Madrid Expat Guide: Cost of Living, Tax and Neighbourhoods
Cost of living, neighbourhoods, schools, healthcare, and tax for English-speaking expats moving to Madrid. Updated for 2026.
Last reviewed:
Cost of living
Madrid runs roughly 30% below London on a like-for-like basket. A one-bed flat in Salamanca or Chamberí rents for €1,400 to €1,800 a month, the same flat in Lavapiés or Tetuán sits at €900 to €1,200, an unlimited metro pass is €54.60, and dinner for two at a neighbourhood restaurant is €40 to €60 without wine.
Neighbourhoods
The expat shortlist is Salamanca and Chamberí (period buildings, walkable, classic Madrid), Chamartín (quieter, families, near international schools), Las Tablas and Sanchinarro (modern, north Madrid, popular with corporate movers), Pozuelo and Aravaca (suburb, large houses, primary-school commute), and Lavapiés and Malasaña (younger, cheaper, central).
Property
Buying as a non-resident is straightforward: NIE first, then a Spanish bank account, then the deed signed before a notary. Total purchase costs in Madrid run 10% to 13% on top of the price (transfer tax, notary, registry, lawyer). Mortgages for non-residents are typically capped at 60% to 70% loan-to-value with rates around 0.5% above the resident rate.
Schools
British and international shortlist: British Council School (Pozuelo), King’s College (Soto de Viñuelas), ICS Madrid (Ciudad Lineal), International College Spain (La Moraleja), Runnymede College (La Moraleja). Annual fees for older year groups run €13,000 to €22,000. The La Moraleja and Pozuelo schools have the longest waiting lists.
Healthcare
UK movers get free public-system access via S1; US movers via residency and treaty rules. The main private hospitals are Quirónsalud (Pozuelo, San José), Hospital Universitario HM (Sanchinarro) and Sanitas La Moraleja. Private cover for a healthy 40-year-old expat is roughly €60 to €100 a month. English-speaking GPs are widely available across the private networks.
Banking and currency
You need an NIE before opening a Spanish account. Bankinter, Sabadell and Santander are the usual expat-friendly options. Most movers also keep a multi-currency account (Wise or Revolut) for transfers from GBP or USD. Property purchases settle through your Spanish bank, not Wise.
Tax and residency at a glance
Spain’s Beckham Law taxes qualifying movers at a flat 24% on Spanish-source employment income up to €600,000 for up to six years. Madrid is also one of the most tax-efficient regions for the ordinary IRPF route; its autonomous rate is the lowest in Spain. Run the numbers through our Spain Beckham Law calculator, then read the longer picture in our Spain residency guide.