, and those who thrive on diversity.
• Retiro and Jerónimos border the iconic Retiro Park, offering elegant homes and a calmer, greener lifestyle. Families and professionals who want tranquility without giving up proximity to the center are drawn here.
• For those who prefer space and greenery, Pozuelo, just outside Madrid, provides a suburban alternative. With large villas, international schools, and excellent connections to the city, it is one of the top choices for families looking for both comfort and convenience.

At a glance

If you plan your budget the way locals do, Madrid feels manageable compared to Europe’s priciest capitals, while still being one of Spain’s most expensive cities. A family of four should expect roughly 2,900€ per month excluding rent, and a single person about 823€ per month excluding rent, based on crowd-sourced price baskets. Typical total monthly outlay including rent lands near 5,100€ for a family and 2,160€ for a single, which aligns with recent cross-checks.

Housing

Rent will define your budget. For central, walkable districts like Salamanca, Chamberí, Justicia or Cortes, a one-bedroom averages around 1,300 to 1,400€, while outside the core you are more likely to see ~1,000€. A three-bedroom suitable for families averages ~2,300 to 2,500€ in the center and ~1,600€ just beyond. Buyers face average prices close to 7,100€ per m² in central zones and ~4,200€ per m² outside. These ranges reflect strong demand around top schools, Retiro Park, and business districts. Expect competition on good listings and be ready with documents such as NIE, proof of income, and references.

Utilities and connectivity

Expect ~170€ per month for basic utilities in an 80–90 m² flat, with seasonal peaks in summer and winter. Home internet plans cluster around 30€, and mobile plans with generous data often fall between 15 and 20€. Bundling broadband and mobile can trim a few euros, and many residents watch for off-peak electricity tariffs to manage costs.

Food and groceries

Weekly markets and mainstream supermarkets make fresh food affordable. A realistic monthly grocery ballpark is 200 to 300€ for one person, 400 to 600€ for a couple, and ~700 to 800€ for a family of four, depending on diet and frequency of dining out. Typical basket items run about 1.0€ for a liter of milk, 1.4€ for a 500 g loaf of bread, 1.4 to 1.5€ per kg of rice, ~2.9€ for a dozen eggs, ~7.7€ per kg for chicken, and ~15.2€ per kg for beef round. A mid-range bottle of wine averages ~7€. If you love eating out, budget for 15€ at an inexpensive restaurant, ~60€ for a three-course meal for two, and ~3.5 to 4.0€ for a beer in most neighborhoods.

Transport

Madrid’s transit is extensive and cost effective. A single metro or bus ride is usually 1.50 to 2.00€ depending on zones and tickets. Standard monthly passes commonly fall between ~39 and 55€ depending on your profile and zone usage. Taxis start around 3.50€, run about 1.30€ per km, and airport trips have a flat ~30€ to the center. Petrol typically sits around 1.6€ per liter. Many tech professionals skip car ownership entirely, relying on metro, Cercanías trains, and occasional ride hailing.

Childcare and schooling

Nursery options range from subsidized public places to private centers. Typical private preschool fees cluster around ~500 to 600€ per month, while international K-12 fees vary widely by institution and curriculum. As a quick sense check, recent averages put international primary at roughly 9,000 to 13,000€ per year, with premium schools higher. Availability can be competitive near popular expatriate neighborhoods and in suburban family hubs like Pozuelo.

Lifestyle, fitness, and leisure

A gym membership averages ~40 to 45€ per month, tennis court rentals hover around 13 to 15€ per hour on weekends, and a cinema ticket sits near 10€. Clothing and shoes follow European high-street norms: think ~85€ for a pair of jeans, ~35€ for a summer dress, and ~90€ for mid-range running shoes.

