MadridvsMelbourne
Overall
💰+30.8%
Madrid is 30.8%more expensive
Rent
🏠+30.0%
Housing is 30.0% higher
Dining
🍽️+37.1%
Restaurants 37.1% pricier
Groceries
🛒+33.3%
Food shopping 33.3% more
Comparing the cost of living between Madrid, Spain and Melbourne, Australia reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Madrid is more expensive than Melbourne by approximately 30.8%. 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 Melbourne by 23%. A one-bedroom apartment in Madrid's city center costs around €1,200, while the same in Melbourne is approximately A$2,200.
Dining out in Madrid offers significant savings compared to Melbourne. An inexpensive restaurant meal costs €12 in Madrid versus A$20 in Melbourne.
Public transportation in Madrid is more affordable, with monthly passes at €55 compared to A$170 in Melbourne.
Purchasing power in Melbourne is notably stronger, meaning residents can afford more goods and services with their local salaries compared to Madrid.
Grocery shopping in Madrid is more affordable by approximately 25%. Basic items like milk, bread, and eggs show lower prices across the board.
Monthly Budget Breakdown
When breaking down monthly expenses, a single person in Madrid can expect to spend approximately €419 per month (excluding rent), while in Melbourne, the same lifestyle would cost around A$786. For families, these figures increase significantly, with a family of four requiring about €1,466 monthly in Madrid versus A$2,750 in Melbourne. 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 Madrid to Melbourne, 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 Melbourne to Madrid 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
Melbourne
Frequently Asked Questions
Is Madrid more expensive than Melbourne?
Yes, Madrid is approximately 30.8% more expensive than Melbourne overall. The biggest differences are in housing and restaurant prices.
How much salary do I need in Madrid compared to Melbourne?
To maintain the same standard of living, you would need approximately 1.3x of your Melbourne salary when living in Madrid. For example, if you earn $50,000 in Melbourne, you'd need about $65,385 in Madrid for a comparable lifestyle.
What are the biggest cost differences between Madrid and Melbourne?
The most significant cost difference is in dining out. Restaurant prices vary by about 27%, which can significantly impact your entertainment budget. Transportation and utilities show notable variations between the two cities.
Which city is better for expats and digital nomads?
Melbourne offers better purchasing power, making it more attractive for those earning in strong currencies. However, Melbourne provides lower living costs, which benefits budget-conscious travelers. Consider Madrid if you prioritize cultural experiences, or Melbourne for better value.
What's a reasonable monthly budget for Madrid vs Melbourne?
In Madrid, a single person needs approximately €1,319 per month (including rent), while a family of four requires about €3,166. In Melbourne, these figures are A$2,486 for singles and A$5,550 for families. These estimates include housing, food, transportation, and basic entertainment.
The cost of living comparison between Madrid and Melbourne in 2025 shows significant 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 Melbourne to maintain your lifestyle from Madrid
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