Many people are leaving South America to live in a place that is politically stable, safer and has a better economy. Traditionally, South Americans gravitated towards Miami. Recently, they have widened their nets and are starting to move to Madrid. This article compares the pros and cons of living in Madrid vs. Miami.
What makes a good expat city?
There are many categories that people look at, but here are some of the primary ones:
- Quality of life
- Infrastructure
- Economy
- Real estate prices and rents
Keep reading as we will cover all of these in detail, comparing and contrasting Madrid vs. Miami.
Quality of life
This category includes factors such as weather, safety, sights & landmarks and access to the outdoors
Madrid
If you look at statistics, Madrid scores very well in this category. The city has some extremely beautiful landmarks and world class museums such as The Prado, The Reina Sofia and The Thyssen-Bornemisza Musuem. Madrid has a very low crime rate and if you like hiking in the mountains, Madrid has excellent outdoor access. You don’t even need a car; you can take public transport to many hiking trails.
If you like nightlife, Madrid’s club scene is legendary. People literally party all night, often waiting until the Metro opens at 6am to go home, or reconvene at one of the many after hours clubs which open around 6am.
The one real drawback to Madrid’s high quality of life can be the weather. The temperatures can be extreme as the city is located in high desert, close to a number of mountain ranges. Temperatures can be cold in winter, but very hot in the summer. Plus, most places do not have air conditioning. Older buildings often don’t have heat and can be very energy inefficient.
Miami
Miami has much milder, more consistent weather than Madrid. It gets warm in the summer, but doesn’t see the extreme spikes that Madrid does. It stays very moderate in the winter. However, it rains a lot more in Miami vs. Madrid and it can be quite humid. Plus there are the hurricanes.
Miami has some amazing Art Deco architecture in South Beach. This architectural style, popular in the 1930s and 40s, dominates the trendy South Beach neighborhood. These uniquely designed buildings, in a range of pastel colors and displaying large neon signs, were built following a devastating hurricane that struck in 1926. Many are hotels and restaurants, most of which have been beautifully restored. The neighborhood is particularly vibrant at night, with cocktails, neon lights, house DJs and old fashioned cigar girls walking around selling their wares. The rest of the architecture in the city is much more modern. There is an excellent art museum called the Perez Art Museum (PAMM) Inside an architecturally stunning building, designed by Herzog & de Mueron, is artwork from the 20th and 21st centuries. Miami also has a number of excellent contemporary art galleries.
A real down side of Miami is the crime rate. With a crime rate of 35 per one thousand residents, Miami has one of the highest crime rates in America compared to all communities of all sizes – from the smallest towns to the very largest cities. One’s chance of becoming a victim of either violent or property crime here is one in 29.
Miami has excellent outdoor access if you like the water. There are many marinas that accommodate everything from super yachts to small dive boats. You can go sailing, fishing or take a charter boat. Most Caribbean tours depart from PortMiami, the world’s largest cruise terminal.
Infrastructure
This category includes factors such as airport connectivity, access to high quality schools and universities, the quality of public transport and healthcare systems.
Madrid
Both Miami and Madrid have international airports. In 2021, Madrid ranked as the 42nd busiest airport in the world, by passenger traffic. It is extremely well connected to big cities in Western Europe, with many daily flights to cities like Paris, London, Amsterdam, Frankfurt and Milan, at a range of different price points. It also has direct flights to New York City, Los Angeles, Mexico City, Bogata, Istanbul and Dubai. If you want to travel and do business in Europe, it’s a very convenient airport. However, if you have family in South America, going to visit them involves a long haul flight. For example, the flight time to Bogota is an average of 10 hours and the flight time to Caracas is an average of 17 hours, according to Skyscanner.
Madrid has high quality schools and universities; the IE Business School consistently ranks as one of the best business schools in Europe. There are British and American schools for younger children, most of which are located in the suburbs. However, given the extremely good public transport system, you don’t even need a car if you want to live in the center and take your child to an international school. If you want your children educated in Spanish, there are many options. Spain’s educational system is ranked 18th in the world.
Spain also has a good healthcare system, and is ranked extremely highly on affordability metrics. Public healthcare is free and private health insurance usually costs only around 50€ per month.
