MadridvsLisbon
Overall
💰-6.5%
Madrid is 6.5%cheaper
Rent
🏠+4.2%
Housing is 4.2% higher
Dining
🍽️-13.8%
Restaurants 13.8% cheaper
Groceries
🛒-13.8%
Food shopping 13.8% less
Comparing the cost of living between Madrid, Spain and Lisbon, Portugal reveals significant insights for anyone considering relocation or travel in 2026. Our comprehensive analysis shows that Madrid is more affordable than Lisbon by approximately 6.5%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.
Key Cost Differences
Housing costs in Madrid are lower than in Lisbon. A one-bedroom apartment in Madrid's city center costs around €1,320, while the same in Lisbon is approximately €1,300.
Dining out in Madrid is notably more expensive compared to Lisbon. An inexpensive restaurant meal costs €14 in Madrid versus €10 in Lisbon.
Public transportation in Madrid is more expensive, with monthly passes at €56 compared to €40 in Lisbon.
Purchasing power in Madrid is notably stronger, meaning residents can afford more goods and services with their local salaries compared to Lisbon.
Grocery shopping in Madrid is more expensive by approximately 16%. Basic items like milk, bread, and eggs show higher prices across the board.
Monthly Budget Breakdown
When breaking down monthly expenses, a single person in Madrid can expect to spend approximately €472 per month (excluding rent), while in Lisbon, the same lifestyle would cost around €352. For families, these figures increase significantly, with a family of four requiring about €1,652 monthly in Madrid versus €1,233 in Lisbon. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.
Detailed Cost Comparison
🏠 Housing Costs (Monthly Rent)
🍽️ Food & Dining
🛒 Groceries
🚌 Transportation
💡 Utilities & Internet
Tips for Moving Between Cities
For those considering a move from Lisbon to Madrid, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from Madrid to Lisbon requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.
Quality of Life Indices
Madrid
Lisbon
Frequently Asked Questions
Is Madrid more expensive than Lisbon?
No, Madrid is approximately 6.5% cheaper than Lisbon. You'll find significant savings in housing, food, and transportation costs.
How much salary do I need in Madrid compared to Lisbon?
To maintain the same standard of living, you would need approximately 94% of your Lisbon salary when living in Madrid. For example, if you earn $50,000 in Lisbon, you'd need about $46,970 in Madrid for a comparable lifestyle.
What are the biggest cost differences between Madrid and Lisbon?
The most significant cost difference is in groceries. Grocery costs differ by roughly 16%, affecting your daily shopping expenses. Transportation and utilities show notable variations between the two cities.
Which city is better for expats and digital nomads?
Madrid offers better purchasing power, making it more attractive for those earning in strong currencies. However, Madrid provides lower living costs, which benefits budget-conscious travelers. Consider Madrid if you prioritize earning potential, or Lisbon for affordability.
What's a reasonable monthly budget for Madrid vs Lisbon?
In Madrid, a single person needs approximately €1,452 per month (including rent), while a family of four requires about €3,502. In Lisbon, these figures are €1,252 for singles and €2,933 for families. These estimates include housing, food, transportation, and basic entertainment.
The cost of living comparison between Madrid and Lisbon in 2026 shows moderate differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.
Need to calculate salary equivalence?
Find out how much you need to earn in Lisbon to maintain your lifestyle from Madrid
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