Complete guide to buying residential properties in Madrid city

Madrid: A Comprehensive Guide to Living, Working, and Investing in the Spanish Capital

Madrid, the vibrant capital of Spain, is a dynamic metropolis at the heart of the Iberian Peninsula. Renowned for its rich history, grand architecture, world-class museums, and an unparalleled nightlife, it serves as the country’s political, economic, and cultural nerve center. Unlike coastal cities, Madrid offers a quintessentially Spanish urban experience with a continental climate and a bustling, cosmopolitan atmosphere.

General Information about Madrid

The city of Madrid

Madrid is the largest city in Spain by population and the third-largest city in the European Union. Its central location makes it a strategic hub for transport, business, and logistics across Spain and connecting to Europe and Latin America. The city is famous for its iconic landmarks such as the Royal Palace, Plaza Mayor, Puerta del Sol, and world-renowned art museums like the Prado, Reina Sofía, and Thyssen-Bornemisza. It’s a city that effortlessly blends its historic charm with modern infrastructure and a vibrant contemporary scene.

Districts of Madrid city

Madrid is administratively divided into 21 districts, which are further subdivided into neighborhoods (barrios). Each district has its own character, attracting different types of residents and offering varied lifestyles.

1. Centro: The historical core, including popular neighborhoods like Sol, La Latina, Lavapiés, Malasaña, and Chueca. Known for its historical sites, narrow streets, vibrant nightlife, and cultural buzz.
2. Arganzuela: South of Centro, bordering the Manzanares river. Known for its cultural spaces like Matadero Madrid and the Madrid Río park.
3. Retiro: Home to the magnificent Retiro Park, it’s an elegant residential district with wide avenues and a mix of historic buildings and modern apartments.
4. Salamanca: Madrid’s most exclusive and upscale district, characterized by wide, tree-lined streets, luxury boutiques, elegant apartment buildings, and high-end restaurants. Neighborhoods include Recoletos, Goya, Lista.
5. Chamartín: A major business district, home to financial centers (e.g., AZCA, Cuatro Torres Business Area), the Santiago Bernabéu stadium, and high-end residential areas.
6. Tetuán: A diverse district, mixing traditional residential areas with business zones, offering a range of housing options.
7. Chamberí: An elegant, traditional, and very sought-after residential district, known for its stately buildings, quiet streets, and good connections.
8. Fuencarral-El Pardo: The largest district by area, covering extensive natural spaces like El Pardo forest, and also including modern residential developments like Montecarmelo and Las Tablas.
9. Moncloa-Aravaca: Home to the Complutense University campus, the Moncloa Palace (Prime Minister’s residence), and affluent residential areas like Aravaca.
10. Latina: A large, working-class district to the southwest, offering more affordable housing and a mix of traditional neighborhoods.
11. Carabanchel: Another large, traditionally working-class district in the south, known for its diverse population and more economical living.
12. Usera: South of the city center, known for its significant Chinese community and multicultural atmosphere.
13. Puente de Vallecas: A historically working-class district in the southeast, undergoing regeneration, known for its strong community identity.
14. Moratalaz: A quiet, residential district in the east, characterized by green spaces and family-friendly atmosphere.
15. Ciudad Lineal: Stretching in a “line” from north to south-east, a large residential district with a mix of housing types.
16. Hortaleza: North-east of the city, with a mix of traditional neighborhoods and newer developments, including the Valdebebas area.
17. Villaverde: The southernmost district, primarily industrial and residential, offering very affordable housing.
18. Villa de Vallecas: Southeastern district, mixing older areas with new developments like Ensanche de Vallecas.
19. Vicálvaro: Eastern district, home to a campus of Rey Juan Carlos University, with a mix of residential and industrial areas.
20. San Blas-Canillejas: Eastern district, home to the Wanda Metropolitano stadium, with residential areas and industrial parks.
21. Barajas: Northeastern district, home to the Adolfo Suárez Madrid–Barajas Airport, with a mix of residential areas and airport-related facilities.

Why Madrid?

Madrid’s appeal stems from its unique blend of cultural richness, economic vitality, and a high quality of life:

• Economic & Political Hub: As the capital, Madrid is Spain’s most significant economic, financial, and political center. It attracts major national and international corporations, offering a broad spectrum of job opportunities.
• Vibrant Culture & Arts: Home to some of the world’s most renowned art museums (Prado, Reina Sofía, Thyssen-Bornemisza), a thriving theater scene, live music venues, and countless cultural events year-round.
• Gastronomy: A paradise for food lovers, from traditional tapas bars to Michelin-starred restaurants, world-class markets (San Miguel, La Paz), and diverse international cuisine.
• Lively Social Scene: Known for its energetic nightlife, bustling plazas, and a culture that embraces late-night dining and socializing. Madrileños truly know how to live life to the fullest.
• Central Location: Its central position in Spain provides excellent connectivity to all corners of the country via high-speed rail (AVE) and a vast road network.
• Education: Hosts numerous prestigious universities and international schools, making it attractive for students and families.
• Quality of Life: Despite its size, Madrid offers a high quality of life with abundant green spaces (Retiro Park, Casa de Campo), efficient public transport, and a generally safe environment.
• Cosmopolitan yet Authentic: It’s a truly international city with a significant expat community, yet it retains an authentic Spanish character, making it relatively easy to integrate.
• Lower Taxes: The Community of Madrid often offers more favorable regional tax conditions (e.g., lower inheritance and wealth tax) compared to other autonomous communities, which can be a significant draw for high-net-worth individuals.

Madrid vs Barcelona

The comparison between Madrid and Barcelona often comes down to personal preference for a capital city experience versus a coastal metropolis.

• Climate: Madrid has a continental climate: hot, dry summers and cold, dry winters, often with clear skies. Barcelona has a Mediterranean climate: mild, humid winters and hot, humid summers, with direct access to beaches.
• Geography: Madrid is landlocked, located on a high plateau, offering vast central parks. Barcelona is coastal, nestled between mountains and the Mediterranean Sea.
• Culture & Language: Madrid is the quintessential Spanish capital, with Castilian Spanish as the dominant language and a focus on national culture. Barcelona, as the capital of Catalonia, has two official languages (Spanish and Catalan) and a distinct Catalan cultural identity.
• Pace of Life: Madrid is often perceived as faster-paced, more traditional, and the political and financial heart of Spain. Barcelona is seen as slightly more relaxed, artistic, and with a stronger emphasis on outdoor living and creative industries.
• Economy: Madrid is the primary financial, corporate, and political center. Barcelona excels in tourism, technology, design, and logistics.
• Cost of Living: Both are among the most expensive cities in Spain, with housing being a significant factor. Prices can be comparable in prime areas, but Madrid might offer a slightly wider range of luxury housing options (e.g., larger apartments in Salamanca, detached houses in the surrounding suburbs).
• Taxation: The Community of Madrid generally has more favorable regional tax regimes, especially for Inheritance and Wealth Tax, compared to Catalonia.

Madrid vs Valencia

Comparing Madrid and Valencia highlights the differences between a bustling capital and a more relaxed, yet vibrant, coastal city.

• Size & Buzz: Madrid is significantly larger, more bustling, and generally more expensive than Valencia. It’s a major international metropolis and a global city. Valencia, while a large city, feels more manageable, relaxed, and less intense.
• Cost of Living: Valencia generally offers a lower cost of living, particularly for housing, making it a more affordable option for many seeking a city experience in Spain. Madrid’s costs, especially housing, are considerably higher.
• Tourism: Madrid is a major global tourist destination, but it feels more like a city that hosts tourists rather than being dominated by them, unlike some areas of Barcelona or purely tourist-focused coastal towns. Valencia has a growing tourist sector but is less saturated.
• Culture: Both have rich cultures. Madrid boasts world-class museums and a grand imperial history. Valencia offers a unique blend of historical charm and futuristic architecture (City of Arts and Sciences), a distinct Valencian culture, and vibrant festivals like Fallas.
• Beaches: Madrid is landlocked, while Valencia has expansive urban beaches and access to the Mediterranean Sea.

Madrid vs Marbella

These two destinations cater to very different lifestyles and priorities.

• Type of Destination: Madrid is a major European capital city with a comprehensive urban identity, diverse economy, and profound cultural depth. Marbella is a high-end coastal resort town in Andalusia, famous for luxury tourism, golf, and its glamorous, leisure-oriented lifestyle.
• Pace of Life: Madrid is fast-paced, dynamic, and a 24/7 city. Marbella offers a much more relaxed, holiday-focused, and sun-drenched pace of life.
• Demographics: Madrid attracts a diverse mix of professionals, students, families, and tourists. Marbella primarily draws wealthy individuals, retirees, and luxury tourists from across Europe and beyond.
• Cost of Living: Both can be expensive. Madrid’s high costs relate to general urban living and prime real estate. Marbella’s high costs are specifically tied to luxury properties, exclusive services, and high-end leisure.
• Job Market: Madrid has a vast and diverse job market across nearly all sectors. Marbella’s job market is much more focused on tourism, hospitality, luxury services, and real estate.

Madrid vs Alicante

Alicante, a city on the Costa Blanca, offers a much more relaxed and traditional Spanish coastal experience compared to Madrid.

• Size & Scale: Madrid is a much larger, more diverse, and significantly more cosmopolitan city than Alicante.
• Cost of Living: Alicante is considerably more affordable than Madrid, especially for housing and general living expenses.
• Job Opportunities: Madrid offers a far greater number and variety of job opportunities across virtually all industries. Alicante’s economy is heavily reliant on tourism, services, and some light industry.
• Connectivity: Madrid’s Adolfo Suárez Madrid–Barajas Airport is a major international hub with extensive global connections. While Alicante has an international airport, its flight network is smaller and more concentrated on European holiday destinations.
• Cultural Offerings: Madrid boasts a much broader range of world-class cultural institutions, museums, theaters, and entertainment options. Alicante has its own charm, historical sites, and cultural events, but on a much smaller scale.
• Pace of Life: Alicante offers a slower, more laid-back pace of life, appealing to those seeking a quieter existence by the sea. Madrid is a high-energy capital.

Living and Working in Madrid

Working and living in Madrid

Madrid offers a vibrant and expanding environment for both living and working, attracting professionals from diverse sectors globally.

Job Market: As Spain’s economic engine, Madrid boasts a robust and diversified job market. Key sectors include:

• Financial Services: A major European financial hub, home to major banks, investment firms, and corporate headquarters.
• Technology & Innovation: A rapidly growing tech ecosystem, with both established companies and a thriving startup scene, attracting talent in IT, software development, AI, and digital transformation.
• Consulting & Professional Services: Numerous national and international consulting firms, legal practices, and accounting firms have their main offices here.
• Tourism & Hospitality: A significant driver of the economy, offering vast opportunities in hotels, restaurants, and related services.
• Retail & Fashion: A major European shopping destination, with numerous international brands and a dynamic fashion scene.
• Media & Communications: Home to major media groups, advertising agencies, and communication firms.
• Public Sector: As the capital, it hosts numerous government institutions and public bodies.

Work-Life Balance: Madrid is known for its energetic social life, which extends into the work culture. While professional life is demanding, Madrileños value socializing, leisure, and outdoor activities. The city’s efficient public transport and concentrated urban layout often mean shorter commutes compared to other large capitals, contributing to better work-life integration.

Cost of Living: Madrid is one of the most expensive cities in Spain, though generally slightly less expensive than London or Paris.

• Housing: Rent and property prices are high, especially in central and desirable districts like Salamanca, Centro, Chamberí, and Chamartín. However, the diverse range of districts means more affordable options can be found in outer areas or surrounding municipalities.
• Utilities & Groceries: Comparable to other major European cities.
• Transportation: An excellent, extensive, and efficient public transport system (metro, bus, commuter rail – Cercanías) makes daily commuting affordable and convenient.

Social Life & Culture: The city offers an unparalleled social and cultural scene with countless bars, world-class restaurants, iconic museums, theaters, live music venues, and vibrant festivals throughout the year. The large international community makes it easy for newcomers to integrate and connect.

Immigration office in Madrid: NIEs, Visas, Permits, etc.

For foreign nationals looking to reside and work in Madrid, dealing with the Oficina de Extranjería (Immigration Office) is a fundamental part of the process.

• NIE (Número de Identificación de Extranjero): This Foreigner Identification Number is a basic requirement for nearly all administrative, financial, and legal activities in Spain (e.g., opening a bank account, signing contracts, buying property, working). You can apply for a NIE at specific police stations (Comisarías de Policía Nacional) or at the Immigration Office.
• Visas: Depending on your nationality and purpose of stay (e.g., work visa, non-lucrative visa, student visa, Golden Visa), you will generally need to apply for the appropriate visa from your country of origin before entering Spain.
• Residency Permits (Permisos de Residencia): Once you arrive in Spain with a valid visa, you typically apply for your physical residency card (TIE – Tarjeta de Identidad de Extranjero) at the Immigration Office. The requirements vary widely based on the type of residency (e.g., highly qualified professional, self-employed, family reunification, student, investor).
• Work Permits (Permisos de Trabajo): These are usually linked to your residency permit. For employed individuals, the employer often initiates the process for obtaining the initial authorization. For self-employed individuals, you will need to present a viable business plan.

Key Locations in Madrid:

• Oficina de Extranjería de Madrid: Madrid has several offices dedicated to specific types of immigration procedures. Common addresses include:
  • Brigada Provincial de Extranjería y Fronteras (Aluche): For NIE applications, TIE collection, and other general procedures, located at Av. de los Poblados, s/n, 28044 Madrid. This is a major hub.
  • Oficinas de Extranjería in the center: Some specific procedures might be handled at offices like those at C/ Manuel Luna, 29, 28038 Madrid or C/ Silvia, 10, 28043 Madrid, but the main Aluche office is the most common for general expat needs. It’s crucial to verify the correct office for your specific procedure on the official website.

Important Note: Appointments (cita previa) are almost always mandatory for any procedure at the Immigration Office or police stations. These are booked online and can be very challenging to secure due to high demand. Given the complexity of Spanish immigration law, seeking legal advice from a specialized immigration lawyer is highly recommended to navigate the process efficiently and avoid errors.

