Lisbon vs Madrid: cost of living compared
Rent, prices, incomes and rent burden in Lisbon (Portugal) and Madrid (Spain), side by side. Every figure comes from official statistics and shows its source and year. No overall winner is declared: which city suits you depends on your income, job and lifestyle.
At a glance
- Lower rentMadrid
- Lower overall pricesAbout the same
- Lower rent burdenMadrid
What residents say: Lisbon vs Madrid
Share of residents who agree or are satisfied, asked the same questions in both cities in 2023. These are people's own views, not official measurements.
Source: European Commission and Eurostat, survey on quality of life in European cities, 2023 (Eurostat dataset urb_percep). Positive answers added (for example "strongly agree" + "somewhat agree", or "very satisfied" + "rather satisfied"). Survey areas: Lisboa (greater city); Madrid (greater city). See all 27 capitals ranked
Rent in Lisbon and Madrid
Rent in Lisbon is about 8% higher than in Madrid.
A good-quality 1-bedroom flat costs €1,400 a month in Lisbon and €1,300 a month in Madrid (Eurostat — Average rent per month in cities by type of dwelling, 2025).
These are rents for well-located, good-quality flats surveyed to set pay for EU staff, so cheaper local options exist in both cities. Use them to compare the two cities, not as the lowest rent you could find.
Overall prices
The overall price level is about the same in Lisbon and Madrid.
On the Eurostat price-level index (Brussels = 100), Lisbon scores 92.4 and Madrid scores 92.4 (2025). The index covers a full basket of goods and services, including housing, for a professional household.
Incomes and rent burden
Average household disposable income per person is €18,600 a year in the region around Lisbon (2023) and €22,600 a year around Madrid (2023). This is income after tax averaged over every resident, including children and retired people, so it is lower than a typical salary.
Income per person in Madrid is about 22% higher than in Lisbon.
Rent burden, one year of the rent above divided by income per person, is 90.3% in Lisbon and 69.0% in Madrid. The lower the number, the less of local incomes a typical rent takes.
What this comparison does not tell you
These are city-wide official averages. Rents vary a lot between neighbourhoods, and the salary you can earn depends on your job, experience and contract. Taxes, social contributions, visa rules and healthcare costs also differ between countries and are not included here. Check the current rules with the official authority before you decide.
How each figure is collected and calculated is explained in our methodology. Spotted an error? See our corrections policy.
Full city profiles
Lisbon cost of living profile · Madrid cost of living profile