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Lisbon vs Madrid

Cost-of-living comparison and salary equivalence. Enter your current salary to see what you'd need to earn to live equally well.

Lisbon, PT vs Madrid, ES at a glance — Madrid, ES is 7% more expensive than Lisbon, PT overall. Median 1-bed rent runs about $1,300/mo versus $1,300/mo. Top income tax: 47% vs 48%.

$/ year

To keep the same standard of living in Madrid, ES, you'd need

$79,961 / year

Madrid, ES is 7% more expensive overall

Category breakdown (Madrid, ES vs Lisbon, PT)

  • Housing+2%
  • Food & groceries+9%
  • Transport+14%
  • Utilities+10%
  • Healthcare+7%
  • Goods & services+9%

◎ How Lisbon, PT and Madrid, ES compare

HousingFood & groceriesTransportUtilitiesHealthcareGoods & services
Lisbon, PTMadrid, ES

Index vs the US average — the line marks 100. Lower is cheaper.

▤ Full comparison

Lisbon, PTMadrid, ES
Cost of living
Overall cost index97103
Housing118120
Food92100
Transport7080
Utilities100110
Healthcare7580
Goods & services92100
Housing
Rent, 1-bed centre$1,300/mo$1,300/mo
Rent, 1-bed outside$950/mo$950/mo
Rent, 3-bed centre$2,400/mo$2,600/mo
Buy price / m² centre$6,000$6,000
Money & purchasing power
$1,000 goes as far as$1,035$971
Inexpensive meal$12$14
Monthly transit pass$45$60
Taxes
Income tax (top rate)48%47%
VAT / sales tax23%21%
Social security (employee)—6.4%
Corporate tax21%25%
Capital gains28%28%
Economy & salaries
Avg net salary$1,300/mo$1,900/mo
Minimum wage$1,244/mo✓$1,652/mo✓
GDP per capita$32,082✓$38,627✓
Inflation (annual)2.3%✓2.7%✓
Work & digital nomad
Digital-nomad visaYesYes
English proficiencyModerateLow
Coworking spaces6070
Time zoneUTC+0UTC+1
Quality of life
Quality of life (overall)7574
Safety index6862
Healthcare index7680
Pollution index4045
Internet speed200 Mbps200 Mbps
Walkability8288
Public transport7890
Family-friendly6668
Tap waterSafe to drinkSafe to drink
Life expectancy82 yr✓84 yr✓
LGBTQ+ acceptanceHighHigh
Climate
January avg+11 °C+6 °C
July avg+23 °C+25 °C
Sunny days / year260250
Rainfall / year725 mm420 mm
Connectivity
Flight to nearest hub1 h1 h

Taxes & Economy & salaries: Portugal vs Spain. Estimates use approximate cost-of-living indices (US average = 100) and are for general guidance only.

✓ = official statistics (Eurostat 2026, World Bank 2025, World Bank 2024). Unmarked figures are CostTrek estimates. How we calculate these figures →

Cost of living: Lisbon vs Madrid — in your currency

LisbonMadrid
1-bed rent, city centre$1,300$1,300
1-bed rent, outside centre$950$950
Inexpensive meal$12$14
Monthly transit pass$45$60
Utilities (monthly)$120$150

Converted from USD at approximate rates (2026-09).

Good to know before you move to Lisbon

Sunny, hilly and the poster child for the digital-nomad wave — locals feel priced out as rents climb.

Currency
Euro (€ EUR)
Languages
Portuguese
Time zone
UTC+0
Internet
200 Mbps
English
Fairly common
Safety
68/100
Climate
❄ 11°C · ☀ 23°C · 260 sunny days/yr
Tap water
Safe to drink
Power
F · 230V
Driving
Right-hand side
Popular areas
Alfama · Príncipe Real · Alcântara

Good to know before you move to Madrid

Spain's sunny, sociable capital — great transit and food, affordable by Western-European standards.

Currency
Euro (€ EUR)
Languages
Spanish
Time zone
UTC+1
Internet
200 Mbps
English
Rarely spoken
Safety
62/100
Climate
❄ 6°C · ☀ 25°C · 250 sunny days/yr
Tap water
Safe to drink
Power
F · 230V
Driving
Right-hand side
Popular areas
Malasaña · Chamberí · La Latina

? Frequently asked questions

Moving from Lisbon to Madrid: cheaper or more expensive?

Moving from Lisbon to Madrid, your cost of living will be roughly 7% more expensive. Madrid’s cost-of-living index is 103 versus 97 for Lisbon (US = 100). Use the salary tool above to see the income you’d need to keep the same lifestyle.

Is Lisbon cheaper than Madrid?

Madrid is about 7% more expensive than Lisbon overall — its cost-of-living index is 103 versus 97 for Lisbon.

Which is more expensive, Lisbon or Madrid?

Madrid is more expensive than Lisbon. Its cost-of-living index is 103 vs 97 (US = 100) — about 6% higher.

Is rent cheaper in Lisbon or Madrid?

Rent is cheaper in Lisbon — about $1,300/month for a one-bedroom in the city centre, vs $1,300 in Madrid.

How much do you need to earn in Madrid to live like in Lisbon?

To keep the same standard of living, a $75,000 salary in Lisbon is worth about $79,961 in Madrid. Enter your own figure in the calculator above.

Which has lower taxes, Lisbon or Madrid?

Spain has the lower top income-tax rate — 47% versus 48% in Portugal.

◷ More comparisons from Lisbon

How we calculate these figures →

Estimates use approximate cost-of-living indices (US average = 100) and are for general guidance only.