What are the best banks in Madrid city?

Choosing a bank in Madrid, like in other major Spanish cities, depends on your individual needs (e.g., daily banking, mortgage, investment services, international transfers). Here are some of the most prominent and reliable banks with a strong presence in Madrid:

• Santander: Spain’s largest bank by assets and a global player. It has an extensive network of branches and ATMs in Madrid, offering a full range of services for individuals and businesses. Customer service quality can vary by branch.
• BBVA: Another leading Spanish and global banking group with a significant presence in Madrid. Known for strong digital banking platforms and a comprehensive suite of financial products.
• CaixaBank: A major retail bank in Spain, particularly strong in personal banking. It has a vast network of branches across Madrid and is generally well-regarded for its digital services and customer focus.
• Sabadell (Banco Sabadell): A significant Spanish bank, particularly strong in corporate and business banking, but also offering good services for individuals.
• Bankinter: A smaller but highly regarded bank known for its customer service, innovative products, and good online banking. It tends to attract a more affluent clientele.
• ING: Popular for those who prefer online-focused banking with competitive rates and lower fees. While it has limited physical “Ing Direct” offices in Madrid, its digital services are robust.
• Openbank (Santander Group): Santander’s fully digital bank, offering competitive online accounts and services, ideal for those who prefer managing their finances entirely online.
• N26 / Revolut / Wise (formerly TransferWise): These are popular digital banks or money transfer services, excellent for managing multi-currency accounts and international transfers with favorable exchange rates. They are particularly popular among expats and digital nomads, though they may not offer all the traditional banking services (like mortgages) of Spanish high-street banks.

Tips for Choosing a Bank:

• Fees: Compare account maintenance fees, transfer fees (especially for international transfers), and ATM withdrawal fees.
• English-speaking staff: Larger branches, especially in central business districts, or international departments are more likely to have English-speaking staff, which is very helpful for expats.
• Online Banking: Evaluate the quality and user-friendliness of their online and mobile banking platforms.
• Services: Consider if you need specific services like mortgages, investment products, business accounts, or insurance.
• Branch Network: Decide if you need easy access to physical branches or prefer primarily online interactions.

Connection flights from Madrid airport (Adolfo Suárez Madrid–Barajas Airport)

Adolfo Suárez Madrid–Barajas Airport (MAD) is Spain’s largest and busiest airport, serving as a major international gateway for Europe, Latin America, and increasingly Asia and Africa. It is a critical hub for global connections.

• Major Airlines: Barajas is the main hub for Iberia (Spain’s flag carrier) and a major base for Air Europa. Other major airlines like British Airways, Lufthansa, Air France, KLM, American Airlines, Delta, United Airlines, Emirates, Qatar Airways, Turkish Airlines, and many more operate extensive flights to and from MAD.
• Destinations:
  • Europe: Extremely extensive connections to virtually every major city and numerous regional airports across Europe.
  • Latin America: Madrid is the primary European gateway to Latin America, with unparalleled direct flights to almost every capital and major city in Central and South America.
  • North America: Excellent direct flights to major US cities (New York, Miami, Chicago, Los Angeles, Dallas, Atlanta, Boston, Washington D.C., San Francisco) and Canada (Toronto, Montreal).
  • Middle East & Asia: Strong connections to major hubs like Dubai, Doha, Istanbul, and increasingly direct flights to cities in China, Japan, Korea, and Southeast Asia.
  • Africa: Good connections to North Africa and a growing number of sub-Saharan African destinations.
• Transport to City: The airport is exceptionally well-connected to Madrid city center by:
  • Metro: Line 8 connects all terminals directly to Nuevos Ministerios in the city center.
  • Cercanías Renfe (Commuter Train): Connects Terminal 4 to Chamartín, Nuevos Ministerios, Atocha, and other key stations.
  • Airport Express Bus: A 24-hour express bus service connecting all terminals to Atocha station.
  • EMT City Buses: Regular public bus lines.
  • Taxi and Ride-sharing services.

International Schools in Madrid area

Madrid is a highly popular destination for expatriate families, and as such, it boasts a wide array of excellent international schools offering various curricula. These schools are often located in the more affluent northern and western suburbs, which offer larger properties and green spaces.

• American Curriculum:
  • American School of Madrid (ASM): One of the most prestigious and well-known, offering an American curriculum and IB Diploma. Located in Pozuelo de Alarcón.
  • International College Spain (ICS): Offers the IB Primary Years, Middle Years, and Diploma Programme, with English as the main language of instruction. Also in La Moraleja.
• British Curriculum:
  • Runnymede College: Highly academic and selective, offering the English National Curriculum, IGCSEs, and A-Levels. Located in La Moraleja.
  • King’s College, Madrid: Highly reputable, with campuses in Soto de Viñuelas, Chamartín, and La Moraleja. Offers the English National Curriculum, IGCSEs, and A-Levels.
  • British Council School: Offers a dual Spanish-British curriculum.
  • Hastings School: Follows the English National Curriculum, with several campuses across Madrid.
• French Curriculum:
  • Lycée Français de Madrid: Follows the French national curriculum. A very large and well-established school.
• German Curriculum:
  • Deutsche Schule Madrid: Offers the German curriculum.
• Other Curricula / Multilingual:
  • Colegio San Patricio: Offers a Spanish curriculum with strong bilingual programs, and the IB Diploma.
  • Brains International School: Offers a trilingual education (Spanish, English, French/German).
  • European School of Madrid (ESM): Part of the European Schools system, offering the European Baccalaureate.

Factors to Consider When Choosing:

• Curriculum: Which curriculum best suits your child’s needs and future academic plans?
• Location & Commute: Many international schools are located outside the immediate city center, in affluent suburbs like La Moraleja (Alcobendas), Pozuelo de Alarcón, or Soto de Viñuelas. Commute times can be significant.
• Fees: International school fees in Madrid can be substantial, often among the highest in Spain.
• Waiting Lists: Popular schools often have long waiting lists, so early application is highly advised.
• Language of Instruction: While international, many schools also integrate Spanish language and culture.

What are the universities in Madrid?

Madrid is a leading European university city, boasting an impressive array of public and private universities that attract students from all over the world.

• Complutense University of Madrid (UCM – Universidad Complutense de Madrid):
  • One of the oldest and largest universities in Spain, founded in 1293.
  • Offers a vast range of undergraduate and postgraduate programs across almost all fields of knowledge, including humanities, social sciences, health sciences, experimental sciences, and engineering.
  • Known for its strong academic tradition and research output, with a large main campus in Moncloa.
• Autonomous University of Madrid (UAM – Universidad Autónoma de Madrid):
  • Established in 1968, located in Cantoblanco, a campus north of the city.
  • Highly regarded for its strong research focus, particularly in sciences, law, and economics.
  • Consistently ranks among the top universities in Spain and Europe.
• Polytechnic University of Madrid (UPM – Universidad Politécnica de Madrid):
  • A leading technical university specializing in engineering, architecture, and sports sciences.
  • Offers a wide range of highly respected technical degrees. Its faculties are spread across various campuses in Madrid.
• Carlos III University of Madrid (UC3M – Universidad Carlos III de Madrid):
  • A relatively young public university (founded in 1989) that has quickly gained a reputation for excellence.
  • Known for its strong programs in social sciences, law, engineering, and humanities, with a strong international focus and many programs offered in English. Campuses in Getafe, Leganés, Colmenarejo, and Madrid city center.
• Rey Juan Carlos University (URJC – Universidad Rey Juan Carlos):
  • A public university with several campuses across the Community of Madrid, including Móstoles, Alcorcón, Fuenlabrada, and Vicálvaro (Madrid).
  • Offers a broad range of degrees, with a strong emphasis on practical training and professional integration.
• IE University:
  • A globally recognized private university, particularly famous for its business school (IE Business School).
  • Offers innovative undergraduate and postgraduate programs in business, law, architecture, and international relations, with a highly international student body and faculty. Its main campus is in the center of Madrid (Torre Caleido).
• ESIC Business & Marketing School:
  • A leading private business and marketing school, well-regarded for its practical approach and strong industry connections.
• EAE Business School:
  • Another prominent private business school offering a wide range of MBA and Master’s programs, with a strong international focus.
• Comillas Pontifical University (Universidad Pontificia Comillas ICAI-ICADE):
  • A prestigious private Catholic university, renowned for its faculties of Law (ICADE) and Engineering (ICAI), as well as business and humanities.
• Universidad Europea de Madrid (UEM):
  • A private university offering a wide array of undergraduate and postgraduate degrees across various disciplines, known for its focus on professional training and international outlook. Its main campus is in Villaviciosa de Odón.

List of Consulates and Embassies in Madrid city

Madrid, as the capital of Spain, hosts all the embassies and a large number of consulates from countries around the world. This list is not exhaustive but includes many key diplomatic missions.

• United States of America: Embassy of the United States of America in Madrid
• United Kingdom: Embassy of the United Kingdom in Madrid
• France: Embassy of France in Madrid
• Germany: Embassy of Germany in Madrid
• Italy: Embassy of Italy in Madrid
• Portugal: Embassy of Portugal in Madrid
• Netherlands: Embassy of the Netherlands in Madrid
• Belgium: Embassy of Belgium in Madrid
• Switzerland: Embassy of Switzerland in Madrid
• Sweden: Embassy of Sweden in Madrid
• Norway: Embassy of Norway in Madrid
• Denmark: Embassy of Denmark in Madrid
• Finland: Embassy of Finland in Madrid
• Austria: Embassy of Austria in Madrid
• Ireland: Embassy of Ireland in Madrid
• Canada: Embassy of Canada in Madrid
• Australia: Embassy of Australia in Madrid
• China: Embassy of the People’s Republic of China in Madrid
• Japan: Embassy of Japan in Madrid
• Russia: Embassy of the Russian Federation in Madrid
• Morocco: Embassy of Morocco in Madrid
• Algeria: Embassy of Algeria in Madrid
• Argentina: Embassy of Argentina in Madrid
• Brazil: Embassy of Brazil in Madrid
• Mexico: Embassy of Mexico in Madrid
• Colombia: Embassy of Colombia in Madrid
• Ecuador: Embassy of Ecuador in Madrid
• Peru: Embassy of Peru in Madrid
• Chile: Embassy of Chile in Madrid
• Dominican Republic: Embassy of the Dominican Republic in Madrid
• Uruguay: Embassy of Uruguay in Madrid
• Venezuela: Embassy of Venezuela in Madrid
• Ukraine: Embassy of Ukraine in Madrid
• Poland: Embassy of Poland in Madrid
• Romania: Embassy of Romania in Madrid
• India: Embassy of India in Madrid
• South Korea: Embassy of the Republic of Korea in Madrid
• South Africa: Embassy of South Africa in Madrid

For specific contact details, services, and opening hours, it is always best to check the official website of the respective embassy or consulate.

Official Chambers of Commerce in Madrid

Madrid, as Spain’s economic and business capital, hosts numerous influential Chambers of Commerce, playing a vital role in fostering economic development, supporting businesses, and promoting international trade.

• Cámara de Comercio, Industria y Servicios de Madrid (Chamber of Commerce, Industry and Services of Madrid): This is the official public corporation that represents and defends the general interests of commerce, industry, services, and navigation in the Community of Madrid. It provides a wide array of services to businesses, including training, internationalization support, legal advice, arbitration, and networking events.
• AmChamSpain (American Chamber of Commerce in Spain): With its main office in Madrid, AmChamSpain actively promotes trade and investment between the United States and Spain, offering a strong network for American businesses in Spain and Spanish businesses with ties to the US.
• British Chamber of Commerce in Spain: Headquartered in Madrid, this chamber supports British businesses operating in Spain and Spanish businesses with strong links to the UK.
• French Chamber of Commerce in Spain (La Chambre de Commerce et d’Industrie Française en Espagne – CCI France Espagne): Also headquartered in Madrid, it plays a key role in fostering business relations between France and Spain.
• German Chamber of Commerce for Spain (AHK Spanien): With its main office in Madrid, it supports German businesses and promotes bilateral trade between Germany and Spain.
• Italian Chamber of Commerce for Spain (Camera di Commercio Italiana per la Spagna): Headquartered in Madrid, it promotes economic relations between Italy and Spain.
• Other Bilateral Chambers: Madrid is home to a vast number of other bilateral Chambers of Commerce and business associations, representing countries from across the globe (e.g., Chinese, Japanese, Brazilian, Arab, Nordic, Dutch, Belgian, Swiss Chambers), reflecting the city’s extensive international business community.

These chambers are invaluable resources for companies looking to establish or expand their presence in Spain, offering market insights, networking opportunities, and various business support services.

Buying, investing or renting a house in Madrid

Madrid’s real estate market is one of the most robust and dynamic in Spain, constantly attracting both domestic and international buyers and renters. It’s characterized by high demand, steady appreciation in prime areas, and a diverse offering of properties.

• Buying: Madrid is considered a safe and attractive investment due to its status as a capital city, strong economic fundamentals, and cultural appeal. While prices are high in central and exclusive districts, the market offers long-term stability and potential for capital gains. It’s a popular choice for primary residences, second homes, and investment properties.
• Investing: The city’s strong corporate presence, growing tech sector, and constant influx of professionals and students make it highly attractive for rental investments, both long-term and corporate housing. Tourist rentals are regulated but still possible in certain areas.
• Renting: The rental market is very active and competitive. High demand often leads to quick occupancy and relatively high rental prices, particularly in well-connected and desirable neighborhoods.

Typology of construction in Madrid City

Madrid’s architectural landscape is diverse, ranging from historic palaces to modern skyscrapers, reflecting its evolution as a capital city.

