Madrid, Spain’s vibrant capital, is renowned for its rich culture, historic landmarks, and bustling urban lifestyle. But what does it cost to live in this dynamic city? Using the latest data from Numbeo, this blog post explores the cost of living in Madrid as of June 2025, covering housing, food, transportation, and more. Whether you’re planning to relocate, study, or retire, this guide will help you budget for life in Madrid.
Overview of Living Costs in Madrid
Madrid is one of Spain’s more expensive cities, comparable to Barcelona but pricier than Málaga or Alicante. A single person’s estimated monthly expenses, including rent, are around €2,140, while a family of four can expect to spend approximately €4,632. These figures reflect a comfortable lifestyle in the city center, with opportunities to save by choosing suburban areas or adopting local habits.
Housing: The Largest Expense
Housing is the most significant expense in Madrid, driven by high demand in central neighborhoods. A one-bedroom apartment in the city center averages €1,254 per month, while outside the center, rents drop to around €900–€1,000. For buyers, the average price per square meter is €4,109, higher than Valencia (€2,187) or Alicante (€2,026) but slightly above Barcelona’s €3,995. Neighborhoods like Carabanchel or Vallecas offer more affordable rentals.
For retirees budgeting €800–€1,200 for rent, areas like Puente de Vallecas or Moratalaz provide apartments under €900. Initial rental costs include a deposit (2–3 months’ rent), agency fees (€1,000–€1,500), and the first month’s rent, totaling around €3,800 for a €1,100 apartment.
Tips for Renting:
- Use platforms like Idealista, but verify listings to avoid scams (up to 20% may be fraudulent).
- Non-Spanish speakers may benefit from a local agent to navigate contracts.
- Consider suburbs like Getafe or Alcalá de Henares for lower rents with good metro access.
Food and Groceries
Grocery costs in Madrid are reasonable, with a single person’s monthly bill averaging €250–€300. Common items include:
- Milk (1 liter): €1.00
- Bread (500g loaf): €1.30
- Eggs (12): €2.60
- Chicken breast (1kg): €7.20
- Apples (1kg): €2.00
Dining out is affordable at local spots. A meal at an inexpensive restaurant costs around €13, while a three-course meal for two at a mid-range restaurant averages €50. The “menu del día” (set lunch menu) offers excellent value at €10–€15, and tapas range from €8–€12.
Transportation
Madrid’s public transport is world-class, with a single metro or bus ticket at €1.50 and a monthly pass (Abono Transportes, Zone A) costing €54.60. The metro, buses, and Cercanías trains make car ownership unnecessary for most residents. Students under 26 can get a discounted monthly pass for €20. Bike rentals and e-scooters are popular, and a taxi to the airport costs €30–€40, while the metro is €5.
Utilities and Other Expenses
Utilities (electricity, gas, water, internet) for a small apartment average €100 per month for a single person. Private health insurance, if needed, ranges from €45–€90 monthly, while public healthcare is free for residents with a valid permit. Leisure costs, such as a gym membership (€40/month) or cinema ticket (€8), add €150–€250 to monthly expenses, depending on lifestyle.
Salaries and Affordability
The median after-tax salary in Madrid is €1,964, covering a single person’s expenses for about 0.9 months. For a family of four, a net income of €3,800–€4,500 is recommended for a comfortable lifestyle, especially if children attend international schools. Madrid is 18.8% more expensive than Valencia, 10.1% more than Málaga, and 2.9% more than Barcelona, but 29.3% cheaper than London.
Quality of Life for Families and Retirees
Madrid offers a high quality of life, with a Quality of Life Index of 164.82, a safety index of 65.12, and a climate index of 85.34. Families benefit from excellent public schools, though international schools cost €7,000–€12,000/year. Retirees with a monthly income of $3,000 (€2,800 after taxes) can cover rent (€800–€1,200) and living expenses (€886 without rent) comfortably. The city’s cultural offerings, including museums like the Prado and vibrant nightlife, enhance its appeal.
Neighborhood Recommendations for Retirees:
- Chamberí: Charming and central, with rents slightly below the city average.
- Moratalaz: Affordable and quiet, ideal for budget-conscious retirees.
- Arganzuela: Green and residential, with good transport links.
Tips for Saving Money
- Shop at Markets: Visit Mercado de Maravillas for fresh, affordable produce.
- Use Public Transport: Opt for an Abono Transportes pass for savings.
- Dine Local: Choose tapas bars or “menu del día” over touristy restaurants.
- Explore Free Attractions: Enjoy Retiro Park, free museum days, and Madrid’s historic plazas.
Final Thoughts
Madrid balances urban sophistication with affordability, making it an attractive destination for expats, students, and retirees. While housing costs are higher than in smaller Spanish cities, its cultural richness, excellent transport, and vibrant lifestyle make it worth it. Use tools like Numbeo’s Cost of Living Estimator or Idealista to plan your move and enjoy life in Spain’s capital.
Source: Numbeo, Cost of Living in Madrid, last updated June 2025.
