Do you want EU residency? Many people that are interested in EU residency, and ultimately EU citizenship, have both Madrid and Lisbon at the top of their lists. Although there are some similarities to the cites: they both have good weather, they are both on the Iberian peninsula and both countries have good public healthcare systems, they are very different in other respects. Read this Madrid vs. Lisbon article to learn the pros and cons of living and/or investing in each city.
NOTE: This article was updated on October 2, 2024 to reflect fresh changes to Spain’s golden visa program, cost of living changes in both cities and changes in the real estate prices in both cities.
Ease of getting a visa
Lisbon
Portugal used to have a very popular golden visa program, but it has since been terminated. The country has a digital nomad visa, but it is only for short term stays. They are valid for just one year (although they can be renewed once) and require a minimum income of 2,800€ per month.
Madrid
Spain recently stopped giving our golden visas for property investment. However, there are other types of visas you can get. You can get an entrepreneur visa if you are planning on starting a company; there is no investment threshold.
In June 2023, Spain also initiated a digital nomad visa scheme. They are ideal for remote workers; even your family is eligible. You can learn more about it here: Digital Nomad Visa in Spain
Healthcare Systems
Both Spain and Portugal have universal healthcare systems. If you have Spanish residency visa, you have access to Spain’s public healthcare system; Spain’s best hospitals are all in Madrid. Spain ranks sixth out of 89 countries in overall healthcare according to the 2023 Health Care Index, and it ranks second in Europe, behind only Denmark.
The main difference in the healthcare systems of Madrid vs. Lisbon is that the Spanish healthcare system is free to residents. In the Portuguese healthcare system, residents have to pay a small contribution towards certain costs for doctors, specialists, hospital treatment and prescriptions (typically 5-10€) unless they are from a vulnerable or low-earning group. It is also important to note that public health insurance is only available to Portuguese citizens and long term residents; people with short term digital nomad visas do not qualify for Portuguese public health insurance.
Both Spain and Portugal have private healthcare that is reasonably priced (starting at around 30€ per month in Portugal and 50€ per month in Spain). To learn more about the Spanish healthcare system, we invite you to read: Everything you need to know about Spanish healthcare
Infrastructure
This is another category where Madrid clearly wins. Madrid has an excellent public transport system. It is new, comfortable and efficient. Between the Metro, light rail system and vast network of buses, you can get anywhere in the city. If you wish to travel outside the city, almost everywhere is accessible by train or bus.
With 3,100km of track the Spanish high-speed AVE trains operate on the longest high-speed network in Europe. Running at speeds of up to 310 kilometers per hour, this extensive network allows for fast connections between cities in Spain. The travel time from Madrid to Barcelona in less than 3 hours. You can be on the coast in Valencia in less than two hours. Spanish trains are so good that the company Talgo, which manufactures the trains, is being invited to build high speed rail systems as far away as Uzbekistan.
If you own a car, the great majority of highways in Spain are free (no tolls). If they do charge tolls, there is always another freeway or road covering the same itinerary.
Lisbon’s infrastructure is not nearly as good as that of Madrid. The city has a Metro system with four lines. The Metro covers the eastern and northern portions of the city, but there is no service to the west. If you want to go to this part of the city, you will need to take the tram. Although the yellow trams are very picturesque and historic, they are not very efficient. They often get stuck in traffic; once the author of this post was riding the tram and there was a car blocking the tram’s path. The tram driver decided to take this opportunity to get out of the tram and have a cup of coffee. At this point we got out and decided to take a taxi.
Portugal has a network of trains, including the Alfa Pendular Train. This is Portugal’s high speed train and runs the length of the country, from a little north of Porto, to Lisbon and then down to Albufeira, in the south. This train has a top speed of 220 kilometers per hour.
Portugal has a very extensive network of roads, ranking as one of the best networks in Europe. However, the tolls on the main highways can be very expensive.
Cost of Living
The cost of living in Madrid used to be more expensive than that in Lisbon. However, as so much international investment has flowed into Portugal, the situation has reversed. According to Expatisan, the cost of living in Lisbon is now more expensive than in Portugal. Madrid is the third cheapest capital city in Europe, after Milan and Athens. The price index for Lisbon is 109 and it is 107 for Madrid.
Real estate and rents
Since real estate is a large component of one’s monthly expenses, let’s look at real estate prices and rents in Madrid vs. Lisbon:
For years, real estate prices in Madrid were more expensive than those in Lisbon. However, this changed in 2023 and Madrid real estate is now cheaper than that in Lisbon.
Rents in Madrid are relatively expensive. According to the Deloitte 2023 Property Index, the average monthly rent in Madrid is 21.5€ per square meter, where in Lisbon it is only 13.7€ per square meter.
This large difference in rents in Madrid vs. Lisbon, combined with the fact that real estate in Madrid is cheaper than Lisbon, is a very strong argument for investing in real estate in Madrid, vs. Lisbon, as the rental yields are so much higher. To learn about how to further maximize your real estate investment, we suggest you read: How to maximize your rental property yield If you want to learn more about investment opportunities in Madrid, we invite you to arrange a FREE CONSULTATION TODAY
Weather
Madrid and Lisbon have very different weather. Madrid is inland, with mountains to the north, while Lisbon is on the Atlantic ocean. As they are so different, it comes down to personal preference. If you like it sunny year round, Madrid is the place for you. However, it does get cold in the winter and it can be very hot in the summer. If you like more moderate weather, and don’t mind a little wind and rain, Lisbon would be a more suitable choice for you.
Shopping
If you like to shop, especially for high fashion, Madrid has the edge on Lisbon. Madrid has all of the big name brands, like Chanel, Hermes and Gucci. Since Inditex is based in Spain, there are ample branches of Zara, Zara Home, Bershka, Oysho and Inditex’s other brands throughout the city. There is also an excellent outlet mall to the west of the city, in the suburb Las Rozas. Lisbon has big brands as well, but it lacks the variety of Madrid.
Conclusion
Although they are both on the Iberian Peninsula, Madrid and Lisbon are very different cities with very different cultures. When making the decision to move to Madrid vs. Lisbon, much of it is a matter of personal preference. However, there are some important things that could be deal breakers for you. If you need EU residency, and are planning on living in the EU long term, the fact that Portugal is in the process of completely ending its golden visa program for real estate investors is probably a deal breaker. Lisbon is a good fit for true digital nomads, with steady sources of outside income, that are only planning on staying a year or so. If you want to gain long term EU residency, and eventually citizenship, Madrid is the better choice. It is also a better choice for real estate investors because the rental yields are much higher than those in Lisbon.