• Centro (e.g., Sol, La Latina, Malasaña, Chueca): Dominated by historic buildings from the 18th, 19th, and early 20th centuries. These are typically multi-story apartment buildings (pisos), often without lifts in the oldest structures. Characteristic features include traditional balconies, high ceilings, and sometimes interior patios. Many properties here are renovated to modern standards.
• Salamanca (e.g., Recoletos, Goya, Lista): Known for its elegant and stately Modernista and classical buildings from the late 19th and early 20th centuries. Features include grand facades, large windows, high ceilings, spacious apartments (pisos señoriales), and often internal courtyards. Many buildings have concierges (porteros).
• Chamberí / Chamartín: Features a mix of elegant residential buildings from the early to mid-20th century, alongside more modern apartment blocks. These areas offer a good balance of traditional charm and modern conveniences. Chamartín also has more contemporary office buildings and high-rise apartments in financial districts.
• Moncloa-Aravaca / Fuencarral-El Pardo (e.g., Aravaca, Valdemarín, La Moraleja, Las Tablas): These affluent suburban areas are characterized by a higher proportion of detached or semi-detached chalets (villas/houses) with private gardens and swimming pools, alongside luxury apartment complexes with communal amenities. They offer a more spacious and quieter lifestyle.
• Peripheral Districts (e.g., Carabanchel, Usera, Puente de Vallecas, Ciudad Lineal): These areas typically feature more traditional, often post-war, apartment blocks. Housing tends to be more affordable, with a focus on functional living. Newer developments (e.g., Ensanche de Vallecas, Valdebebas) in outer districts offer modern apartment complexes and some single-family homes.

Cities and villages surrounding Madrid

Such as Pozuelo de Alarcón, Las Rozas, Boadilla del Monte, Alcobendas, Majadahonda

The Community of Madrid (Comunidad de Madrid) includes numerous municipalities surrounding the capital that are popular residential choices, especially for families seeking larger homes, green spaces, and access to international schools, often with excellent connectivity to the city center.

• Pozuelo de Alarcón: One of Spain’s wealthiest municipalities. Known for its luxury chalets and modern residential complexes, green spaces, and proximity to major international schools (like the American School of Madrid). Excellent connectivity to Madrid via train and bus.
• Las Rozas de Madrid: Another affluent northwestern suburb, offering a mix of chalets and high-end apartments. Known for its shopping centers, sports facilities, and good quality of life. Well-connected by train (Cercanías) and bus.
• Boadilla del Monte: Located to the west, popular for its large chalets, golf courses, and green areas. Offers a more tranquil, suburban lifestyle. Connected by light rail (Metro Ligero).
• Alcobendas (including La Moraleja): La Moraleja, within Alcobendas, is one of Spain’s most exclusive residential areas, featuring large luxury villas, prestigious international schools (like Runnymede College and King’s College), and golf courses. Alcobendas itself is also a significant business park hub. Well-connected via metro and bus.
• Majadahonda: Adjacent to Las Rozas, also in the northwest. A prosperous municipality with a mix of chalets and modern apartments, good amenities, and a strong sense of community. Well-connected by train and bus.
• Tres Cantos: Further north, a modern, planned town known for its high quality of life, green spaces, and growing business park. Popular with families. Good train connections.
• San Sebastián de los Reyes: Northeast, bordering Alcobendas. A mix of residential and industrial areas, with good shopping and transport links.
• Getafe, Leganés, Fuenlabrada, Alcorcón, Móstoles: These are larger, more densely populated cities in the “southern belt” of Madrid. They offer more affordable housing options, diverse communities, and good public transport (metro, Cercanías) into the capital. They also host university campuses (e.g., Carlos III University).

These surrounding areas often provide a different lifestyle and housing options compared to living directly within Madrid city, while still being highly accessible.

Cadastral office

The Dirección General del Catastro (General Directorate of the Cadastre) is a public administrative registry under the Ministry of Finance. It describes urban and rural properties throughout Spain, assigning a unique cadastral reference number.

• What it does: The Cadastre records physical, economic, and legal characteristics of properties, including their location, surface area, use, and the cadastral value. This information is primarily used for tax purposes (e.g., IBI). It acts as an administrative record, distinct from the Property Registry.
• How to access: You can consult cadastral information (for your own properties with a digital certificate, or general public data) through the Sede Electrónica del Catastro (Electronic Headquarters of the Cadastre) online (www.sedecatastro.gob.es).
• In Madrid: The local office would fall under the Gerencia Regional del Catastro de Madrid (Regional Cadastre Management of Madrid), which has offices in the city. While you can visit in person, most procedures and consultations are increasingly done online.

Land Registry offices in Madrid

The Registro de la Propiedad (Land Registry) is a public institution responsible for recording all legal acts related to real estate, such as ownership, mortgages, easements, and other encumbrances. This provides legal certainty and transparency in property transactions.

• Purpose: To guarantee legal security of ownership, protect the rights of owners, and make property information public. Any legal status of a property (ownership, charges, etc.) is only fully valid and enforceable if it’s registered here. It provides a definitive legal record, unlike the Cadastre’s administrative one.
• How to access: There are multiple Land Registry offices in Madrid, as the city and province are divided into various registry zones. When dealing with a property, you’ll need to go to the specific Land Registry office corresponding to its location.
• Consultation: You can request a “Nota Simple” (simple note) from the Land Registry, which provides concise information on the property’s current legal status, registered owner(s), surface area, and any existing charges (mortgages, embargos, easements). This is a crucial document when buying property.
• Finding the right office: Your lawyer or real estate agent will identify the correct Land Registry office for a given property based on its address. You can also search on the website of the Colegio de Registradores de la Propiedad (Association of Property Registrars).

How to obtain a Certificate of Habitation in Madrid

In the Community of Madrid, the equivalent document to a “Cédula de Habitabilidad” (Certificate of Habitation) is usually referred to as the “Licencia de Primera Ocupación” (First Occupation License) or, for older properties, its historical equivalent. The regional government does not issue a specific “Cédula de Habitabilidad” as a standalone document for resales in the same way Catalonia does. Instead, the focus is on the municipal occupation license.

What is the Certificate of Habitation in Madrid?

While the term “Cédula de Habitabilidad” is commonly used in some other regions, in the Community of Madrid, it’s generally encompassed by the “Licencia de Primera Ocupación”. This license, issued by the local Town Hall (Ayuntamiento), certifies that a dwelling has been built or renovated according to the approved plans and meets the necessary conditions for habitability and safe use.

• Purpose: It certifies that a property is legally habitable and is typically required for:
  • Connecting new utility supplies (water, electricity, gas).
  • Registering new properties in the Land Registry after construction.
  • Occasionally requested by banks for mortgages, or by buyers/tenants for reassurance.
  • While not strictly required for every resale or rental of older properties (if a prior license exists and the property’s use hasn’t changed), its existence confirms the property’s legal and habitable status.

What is the “Licencia de Primera Ocupación” or “First Occupation License”?

The “Licencia de Primera Ocupación” (First Occupation License) is the administrative authorization granted by the local Town Hall (Ayuntamiento de Madrid). It certifies that a newly built or a significantly renovated property (where a major works license was required) has been completed in accordance with the approved building plans and urban planning regulations, and that it is suitable for its intended use (i.e., for residential occupation).

• Key point: For newly constructed or majorly renovated properties in Madrid, the “Licencia de Primera Ocupación” is the document that certifies habitability and permits its initial legal occupation.

What are the documents needed to obtain a Certificate of habitation in Madrid for resales?

For resales in Madrid, you generally rely on the original “Licencia de Primera Ocupación” from when the building was first completed or significantly reformed. There isn’t a specific “renewal” process like Catalonia’s Cédula de Segunda Ocupación.

However, if an older property lacks a clear “Licencia de Primera Ocupación” or if it has undergone significant unregistered reforms, it might be necessary to:

1. Request a copy of the existing license: From the local Town Hall’s urban planning department if available.
2. Obtain a “Certificado de Antigüedad y Descripción” and/or “Certificado de No Infracción Urbanística”: Issued by an architect, confirming the age of the building and that no urban planning infringements exist. This helps regularize the situation for very old properties.
3. In some cases, a new declaration of conformity: If major works were done without a license, or the property’s use changed, you might need to process an “Acta de Conformidad” or a new “Licencia de Ocupación” by submitting an architect’s project for regularization.

In essence, for resales in Madrid, you are primarily verifying the existence and validity of the original “Licencia de Primera Ocupación” or proving the property’s legal compliance through other means, rather than applying for a direct “Cédula de Habitabilidad” renewal.

Hire a Qualified Professional

For any new build, major renovation, or if there’s any doubt about urbanistic legality or habitability of an older property, it is essential to hire a qualified professional (an architect or a aparejador – technical architect/building engineer). They will:

• Conduct inspections.
• Issue necessary technical certificates (e.g., “Certificado Final de Obra,” “Certificado de Antigüedad”).
• Draft or review projects for “Licencia de Obras” or “Licencia de Primera Ocupación.”
• Advise on compliance with urban planning regulations.

Submit the Application

Applications for “Licencia de Primera Ocupación” (for new builds/major reforms) are submitted to the Ayuntamiento de Madrid’s Urban Planning Department (Área de Gobierno de Urbanismo, Medio Ambiente y Movilidad). The specific procedure and required documentation will be outlined on the Ayuntamiento’s official website. Often, the professional you hire will manage this submission.

Important Considerations

• No Expiry Date (generally): Unlike Catalonia’s Cédula, the “Licencia de Primera Ocupación” in Madrid typically does not have an expiry date, provided the property’s use or characteristics haven’t changed.
• Compliance: If the property does not meet current regulations or there are unregistered works, obtaining the necessary documentation can involve significant time and cost to regularize the situation.
• Utility Connections: A valid “Licencia de Primera Ocupación” is crucial for new utility connections.

What is the license of occupation? Is it the same as Certificate of habitation?

As explained, in the Community of Madrid:

• The “Licencia de Ocupación” (or “Licencia de Primera Ocupación”) is the official municipal document that certifies a property has been built according to legal requirements and is suitable for its intended use (e.g., residential occupation).
• It largely serves the function of a Certificate of Habitation in Madrid, as the regional government does not issue a separate “Cédula de Habitabilidad” for existing properties.

So, in the context of Madrid, they are essentially the same in terms of certifying habitability and legality of use, with “Licencia de Ocupación” being the correct legal term used by the authorities.

What is the “Licencia de Primera Ocupación” (First Occupation License) , which are the differences with the “Licencia of Segunda Ocupación” (Second Occupation License) ?

• “Licencia de Primera Ocupación”:
  • Issued by: Local Town Hall (Ayuntamiento de Madrid).
  • Applies to: Newly constructed buildings or those that have undergone significant rehabilitation (requiring a Licencia de Obras Mayores).
  • Purpose: Certifies that the building’s construction fully complies with the approved project, building codes, and urban planning regulations, making it suitable for its initial occupation. It’s the “opening permit” for a new building.
• “Licencia de Segunda Ocupación”:
  • In the Community of Madrid, the term “Licencia de Segunda Ocupación” is not a distinct, routinely issued document for the same purpose as the “Cédula de Segunda Ocupación” in Catalonia.
  • If a property has already obtained a “Licencia de Primera Ocupación,” it generally remains valid unless major, unpermitted changes have been made.
  • If an older property (built before such licenses were mandatory or without one on record) needs to confirm its habitability, the process would be more akin to proving its compliance and habitability through technical reports (e.g., from an architect) or by applying for a “Licencia de Ocupación” to regularize its status if significant changes were made.
  • Therefore, the primary document for habitability in Madrid is the “Licencia de Primera Ocupación,” even if it’s an old one for a resale property.

What is the declaration responsible for second occupation?

The concept of a “declaración responsable” (responsible declaration) is widely used in Spanish administration to streamline processes. It is a document signed by an individual or company, declaring under their responsibility that they meet all legal requirements to perform a certain activity (e.g., open a business, undertake minor works) and that they have all necessary documentation, without requiring prior explicit administrative authorization.

• For “second occupation” in Madrid: While not a specific “Declaración Responsable de Segunda Ocupación” for habitability like some other regions, Madrid does use “declaraciones responsables” for certain types of building works or activities. For instance, minor works that do not affect the structure or distribution may be authorized via a “declaración responsable” to the Ayuntamiento, rather than a formal licencia de obras menores.
• Implication for habitability: If a new property has a valid “Licencia de Primera Ocupación,” or an older property is demonstrably legal and inhabited, a separate “declaración responsable” is typically not required for resales or rentals for habitability purposes. However, if any undocumented works or changes have been made that might affect habitability, it could be necessary to regularize them, which might involve a responsible declaration for the works themselves, leading to a new “Licencia de Ocupación” once completed and inspected.

Always consult with a local architect or lawyer to understand the specific administrative requirements for your property in Madrid.

What is the Cadastral value in Madrid?

The Cadastral Value (Valor Catastral) is an administrative value assigned to every property by the Cadastre (Catastro). It is an objective value determined based on various factors, including:

• Location: Value of the land in the specific area.
• Construction characteristics: Quality, age, type, use of the building.
• Surface area: Built area of the property.
• Urban planning status: Zoning and permitted uses.
• Market values: While not directly market value, it’s periodically revised to reflect market trends.
• Purpose: The cadastral value is the basis for calculating several municipal and state taxes, most notably the Impuesto sobre Bienes Inmuebles (IBI), which is the annual property tax. It is usually significantly lower than the actual market value of the property.
• How to find it: It is listed on your annual IBI receipt or can be requested from the Catastro’s electronic headquarters (www.sedecatastro.gob.es) or local office.

What is the fiscal value in Madrid?

The term “fiscal value” can refer to different values used for tax purposes. In Madrid, similar to other parts of Spain:

1. Cadastral Value (Valor Catastral): As described above, this is the fundamental fiscal value used for direct property taxes like IBI.
2. Referencia de Valor (Reference Value) or Valor de Referencia de Mercado (Market Reference Value): This is a new value introduced in Spain from January 1, 2022, by the Cadastre. This value is calculated based on market data from real estate transactions reported to public notaries and property registrars.
   • Purpose: Its primary purpose is to serve as the taxable base for Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados (ITP/AJD) (Property Transfer Tax) and Impuesto de Sucesiones y Donaciones (ISD) (Inheritance and Gift Tax) for properties.
   • Implication: If you buy a property at a price lower than its “Valor de Referencia,” the tax authorities may require you to pay tax based on this higher reference value, unless you can prove the actual market value of your purchase was indeed lower. This aims to reduce tax avoidance through under-declared sale prices.
   • How to find it: You can consult the “Valor de Referencia” for any property on the Cadastre’s electronic headquarters (www.sedecatastro.gob.es).