Putting it together: sample monthly budgets

• Single tech professional, renting a 1-bedroom outside the center: rent ~1,000€, groceries ~250€, utilities ~170€, internet and mobile ~45€, transport pass ~40–55€, eating out and leisure ~250–350€. A realistic monthly total sits around 1,800 to 2,000€ before extras or travel.
• Couple in a central 1-bedroom: rent ~1,350€, groceries ~450–500€, utilities and connectivity ~220€, two transport passes ~80–110€, dining out and leisure ~400–600€. Expect ~2,500 to 2,900€.
• Family of four in a 3-bedroom outside center: rent ~1,600€, groceries ~750€, utilities and connectivity ~230–260€, two adult transport passes ~80–110€, childcare or school fees highly variable. Without international school, many families land around 3,200 to 3,600€; with international schooling, totals can exceed 5,000€.

How Madrid compares

Relative to New York, everyday prices are markedly lower. Excluding rent, baskets are often cited as about 42 percent cheaper, and rents roughly 60 percent lower on average. Against other European hubs, Madrid usually undercuts London by a wide margin on daily costs and rent, and comes in close to or slightly below Berlin depending on neighborhood and lifestyle. Within Spain, Madrid is consistently in the top tier for rents and dining out, although still considered good value versus Europe’s priciest capitals.

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References and sources

All figures above were compiled from: Numbeo’s Madrid cost of living dataset and estimator, Wise’s Madrid cost of living guide, and relocate.me’s Madrid breakdown. See the latest details here: Numbeo - Wise - Relocate.me

Overview & Key Variables

Tech salaries in Madrid depend heavily on experience level, the kind of company (startup vs multinational), how specialized the role is, and whether compensation includes bonuses, stock, or other perks. Also, whether you’re working fully remote, hybrid, or on-site will affect what employers pay.

Here are approximate ranges for different levels and some role-types based on recent sources:

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Entry / Junior Level

• A junior software developer (0-2 years experience) in Madrid can expect base salaries in the order of €25,000 to €35,000 per year.
• In some international companies or for roles requiring strong coding or problem-solving from day one, starting compensation (including some bonus or benefits) may be toward the higher end of that range.

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Mid-Level (around 3-7 years experience)

• Mid-level software engineers typically earn between ~€40,000 and €60,000 annually in Madrid. This includes those with 3-5 years of experience, delivering good proficiency, possibly leading small teams or owning features.
• For specializations or roles in high demand (like cloud, machine learning, or full-stack with strong backend skills), mid-level salaries may creep higher, especially when benefits or bonuses are included.

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Senior Level

• Senior software engineers in Madrid are often in the range of €53,000 to €77,000 per year based on Glassdoor data, though many in international or high-growth firms, or those with leadership responsibilities, can exceed that.
• According to Levels.fyi, senior engineers’ total compensation (base + bonuses/stock) in some companies can reach ~€95,000 or more, particularly at higher percentiles.

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Specialized & High-Demand Roles

• Roles in AI, Machine Learning, Cloud Architecture, Cybersecurity tend to pull higher numbers especially at the mid to senior level. For example, in some reports, machine learning engineers average in the €60,000-€80,000+ bracket.
• If you are in a senior architect or leadership tech role (e.g. “Software Architect”, “Lead Engineer”, “Engineering Manager”), compensation might well exceed ~€80,000-100,000+, depending on company, responsibilities, domain, and bonuses/stock. Some of this is less transparent in public data, but multiple sources indicate that the ceiling is moving upward for top talent.

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What it Means in Practice

If you are just starting (junior) in a moderate-sized Spanish company, your take-home will be more modest but often enough to live decently in Madrid (shared housing, modest commuting). If you move to a larger multinational (especially one that offers stock, bonuses, benefits), you can reach mid/senior pay faster.

For net income, remember: Spanish taxes (social security, income tax) can take a substantial portion. Benefits like health, paid vacation, remote work, relocation, and equity/bonuses can also shift overall compensation significantly.

Overview of Family Services

Healthcare

Families moving to Madrid can rely on Spain’s strong public healthcare system. Residents can register for the tarjeta sanitaria (health card), which grants access to primary care centers, pediatric services, and hospitals in the local area. Newcomers who qualify can apply online or through regional health offices, and specific provisions exist for certain foreign residents through the DASE program. Families who prefer private healthcare will also find many options, with international clinics available across the city.

