Buying property in Madrid means accessing Spain's only true global-capital property market: a ~€319bn GDP region (INE 2024), with GDP per capita 37% above the national average, no coastal-tourism dependency, and a regulatory environment far more favourable to landlords than Catalonia or the Balearics. Tourist licences are still being approved in central districts (unlike Barcelona's moratorium). Long-term rental yields run 4–6% in Salamanca, Chamberí, and Justicia; emerging districts like Tetuán, Carabanchel, and Usera deliver 6–8% gross with strong rental demand from young professionals and recent foreign-graduate cohorts. Prices range €4,800–€10,500/m² in central neighbourhoods.
Why buy here
- Madrid: 99% inheritance-tax relief for close family + 100% regional wealth-tax relief
- Strongest GDP growth of any Spanish region
- Major HQ relocations from Barcelona since 2017
- Barajas Airport: Spain's busiest international hub
- No tourist licence moratorium
- Top private schools and hospitals
Lifestyle
Salamanca is old-money luxury. Malasaña and Chueca are the creative and LGBTQ+ districts, now heavily gentrified. La Moraleja and Pozuelo de Alarcón are the high-end family suburbs with embassy communities.
Investment outlook
Gross rental yields: 4–6% in prime zones; 6–8% in emerging districts. Tourist licence approvals still active (unlike Barcelona). Capital appreciation: 8–14% in prime zones (2022–2024).
Work out the purchase costs in Madrid
Frequently asked questions
-
The Comunidad de Madrid applies a 99% inheritance-tax bonificación between direct family members and a 100% regional wealth-tax rebate, making it significantly more attractive than Catalonia or Andalusia for high-net-worth buyers. Note: a state solidarity tax still applies to net worth above €3M.
-
Yes. Madrid has not implemented the moratorium seen in Barcelona. However, community of owners approval is required for new tourist licences in apartment buildings, and we check where the building stands before you buy.
Ready to explore this destination?
Talk to a buyer's agent in Spain about available properties, budget and next steps.
Speak with an advisor