It’s crucial to distinguish between the cadastral value (for IBI and other annual taxes) and the reference value (for transfer, inheritance, and gift taxes).

How to obtain a building license in Madrid?

A building license (Licencia de Obras) is required from the Ayuntamiento de Madrid (Madrid City Council) for almost any construction, renovation, or alteration work that affects the structure, facade, or distribution of a property, or creates new built space.

There are generally two main categories:

1. Licencia de Obras Mayores (Major Works License):

   • For: New constructions, major rehabilitations (e.g., structural changes, significant changes to internal layout, facade alterations, adding new floors, demolition, changes of use).
   • Process:
     • Hire an Architect: Absolutely essential. An architect will design the project, prepare all technical plans (proyecto básico and proyecto de ejecución), and oversee the work.
     • Submit Project to College of Architects (COAM): The project must be endorsed (visado) by the Colegio Oficial de Arquitectos de Madrid (COAM).
     • Application to Ayuntamiento: The detailed project is submitted to the Ayuntamiento de Madrid’s Urban Planning Department (Área de Gobierno de Urbanismo, Medio Ambiente y Movilidad) along with an application form, proof of ownership, and payment of fees (Impuesto sobre Construcciones, Instalaciones y Obras – ICIO, and other administrative fees).
     • Review and Approval: The City Council reviews the project for compliance with the Plan General de Ordenación Urbana (PGOUM) of Madrid, building codes, safety, and habitability. This can be a lengthy process (several months).
     • Granting of License: Once approved, the license is granted, allowing work to commence.
     • Work Execution & Final Certificate: The architect and aparejador (technical architect/building engineer) supervise the work. Upon completion, they issue a “Certificado Final de Obra,” which is needed to apply for the “Licencia de Primera Ocupación.”

2. Licencia de Obras Menores / Declaración Responsable (Minor Works License / Responsible Declaration):

   • For: Smaller renovations that do not affect the structure, facade, or significantly alter the layout (e.g., changing flooring, painting, updating bathrooms/kitchens without changing structural walls, minor internal distribution changes).
   • Process:
     • Declaración Responsable: For many minor works, a simple “Declaración Responsable” submitted to the Ayuntamiento is sufficient. This means you declare, under your responsibility, that the work complies with regulations and you have all required technical reports (if any). Work can often start after submission.
     • Licencia de Obras Menores: For slightly more complex minor works not covered by a “Declaración Responsable,” a formal “Licencia de Obras Menores” might be required. This still involves submitting documentation (sometimes a simple plan or memory by a technical professional) and paying fees, but the approval process is much faster than major works.
   • Requirements: Check the specific requirements on the Ayuntamiento de Madrid’s website (madrid.es), as they vary depending on the scope of the work and the district.

Key Point: Always consult with a qualified architect or aparejador before undertaking any significant renovation or construction in Madrid. They can advise on the type of license or declaration needed, prepare the necessary documentation, and navigate the bureaucratic process. Unlicensed work can lead to fines and legal complications.

Water, electricity and gas suppliers in Madrid city

Madrid has well-established utility services with various suppliers for consumers, although the distribution infrastructure is managed by specific companies.

Water Supply

• Infrastructure & Distribution: The primary company responsible for the integrated water cycle (supply, sanitation, purification) in Madrid city and much of the Community of Madrid is Canal de Isabel II (CYII). This is a public company of the Community of Madrid.
• Suppliers: For most residents, Canal de Isabel II is the direct supplier. There isn’t an open market for water suppliers in the same way as electricity or gas.
• Billing: Bills are typically issued monthly or bi-monthly and include charges for consumption, fixed fees, and taxes.

Electricity Supply

• Infrastructure & Distribution: The main electricity distribution company in the Community of Madrid is Unión Fenosa Distribución (part of Naturgy group). They own the power lines and infrastructure.
• Suppliers (Commercializers): You have a choice of electricity suppliers. These companies buy electricity from the wholesale market and sell it to consumers. Major suppliers include:
  • Endesa Energía: One of Spain’s largest electricity companies.
  • Naturgy (formerly Gas Natural Fenosa): A major Spanish energy company.
  • Iberdrola: Another large energy utility.
  • Repsol: Also offers electricity services.
  • Smaller Green/Renewable Suppliers: Numerous smaller companies specialize in renewable energy, such as Holaluz, Factor Energía, Som Energía, etc.

• Contract Types: You can choose between regulated tariffs (PVPC – Precio Voluntario para el Pequeño Consumidor, regulated by the government) or free-market tariffs (offered by all suppliers, with various pricing structures, often fixed rates or specific time bands).

Gas Supply

• Infrastructure & Distribution: The main natural gas distribution company in the Community of Madrid is Nedgia (part of Naturgy group).
• Suppliers (Commercializers): Similar to electricity, you can choose your gas supplier from companies like:
  • Naturgy (formerly Gas Natural Fenosa)
  • Endesa Energía
  • Iberdrola
  • Repsol
  • Others

Steps to Connect Utilities

1. Obtain a Licencia de Primera Ocupación: This is usually a prerequisite for utility connections for new properties or new owners. For older properties, simply providing the property deeds and owner’s ID is often sufficient.
2. Choose a Supplier: Research and compare offers from different electricity and gas suppliers based on price, customer service, and contract terms.
3. Provide Documentation: You will typically need:
   • NIE/TIE (Foreigner Identification Number/Card)
   • Passport
   • Property Deeds or Rental Agreement
   • Bank account details for direct debit
   • Electrical Installation Certificate (Boletín Eléctrico or Certificado de Instalación Eléctrica) – especially for new connections or if it’s expired.
   • Gas Installation Certificate (Certificado de Instalación de Gas) – if connecting gas for the first time or if it’s expired.
   • Energy Performance Certificate (Certificado de Eficiencia Energética).
4. Sign Contract: Sign the supply contract with your chosen provider. They will then coordinate with the distribution company for the physical connection/reconnection.
5. Installation/Reactivation: A technician may need to visit the property to activate the supply or install a new meter.

Choosing a Provider

• Compare Rates: Use online comparison tools (e.g., OCU’s comparator, specific supplier websites) to find the best rates for your consumption habits.
• Customer Service: Read reviews and consider the quality of customer service.
• Green Energy Options: If sustainability is important, look for suppliers specializing in renewable energy.
• Bundles: Some companies offer combined electricity and gas deals.

Additional Points

• Existing Connections: If you are moving into a property that previously had utilities connected, the process is generally simpler – it’s often a change of ownership on the existing contract or a simple reactivation.
• Deposit: A deposit may be required, especially for new connections or if you have a poor credit history.

How to obtain a license for a Well in Madrid?

Obtaining a license for a private well in Madrid city itself is highly unlikely and generally not permitted due to urban density, existing municipal water supply (Canal de Isabel II), and strict environmental regulations. Madrid relies entirely on its extensive municipal water network.

However, if you are referring to properties in rural or semi-rural areas within the Community of Madrid (e.g., in the Sierra de Guadarrama or other less developed zones), where private wells might exist or be considered, the process would involve:

• Water Management Authority: The authority responsible for water resources in the Community of Madrid is the Consejería de Medio Ambiente, Agricultura e Interior (Ministry of Environment, Agriculture and Interior), which manages water resources through its Directorates.
• Permit Requirements: You would need to apply for an administrative concession for groundwater extraction. This involves:
  • Technical Project: A geological and hydrological study performed by a qualified engineer, detailing the well’s location, depth, estimated water volume, and impact on local water tables.
  • Environmental Assessment: Ensuring the well does not negatively impact the environment or other water sources.
  • Compliance with Water Law: Adherence to the Spanish Water Law (Ley de Aguas) and regional regulations.
  • Usage Restrictions: Wells are typically only permitted for agricultural, industrial, or domestic use in areas without municipal supply, and usage is heavily regulated to prevent over-extraction.

Recommendation: For properties within or very close to Madrid’s urban area, assume private wells are not an option. For rural properties within the Community of Madrid, consult with a specialized environmental engineer or a lawyer experienced in water rights in the region.

Can I have solar panels in my house in Madrid?

Yes, absolutely! The Community of Madrid and the Ayuntamiento de Madrid are very supportive of solar energy installations. Installing solar panels on your house or building in Madrid is increasingly common and encouraged.

• Regulations: The installation of solar panels (both for electricity generation – fotovoltaica – and hot water – térmica) is regulated by municipal ordinances (Ayuntamiento de Madrid) and regional laws (Community of Madrid), as well as national energy regulations.
• Permits: You will need to obtain a building license (licencia de obras) from the Ayuntamiento de Madrid for the installation. For rooftop installations, this is often a “Declaración Responsable” (Responsible Declaration) or a “Licencia de Obras Menores,” which are streamlined processes.
• Grants & Subsidies:
  • Municipal (Ayuntamiento): The Madrid City Council often offers significant tax rebates for properties that install solar panels, such as deductions on the IBI (up to 50%) and the ICIO (up to 95%).
  • Regional (Community of Madrid): The Community of Madrid, often through agencies like the Fundación de la Energía de la Comunidad de Madrid (FENERCOM), may offer grants and incentives for renewable energy installations.
  • National: There may be national tax deductions (e.g., IRPF deductions) or EU funds available.
• Net Metering (Compensación simplificada): Spain has a system of “net metering” or “simplified compensation” that allows you to feed excess electricity generated by your solar panels back into the grid and receive a discount on your electricity bill for the energy you consume.
• Requirements:
  • Technical project drafted by a qualified engineer.
  • Compliance with building codes and safety regulations.
  • Proper registration of the installation with the relevant authorities (e.g., Industry Department of the Community of Madrid).

Recommendation: Hire a specialized solar energy company. They will handle the technical design, permit applications, installation, and registration process, ensuring compliance with all regulations and helping you maximize available incentives.

What are the requirements to install a septic tank in my house in Madrid?

Similar to private wells, installing a new septic tank within Madrid city limits is highly unlikely and generally prohibited for residential properties. Madrid and almost all developed urban and suburban areas in the Community of Madrid are connected to a centralized public sewage system. Properties are legally obliged to connect to this system if available.

Septic tanks are typically only considered in:

• Rural or isolated areas: Where connection to a municipal sewage system is technically impossible or economically unfeasible.
• Areas without public sanitation: Properties in very remote villages or scattered rural dwellings within the Community of Madrid.

If, by exception, you are in a location where a septic tank might be permitted (e.g., a very isolated rural property within the Community of Madrid, but outside the densely populated areas), the requirements would be stringent and involve:

• Local Council Approval: Obtaining a building license (Licencia de Obras) from the relevant local Town Hall.
• Environmental Approval: Permission from the Consejería de Medio Ambiente, Agricultura e Interior (Ministry of Environment, Agriculture and Interior) of the Community of Madrid, as they regulate wastewater discharge.
• Technical Project: An engineer must design the septic tank system, ensuring it complies with environmental regulations, capacity requirements, and proper discharge methods (e.g., percolation fields, connection to a treatment plant if available).
• Regular Maintenance: Septic tanks require regular emptying and maintenance by authorized companies.

Recommendation: For any property in or around Madrid, assume connection to the public sewage system is mandatory. Only consider a septic tank as an absolute last resort in truly isolated locations, and always consult with a specialized engineer and the local Town Hall.

Can I have pets, cats or dogs in my Madrid house?

Yes, absolutely! Having pets (cats, dogs, etc.) in your house or apartment in Madrid is very common and generally permitted. Spain, and particularly Madrid, is a pet-friendly society.

• General Rules:
  • Community Rules (Comunidad de Propietarios): While individual owners are generally allowed pets, the Comunidad de Propietarios (Owners’ Community) in an apartment building cannot prohibit pet ownership altogether in their statutes. However, they can establish reasonable rules regarding pet behavior in common areas (e.g., always on a leash, cleaning up after them, noise control, use of lifts).
  • Local Ordinances (Ayuntamiento de Madrid): The Madrid City Council has municipal ordinances regarding pet ownership, which cover aspects like:
    • Identification: Dogs and cats must be microchipped and registered in the municipal pet registry (Registro de Animales de Compañía).
    • Vaccinations: Mandatory vaccinations (e.g., rabies).
    • Potentially Dangerous Dogs (Perros Potencialmente Peligrosos – PPP): Specific regulations apply to certain breeds (e.g., Pit Bull Terrier, Rottweiler, Dogo Argentino, etc.), requiring a special municipal license, civil liability insurance, and specific handling rules (e.g., always leashed and muzzled in public).
    • Leashing & Muzzling: Dogs must be leashed in public. PPP breeds must also wear a muzzle.
    • Cleaning: Owners are legally obliged to clean up after their pets’ waste immediately.
    • Noise: Owners are responsible for ensuring their pets do not cause excessive noise disturbances to neighbors.

• Rental Agreements: While owners cannot be prohibited from having pets in their owned property by the community, individual landlords can include clauses in rental agreements that prohibit or restrict pets. Always check your rental contract carefully.

Madrid is increasingly pet-friendly, with many parks (e.g., Retiro Park, Casa de Campo, Madrid Río) having designated areas for dogs, and a growing number of businesses, hotels, and public transport allowing pets (with certain conditions).

Can I have horses in my house in Madrid?

No, you cannot have horses in a typical house within Madrid city limits. This is entirely prohibited by urban planning regulations and health ordinances due to the urban environment, lack of space, and sanitary requirements for livestock.

• Zoning: Urban zoning in Madrid is strictly residential, commercial, or mixed-use, not agricultural or for animal husbandry.
• Space & Facilities: Horses require significant land for grazing, stables, and facilities for their care and waste management, which is impossible in a city setting.
• Regulations: Municipal and regional regulations prohibit keeping large livestock animals in urban or residential areas.

Where you can have horses in the Community of Madrid: If you wish to keep horses, you would need to acquire a property (a finca rústica or rural estate) in a designated rural, agricultural, or equestrian zone within the wider Community of Madrid, outside the immediate metropolitan area. Examples include some areas in the Sierra de Guadarrama or certain rural municipalities. Even then, you would need to comply with specific regional and local regulations regarding livestock farming, animal welfare, and environmental impact.

