City Comparison · Updated May 2026
United Kingdom
COL index 87.6
Spain
COL index 54.9
London vs Madrid — Cost of Living, Salary & Tax Compared (2026)
The verdict
Living in Madrid is 37.3% cheaper than London for the same lifestyle.
Based on Q1 2026 COL index and median single-person expenditure.
Side-by-side stats
| London | Metric | Madrid | Δ |
|---|---|---|---|
| 87.6 | Cost of living index | 54.9 | -37.3% |
| €50,000 | Median gross salary | €50,000 | 0.0% |
| €37,714 | Net at €50,000 gross | €33,783 | -10.4% |
| €2,450 | Rent — 1BR centre | €1,380 | -43.7% |
| €3,333 | Monthly COL (single) | €1,953 | -41.4% |
| €43,053 | PPP — net / COL | €61,535 | +42.9% |
| 24.6% | Effective tax @ €50,000 | 32.4% | +32.0% |
Monthly expenses — paired
Salary equivalence
€50,000 gross in United Kingdom = €3,143 net monthly.
To have the same purchasing power in Madrid, you would need roughly €33,275 gross in Spain (≈ €1,970 net monthly, adjusted for cost-of-living index).
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Pros & cons
- −High cost of living (index 88)
- +Favourable tax rate (24.6%)
- −High rent-to-income ratio (78.0%)
- +Significantly cheaper rent (€1,380)
- −High rent-to-income ratio (57.2%)
- +14-month salary structure
The verdict
Across the data, London delivers a higher take-home on a €50,000 gross salary; Madrid carries a lower cost-of-living index; London has the lighter effective tax burden; Madrid wins on purchasing power after costs are netted out. If purchasing power is your north star, Madrid edges it.
Frequently asked
Is London cheaper than Madrid?+
Madrid is cheaper. Cost-of-living index: London 87.6, Madrid 54.9 — a 37.3% difference (Q1 2026).
What is the cost of living difference between London and Madrid?+
London sits at 87.6 on our COL index, Madrid at 54.9. That works out to roughly 37.3% — Madrid being the cheaper of the two.
Is London a good place to live compared to Madrid?+
It depends on priorities. London delivers €37,714 net on a €50,000 gross salary at a 24.6% effective tax rate. Madrid delivers €33,783 at 32.4%. Centre 1-bed rent: €2,450 vs €1,380.
How do salaries compare in London vs Madrid?+
On a €50,000 gross salary, take-home is €37,714/year (€3,143/month) in London and €33,783/year (€2,413/month) in Madrid.
Which city has lower taxes, London or Madrid?+
United Kingdom has the lower effective rate at €50,000: United Kingdom 24.6%, Spain 32.4%.