Schooling

Madrid offers three main types of schools: state schools (public, free), concertados (semi-private, subsidized, often bilingual), and private schools, including numerous international schools with English, French, German, or American curricula. Fees vary greatly, with international schools ranging from about €5,000 to over €20,000 per year depending on the institution. Families often choose housing based on proximity to their preferred school, with popular residential areas including Chamberí, Retiro, Salamanca, Arturo Soria, Madrid Río, Las Rozas, and Majadahonda. For an overview, see the **Steps into Spain guide** by educational consultant Sinéad Galvin.

Transportation

Public transport is affordable and family-friendly. A single metro or bus ticket usually costs €1.50 to €2.00, while monthly passes range from €39 to €55, with discounts available for young people and periodic reductions introduced by the government. For teenagers, the Abono Joven pass at €20 per month provides unlimited travel across all zones until the age of 26. Strollers are allowed on buses and most metro stations are equipped with lifts, making mobility manageable for parents with young children.

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Green Spaces and Playgrounds

Madrid is rich in outdoor areas where children can run and play. Retiro Park offers playgrounds, picnic lawns, and rowboats on the lake. Madrid Río Park stretches along the Manzanares River with bike paths, splash fountains, and one of the city’s most spectacular playgrounds in Arganzuela, featuring giant slides. Smaller plazas across the city often double as playgrounds, surrounded by cafés and restaurants where parents can relax while keeping an eye on their children.

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Appealing Features for Families

Dining with Children

Madrid’s dining culture is famously welcoming to families. Plazas such as Plaza de la Paja in La Latina, Plaza de Olavide in Chamberí, and Plaza de Santa Ana in the Literary Quarter provide outdoor seating where children can play safely while parents enjoy a leisurely meal. Food markets also make mealtimes flexible and fun. Mercado de San Fernando and Mercado de la Cebada both have central eating areas that fill with families, while the monthly Mercado de Motores combines food trucks with vintage train exhibits at the Railway Museum.

Sweet Treats

Children in Madrid are never far from a pastry shop or ice cream parlor. Favorites include churros with hot chocolate at Churrería Manosanta, artisanal ice cream at Mistura, or classic pastries at El Riojano and La Duquesita. These traditional stops make for ideal rewards after a long day of sightseeing or park outings.

Cultural Activities for Kids

Madrid’s theater scene also caters to young audiences. Teatro Circo Price stages modern circus performances, while Teatro Sanpol specializes in children’s productions throughout the year. At weekends, Madrid Río Park hosts puppet shows near the Fuente del Obelisco, delighting younger children with interactive storytelling.

Royal and Historical Madrid

The city’s royal heritage offers exciting ways to introduce children to history. Families can tour the Royal Palace, wander the Sabatini Gardens, or visit the Almudena Cathedral, which combines historical architecture with modern stained glass. These attractions balance education with fun, making them accessible for children of different ages.

Museums for Young Explorers

Madrid’s museums are not just for adults. The Natural History Museum and the Geomineral Museum are filled with interactive exhibits that spark curiosity about science and the natural world. For sports fans, the stadium museums of Real Madrid and Atlético de Madrid let children explore legendary grounds and trophy rooms. Families who prefer a more hands-on day out can visit the Museo del Ferrocarril, where vintage locomotives capture children’s imaginations—especially on weekends when the Mercado de Motores is held on site.

Everyday Family Life

Madrid’s neighborhoods each bring unique advantages. Central areas like Chamberí and Retiro balance culture and green space, while suburbs such as Pozuelo, Las Rozas, and Valdebebas offer larger homes, international schools, and community sports clubs. Families often emphasize the value of outdoor routines—whether playing football in local clubs, attending after-school activities, or enjoying walks with pets in spacious parks. Expats report that while adjusting to the language and school systems can be challenging, the healthy food culture, outdoor lifestyle, and strong sense of safety make Madrid an excellent place to raise children.