Recommendation: If keeping horses is a priority, your property search must be explicitly focused on rural, agriculturally zoned land with relevant permits, far from urban centers.

Buying a House in Madrid: Process, Expenses, and Taxes

The process of buying a property in Madrid (and generally in Spain) involves several key stages. It’s a significant investment, and careful due diligence is essential to ensure a smooth and secure transaction.

General tips and recommendations

• Define Your Needs and Budget: Clearly establish your property criteria (location, size, type, features) and a realistic budget, including all associated costs (taxes, fees, etc., which typically add 10-12% to the purchase price).
• Research the Market: Understand current market trends, prices in different districts, and rental yields if it’s an investment. Madrid is a fast-paced market in popular areas.
• Get Your Finances in Order: If you need a mortgage, get pre-approval from a Spanish bank to know your borrowing capacity and accelerate the process once you find a property.
• Be Patient but Decisive: While due diligence takes time, desirable properties in Madrid can sell quickly, so be prepared to act once you’ve made a decision.

Hire a  qualified Lawyer

This is the most crucial piece of advice. A local, independent lawyer specializing in real estate (property law) is indispensable. They will protect your interests throughout the entire process and navigate the specific legal and administrative nuances of Madrid.

• Role of the Lawyer:
  • Conduct comprehensive legal due diligence on the property.
  • Review and draft contracts (reservation, arras, purchase deed).
  • Advise on taxes and fees specific to the Community of Madrid.
  • Verify zoning and urban planning compliance.
  • Liaise with the seller’s lawyer, notary, and other parties.
  • Represent you at the notary.
  • Assist with post-purchase registration and utility changes.
  • Ensure all necessary documents (NIE, bank account) are in place.

Check the Property’s Legal Status – Legal Searches

Your lawyer will conduct thorough legal searches:

• Land Registry (Registro de la Propiedad): Obtain a Nota Simple to verify ownership, confirm the property is free of debts or charges (mortgages, embargos), check the registered size and description, and ensure there are no legal disputes. This is the definitive legal record.
• Cadastre (Catastro): Verify the property’s cadastral reference, surface area, and cadastral value, and ensure it matches the Land Registry and actual property. The new “Valor de Referencia” (reference value) will also be checked, as it impacts ITP.
• Town Hall (Ayuntamiento de Madrid): Check for any outstanding debts on the property (e.g., IBI, communal fees), verify urban planning status (if there are any planning violations or pending expropriations), and confirm the property has a valid Licencia de Primera Ocupación.
• Community of Owners (Comunidad de Propietarios): Obtain a certificate from the community administrator confirming there are no outstanding community fees and no major pending works/expenses for the building.

Review the Property’s Building Specifications

Especially for new builds, your lawyer will review the Memoria de Calidades (Quality Specifications) and the Licencia de Obras (Building License) to ensure the construction meets advertised standards and legal requirements. For resales, they will check for any undisclosed defects or issues.

Ensure Urban Compliance

Your lawyer will confirm that the property’s use and any extensions or modifications are legal and comply with the Plan General de Ordenación Urbana (PGOUM) and specific urban ordinances of Madrid. This is vital to avoid future fines or demolition orders.

Secure a Mortgage Pre-Approval

If you require financing, obtaining a mortgage pre-approval before seriously looking for properties gives you a clear budget, strengthens your offer, and speeds up the purchase process once you find a property.

Review and Understand All Contracts

There are typically two main contracts before the final deed:

1. Reserva (Reservation Agreement): A preliminary agreement where you pay a small deposit to take the property off the market for a short period while initial checks are made.
2. Contrato de Arras (Earnest Money Contract): A more binding private contract. You pay a larger deposit (typically 10% of the purchase price). This contract sets out the conditions of the sale, the timeline for completion, and clauses regarding penalties if either party backs out.

Your lawyer will meticulously review these contracts to ensure they protect your interests and that all clauses are clearly understood before you sign.

Pay Attention to the Deposit Agreement

The Contrato de Arras is critical. There are different types of arras (e.g., arras penitenciales, arras confirmatorias), each with different legal implications if the sale does not proceed.

DO NOT SIGN THE DEPOSIT AGREEMENT WITHOUT THE PREVIOUS CONSENT OF YOUR LAWYER!!

This cannot be stressed enough. Once you sign the Contrato de Arras, it is legally binding. If you pull out (and it’s not due to a condition stipulated in the contract, like mortgage denial), you could lose your deposit. If the seller pulls out, they may have to pay you double the deposit. Your lawyer must review it to ensure it includes necessary protective clauses (e.g., subject to obtaining a mortgage, clear deadlines, etc.).

Arrange for a Property Survey

While not as common as in some other countries (like the UK), arranging an independent property survey by an architect or aparejador can be a wise investment, especially for older properties. They can identify structural issues, damp, or other defects not visible during a casual viewing.

Plan for Additional Costs

Beyond the purchase price, buying a property in Madrid involves significant additional costs (taxes, notary fees, registry fees, lawyer fees). Budget an additional 10-12% of the purchase price for these expenses.

Completion and Registration

• Notary Public: The final purchase deed (Escritura Pública de Compraventa) is signed before a Notary Public. The notary ensures the legality of the transaction, verifies identities, and confirms the agreed terms. The full purchase price is paid at this stage.
• Property Registry: After signing at the notary, your lawyer will ensure the deed is submitted to the Land Registry (Registro de la Propiedad). This is crucial for you to officially become the registered owner and for your ownership to be publicly recognized and protected.

NIE Number

You will need a NIE (Número de Identificación de Extranjero) before you can sign any property-related contracts, open a bank account, or pay taxes in Spain. This should be one of your first steps upon arriving in Spain.

Post-Purchase

After completion, your lawyer will assist with:

• Changing utility contracts: Transferring water, electricity, and gas accounts into your name.
• Direct debits: Setting up direct debits for property taxes (IBI) and community fees.
• Notifying the Community of Owners: Informing the community administrator of the change of ownership.

Cultural and Linguistic Considerations

• Spanish: Castilian Spanish is the predominant language. While many professionals speak English, having some Spanish language skills or a reliable translator/lawyer is beneficial.
• Patience: Spanish bureaucracy can be slower than in some other countries. Patience and proactive follow-up are key.

Expenses and taxes when buying a house in Madrid

The total costs associated with buying a property in Madrid typically range from 10% to 12% of the purchase price, in addition to the property price itself. These costs include taxes, notary fees, registry fees, and legal fees. The Community of Madrid generally has some of the lowest regional property transfer taxes in Spain.

Buying a New Build Property (Obra Nueva)

For new properties sold directly by the developer:

1. IVA (VAT – Value Added Tax):
   • Rate: 10% of the purchase price.
   • This is the main tax for new builds.
2. Impuesto sobre Actos Jurídicos Documentados (AJD – Stamp Duty):
   • Rate: In the Community of Madrid, the current rate for AJD on new build purchases is 0.75% of the purchase price. This is one of the lowest in Spain.
3. Notary Fees:
   • Range: Typically €800 – €2,000, depending on the property value and complexity of the deed. These are regulated by law.
4. Property Registry Fees:
   • Range: Similar to notary fees, €400 – €1,200, also regulated.
5. Lawyer Fees:
   • Range: Usually 0.8% – 1.5% of the purchase price, plus IVA. This can vary based on the lawyer’s experience and the complexity of the transaction.
6. Mortgage Expenses (if applicable):
   • Valuation Fee (Tasación): €300 – €600 (paid by the buyer).
   • Arrangement Fee (Comisión de Apertura): Most banks no longer charge this, but check your offer.
   • Notary, Registry, AJD for the mortgage: Since a 2018 Supreme Court ruling, banks generally bear these costs for the mortgage deed itself.

Buying a Resale Property (“Segunda Mano”)

For second-hand properties:

1. Impuesto de Transmisiones Patrimoniales (ITP – Property Transfer Tax):
   • Rate: In the Community of Madrid, the general rate for ITP is 6% of the purchase price (or the cadastral reference value, whichever is higher). This is one of the lowest rates for ITP in Spain.
   • Reduced Rates: There are no significant general reduced rates like in some other regions, but always check for specific circumstances (e.g., large families, disabled buyers) which might offer minor deductions.
   • This is the main tax for resales.
2. Notary Fees:
   • Range: Typically €800 – €2,000.
3. Property Registry Fees:
   • Range: €400 – €1,200.
4. Lawyer Fees:
   • Range: Usually 0.8% – 1.5% of the purchase price, plus IVA.
5. Mortgage Expenses (if applicable):
   • Valuation Fee (Tasación): €300 – €600.
   • Arrangement Fee (Comisión de Apertura): Rare now.
   • Notary, Registry, AJD for the mortgage: Banks generally bear these costs.

Common Expenses in Both Cases

• IVA (VAT) on professional fees: Your lawyer, real estate agent (if you are the buyer paying them), and surveyor will charge IVA (21%) on their services.
• Real Estate Agent Fees: In Madrid, it is customary for the seller to pay the real estate agent’s commission. However, some agencies might charge the buyer a small fee or a portion of it. Always clarify this upfront.
• Utility Connections/Transfers: Minor fees for changing utility contracts into your name.

Important Tips

• Budget Generously: Always budget at the higher end of the estimate (e.g., 12%) to avoid surprises.
• Check Valor de Referencia: For resales, be aware of the “Valor de Referencia” from the Cadastre, as the ITP will be calculated on the higher of the purchase price or this reference value. If your purchase price is significantly lower than the reference value, you might face a supplementary tax assessment.
• Tax Domicile: Your tax residency status (resident vs. non-resident) affects certain tax obligations.

Example of purchase costs

To estimate your total buying costs, use the following framework:

• Purchase Price: Your agreed-upon price.
• Taxes:
  • New Build: (Purchase Price x 0.10 for IVA) + (Purchase Price x 0.0075 for AJD)
  • Resale: (Purchase Price x 0.06 for ITP)
• Notary Fees: Estimate €800
• Property Registry Fees: Estimate €600
• Lawyer Fees: (Purchase Price x 0.012) + 21% IVA (e.g., 1.2% of price + 21% VAT on that 1.2%)
• Mortgage Valuation Fee (if applicable): Estimate €450

Example for a €400,000 Resale Property in Madrid:

• Purchase Price: €400,000
• ITP (6%): €400,000 x 0.06 = €24,000
• Notary Fees: ~€800
• Registry Fees: ~€600
• Lawyer Fees: (~€400,000 x 0.012) + 21% IVA = €4,800 + €1,008 = €5,808
• Total Estimated Costs (excluding mortgage interest and principal): €24,000 + €800 + €600 + €5,808 = €31,208
  • This is approximately 7.8% of the purchase price, making Madrid one of the most tax-efficient regions for property purchases in Spain.

This estimation helps you understand the overall financial commitment. Always verify current tax rates and fees with your lawyer.

Owning a house in Madrid – Taxes, maintenance, and costs

Owning a property in Madrid involves recurring taxes and maintenance expenses. The Community of Madrid generally offers a favorable tax environment for property owners compared to some other Spanish regions.

Taxes and expenses to own a house in Madrid

1. IBI (Impuesto sobre Bienes Inmuebles – Real Estate Tax):

   • What it is: An annual municipal property tax levied by the local Town Hall (Ayuntamiento de Madrid).
   • Calculation: Based on the property’s cadastral value and a tax rate set by the municipality. Rates vary but are usually a small percentage (e.g., 0.4% – 1.1%). The Madrid City Council generally sets lower rates than many other Spanish cities.
   • Payment: Usually paid once a year, typically in the autumn (e.g., October/November). Notifications are sent by the Ayuntamiento or can be direct debited.

2. Income Tax on the Income of Physical Persons (Impuesto sobre la Renta de las Personas Físicas – IRPF):

   • For Residents: If you are a tax resident in Spain, you will declare your worldwide income, including any deemed rental income from your main residence (if not rented out, a small percentage of the cadastral value is imputed as income, though generally exempt for primary residences) or actual rental income if you let out the property.
   • For Non-Residents (Impuesto sobre la Renta de No Residentes – IRNR): If you are a non-resident owner, you are subject to IRNR annually on:
     • Deemed Rental Income: If you do not rent out the property, you are deemed to generate an income based on a percentage (usually 1.1% or 2% for older cadastral values) of the cadastral value. You pay a flat tax rate on this deemed income (e.g., 19% for EU/EEA residents, 24% for others). This is paid annually.
     • Actual Rental Income: If you rent out the property, you pay IRNR on the actual rental income. For EU/EEA residents, certain expenses can be deducted. For non-EU/EEA residents, the gross income is taxed. This is paid quarterly.

3. Municipal Plusvalía (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana –

   • What it is: A municipal tax levied on the seller of a property, based on the increase in the cadastral land value from the date of acquisition to the date of sale.
   • Payment: Paid to the Ayuntamiento de Madrid. It is typically paid by the seller, but buyers often need to ensure it’s paid to avoid future issues.
   • Calculation: The calculation method changed in late 2021. It can now be calculated based on either:
     • The actual capital gain (difference between sale price and purchase price),
     • Or a coefficient applied to the cadastral land value based on the number of years the property was held. The taxpayer can choose the method that results in a lower tax bill.
   • Note: If no capital gain is made on the land value (i.e., you sell for less than you bought it for, proportionally for the land), this tax should not be payable.

4. Wealth Tax on Madrid Assets (Impuesto sobre el Patrimonio):

   • What it is: A national tax on net wealth, but managed and with different rates in each Autonomous Community.
   • Madrid’s Specificity: The Community of Madrid currently applies a 100% tax credit (bonificación) on the Wealth Tax. This means that, while theoretically subject to the tax, individuals with assets in Madrid typically pay zero Wealth Tax. This makes Madrid highly attractive for high-net-worth individuals.
   • Non-Residents: Non-residents are only taxed on assets located in Spain. If their assets are solely in the Community of Madrid, they would also benefit from the 100% bonificación.
   • Future Changes: It’s important to note that tax laws, including this bonificación, can change. In recent years, a new national tax called “Solidarity Tax on Great Fortunes” (Impuesto Temporal de Solidaridad de las Grandes Fortunas) has been introduced, designed to apply to net wealth over €3 million for individuals who are exempt from Wealth Tax in their Autonomous Community. This essentially aims to tax high-net-worth individuals who benefit from Madrid’s 100% bonificación on Wealth Tax.

