Chapter

Buying a home in Madrid

§ 1The capital region

Madrid is the capital and the largest city of Spain, in the centre of the country at altitude. The region includes the dense city, suburbs of flats and houses, and the Sierra de Guadarrama to the north-west, where villages and second homes stand. This chapter belongs to the section on where to buy step by step. It gives only the figures we could verify and ranks no district.

§ 2What the registry shows

The property registrars report an average price of €4,477 per m² in the Madrid region in the second quarter of 2026, the highest of the regions we read, and a twelve-month average of €5,534 per m² for Madrid city. The statistics institute reports a regional annual price rise of 12.9%. Averages hide large differences between districts, between old and new buildings and between the city and the sierra.

§ 3Madrid taxes

The regional tax page gives the general resale transfer tax rate as 6%, with a reduced rate of 4% for the habitual home of a large family. A regional announcement of 5 October 2026 proposed a rate of 4% for a second-hand main home bought by someone under forty, but it is not law, so do not budget on it. A new home pays VAT and stamp duty, as the costs section explains.

§ 4Community documents

Most homes are flats in communities. Ask for the statutes, accounts, minutes and reserve fund, and ask about lifts, façades, heating systems and planned works. The law requires a reserve fund of at least 10% of the last ordinary budget and makes necessary maintenance mandatory. The legal process section explains community debts.

§ 5Noise and heat

The city has traffic, nightlife and building work, and the airport lies to the east. Summers are hot and winters can be cold, so insulation, orientation and heating matter. The location checks section explains noise, heat and the energy certificate.

§ 6Tourist lets

A regional decree of 2014 regulates tourist dwellings, and in Madrid city a municipal activity licence is required, along with a suitability certificate and community approval or the absence of a prohibition. We did not read the municipal rules in full, so ask a local lawyer before you plan any rental income. The section on renting and investing explains the layers.

§ 7The sierra

The Sierra de Guadarrama has village houses and second homes, with cold winters, snow, fire risk in dry summers and slopes. Check heating, road access in winter and fire rules with the town hall. The location checks section explains.

§ 8Licences and title

A lawyer should verify the registry note, the cadastral record and any licence before a deposit. The legal process section explains the checks.

§ 9Who it may suit

It may suit buyers who want a big capital city with services, culture and transport, and who accept the highest prices and the distance from the sea.

§ 10How to compare

Compare the same type of home across places and ask for registry data. The method chapter best places for foreign buyers explains how we use official data. Affordable places in Spain covers budget.

The main points of coast, village or city covers setting. Inland Spain, including the villages around Madrid, is in what inland Spain means.

§ 11The coasts

Costa del Sol for foreign buyers covers the Costa del Sol and house hunting in Andalusia covers Andalusia.

Everything about Costa Blanca covers the Costa Blanca and the Costa Cálida chapter the Costa Cálida.

§ 12The Mediterranean north and islands

The the Valencian Community chapter covers the Valencian Community and Catalonia in Spain covers Catalonia.

What Balearic Islands means covers the Balearic Islands and Canary Islands in Spain the Canary Islands.

§ 13The north

The section on Northern Spain covers northern Spain, with green coasts and cooler summers.

§ 14What we could not verify

We did not read the municipal rules on lets, fire or planning and found no district averages.

§ 15Questions to put to the seller

Ask the seller or agent for the registry note, the cadastral reference, the latest property tax receipt, the energy certificate and the community certificate of debts. Ask about the community accounts, the condition of lifts and façades and any noise from the street. Put the questions in writing and keep the answers. A seller who cannot produce a basic document before a deposit is telling you something about the sale. The legal process section explains each document and who can supply it.

§ 16Costs beyond the price

Budget for the transfer tax, or VAT and stamp duty on a new home, then the notary, the registry, a lawyer and any bank or valuation costs. After the purchase come the annual property tax, community charges, insurance, utilities and maintenance. High prices make the notary, registry and tax costs large in absolute terms, and the community charge can be high in older blocks. The costs section explains each item without giving a single total, because the total depends on the price, the region and the type of home.

§ 17Visiting in more than one season

Visit in summer and in winter, because the city is very hot and the sierra is cold and snowy. Go on a weekday and at a weekend, in the morning and at night, and talk to neighbours and local shopkeepers. A viewing arranged by an agent shows the best hour of the best day, so return unannounced if you can. Take photographs of the street, the access and the neighbouring buildings, and compare them with the plans.

§ 18Working with advisers

A lawyer who works for you, and not for the developer or the agent, should check the title, the licences and the charges. A surveyor can check the structure, and a tax adviser can explain your position as a resident or a non-resident. Choose a lawyer who reads the community minutes, because older blocks often face works. Ask each adviser for a written fee before they start, and keep the fee separate from any commission paid by a seller.

General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.