Miami
Miami Dade International is the 10th busiest in the US and the 12th busiest in the world. It is extremely well connected to all US and Mexican airports and is considered the Gateway to South America and The Caribbean. It has direct flights to many European cities, although flight times can be long. For example, a flight to Madrid averages 12.5 hours. If you have family in South America, or do a lot of business in South America, flight times are short. For example, the flight time to Bogota is an average of 3.5 hours and the flight time to Caracas is an average of 5 hours, according to Skyscanner.
The United States has the best educational system in the world, although this often comes at a price. Private schools and universities are available at a spectrum of price points, but the best ones can cost more than $30,000 per year. Good public schools are available; they are typically located in more affluent areas (middle class to upper class). The default language of education is English, but there are Spanish speaking schools available, particularly in Miami where 60% of the population speaks Spanish.
The US also has one of the best healthcare systems in the world. Ranked by quality of care it ranked #3 in 2021. However, it is also the most expensive healthcare system in the world. If you don’t have a lot of money and need high quality healthcare, this is probably a deal breaker for Miami.
Economy
Factors to be considered in this category are employment rate, quality of work life and the level of satisfaction people feel with their personal finances.
Madrid
Although the unemployment rate in Madrid is high- 11.5% for the general population and 31% for people aged 25 years and younger- the prices in the city are relatively low. Salaries are not nearly as much as those in Miami, but so are prices. This is the reason that the city scored 10th in a calculation InterNations did to determine the Personal Finance Index for Expats. This index features 50 cities across the globe, with a minimum sample size of 50 respondents each. 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.
Miami
Miami has an extremely low unemployment rate. According to the US Federal Reserve, it was only 1.5% in November 2022. However, prices are also high. This is why Miami only scored 37th in the Personal Finance Index for Expats; not much better than big international capitals like Hong Kong, Frankfurt and Geneva.
Real Estate Prices and Rents
The biggest expense for most people is housing. Whether you want to rent or buy, it is a big factor to take into consideration when moving to a new city.
Madrid
According to The Ayuntamiento de Madrid, the average price of residential housing in The City of Madrid at the end of 2022 was 3,558€ per square meter. The median rent in The City of Madrid was 13.24€ per square meter.
Miami
According to Fortune Builders, the average price of a home in Miami-Dade County was $343 per square foot, which translates to $3,692 per square meter. Accounting for exchange rate differences, this means the average price of a home in Madrid vs. Miami was roughly the same at the end of 2022. However, Madrid has one clear advantage over Miami if you are interested in purchasing a home. If you spend 500 thousand euros or more, you can get a Golden Visa which gives you and your family long term residency in Spain. The US has a Golden isa option, but you have to spend over $1 million.
According to Rent Cafe, the average rent in Miami was $2,356 in October 2022. The average apartment size in Miami is 888 square feet. This translates to $28.56 per square meter, which is significantly higher than rents in Madrid. Miami experienced a very strong increase in rental rates in 2022- almost 60%, compared to the previous year. This is because people fled to the state due to its lax covid-19 policies, low taxes and people wanting to escape expensive big cities like New York.
Conclusion
Making the decision to live in Madrid vs. Miami depends upon a lot of individual factors and your personal economic situation. The cities are quite different, even located an ocean apart. If you speak Spanish you can easily function in either city. If you don’t, Miami would make for an easier life unless you want to learn Spanish.
If you want to live and travel in Europe, Madrid is an extremely appealing option. You can get a Golden Visa via property purchase, which allows you to live and travel freely in the Schengen Area. Your money will go much further in Madrid- you don’t even need to purchase a car as the Spanish infrastructure is so good.
Miami is more appealing if you need to travel frequently to South America, you have enough money to afford its lavish lifestyle and don’t need to worry about obtaining US Citizenship. In Miami you will need to spend a significantly more amount of money on basics like healthcare and education. Plus, you will most likely need to buy a car.
If you want to learn more about Spain’s Golden Visa program, or what it’s like to live in Madrid vs. Miami, arrange a FREE CONSULTATION TODAY with our Founder, Fabiana Greci, who has lived in both cities and can provide you a very honest assessment about which is most suited to the needs of you, your family and/or your investment portfolio.