What is the Income Tax in Madrid and how to pay

“Income Tax in Madrid” refers to the Impuesto sobre la Renta de las Personas Físicas (IRPF) for tax residents in Spain and the Impuesto sobre la Renta de No Residentes (IRNR) for non-tax residents.

• For Spanish Tax Residents (IRPF):

  • What it is: A progressive tax on your worldwide income (employment income, self-employment income, rental income, capital gains, etc.).
  • How it works: It’s a national tax, but each Autonomous Community (like the Community of Madrid) has the power to set its own regional tax bands and deductions, which apply to a portion of your income. The Community of Madrid typically has some of the lowest regional IRPF tax rates in Spain, making it a tax-advantageous region for residents.
  • How to Pay: Annually, through the “Declaración de la Renta” (Income Tax Return), submitted between April and June for the previous tax year. You will need your NIE and a digital certificate or Cl@ve PIN to access the online platform (Agencia Tributaria – AEAT).

• For Non-Tax Residents in Spain (IRNR):

  • What it is: Tax on income sourced in Spain. For property owners, this primarily means deemed rental income (if the property is not rented out) or actual rental income.
  • How to Pay:
    • Deemed Rental Income: Annually, using Form 210. The deadline is December 31st of the following year.
    • Actual Rental Income: Quarterly, using Form 210. Deadlines are April 20, July 20, October 20, and January 20.
  • Important: Non-residents often need to appoint a fiscal representative in Spain to handle their tax obligations.

Tax offices in Madrid province

For national taxes (IRPF, IRNR, IVA, Corporate Tax, etc.), the main authority is the Agencia Estatal de Administración Tributaria (AEAT – National Tax Agency). For regional taxes (like Inheritance Tax in Madrid) and specific local taxes (like Plusvalía for Madrid City), you interact with regional or municipal bodies.

• Agencia Tributaria (AEAT – National Tax Agency):
  • Delegación Especial de la AEAT en Madrid: The main regional delegation for Madrid, located at Guzmán el Bueno, 139, 28003 Madrid. This is the primary office for complex matters and general tax administration for national taxes.
  • Administraciones de Hacienda (various offices within Madrid city and province): Several smaller administrative offices are spread across Madrid city and the surrounding municipalities, handling more routine inquiries, declarations, and providing assistance. You’d typically find these listed on the AEAT website with a search by postcode.
    • Examples of prominent offices in Madrid city: Offices in districts like Salamanca, Centro, Chamartín, Latina, etc. (Specific addresses can change, so always check the AEAT website or book an appointment online for the closest relevant office).
    • Offices in the Province: Major municipalities surrounding Madrid often have their own AEAT Administraciones (e.g., Alcobendas, Móstoles, Alcalá de Henares, Leganés, Getafe, Fuenlabrada, Las Rozas, Pozuelo de Alarcón).
• Comunidad de Madrid – Agencia Tributaria de Madrid (ATM): This is the regional tax agency for the Community of Madrid. It handles regional taxes, most notably Inheritance and Gift Tax (Impuesto de Sucesiones y Donaciones).
  • Main Office: Often located centrally in Madrid. Check the official website of the Comunidad de Madrid’s tax agency for the precise address and appointment booking.
• Ayuntamiento de Madrid – Agencia Tributaria Madrid (ATM) or Gestión Tributaria: For municipal taxes specific to the city of Madrid, such as IBI and Plusvalía, you will interact directly with the Madrid City Council’s tax department. They have various offices. The main ones or those for specific procedures might be found on the Ayuntamiento de Madrid’s website (madrid.es).

Recommendation: For any tax-related procedure, always refer to the official website of the relevant tax authority (AEAT for national, Comunidad de Madrid for regional, Ayuntamiento de Madrid for municipal). Always book an appointment (cita previa) online before visiting any tax office.

Madrid Income Tax Calculator

Calculating Spanish income tax (IRPF for residents, IRNR for non-residents) is complex due to progressive rates, regional variations (which are significant in Madrid), deductions, and specific rules for different income types.

For Spanish Tax Residents (IRPF): Your income is divided into:

• General Taxable Base: Includes employment income, self-employment income, rental income, etc. This is subject to progressive tax rates, with both national and regional (Community of Madrid) components. The Community of Madrid has historically applied lower regional IRPF rates and more generous deductions than many other autonomous communities, making it a region with a more favorable tax burden for residents.
  • Example Rates (these change annually, check current tables): Combined National + Madrid regional rates are generally lower overall compared to regions like Catalonia.
• Savings Taxable Base: Includes capital gains (e.g., from property sale, shares), interest, dividends. This is subject to a separate, lower progressive scale (e.g., 19% for first €6,000, 21% up to €50,000, 23% thereafter, etc.). This portion of IRPF is the same across all regions of Spain.

To estimate: You’d need to input your specific income types and amounts, and apply the relevant national and Community of Madrid tax tables for the current year, taking into account any applicable deductions. This is best done with a tax advisor or using official tax simulation tools (often found on the AEAT website).

For Non-Tax Residents (IRNR) owning property:

• If not rented out (deemed income):
  • Taxable Base: (Cadastral Value x 0.011) or (Cadastral Value x 0.02)
  • Tax Rate: 19% for EU/EEA residents, 24% for others.
  • Example: Property with Cadastral Value of €150,000, deemed income taxable base = €150,000 x 0.011 = €1,650. Tax (for EU/EEA) = €1,650 x 0.19 = €313.50 per year.
• If rented out (actual income):
  • Taxable Base: Gross rental income.
  • Deductible Expenses (for EU/EEA residents only): Property tax, community fees, mortgage interest, insurance, repairs, depreciation, etc.
  • Tax Rate: 19% for EU/EEA residents on net income, 24% for others on gross income.
  • Example: Gross rental income €12,000/year. Expenses €4,000. Net income = €8,000. Tax (for EU/EEA) = €8,000 x 0.19 = €1,520 per year. (Paid quarterly.)

Important: Tax laws and rates change frequently. Always consult a Spanish tax advisor for personalized and up-to-date calculations.

Selling a house in Madrid

Selling a property in Madrid involves several taxes and costs, primarily borne by the seller. The tax implications can be favorable compared to some other Spanish regions due to regional tax policies.

How much taxes to pay when selling a house in Madrid?

The main taxes and costs when selling a property in Madrid are:

1. Plusvalía Municipal (Local Capital Gains Tax):

   • What it is: Tax on the theoretical increase in the value of the urban land since you acquired the property. Paid to the Ayuntamiento de Madrid.
   • Calculation: Based on the cadastral land value and the number of years you’ve owned the property. It is currently calculated using two methods (objective method based on coefficients, or real gain method based on the actual capital gain on the land value), and you can choose the one that benefits you most. If you sell at a loss (i.e., for less than you bought it for, proportionally for the land), this tax should not be payable.
   • Payment: Within 30 working days from the sale date for transfers inter vivos (between living persons).

2. Capital Gains Tax (Impuesto sobre las Ganancias Patrimoniales) for Residents (IRPF) or Non-Residents (IRNR):

   • What it is: This is the tax on the actual profit you make from the sale of the property.
   • Calculation: (Sale Price – Acquisition Costs) – (Purchase Price + Acquisition Costs). Acquisition costs include taxes and fees paid when buying the property, and legally recognized improvements to the property (not just maintenance).
   • For Spanish Tax Residents (IRPF):
     • This gain is part of your “savings taxable base” and is taxed at progressive national rates (the regional component of IRPF does not apply to capital gains from savings/assets):
       • 19% on the first €6,000 of gain.
       • 21% on gains from €6,000.01 to €50,000.
       • 23% on gains from €50,000.01 to €200,000.
       • 26% on gains over €200,000.
     • Exemptions/Reductions:
       • Reinvestment in Main Residence: If you sell your primary residence and reinvest the proceeds into buying a new primary residence in Spain within 2 years (before or after the sale), the capital gain can be exempt.
       • Over 65: If you are over 65, sell your main residence, and meet certain conditions, the capital gain can be exempt, regardless of reinvestment.
       • Pre-1995 Acquisition: For properties acquired before 1995, there might be transitional coefficients that reduce the taxable gain, but these have been phased out or significantly limited.
   • For Non-Tax Residents (IRNR):
     • Rate: Flat rate of 19% on the capital gain for EU/EEA residents. For non-EU/EEA residents, it’s 24%.
     • Retention: The buyer is legally obliged to withhold 3% of the sale price and pay it directly to the tax authorities on behalf of the non-resident seller. This is an advance payment of the capital gains tax. If the actual tax due is less than 3%, the seller can claim a refund. If it’s more, the seller must pay the difference.

3. Real Estate Agent Fees:

   • Custom: In Madrid, it is standard for the seller to pay the real estate agent’s commission.
   • Rate: Typically ranges from 3% to 5% (plus 21% IVA) of the sale price.
   • This is often the largest cost for the seller after taxes.

4. Notary and Property Registry Fees:

   • Notary: For signing the Escritura de Compraventa (sale deed). While the law states the buyer pays the majority of these fees, some costs can fall on the seller (e.g., the original copy of the deed, or agreed distribution of costs). Usually minor for the seller.
   • Property Registry: For registering the change of ownership. Usually paid by the buyer.

5. Lawyer and Solicitor Fees:

   • Rate: Typically 0.8% – 1.5% of the sale price, plus 21% IVA. Your lawyer will ensure all legal aspects are covered, advise on tax implications, and represent your interests.

6. Mortgage Cancellation Fees:

   • If you have an outstanding mortgage on the property, you will need to cancel it at the time of sale. This involves:
     • Cancellation Fee from Bank: (if any, usually 0% to 0.5% of the outstanding capital).
     • Notary and Registry Fees for Cancellation: Costs to register the cancellation of the mortgage in the Land Registry. These are relatively minor (a few hundred euros).
     • Gestoría Fee: If you use a gestoría (administrative agency) to handle the cancellation process.

7. Energy Performance Certificate (EPC – Certificado de Eficiencia Energética):

   • Mandatory: You must have a valid EPC to sell your property. If yours is expired or you don’t have one, you need to obtain one from a certified architect or engineer.
   • Cost: Around €100 – €300, depending on the property size.

8. Renovation of the Certificate of Habitation:

   • As mentioned, Madrid relies on the “Licencia de Primera Ocupación.” If there are significant unregularized changes to the property, you might need to update its legal status, potentially incurring costs for architect reports and municipal fees.

9. Updating constructions on your property:

   • If you have carried out any extensions or significant modifications to the property that are not registered in the Land Registry and Cadastre, you will need to legalize and register them before selling. This can incur additional costs (architect fees, permits, notary, and registry fees).

10. Other Possible Costs:

    • Community Fees: Ensure all community fees are paid up to the date of sale. The administrator will issue a certificate.
    • Utility Bills: Ensure all utility bills are settled.

Renting a house in Madrid

Madrid has a highly active and competitive rental market, driven by a large professional and student population, as well as a significant expatriate community. Prices are generally high, especially in central and desirable areas.

Which are the best areas for rent in Madrid?

The “best” areas depend heavily on individual priorities such as budget, lifestyle, family needs, and commute.

• Popular for Expats/Professionals:
  • Salamanca (Recoletos, Goya, Lista): Upscale, elegant, safe, with luxury boutiques and fine dining. Very popular with high-income professionals and families. High rental prices.
  • Chamberí: Traditional, elegant, central, with stately buildings and a quieter atmosphere. Well-connected, popular with established professionals and families.
  • Centro (Malasaña, Chueca, La Latina, Conde Duque): Vibrant, bohemian, historic, with lively nightlife, cultural spaces, and independent shops. Appeals to younger professionals and those seeking a dynamic urban experience. Apartments can be smaller and older.
  • Chamartín / Nuevos Ministerios: Business district, modern apartments, excellent transport links. Ideal for professionals working in the financial sector.
  • Retiro (Jerónimos, Ibiza): Adjacent to Retiro Park, offering a mix of classic elegance and family-friendly amenities.
• Family-Friendly (often with access to international schools):
  • Arganzuela (especially near Madrid Río): Good green spaces, modern developments, and good transport.
  • Moncloa-Aravaca / Valdemarín: Affluent areas with more spacious properties (chalets, larger apartments), green spaces, and proximity to international schools. Requires a commute to the center.
  • Miraflores de la Sierra / Soto de Viñuelas (Alcobendas): Further out, but offer large houses, tranquility, and renowned international schools.
• More Affordable Options (but still well-connected):
  • Usera / Carabanchel / Puente de Vallecas: Southern districts offering significantly lower rental prices, diverse communities, and good metro connections to the center.
  • Ciudad Lineal / San Blas: Eastern districts offering a mix of housing types at more accessible prices.
  • Neighboring Municipalities (e.g., Getafe, Leganés, Alcorcón, Móstoles): These large southern cities offer significantly more affordable housing, good public transport links (metro, Cercanías), and access to local amenities.

Which are the most rented areas in Madrid by Airbnb?

Areas with high concentrations of Airbnb and tourist rentals in Madrid, leading to high demand and potentially impacting long-term rental availability and prices for residents, typically include:

• Centro:
  • Sol / Gran Vía: The absolute heart of tourist activity.
  • La Latina: Popular for its traditional charm, tapas, and El Rastro market.
  • Malasaña / Chueca: Known for their bohemian atmosphere, nightlife, and cultural scene.
  • Palacio / Ópera: Close to the Royal Palace and major attractions.
• Salamanca: Particularly the areas closer to the center, due to their elegance and proximity to luxury shopping and museums.
• Retiro: Especially around Retiro Park and the museum triangle.
• Arganzuela: Especially properties close to Atocha station and cultural sites like Matadero.

