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Madrid
#99 of 124
Europe

Madrid

Spain

Salary & Cost of Living

View purchasing power ranking

How do salaries and expenses in Madrid compare to San Francisco?

Purchasing Power Comparison

An engineer in Madrid is 61% worse off vs in San Francisco

This shows how far a software engineer's salary goes in Madrid compared to San Francisco, taking into account both salary differences and cost of living.

Median Salary
$57,446
-$215K (-79%) vs San Francisco
Based on 657 data points from levels.fyi
Net Salary
$37,340
-$135K (-78%) vs San Francisco
Tax Rate: 35%

Community Insights

New

Madrid offers an unbeatable lifestyle at the cost of lower economic leverage. For software engineers, it is a city of extremes: those on local contracts often struggle with low purchasing power and rising rents, while those with remote US/UK salaries (especially under the Beckham Law) live like royalty. The city is vibrant, safe, and sunny, but the local tech market generally pays significantly less than its northern European counterparts. It is not a place to move to strictly for maximizing savings, but rather for maximizing quality of life.

Resident Sentiment

Residents, especially transplants, overwhelmingly love the lifestyle and energy of the city, frequently citing the social culture and safety as major perks. However, there is a strong undercurrent of frustration regarding economic stagnancy; many complain that "you pay London rents on Spanish salaries."

Expats often advise that the city is "paradise" if you bring your own job, but can be a "struggle" if you rely on the local labor market. Long-term residents warn that the bureaucracy is a rite of passage that requires immense patience.

The Good

Living Environment

Weather•Safety•Pollution•Events

A quick look at climate, safety, pollution, and tech community compared to San Francisco.

Rankings

Community Events

Top 15%

#19

of 124 cities

14 events on luma

Current value

Comfortable Weather

Top 21%

#26

of 124 cities

72/100 weather score

Current value

Safety Index

Top 22%

#27

of 124 cities

71.4/100

Current value

Housing Affordability

View affordability ranking

How affordable is housing for a software engineer in Madrid compared to San Francisco?

Avg. Property Price
$6,674 / m²
34% cheaper than San Francisco
View detailed property prices on Numbeo

Salary Converter

Enter your annual gross salary (before taxes) to see what you would need to earn in Madrid to maintain the same standard of living.

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Cost of Living
45% cheaper than San Francisco
View detailed cost breakdown on Numbeo

Top Paying Companies in Madrid

Datadog logo
Datadog
Amazon logo
Amazon
Santander Bank logo
Santander Bank
  • Beckham Law tax advantage (flat 24% tax rate) for qualifying expats, making high foreign salaries significantly more valuable.
  • Excellent work-life balance culture with late dinners, vibrant social scene, and easy access to nightlife.
  • High safety index (#27 globally), making it one of the safest European capitals for walking alone at night.
  • Strong public transport system (Metro de Madrid) that is affordable and reliable, often negating the need for a car.
  • Major European travel hub with Barajas Airport offering cheap and frequent connections to the rest of Europe and Latin America.
  • Growing tech scene with presence of major international companies (Amazon, Google) and startups, though less competitive than London or Berlin.
  • World-class healthcare system that is accessible and high quality.
  • High volume of sunshine hours (2769/year), significantly higher than northern tech hubs like London or Amsterdam.

The Bad

  • Low local salaries for software engineers (median ~$57k) compared to the cost of living and other Western European hubs.
  • Low purchasing power (#100 globally), meaning local savings rates are significantly lower than in the US, Germany, or Switzerland.
  • Intense summer heat (often exceeding 35-40°C in July/August) which can make the city uncomfortable without good AC.
  • Rising rental costs which have outpaced local wage growth, making it hard to find affordable apartments in central areas.
  • Bureaucracy is notoriously slow and complex for visa processing, obtaining NIE/TIE, and apartment hunting.
  • Spanish fluency is often required for local roles; English-only jobs exist but are more competitive and limited to specific international firms.
  • Noise pollution can be high due to the late-night street culture and density of bars/restaurants.

The Verdict

You'll love it if...

Remote workers or freelancers with high incomes from abroad who can leverage the Beckham Law to pay 24% tax.

Engineers who value social life, food, and weather over maximizing their savings account balance.

People looking for a safe, walkable major European capital with excellent travel connections.

Skip it if...

Junior engineers or career-climbers looking to maximize FIRE (Financial Independence, Retire Early) savings quickly, as local salaries make high savings rates difficult.

People who are extremely sensitive to heat, as summers are scorching and dry.

Those unwilling to learn Spanish, as navigating daily bureaucracy and social circles without it is isolating and difficult.

Updated 11/29/2025

Weather7.2/10-17% vs San Francisco
Safety71+81%
Pollution38-23%
Events14-73%
7.2/10TechCities weather score vs 8.7/10 in San Francisco

0–10 composite (higher is better) combining temperature comfort, sunshine hours, rainy-day count, and humid days. See methodology for weighting and data sources.

Weather snapshot

Average High
20°C(vs 19°C in San Francisco)
Average Low
8°C(vs 12°C in San Francisco)
Sunshine Hours
2,769h/yr-293h/yr(-10%)
Hottest Month High
33°C(vs 22°C in San Francisco)
Coldest Month Low
1°C(vs 8°C in San Francisco)
Rainy Days
54/yr+6/yr(+12%)

Community & Quality

Madrid community pulse

Madrid has 14 Luma events listed.

73% fewer events than San Francisco.

Pollution Score

Top 31%

#39

of 124 cities

37.7/100

Current value (lower is better)

Cost of Living

Middle of the pack

#55

of 124 cities

49/100

Current value (lower is better)

Net Income

Bottom 32%

#85

of 124 cities

$37,340/yr

Current value

Tax Rate

Bottom 31%

#87

of 124 cities

35%

Current value (lower is better)

Home Affordability

Bottom 21%

#99

of 124 cities

≈14.3 yrs to buy 80m²

Current value

Purchasing Power

Bottom 21%

#99

of 124 cities

SWE Affordability
14.3 years
9.6 years longer than San Francisco
Muggy Days
0/yr(same as San Francisco)
Cloud Cover
38%(vs 34% in San Francisco)