Are you considering moving to Europe? Read this Madrid vs. London article to learn the advantages of living in sunny Madrid, as opposed to dark, dreary and stressful London.
NOTE This article was updated in March 2025 to reflect current events.
Access to the European Market
Post Brexit, many people from the UK are upset that they, and their children, have lost access to the European job market. The situation hasn’t improved given the UK economy’s under-performance. The economy had zero growth between July and September last year, before picking up slightly in the final three months of 2024.
Even highly sanctioned Russia is forecast to have a stronger economic growth rate, having grown an extremely surprising 4.10% in 2024.
In February, the Bank of England said it expects the UK economy to grow by 0.75% during 2025, down from its previous estimate of 1.5%. It is concerned about the impact of higher inflation in the UK as a result of higher wage and national insurance costs for employers, and increased energy and water bills for consumers. US trade tariffs could also cause prices to trend up.
Spanish residency options
Although it is harder than it used to be for UK citizens to live and work in the EU, it’s far from impossible. Many people don’t realize this, but Spain is one of the easiest European countries to immigrate to. The country has excellent options for entrepreneurs, digital nomads and the financially independent.
Entrepreneur visa
If you are an entrepreneur, you can get a Spanish Entrepreneur Visa. The main requirement is that you write a business plan that demonstrates you have an innovative idea in an industry considered strategic by the Spanish government. Most people that are awarded entrepreneur visas work in tech, but other strategic industries are eligible: aerospace and defense, renewable resources and biotech. The good think about Spain’s entrepreneur visa is that you don’t need to demonstrate you have the capital to invest in the business. You are given one to two years to live in Madrid and secure your funding.
Do you work for yourself but you don’t do anything particularly innovative? Not a problem. You can apply for a Spanish freelance visa. You need to write a business plan and demonstrate that you have enough funds coming in to sustain yourself. The threshold is very low. In 2025, you only need to demonstrate that you have 600€ per month to support yourself.
Non-lucrative Spanish visa
If you are of retirement age, you can apply for a non-lucrative visa. Again, the monthly income thresholds are much lower than one might think. You need to demonstrate you have 2,400€ per month for yourself (400% of 2025 IPREM), and 600€ for each additional family member that comes with you.
Digital Nomad visa
If you meet the minimum income threshold for a non-lucrative visa, but earn your income from a job, rather than assets, a digital nomad visa might be the perfect option. This visa, introduced in 2023, allows one to live in Spain if they work remotely.
The income requirement for the digital nomad visa is the same as the non-lucrative visa: 2,400€ per month.
Are you interested in obtaining EU residency for you and your family? Madrid Estate can help you find the perfect home for you and your family. To learn more, you can email our Founder, Fabiana Greci, directly at fabiana@madrid-estate.com, or contact her via WhatsApp at +34 680 30 63 37.
Attainable luxury
One of the best things about living in Madrid vs. London is the relatively low property prices in Madrid. You can find a really beautiful apartment for around 3,500€ per month, such as this three bedroom, two bath apartment in the elegant Trafalgar neighborhood. To put things in perspective, according to the 2024 Deloitte Property Index, the average price per square meter to rent an apartment in Inner London was 33.8€. The average price to rent an apartment in Madrid was 25.4€ per square meter.
If you are looking to purchase a property, there are many other luxurious options available. Or, you can buy a “fixer upper” and refurbish it anyway you like. Although Madrid real estate prices rose in 2024, the average price per square meter of real estate in Madrid was 5,462€ per square meter, still much lower than 8,018€ in Inner London.
One of the best parts about Madrid is its great variety of neighborhoods. If luxury is what you are looking for, posh Salamanca attracts high net worth individuals not just from Spain, but from around the world. Calle Serrano, which runs through the southern part of the neighborhood, is Spain’s version of the Champs-Élysées. It is lined with shops from big international brands, such as Longchamps, MaxMara, Coach and Caroline Herrera. The smaller streets, such as Calle Lagasca and Calle Claudio Coello, have many fashion boutiques, as well as shops by local designers.
If you like to go out, the neighborhoods in the north of the Center, Malasaña and Chueca, are where most of the city’s legendary nightlife is centered. Malasaña is filled with bars, restaurants and clubs. Upscale Chueca is the center of Madrid’s gay community. There are many organic restaurants and trendy clothing stores in this area.
If you prefer a suburban environment, leafy La Moraleja is a beautiful place to live. Located just 15 kilometers north of Madrid, it is arguably the most prestigious residential area in Madrid. The suburb is a magnet for movie stars (Richard Gere recently purchased a home here), diplomats, investors and Real Madrid players. It is a bit like the Beverly Hills of Madrid with its Michelin ranked restaurants, world class golf and verdant green neighborhoods. It also has the best private schools in the city, thus is an excellent choice for those with children.
The city has neighborhoods that everyone will be comfortable living in. We invite you to browse our Neighborhoods Page to see which one is right for you.
Easier commute
One of the biggest problems with living in London is that the real estate in central London is very expensive. As we mentioned earlier, the average price per square meter of residential real estate in Inner London was 8,018€ per square meter in 2024. Unless you are an Arab sheikh or Russian oligarch, you likely can’t afford to live in a central neighborhood like Kensington. Most people live in Outer London (the average real estate price here is much lower, at 6,392€ per square meter), and commute every day. Anyone that has done this knows that the trains are unreliable and very crowded; the Tube is even more uncomfortable. Even worse, given the recent strikes they often don’t even run. Given congestion charges, driving into the city is a very expensive option.
Madrid’s public transport system is new and extremely efficient. If you want to live in the suburbs, the light rail system is quick, comfortable and extremely reliable.
Better weather
Any Londoner will tell you that one of the biggest advantages of living in Madrid vs. London, is the weather. London is synonymous with rain and dark, gloomy winters. Madrid, on the other hand, is a city filled with sunlight. There are winters, but they are mild and the there is still light in the sky at 6pm, even in the darkest days of winter.
Lower cost of living
London is a very expensive city to live in, and the cost of living crisis is only making matters worse.
The expat focused InterNations calculated a 2024 Personal Finance Index for Expats. This index features 53 cities across the globe. The index is based on three rating factors: general cost of living, expats’ satisfaction with their financial situation and whether a respondent’s disposable household income is considered enough for a comfortable life. London came in almost last, at number 51. Madrid, on the other hand, scored 13th. As the UK economy experiences very sluggish growth, according to Reuters Spain’s economy is forecast to grow 2.6% in 2025. We expect the disparity to become even greater.