Important Note on Tourist Licenses: The Ayuntamiento de Madrid has implemented regulations to control tourist rentals. While not as restrictive as Barcelona, there are specific rules:

• “Vivienda de Uso Turístico” (VUT) (Tourist Use Dwelling) License: Required for short-term rentals.
• Specific Zoning: The main restriction is that properties generally need to have an independent entrance from the street (not through a communal building entrance) to be granted a VUT license in central Madrid. This effectively limits tourist licenses to ground floor properties or those with direct street access.
• Community Rules: The Comunidad de Propietarios (Owners’ Community) can vote to prohibit new tourist rentals in their building.
• Illegal Rentals: Operating a tourist rental without a valid license is illegal and subject to fines.

What are the costs for renting a house in Madrid?

Beyond the monthly rent, there are several upfront and ongoing costs when renting in Madrid:

Upfront Costs:

1. Deposit (Fianza): Legally, landlords must request a deposit equivalent to one month’s rent (for long-term rentals). This is held by a regional body (Agencia de la Vivienda Social de la Comunidad de Madrid) and returned to the tenant at the end of the contract, provided there are no damages and all bills are paid.
2. Additional Guarantees (Garantías Adicionales): Landlords can request additional guarantees, typically up to two months’ rent. This is explicitly permitted for long-term rentals under the Urban Leases Act. This money is often held by the landlord directly.
   • So, total initial outlay can be up to 3 months’ rent.
3. Agency Fees (if applicable):
   • For long-term rentals to individuals (from June 2023): The landlord is legally obliged to pay the real estate agency fees. Tenants should not be charged agency fees for finding a long-term rental.
   • For temporary rentals (e.g., student housing, stays over 32 days but less than a year, or corporate housing): Agency fees can still be charged to the tenant, often equivalent to 10% of the annual rent + 21% IVA, or a fixed fee.
4. First Month’s Rent: Paid upfront.

Ongoing Costs:

1. Monthly Rent: As agreed in the contract.
2. Utilities (Suministros): Water, electricity, gas, and internet. These are always paid by the tenant based on consumption.
3. Community Fees (Gastos de Comunidad): For apartment buildings, these are charges for the maintenance of common areas (stairs, lift, garden, pool). For long-term rentals, these are usually included in the rent by law for contracts signed after June 2023. For older contracts or specific agreements, they might be separate. Always clarify if gastos de comunidad are included or separate.
4. IBI (Impuesto sobre Bienes Inmuebles – Property Tax): Legally, the IBI is paid by the landlord. The contract may stipulate that the tenant reimburses the landlord for a portion of it, but this is less common with new rental laws favoring tenants.
5. Rubbish Collection Tax (Tasa de Residuos): A small municipal tax, typically paid by the tenant in Madrid, often included in the water bill or as a separate charge.
6. Home Insurance (Seguro de Hogar): The landlord is generally responsible for structural insurance. The tenant is often required to take out basic contents and civil liability insurance for their belongings and potential damages they might cause.

Considerations for Non-Residents

• NIE: Essential for signing a rental contract and connecting utilities.
• Bank Account: A Spanish bank account is crucial for paying rent and bills via direct debit.
• Guarantor/Upfront Payments: Landlords might ask for a guarantor or several months’ rent upfront (beyond the legal deposit and additional guarantee) if you don’t have a stable income or work contract in Spain.

Keep in Mind

• Rental Law (LAU): Rental contracts are primarily governed by the Ley de Arrendamientos Urbanos (LAU). Recent amendments (especially 2019 and 2023) have strengthened tenant rights, affecting contract duration (minimum 5 years for individuals, 7 for companies), rent increases, and agency fees.
• Rent Control: As of current regulations (July 2025), the Community of Madrid does not apply rent control measures as strictly as some other regions (like Catalonia) that have declared “tensioned areas.” Rent increases are typically tied to the IPC (inflation index) or a new state reference index.
• Documentation: Be prepared to provide a lot of documentation, including proof of income, work contracts, and bank statements.

Madrid Tax on the rent Calculator

As a tenant in Madrid (a person paying rent), you are generally not directly subject to specific “tax on the rent” in the way a landlord is. Your rental payments are an expense for you, not an income.

However, your rental payments can be relevant for:

• IRPF (Income Tax for Residents): If you are a Spanish tax resident, your rental payments might qualify for certain regional tax deductions (deducciones autonómicas) in the Community of Madrid, depending on your income level, age, family circumstances, and the specific property conditions. The Community of Madrid often offers favorable deductions for young renters or those with low incomes. These deductions are declared in your annual IRPF tax return. You will need a valid rental contract and proof of payment.
• Subsidies/Aid: Renters with low incomes might be eligible for rental subsidies from the Community of Madrid or the Ayuntamiento de Madrid.

For Landlords (who receive rent): They are subject to income tax on rental income (IRPF for residents, IRNR for non-residents), as explained in the “Owning a house” section. Spanish tax resident landlords can benefit from a significant reduction (e.g., 50%) on rental income from long-term housing rentals.

How to get tourist license in Madrid

Obtaining a tourist license (Vivienda de Uso Turístico – VUT) in Madrid is possible, but it is subject to specific regulations and can be challenging, especially in the most central and dense areas. The Ayuntamiento de Madrid has implemented ordinances to regulate these types of properties.

Ensure Your Property is Eligible

The key requirement introduced by the Ayuntamiento de Madrid’s regulations (particularly the 2019 urban plan modification) for a Vivienda de Uso Turístico (VUT) is often related to the property’s access and zoning:

• Independent Entrance from the Street: For properties located in areas designated for residential use, a VUT generally needs to have an independent and direct entrance from the street (not through a communal building entrance). This effectively restricts VUTs primarily to ground-floor properties or those in buildings specifically designed with direct street access units.
• Location/Zoning: The property must be located in an area where tourist use is permitted by the urban plan. While the “independent entrance” rule is the main hurdle, other zoning restrictions might apply in certain areas.
• Community Rules: The Community of Owners (Comunidad de Propietarios) in an apartment building can vote by a 3/5 majority to prohibit new VUTs in their building or to increase community fees for VUTs by up to 20%. If they vote to prohibit, you cannot obtain or use the license.
• Technical Requirements: The property must meet all basic habitability and safety conditions.

Process to obtain a VUT License:

1. Verify Eligibility: The most crucial first step is to confirm that your specific property meets the independent entrance requirement and is in a zone where VUTs are allowed, and that your Comunidad de Propietarios does not prohibit them. This often requires consulting an architect and reviewing municipal urban planning documents.
2. Architect’s Report: An architect must issue a “Certificado de Idoneidad” (Certificate of Suitability) or similar technical report, confirming the property meets habitability, safety, and acoustic insulation requirements for tourist use.
3. Submit Responsible Declaration (Declaración Responsable): The application is typically submitted to the Ayuntamiento de Madrid as a “Declaración Responsable.” This is a sworn statement by the owner declaring that the property meets all requirements and that they have the necessary documentation.
4. Registration: Once the “Declaración Responsable” is submitted, you can usually begin operating the VUT (as long as you comply). The property will be registered in the Registro de Empresas Turísticas (RET) of the Community of Madrid, and you will receive a registration number.
5. Signage: Displaying the registration number is mandatory.

Important Considerations

• Complexity: The regulations are complex and change. Seek professional advice from a lawyer specializing in urban planning and tourist rentals in Madrid.
• Fines: Operating an illegal tourist rental without a license can lead to very substantial fines and potential closure.
• Ongoing Compliance: You must continuously comply with all regulations, including fire safety, accessibility, noise limits, and police registration of guests.
• Taxes: Tourist rentals are subject to specific tax obligations (IVA for certain services, income tax).

Squatters and “Okupas” in Madrid. Is this a real problem?

The issue of “okupas” (squatters) is a concern in Madrid, as it is in other parts of Spain. While it’s a real and distressing problem for affected property owners, it’s important to differentiate between types of squatting and assess the actual risk.

• Is it a real problem? Yes, for the individual owners whose properties are affected, squatting can lead to significant financial losses, legal battles, and emotional distress. There are cases where individuals or organized groups illegally occupy properties.
• Is it widespread? While incidents occur, it’s not an epidemic affecting the majority of property owners in Madrid. The problem is often sensationalized by the media. The most commonly targeted properties are vacant ones.
• Target Properties: Squatters typically target:
  • Empty properties: Especially those that appear abandoned, bank-owned, or undergoing probate.
  • Second homes or holiday homes: Properties that are vacant for extended periods.
  • Properties in legal dispute: Those with unclear ownership, making it harder to prove immediate occupancy.
  • They are highly unlikely to target occupied primary residences.
• Legal Framework: Spanish law distinguishes between:
  • “Usurpación” (Usurpation): Illegal occupation of a property that is not a primary residence, typically without violence or intimidation. This is a minor crime, and eviction usually requires a lengthier civil legal process.
  • “Allanamiento de morada” (Breaking and entering a domicile): Illegal entry into a primary residence (first home). This is a much more serious criminal offense, and police can act much more quickly (often immediately, within 48 hours of the illegal entry) to evict. The key here is proving it is your actual home.

How to avoid squatters or squatters in my house in Madrid?

Prevention is paramount. While no method is 100% foolproof, these steps significantly reduce the risk:

1. Keep it Occupied: The most effective defense is to have the property continuously occupied, either by yourself, a long-term tenant, or (where legally permitted) a short-term tenant.
2. Regular Visits: If it’s a second home or holiday home, arrange for regular visits by a trusted person, property manager, or neighbor.
3. Visible Signs of Occupancy: Make it look lived-in (mail collected, lights on timers, garden maintained, blinds/curtains adjusted periodically).
4. Enhanced Security Measures:
   • Robust Doors and Locks: Invest in high-security, anti-squatter doors and multi-point locks. This is a common and highly recommended measure.
   • Alarm Systems: Install a monitored alarm system with immediate police notification (many security companies specialize in this for unoccupied properties). This is one of the most effective deterrents.
   • Security Cameras: Visible cameras can deter.
   • Reinforced Windows/Blinds: Especially for ground-floor properties.
5. Maintain Utilities: Keep water and electricity connected and active, even if on a minimal consumption tariff. An occupied property with working utilities is less attractive to squatters.
6. Professional Property Management: If you are absent for extended periods, consider hiring a reputable property management company to oversee the property, conduct regular checks, and address any issues promptly.
7. Address Legal Issues Promptly: Resolve any inheritance issues, probate processes, or ownership disputes quickly to avoid leaving a property in legal limbo.
8. Know Your Neighbors: Good neighborly relations mean someone might alert you to suspicious activity.
9. Immediate Legal Action: If you discover squatters:
   • Call the Police (Policía Nacional): If the squatters have just entered (ideally within the first 24-48 hours, or before they have established any claim of “domicile”) and it’s clearly an allanamiento de morada (primary residence) or a new usurpation, the police may be able to evict them promptly.
   • Engage a Lawyer: If the police cannot act immediately (e.g., squatters claim it’s their domicile, or it’s a long-term empty property), you will need to engage a lawyer specializing in property law and evictions to initiate civil proceedings. This process can be lengthy and costly.

Important Legal Note: The speed of legal action is critical. The longer squatters occupy a property and establish even a tenuous claim of domicile, the harder and longer the eviction process becomes, falling under civil (rather than criminal) law.

Lawyers practice in Madrid

Madrid has the largest and most concentrated legal community in Spain, with a vast number of law firms ranging from small specialist boutiques to large international firms.

How to be registered as a lawyer in Madrid

– Madrid – “Bar Association”

To practice law in Madrid, a lawyer must be registered with the Ilustre Colegio de la Abogacía de Madrid (ICAM), which is the Madrid Bar Association.

• Requirements:
  • Law Degree: Hold a Spanish Law Degree (Grado en Derecho).
  • Master’s for the Legal Profession: Complete a mandatory Master’s Degree for Access to the Legal Profession (Máster de Acceso a la Abogacía).
  • State Exam: Pass the state exam to qualify for the legal profession (Examen de Acceso a la Abogacía).
  • Registration with Bar Association: Apply for registration with ICAM, pay membership fees, and meet any specific local requirements. This grants the lawyer the right to practice in Madrid and throughout Spain.
  • Foreign Lawyers: Lawyers from other EU countries may be able to register under specific EU directives, often requiring an adaptation period or proof of professional qualification. Non-EU lawyers typically need to homologate their degree and pass the Spanish bar exam.

What are the costs of a Lawyer in Spain to represent in a property transaction?

Lawyer fees for property transactions in Madrid are typically calculated as a percentage of the purchase or sale price, plus IVA (21%).

• Range: Generally between 0.8% and 1.5% of the property’s value.
• Minimum Fees: Some lawyers may have a minimum fixed fee for lower-value properties (e.g., €1,500 – €3,000 for a standard transaction).
• What’s included: This fee usually covers all legal due diligence, contract review and drafting, negotiation assistance, attendance at the notary, and post-completion registration.
• Additional Services: Additional fees may apply for specific complex situations (e.g., legalizing undeclared works, resolving disputes, dealing with complex inheritance issues, power of attorney assistance, tax representation for non-residents).
• Transparency: Always ask for a clear breakdown of fees and what is included in the service agreement before engaging a lawyer.

How to choose the Best Lawyer for Property/real estate lawyers for buying or selling a house in Madrid

Choosing the right lawyer is crucial for a secure property transaction. Look for:

• Specialization in Real Estate Law: Ensure they specialize in property law, not just general law. Property law in Spain has its complexities, and Madrid has specific municipal regulations.
• Local Knowledge: A lawyer based in Madrid will have up-to-date knowledge of local regulations, taxes, and procedures specific to the Community and City of Madrid.
• Independence: Crucially, the lawyer should be independent of the real estate agent, seller, or any other party involved in the transaction to avoid conflicts of interest.
• Experience: Look for a lawyer with a proven track record in handling similar property transactions for international clients.
• Language Proficiency: If you are not fluent in Spanish, ensure the lawyer (or their team) can communicate effectively in your language (e.g., English, French, German, Dutch).
• Transparency in Fees: They should provide a clear and detailed fee structure upfront.
• References/Reputation: Check reviews, ask for references, or seek recommendations from trusted sources (e.g., other expats, expat forums).
• Accessibility: Ensure they are responsive and accessible for communication.

