🇪🇸Spain
Madrid
5.1% avg gross yield
Spain's capital — Golden Visa, EU gateway, strong yields
5.1% yield
+64% 7yr
$4,600/m²
Neutral
Key Metrics
Avg Price / m²
$4,600
USD, city average
Gross Yield
5.1%
annual, before tax
7yr Appreciation
+64%
2018 → 2024 in USD
Rent vs Buy
Neutral
Break-even: 20yr
Price History
7-Year Price Trend
Average price per m² in USD · Source: Arkon market research
Rent vs Buy Analysis
Monthly Cost Comparison
Typical 2-bed price
€378K
EUR (approx.)
Monthly rent
€1K
EUR/mo (approx.)
Monthly mortgage
€2K
at 4.2% rate
Break-even point
20 years
to recover vs renting
Neutral
Buying and renting are roughly equivalent in this market.
Neighborhoods
Top Areas to Invest in Madrid
Salamanca
Luxury / Upscale
1
Price/m²
$7,200
Gross Yield
3.8%
Chamberí
Elegant Residential
2
Price/m²
$5,800
Gross Yield
4.6%
Malasaña
Trendy / Creative
3
Price/m²
$5,200
Gross Yield
5.1%
Lavapiés
Multicultural / Value
4
Price/m²
$3,800
Gross Yield
6.2%
Vallecas
Affordable Entry
5
Price/m²
$2,200
Gross Yield
7.8%
Carabanchel
Regenerating
6
Price/m²
$2,600
Gross Yield
7.2%
Interactive Map
Neighborhood Price Map
Click any circle or label to see price per m² and gross yield for each neighborhood.
ROI Analysis
Investment Score Breakdown
87/100
Arkon Verified
Salamanca District — Luxury 3BR, Prime Location
Salamanca
Price
€900K
Gross Yield
7.2%
85/100
Arkon Verified
Retiro Park Views — 2BR Renovated Apartment
Retiro
Price
€600K
Gross Yield
7.8%
83/100
Arkon Verified
Chamberí 2BR — Classic Neighbourhood, High Yield
Chamberí
Price
€450K
Gross Yield
8.4%
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Legal & Tax
Buying as a Foreigner in Madrid
No restrictions for foreigners
Spain imposes no restrictions on foreign property ownership. A NIE (Número de Identificación de Extranjero) tax ID is required for the purchase.
6–10% transfer tax (ITP)
Madrid Community charges 6% ITP on resale properties (lower than Catalonia's 10%). New builds pay 10% VAT + 1.5% AJD stamp duty.
Golden Visa — under review
Spain's €500K Golden Visa for residential property is under political review and may be abolished. Check current status before purchasing for residency.
Rental income taxed at 19–24%
Non-EU residents pay 24% flat tax on gross rental income. EU residents pay 19% and may deduct expenses. Annual IRNR declaration required.
This information is for general guidance only and does not constitute legal advice. Always consult a qualified local lawyer before purchasing property abroad.
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