Madrid: what to see and whether to move there

What the city lives on and who it suits

Madrid is the capital of Spain, a city of about 3.4 million at the heart of a metro area of nearly 7 million. It hosts the headquarters of the country's largest companies, banks, government offices, universities, world-class museums and Spain's busiest airport. The city sits about 650 metres above sea level, so summers are hot and dry and winters cool.

Madrid suits remote workers on the digital nomad visa, professionals with contracts, entrepreneurs and families who need good schools and a large job market. It is harder for those counting on cheap rent: it has risen sharply in recent years.

Neighbourhoods: where newcomers settle

• Salamanca: an upscale area with shops and boulevards, the choice of wealthy families.
• Chamberí: a calm centre with local life, markets and schools.
• Malasaña and Chueca: a lively centre with bars, noisy at night.
• Retiro: by the main park, a good choice for families.
• Chamartín: the business north, with offices and international schools nearby.
• Arganzuela and Lavapiés: cheaper, close to the centre, a changing area.

All 21 districts of Madrid can be compared on rent, residents’ income, green space, schools and transport in our Madrid district finder: pick a goal and they are ranked by how well they match.

Cost of living

Exchange rate: $1.12 per euro on 6 October 2026. The region kept its pass discounts for 2026.

Practicalities: documents, transport, climate

Documents. After moving you register your address at the city hall and get a foreigner's number: without them you cannot open a bank account, get a phone contract or enrol children in school. Transport. Metro, buses and suburban trains use a single pass. Climate. Summer days often exceed 35°C, winter brings frosts, and rainfall is low.

Taxes

• resident income tax runs from 19% to 47% depending on the region and income, and the Madrid region has some of the lowest rates in the country;
• employees on the digital nomad visa and other new residents can pay 24% under a special regime, which is not available to freelancers;
• wealth tax is effectively not charged in the Madrid region, but the national tax on large fortunes applies.

Moving and legal status

• Digital nomad visa: income from $3,200 (2,849 euros) a month, plus $1,200 (1,068 euros) for the first family member and $400 (356 euros) for each next; residence when applying in Spain is up to 3 years;
• non-working residence: from €2,400 a month per applicant;
• entrepreneur permit: after project approval by a state agency, €7,200 a year per founder;
• the golden visa has been closed since 3 April 2025, more on the Spain golden visa page;
• investor and entrepreneur permits for Russian citizens have been suspended since March 2022;
• citizenship comes after 10 years of residence, or 2 years for citizens of certain countries.

Renting: how to find a flat

The legal deposit is one month's rent, but owners often ask for an additional guarantee, which the law caps at two months. Since 2023 agency fees for residential lets are paid by the owner, not the tenant. Good flats go within days, so keep income and residence documents ready in advance.

Healthcare and schools

State healthcare is available to those who work and pay social contributions, while the nomad visa and non-working residence require private insurance without co-payments. Madrid has many international schools with British, American and French programmes, and state schools are free and teach in Spanish.

Trips from Madrid

Madrid is the hub of the high-speed rail network: about 2.5 hours to Barcelona and Seville, under 2 hours to Valencia. Toledo and Segovia are half an hour away and popular at weekends. Madrid airport has direct flights to Latin America, convenient for those working with the region.

Work and business

Freelancers register as self-employed and pay a monthly social contribution, with profit taxed on the general scale. For a start-up there is an entrepreneur permit after project approval by a state agency, decided in 20 business days. Employees of foreign companies on the nomad visa cannot work for Spanish employers, and freelancers cannot take Spanish clients for more than 20% of income.

Is the city worth considering

The pluses are a large job market, sun, culture, strong schools and universities, good flights worldwide and mild regional taxes. The minuses are expensive and scarce rentals, hot summers and a long path to citizenship. Madrid works for those coming to work remotely or on a contract who plan to stay long-term.