Lawyers’ services in Madrid

Madrid offers a vast array of legal services. Here are common specializations:

• Property lawyers and solicitors in Madrid & Qualified lawyers experts in Property law and Construction law:

  • Legal due diligence for property purchases/sales.
  • Drafting and reviewing purchase/sale contracts (arras, Escritura).
  • Advising on property taxes (ITP, IVA, Plusvalía, Capital Gains, AJD).
  • Handling property registration at the Land Registry.
  • Dealing with urban planning issues (building licenses, zoning compliance, Licencia de Primera Ocupación).
  • Legalizing undeclared works or extensions.
  • Representing clients in property disputes.
  • Advising on real estate investments and development.

• Lawyers for Property and Construction disputes in Madrid:

  • Disputes related to construction defects (vicios de construcción).
  • Boundary disputes.
  • Disputes with community of owners.
  • Breach of contract in property transactions.
  • Expropriation cases.

• Civil lawyers in Madrid:

  • Contract law (drafting, review, disputes).
  • Family law (divorce, child custody, alimony).
  • Consumer law.
  • Liability claims.
  • Debt recovery.
  • Traffic accidents.

• Inheritance lawyers for Spanish laws & International Inheritance and succession lawyers:

  • Advising on Spanish inheritance law (including Madrid’s regional tax specificities).
  • Drafting Spanish wills.
  • Assisting with the inheritance process (obtaining death certificates, wills, declaration of heirs, asset inventory, tax payment, property transfer).
  • Handling cross-border inheritance cases for non-residents or foreign assets.
  • Advising on Inheritance Tax (Impuesto de Sucesiones y Donaciones) in the Community of Madrid (which is highly favorable).

• Criminal lawyers in Madrid:

  • Defense and prosecution in criminal proceedings.
  • Assistance during police investigations.
  • Representation in all types of criminal offenses.

• Labor lawyers in Madrid:

  • Employment contracts.
  • Dismissals (unfair dismissal, collective redundancies).
  • Workplace harassment.
  • Social security matters.
  • Workplace accidents.
  • Union law.

• Tax or Fiscal Lawyers in Madrid:

  • Advising on Spanish tax residency.
  • Income tax (IRPF, IRNR) declarations.
  • Wealth tax (Impuesto sobre el Patrimonio) and Solidarity Tax on Great Fortunes.
  • Inheritance and gift tax in the Community of Madrid.
  • Company taxation.
  • Tax planning and compliance.
  • Tax appeals and audits.

• Corporate Lawyers in Madrid:

  • Company formation and registration.
  • Mergers and acquisitions.
  • Commercial contracts.
  • Corporate governance.
  • Intellectual property.
  • Business litigation.
  • Start-up legal advice.

• Immigration lawyers in Madrid:

  • Visa applications (Golden Visa, Non-Lucrative Visa, Student Visa, Digital Nomad Visa).
  • Residency permit applications and renewals (NIE, TIE).
  • Work permits (self-employed, employed).
  • Family reunification.
  • Spanish nationality applications.
  • EU citizen registration.
  • Appeals against immigration decisions.

• International lawyers orientation in Madrid:

  • Lawyers who advise on international private law, cross-border transactions, and conflicts of law. Many large and boutique firms in Madrid cater specifically to an international clientele due to the city’s global business presence.

• English speaking lawyers and solicitors in Madrid: Madrid is a major international city, and there is a very large number of law firms with English-speaking lawyers, catering to the vast expat and international business community.
• French speaking lawyers in Madrid: Also a common service, reflecting the strong economic and cultural ties with France.
• Dutch/Netherlandse speaking Lawyers in Madrid: Less common than English or French, but available, often through specialized firms or individual lawyers.
• German speaking Lawyers in Madrid: Available, particularly in firms focusing on foreign investment or specific national client bases.

Tribunals and Courts of Justice in Madrid

Madrid, as the capital of Spain, hosts the highest courts in the country and a comprehensive network of judicial bodies for the Community of Madrid.

1. Superior Court of Justice of Madrid (Tribunal Superior de Justicia de Madrid – TSJM):
   • This is the highest judicial body in the Community of Madrid.
   • It reviews appeals from lower courts and exercises jurisdiction over administrative law, social (labor) law, and some criminal and civil matters within the autonomous community. It’s primarily located in the Palacio de Justicia building and other annexed courts.
2. Provincial Court of Madrid (Audiencia Provincial de Madrid):
   • Handles appeals against decisions from the Courts of First Instance and Criminal Courts.
   • Divisions exist for civil and criminal matters. Its main seat is also often within the city center.
3. Courts of First Instance (Juzgados de Primera Instancia):
   • These are the main civil courts handling a wide range of civil matters, including:
     • Contract disputes.
     • Property disputes (e.g., evictions, property ownership claims, mortgage-related issues).
     • Family law (divorce, custody).
     • Debt claims.
     • Most are consolidated in modern judicial complexes.
4. Criminal Investigative Courts (“de Instrucción” – Juzgados de Instrucción):
   • Responsible for investigating criminal offenses, taking initial statements, ordering arrests, and deciding whether a case proceeds to trial. They do not issue sentences. Many are located in the main judicial complexes.
5. Criminal Courts (Juzgados de lo Penal):
   • Hear cases for less serious criminal offenses.
6. Labor Courts (“de lo Social” – Juzgados de lo Social):
   • Handle all disputes related to labor law and social security (e.g., dismissals, wages, work conditions, benefits).
7. Contentious-Administrative Courts (Juzgados de lo Contencioso-Administrativo):
   • Deal with disputes between citizens/companies and public administrations (e.g., appeals against tax decisions, planning decisions, administrative fines, public tenders).
8. Violence against Women Courts (Juzgados de Violencia sobre la Mujer):
   • Specialized courts handling cases of gender-based violence, encompassing both criminal and civil aspects related to the victim.
9. Civil Registry (Registro Civil):
   • Not strictly a court, but a public registry where births, deaths, marriages, and other civil status events are registered. Essential for obtaining certificates like birth or death certificates. The main one in Madrid is at C/ Pradillo, 66, 28002 Madrid.
10. Juvenile-Minors Courts (Juzgados de Menores):
    • Handle criminal offenses committed by minors (under 18).

Key Court Complexes/Buildings in Madrid:

• Tribunal Supremo (Supreme Court): The highest judicial body in Spain, located on Plaza de la Villa de París, s/n, 28004 Madrid.
• Audiencia Nacional: A special court with jurisdiction over certain serious crimes (terrorism, organized crime, economic crimes with international implications) and some administrative law cases, located at C/ Goya, 14, 28001 Madrid.
• Palacio de Justicia: Houses the TSJM and other important judicial bodies, located on C/ Génova, 1, 28004 Madrid.
• Juzgados de Plaza de Castilla: A large judicial complex housing many Courts of First Instance, Investigative Courts, Criminal Courts, etc., located on Plaza de Castilla, s/n, 28046 Madrid. This is a central hub for many civil and criminal cases.

Notarial Services

Notaries in Spain (and Madrid) are public officials who provide legal security to private documents by verifying identities, ensuring legal compliance, and formally attesting to the contents of agreements. They are essential for many significant legal acts.

List of notaries in Madrid City

There are numerous notarial offices (Notarías) spread throughout Madrid. You can find a list and their contact details through the official website of the Colegio Notarial de Madrid (Madrid Notary Association) or by searching online directories.

• Colegio Notarial de Madrid: Their website (www.notariado.org/liferay/web/madrid/colegio) often has a search function where you can find notaries by location (e.g., Madrid) or name. The main office of the Colegio Notarial is often in a central area of Madrid.

Do I need a lawyer or a notary to buy a house in Madrid city?

You need both, but they serve different, distinct roles.

• Notary:

  • Role: The notary’s primary role is to ensure the legality of the public deed (Escritura Pública), verify the identity of the parties, read out the deed aloud, and ensure both parties understand and freely consent to its terms. They attest to the document’s authenticity and ensure it adheres to legal formalities. They are impartial public officials.
  • Mandatory for Property Purchase: Signing the public purchase deed before a notary is mandatory for the property transfer to be registered in the Land Registry and thus be fully legally recognized.
  • Limited Scope: A notary does not represent either the buyer or the seller. They do not conduct extensive due diligence on the property’s legal status beyond what is presented to them (e.g., Nota Simple). They are not there to advise you on your best interests or negotiate on your behalf.

• Lawyer:

  • Role: Your lawyer’s role is to represent your exclusive interests. They conduct comprehensive due diligence, advise you on all legal and tax implications specific to Madrid, review and draft private contracts, negotiate terms with the seller’s side, and ensure you are fully protected throughout the entire purchase process. They are your legal advocate.
  • Highly Recommended (Crucial): While technically not mandatory to sign the final deed (the notary is mandatory), hiring a lawyer is highly recommended and virtually essential for international buyers or any buyer wanting to ensure a safe and legally sound purchase. Without a lawyer, you are taking on significant risks.

In summary: The notary formalizes the final legal act. The lawyer protects you before and during that act, ensuring you reach the notary with a clean, well-vetted, and legally sound transaction.

Why a lawyer is needed in a purchase/sale transaction in Madrid?

A lawyer is needed because:

• Due Diligence: They perform crucial legal checks (Land Registry, Cadastre, Town Hall, Community of Owners) to uncover debts, charges, legal issues, or planning violations that a notary will not investigate.
• Contract Review and Negotiation: They draft or review the arras contract and other agreements, ensuring they protect your interests, include necessary clauses (e.g., subject to mortgage approval, valid Licencia de Primera Ocupación), and clarify all terms. They can negotiate on your behalf.
• Tax Advice: They provide expert advice on all applicable taxes (ITP/IVA, AJD, Plusvalía, Capital Gains) specific to the Community of Madrid and ensure you meet your tax obligations correctly and legally minimize your tax burden.
• Urban Planning Compliance: They verify that the property complies with local urban planning regulations, preventing future fines or legal issues related to illegal constructions.
• Language and Cultural Bridge: For international buyers, they bridge the language and cultural gap, explaining complex Spanish legal concepts in an understandable way.
• Problem Resolution: They are equipped to identify and resolve potential legal problems before they become costly issues.
• Representation: They can represent you through a Power of Attorney if you cannot be physically present for all steps.
• Post-Completion: They handle essential post-signing tasks like property registration and utility changes.

Essentially, a lawyer acts as your expert guide and protector in a complex legal process.

Inheritance process in Madrid

Inheriting assets in Spain, including property in Madrid, involves a specific legal and tax process. This process can be complex, especially for international heirs, but Madrid offers significant tax advantages for inheritance.

What to do in an inheritance process in Madrid

1. Obtain the Death Certificate (Certificado de Defunción):

   • Civil Registry of Madrid: This is the first step. You must obtain the official death certificate from the Registro Civil (Civil Registry) where the death occurred or where the deceased was registered. For deaths in Madrid, this would be the Civil Registry of Madrid (usually at C/ Pradillo, 66, 28002 Madrid). If the death occurred abroad, the foreign death certificate must be legalized/apostilled and translated into Spanish.

2. Get the Last Will and Testament (Certificado de Últimas Voluntades):

   • This certificate confirms whether the deceased left a Spanish will and, if so, which notary holds it.
   • You apply for this at the Registro General de Actos de Última Voluntad in Madrid, typically through a lawyer or a gestoría. It can only be requested 15 working days after the death.
   • If a Spanish will exists, you then obtain a certified copy from the designated notary.

3. Notarial Testament or Declaration of Heirs (Declaración de Herederos):

   • If there is a Spanish Will: The will names the heirs and how assets are distributed. Heirs generally accept the inheritance before a notary.
   • If there is NO Spanish Will (intestate succession): A “Declaración de Herederos Ab Intestato” (Declaration of Heirs without a Will) must be processed before a notary. This formal process identifies the legal heirs according to Spanish law (or the deceased’s national law, if applicable and proven). This can be a lengthy process.
   • Foreign Wills: If there is a foreign will, a lawyer will assess its validity in Spain and advise on whether it needs to be “protocolized” (formalized) by a Spanish notary.

4. Inventory of the Estate (Inventario de Bienes y Deudas):

   • Create a comprehensive list of all assets (properties, bank accounts, vehicles, shares, etc.) and debts (mortgages, loans, etc.) of the deceased in Spain.
   • This inventory will form the basis for calculating the inheritance tax.

5. Pay Inheritance Tax (Impuesto de Sucesiones y Donaciones – ISD):

   • Crucial Step: This tax is levied on the heirs. In Spain, Inheritance Tax is a regional tax, meaning each Autonomous Community sets its own rates, allowances, and deductions.
   • Inheritance Tax in Madrid: The Community of Madrid applies significant tax credits (bonificaciones) for close family members, effectively leading to a near 100% reduction in inheritance tax for Group I and II heirs (descendants, ascendants, and spouses). This makes Madrid one of the most tax-friendly regions in Spain for inheritance. Even for more distant relatives (Group III) and non-relatives (Group IV), the tax burden is often significantly lower than in other regions.
   • Deadline: The tax must be paid within six months of the date of death. An extension of another six months can be requested if done within the first five months, but interest may apply.
   • How to Pay: The tax is declared and paid at the Agencia Tributaria de Madrid (ATM), the regional tax authority of the Community of Madrid. You will need to fill out Form 650 (or 651 for simplified cases).

6. Deed of Acceptance and Adjudication of Inheritance (Escritura de Aceptación y Adjudicación de Herencia):

   • Once the inheritance tax is paid (or guaranteed), the heirs sign a public deed before a notary accepting the inheritance and formally adjudicating (distributing) the assets. This deed needs to include the death certificate, will/declaration of heirs, and the inventory of assets/debts.

7. Registration of Assets (Registro de la Propiedad, etc.):

   • Finally, the inherited properties must be registered in the Land Registry (Registro de la Propiedad) in the name of the new heirs. Other assets (bank accounts, vehicles) also need to be formally transferred.

Recommendation: The inheritance process in Spain, especially involving international elements or property, is complex. It is highly advisable to engage a specialized inheritance lawyer in Madrid. They can guide you through every step, ensure all legal and tax obligations are met, and help minimize your tax burden within legal limits, leveraging Madrid’s favorable inheritance tax regime.