Madrid is one of the favourite destinations for people moving to Spain for work or study: it offers opportunities, services, sunshine and an intense social life. But it has also become an expensive city, especially for housing. This page gathers the key data on salaries, jobs, rents and the cost of living, with some practical advice. It is part of the Madrid guide.
Jobs and salaries
The Community of Madrid is Spain's richest region by total GDP and one of the top for income per inhabitant. It is home to the government, ministries, big banks, energy and telecom companies, many multinationals and start-ups. Salaries are above the national average: according to INE, in 2023 the average gross annual salary was about 32,200 euros, against 28,000 for Spain as a whole, second only to the Basque Country.
Note, however, that the average is pushed up by high earners. The most common salary in Spain is much lower, around 16,000 euros gross a year, and many young people work on temporary or part-time contracts. The national minimum wage has been raised several times in recent years and is now around 1,200 euros gross a month over 14 payments. In Spain salaries are usually quoted as gross annual figures and are often paid in 14 instalments, with two "pagas extra" in June and December.
Unemployment
Madrid's job market is more dynamic than the rest of the country's. In the second quarter of 2026 the Community of Madrid's unemployment rate was 7.6%, more than two points below the national average of 9.9%.
The sectors hiring most are services, tourism and hospitality, retail, technology and IT, consulting, finance, logistics and education, including language teaching.
Housing: the main problem
Rent is the biggest item in the budget of anyone living in Madrid. Over the past decade prices have risen much faster than salaries, driven by demand, the arrival of international professionals and tourist apartments. In July 2026, according to idealista, the average asking rent in the city of Madrid was 23.2 euros per square metre a month, the highest in Spain, above Barcelona.
A one-bedroom flat of 50-60 square metres in central districts therefore often costs 1,200-1,600 euros a month, and many young people and workers live in shared flats, where a room costs 500-800 euros. Prices fall in the southern and eastern districts, such as Villaverde, Usera, Carabanchel and Puente de Vallecas, and in the surrounding towns, well connected by metro and Cercanías.
Cost of living
Housing aside, Madrid remains cheaper than many western European capitals. Some indicative prices:
| Item | Indicative price |
|---|---|
| Set lunch menu | 13-16 euros |
| Caña at a bar | 2-3 euros |
| Coffee | 1.50-2 euros |
| Monthly transport pass (zone A) | 32.70 euros; 10 euros for under-26s |
| Gym | 30-50 euros a month |
| Cinema | 8-10 euros |
| Utilities (electricity, gas, water) for a one-bedroom flat | 80-130 euros a month |
| Internet and phone | 30-50 euros a month |
Quality of life
Madrid regularly ranks near the top of European tables for quality of life, safety, public transport and social life, and has one of the world's highest life expectancies, over 85 years. Public healthcare is good, parks are plentiful and the cultural offer is huge. The weak points are housing costs, increasingly intense summer heat, pollution in some areas and long commutes for those living on the outskirts.
Paperwork
- EU citizens can live and work in Madrid freely. For stays over three months they must register with the Central Register of Foreigners and obtain the certificate with the NIE, the foreigner identification number, essential for working, opening a bank account or signing a lease. Non-EU citizens need a visa or residence permit.
- It is useful to register on the padrón (empadronamiento), the municipal register, to access public healthcare and services.
- Working requires registration with the Seguridad Social.
- Appointments at offices (cita previa) are booked online and can take weeks: plan ahead.
Studying in Madrid
Madrid is one of the most popular cities for Erasmus students. The main universities are the Complutense, one of Europe's oldest and largest, the Autónoma, Carlos III, the Politécnica, Rey Juan Carlos and several internationally renowned private universities and business schools. Students live mainly in Argüelles, Moncloa, Malasaña and Lavapiés.
See also Madrid neighbourhoods and transport.