Is it expensive to live in Madrid?

Madrid is expensive by Spanish standards and modestly cheap by Western capital standards. The moderate benchmark is $2,725 per person per month, against $2,150 for the Spain national average and $3,525 for the US average. Within Spain, Madrid is the most expensive city tier alongside Barcelona, with mid-tier cities (Valencia, Seville, Malaga) typically 25 to 40 percent cheaper. Housing drives most of the gap: one-bedroom rentals in central Madrid have climbed sharply in 2024 to 2026 as tourist-let conversion and inbound demand outpace new supply. Compared with Paris, London, Amsterdam, or Munich, Madrid is meaningfully cheaper on both rent and dining. Eating out remains a strength: a menu del dia at a neighbourhood spot runs €13 to €18, well below Northern European or US prices. For the full breakdown, see our Madrid cost of living page.