Cost of living in Madrid – what to budget for in 2026

• Spain's minimum wage (salario mínimo interprofesional) for 2026 is €1,221 a month for full-time work, paid in 14 instalments, or at least €17,094 a year (Royal Decree 126/2026). It is a gross amount; social security contributions and income tax are deducted from it.
• Spanish salaries are usually quoted gross per year, often in 14 payments (12 monthly plus two extra payments). Ask employers for the gross annual figure and estimate your net pay before comparing offers; see Taxes in Spain and Employment rights in Spain.
• The consumer association OCU estimated in May 2026 that average salaries in the Community of Madrid are around €30,000 to €32,000 gross a year, or roughly €1,700 to €1,900 net a month.

Average asking rents in the city of Madrid were €25.6 per m² a month in the first quarter of 2026, according to Brains Real Estate, 12.2% more than a year earlier. By district, per m² a month:

• Highest: Centro €31.1, Salamanca €31.1, Chamberí €28.2, Retiro €26.8.
• Middle: Chamartín €24.7, Arganzuela €24.5, Tetuán €24.4, Moncloa-Aravaca €21.1, Usera €21.0, Ciudad Lineal €20.3.
• Lower: Puente de Vallecas €19.8, Latina €19.5, Carabanchel €18.7, Hortaleza €18.4, Villa de Vallecas €17.1, Vicálvaro €16.6, Moratalaz €16.5.

As an illustration based on these averages, a 50 m² flat would cost about €1,555 a month in Centro and about €935 in Carabanchel (our calculation). OCU's May 2026 analysis of listings gives similar or higher figures for central districts, for example €34.1 per m² in Salamanca and €33.8 in Chamberí, and estimated that rent takes more than 70% of an average single net salary in central districts. Many newcomers therefore share a flat, at least at first.

These figures are asking prices in listings, not signed leases, and include furnished flats. Treat them as benchmarks.

• First month's rent, paid at signing.
• Deposit (fianza): one month's rent for a main-residence lease (two months for a seasonal lease). The landlord must lodge it with the Community of Madrid's Agencia de Vivienda Social and return it within one month after you leave.
• Additional guarantee: since 8 October 2026, no more than two months' rent for leases of up to five years (seven if the landlord is a company), and a landlord cannot require rent-default insurance.
• No agency fees: agency and contract formalisation costs cannot be charged to tenants.
• Temporary accommodation for your first weeks, furniture and utility connections.

See Finding a flat to rent in Madrid.

• Property tax (IBI): paid by owners. Since 8 October 2026 taxes linked to the home cannot be imposed on tenants unless they are the taxpayer.
• Waste fee (tasa de gestión de residuos, TGR): the city charges it per property; owners pay it but may pass it on to the occupants, so check your lease.

Prices published by the Consorcio Regional de Transportes de Madrid in October 2026:

• 30-day pass, zone A (the city): €32.70; zones B1 €38.20, B2 €43.20, B3 to C2 €49.20.
• Youth pass (ages 15 to 25): €10 a month for all zones.
• Over 65: free. Children under 7 and the 7-14 pass: free.
• 10-trip ticket: €7.30; personal transport card: €4 the first time.

The current prices include extraordinary discounts; check the CRTM before budgeting for 2027. See Public transport in Madrid.

If you are covered by the public system, for example because you work and are registered with Social Security, consultations with your family doctor, specialists and hospitals are free at the point of use, and the health card itself is free. Prescriptions usually involve a co-payment that depends on your income; see Spain's public health system. If you are not covered, for example on many student or non-lucrative residence routes, budget for private health insurance.

• Public nursery schools (0-3) in the Community of Madrid's public network have no tuition fee since 2019; families pay only for extended hours and meals.
• For children in private nurseries, the city of Madrid's beca infantil plus pays €118, €220 or €385 a month depending on income for the 2026-2027 school year.
• Public schools are free; budget for books, meals and activities. See Schools and childcare in Madrid.

1. Housing: rent for the size and district you need (use the per-m² figures above), plus utilities and possibly the waste fee.
2. Transport: the pass for your zone or the €10 youth pass.
3. Health: nothing extra if you are covered by the public system; otherwise private insurance.
4. Food, phone, internet and leisure: check current prices yourself.
5. One-off costs: deposit, guarantee, furniture, residence card fees (for example €16.08 for a first TIE or €12 for an EU registration certificate in 2026) and a buffer for the first months before your first Spanish salary.