Housing in Madrid: rent or buy

What shapes your choice of housing in Madrid

Choosing where to rent in Madrid is your first strategic decision — it shapes the entire logic of your life there: schools, commutes, neighbors, noise, the cost of a taxi to the airport. Madrid is noticeably more comfortable than Barcelona from a market perspective: less pressure, less competition for listings, and a little more time to make a decision. But that does not mean the market is easy — good apartments at reasonable prices go in 24–48 hours, especially in central neighborhoods.

Madrid rental prices continue to rise moderately in 2026. A one-bedroom apartment now costs €1,100–1,800/month depending on the neighbourhood and condition of the property. A two-bedroom in a good area runs €1,600–2,400/month. Studios and coliving options start from €800–900/month, though with a trade-off on space.

Madrid neighbourhoods: where to live as a Russian-speaking expat

Choosing a neighbourhood means choosing a lifestyle. Below is an honest map for those who are genuinely looking for housing — not reading a tourist guide.

Salamanca — historically the most ’diplomatic’ district. Affluent local families and many expats live here, and it is also home to Madrid’s most established Russian-speaking community. Wide pavements, good restaurants, and close to Retiro. Prices: from €1,500/month for a one-bedroom. Insider note: Salamanca has a high proportion of older buildings with communal charges not included in listings — always ask about gastos de comunidad separately.

Chamberí is less prestigious but more vibrant. Quiet streets, local markets, young families and professionals. Infrastructure is dense: several metro lines, good clinics, international schools within walking distance. Price: €1,200–1,700/month for a one-bedroom. Widely regarded as the most balanced option in terms of price-to-quality-of-life.

Pozuelo de Alarcón — a suburb to the west, technically outside Madrid city limits but very much part of the metropolitan area. Ideal for families: green, quiet, and home to several international and bilingual schools. Cercanías commuter trains connect it to the center in 20–25 minutes. Prices are lower — €1,000–1,500/month for a two- or three-bedroom flat. The downside: life without a car is noticeably more difficult.

Carabanchel and Vallecas are southern districts with lower prices (€700–1,000/month), but a different social dynamic. Not ’dangerous’ in the strict sense, but geared toward a different lifestyle. For most expats with families or business goals, they are not the ideal starting point.

Comparing neighborhoods: who fits where

How to rent an apartment in Madrid: platforms and the process

Start with your own community. The SVOY Market features listings from owners and verified partners, with no agent commission; SVOY HOME will find options to match your budget and neighbourhood and verify the property before the deal.

The main search platforms are Idealista and Fotocasa. Idealista dominates: it has a larger volume of listings and more up-to-date postings. Fotocasa is useful as a second screen — occasionally listings appear there that aren’t on Idealista.

What you need to rent:

• NIE (número de identificación de extranjero) — almost always required
• Proof of income: employment contract, bank statements for 3–6 months, or an employer’s letter
• By law, the fianza is 1 month. Additional guarantees (aval, bank guarantee, increased deposit) are capped at 2 months under Ley 12/2023: the legal ceiling is 3 months in total.
• The agency fee is paid by the landlord, not by you. Charging tenants a ’one month’s rent to the agent’ fee has been illegal since May 2023.
• Sometimes — arrendatario insurance arranged through the agency

Agencies charge a commission of half to one month’s rent. Some listings are direct (no agent) — look for the ’particular’ filter on Idealista.

Insider insight: many landlords in Madrid prefer tenants with a Spanish employment contract and are wary of freelancers or the self-employed, even with proven income. The solution is to offer additional guarantees within the limits of the law (up to 2 months on top of the fianza) or a bank guarantee — totalling no more than 3 months. Any demand for 4 months or more falls outside Ley 12/2023. This approach works.

Renting a flat in Madrid without a residence permit or local bank account

The short answer: you can. The law does not require a residence permit to rent — landlords look at your financial reliability, not your immigration status. Applications are turned down not because of your passport, but because of the absence of verifiable income in Spain.

What they’ll actually ask instead of a residence permit:

• NIE or passport — a passport is sufficient for the contract, but having a NIE makes conversations much smoother;
• proof of income — employment contract, bank statement, tax return. Foreigners without a Spanish nómina are usually offered alternatives: advance payment of several months’ rent, an aval bancario (bank guarantee), or a seguro de impago (non-payment insurance) arranged by the landlord;
• references from a previous landlord — not required, but helpful.

About money without a local account. Landlords prefer domiciliación — SEPA direct debit — which requires an account in the SEPA zone (not necessarily a Spanish one). Paying by regular transfer is not prohibited by law; it is a matter of agreement. A non-resident account in Spain can be opened with a foreign passport and a certificado de no residencia — no residence permit required.

Three things every tenant must know:

• fianza — the statutory deposit is 1 month for residential rentals. Additional guarantees are possible, but capped at 2 months on top;
• the agency commission is paid by the landlord — since May 2023 (Ley 12/2023). If it is being charged to you, that is illegal, not ’local practice’;
• a long-term lease typically runs 5 years with the tenant’s right to leave early — not a ’one year and goodbye’ arrangement.

Listings and property search — at SVOY Home Madrid: browse there, read the city guide here.

Buying an apartment in Madrid as a Russian citizen: what you actually need

Madrid is the only major Spanish market where the tax arithmetic works in the buyer’s favor: a low ITP and a zeroed-out wealth tax.