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Relocating to Madrid is smoother when you know where to search for housing and who to turn to for professional support. Whether you’re looking for a short-term furnished flat to get started or a long-term lease for family life, the city offers a wide network of reliable platforms and agencies.

Housing and Rental Services

Short-term rentals

If you’re planning to spend the first few months settling in before committing to a long-term lease, short-term rentals are a practical option.

• Idealista is Spain’s largest property portal, offering short-term listings starting from around €580 per month, including both flats and houses.
• Cozycozy aggregates weekly and monthly stays, including furnished studios, family apartments, and shared accommodations.
• Blueground specializes in premium, serviced apartments in Madrid’s most popular neighborhoods, ideal for professionals who want fully furnished homes with flexible terms.
• aTemporal Madrid is a local agency dedicated to stylish, fully furnished short-term flats, ready to move into without hassle.
• Airbnb remains a popular choice for monthly rentals, offering everything from budget studios to upscale family apartments.

Long-term rentals

Once you’re ready to stay longer, leases in Madrid typically run from six months to a year.

• HousingAnywhere caters to international tenants with contracts ranging from a few months to multi-year stays.
• Engel & Völkers offers high-end apartments and family homes across Madrid, including modernized flats in central areas and spacious properties in upscale suburbs.
• Rightplace specializes in boutique, fully equipped long-term apartments in top neighborhoods.
• Blueground also provides long-term options, particularly for professionals needing furnished and serviced homes.
• Idealista remains the go-to platform for private landlords and agencies listing long-term rentals across Madrid, with prices starting at around €619 per month.
• Airbnb offers extended-stay rentals too, though these often come at a higher premium than local agencies or property portals.

Relocation Agencies

Navigating paperwork, healthcare, and school placements can be daunting. Professional relocation services help families and professionals transition into Madrid life with less stress.

• MTS Relocation Spain provides consulting and support for individuals and companies, with services ranging from visa assistance to housing and local registrations.
• Relocations Spain works with corporate mobility programs and private clients, offering immigration, visa, and relocation support across Spain.
• Relomar tailors relocation programs to individuals, ensuring personalized assistance for professionals and families.
• Life in the Move draws on more than 15 years of experience, focusing on personalized relocation for families moving to Madrid.
• Aurora in Madrid supports expatriates with a comprehensive relocation package, from property search to everyday integration.

Current Job Openings

Madrid has one of the strongest job markets in Spain, particularly in technology, finance, and digital services. The city is home to major multinational employers like Google, Amazon, Microsoft, and Accenture. Startups thrive in areas like fintech, AI, and cybersecurity, supported by incubators and public investment.

If you are seeking opportunities in tech, you can explore open positions directly here, which connects professionals with curated offers in Madrid and across Europe.

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Income Tax Overview in Spain

Spain operates a progressive income tax system, meaning the more you earn, the higher the percentage you pay. Taxes are divided into two layers: national tax rates and regional tax rates, with Madrid often applying slightly lower rates compared to some other regions of Spain.

For 2025, the general income tax bands in Spain are approximately:

• Up to €12,450: 19%
• €12,451 – €20,200: 24%
• €20,201 – €35,200: 30%
• €35,201 – €60,000: 37%
• €60,001 – €300,000: 45%
• Over €300,000: 47%

Madrid applies its own reductions, which can make living in the capital financially advantageous compared to other Spanish regions. On top of income tax, employees also contribute to social security, usually around 6.35%, while employers contribute about 30% of gross salary.

Expats should also be aware of Spain’s “Beckham Law” (special expat tax regime). This allows certain foreign workers relocating to Spain to pay a flat 24% tax rate on Spanish income up to €600,000 for up to six years, instead of the progressive rates. This regime can be highly beneficial for international professionals moving to Madrid, though eligibility depends on criteria such as not having been a Spanish tax resident in the past five years and being employed by a Spanish company.