Question 1

Is it better to buy or rent in Madrid?

Accepted Answer

It depends on your tenure. If you plan to stay more than 7-10 years, buying usually matches or beats renting due to Madrid's lower property transfer tax (6%). For shorter stays, renting offers more flexibility despite rising costs.

Question 2

What are the property taxes in Madrid?

Accepted Answer

Madrid has a lower Property Transfer Tax (ITP) of 6% for resale homes, compared to 10% in Barcelona. New homes are subject to 10% VAT (IVA) plus roughly 0.75% Stamp Duty (AJD).

Question 3

Which Madrid neighborhood is best for investment?

Accepted Answer

Salamanca offers wealth preservation but lower yields. Up-and-coming areas like Arganzuela (Madrid Río) or Tetuán offer higher potential for capital appreciation and rental yield.

Madrid: The 'Miami of Europe' Real Estate Boom