No restrictions. Spain places no nationality-based limits on property purchases: a Russian citizen can buy an apartment without holding a residence permit. You need a NIE and funds the bank will accept. There is, however, one constraint that rarely gets covered in Russian-language sources — and it changes everything.

€100,000 limit (EU sanctions). Article 5b of EU Regulation 833/2014 prohibits European banks from accepting deposits exceeding €100,000 in total at a single bank from Russian citizens or persons residing in Russia. Exceptions apply to those holding a residence permit from an EU, EEA, or Swiss country (or citizenship of one of those countries). Holders of a long-term D visa are considered lawful residents upon registration.

What this means in practice: without a residence permit, paying for an apartment through a Spanish bank account is simply not possible — the funds will be rejected. For a buyer from Russia, the order is therefore the reverse of what you might expect: first obtain legal status, then complete the transaction. Once you have a Spanish residence permit, the limit no longer applies to you.

Source of funds. The bank and notary will ask where the money comes from, and this is no formality: the paper trail must be transparent and fully documented. How to bring money into Spain today is covered separately, in the section on banking and transfers in Madrid.

**Who you need at the transaction. A notary is required by law; a lawyer is not. But it is the lawyer who — before the deposit — checks the nota simple, IBI and comunidad debts, the legality of the floor plan, and the refundability of the deposit in the contrato de arras. Details and fees are in the section on lawyers in Madrid.

Property purchase taxes in Spain: what the buyer pays in Madrid

The most common budget mistake is counting only the property price. Budget an additional 8–10% on top of it.

Resale property — ITP (property transfer tax), which is set at the regional level. In the Comunidad de Madrid — 6% — one of the lowest rates in Spain (4% for large families meeting certain conditions).

New-build — instead of ITP, VAT (IVA) of 10% plus AJD (stamp duty, around 1–1.5% depending on the region) applies.

What the buyer also calculates:

• notary — €600–1,200 depending on the transaction value;
• registration with the Registro de la Propiedad — €400–800;
• **gestoría fee — €300–600 if they handle the paperwork for you;
• property valuation for a mortgage — €300–600.

What the buyer does NOT pay:

• plusvalía municipal (land value increment tax) is legally paid by the seller. If you are asked to take it on — that is a negotiating concession, not your obligation;
• the agency commission on a rental — it is paid by the landlord (Ley 12/2023).

The trap that costs 3% of the purchase price. If the seller is a non-resident of Spain, the buyer is required to withhold 3% of the price and remit it directly to Hacienda (modelo 211). Fail to withhold it — and that 3% will be claimed from you, not the seller.

Spain’s Golden Visa for property investment: the programme no longer exists

The question is live, but the answer is short: the golden visa in Spain no longer exists. The programme was abolished by law LO 1/2025, with the final applications accepted on 3 April 2025. Purchasing property — at any amount, including the former €500,000 threshold — does not entitle you to a residence permit.

• **Previously issued permits remain valid and are renewed under the old rules.
• Anyone offering you a ’residence permit for property in Spain’ today is selling a service that no longer exists. This is a simple way to tell a consultant from a salesperson.

On the ’foreigner 100% tax’ — there is no need to panic either. In January 2025 the government announced a 100% tax on property purchases by non-residents from non-EU countries; in May 2025 it submitted a bill — but Congress never actually debated it, and the measure quietly disappeared from the January 2026 housing package. As of July 2026 this is not a law but a proposal. There is no reason to factor the ’100% tax’ headlines into your transaction planning — but it would be premature to consider the matter closed for good.

What works instead of the golden visa: the no lucrativa visa (for the financially independent — verified passive income and health insurance, no right to work in Spain) and the digital nomad visa (income from €2,849/month, remote work for a foreign employer). Requirements, amounts, and document lists for each category are at Residence Permit in Spain and Residence Permit Without the Right to Work.

Common mistakes

1. Looking for housing remotely without enough time buffer. Good apartments go in a day or two. Booking a short-term rental for a month and searching once you’re already in Madrid is the only strategy that works.
2. Ignoring gastos de comunidad. Community fees in Spanish buildings — €50–200/month — are often not included in the advertised price. The real cost of renting can be 10–15% higher.
3. Signing a contract without checking the cédula de habitabilidad. This is the document certifying that a property is fit for habitation. Its absence creates legal risk when applying for empadronamiento.
4. Underestimating the importance of empadronamiento. Local registration is required for schools, medical care, and official documents. If a landlord refuses to allow it, treat that as a red flag and walk away from the apartment.
5. Choosing a neighbourhood based on price alone. A €200/month difference between Chamberí and Carabanchel can cost you 40 extra minutes of commuting every day, the absence of the school you need, and an entirely different environment.
6. Not reading the termination clauses. A standard Spanish lease runs 12 months with the option to extend up to 5 years. Leaving before 6 months means a penalty. Understand this before you sign.

Who should choose what

For singles and couples without children with a budget from €1,200/month — Chamberí as a first choice, Salamanca if status and proximity to the Russian-speaking circle matter. Families with children who need international schools should look at Pozuelo de Alarcón if they have a car or are comfortable with Cercanías. Those who have just arrived and have not yet decided on a lifestyle would do well to start with a short-term rental in Chamberí or Retiro to get a feel for the city before signing a long-term lease.