London vs Madrid: Madrid costs less to live in

London vs Madrid.

London and Madrid tax a $1M income alike, so cost decides it: Madrid scores 70 on the Patrician.ch cost index and London 96, with Zurich at 100. 🇬🇧 United Kingdom against 🇪🇸 Spain, compared on tax, residence, cost and the life.

In short, current to October 2026

On $1,000,000 of income, London takes an effective 43% and Madrid takes 43%, so Madrid leaves about $222 more in hand each year on the Patrician.ch 2026 model.
On a capital gain realized after residence begins, London charges 24% and Madrid charges 28%. On a $5,000,000 event that is a difference of about $200K.
The United Kingdom operates a special regime for arriving foreigners: 4 year foreign income and gains regime for new arrivals. Spain operates: Beckham law: 24% flat on Spanish employment income up to €600K for 6 years for inbound hires and remote workers, and Madrid waives its wealth tax except for the amount the national solidarity tax charges above €3M, which Madrid collects instead.
Inheritance, what a child pays: 40% in London, under 0.5% in Madrid.
Route in: London by Founder & talent. Madrid by Remote work visa, Founder & talent.
Cost of the life is 96 in London against 70 in Madrid on the Patrician.ch index where Zurich is 100, and safety 6 against 8 of 10. Both are Patrician.ch editorial indices scored by us, not published statistics.

Source: the Patrician.ch board, an original ranking of 100 residence addresses across 47 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to October 2026. Updated 29 October 2026. Cite as: Patrician.ch, London vs Madrid: tax, residence and cost 2026, patrician.ch/compare/london-vs-madrid/, October 2026.

London, United Kingdom — **London** 🇬🇧 United Kingdom

	London	Madrid
Effective tax at $300K	39%	39%
Effective tax at $1M	43%	43%
Effective tax at $3M	44%	44%
Kept after tax at $1M	$568K	$569K
Capital gains	24%	28%
Inheritance tax, children	40%	under 0.5%
Cost index (Zurich 100)	96	70
A 200 m² prime home, US$	$6.1M	$2.7M
Prestige of address (editorial)	10/10	7/10
Safety	6/10	8/10
Schools	10/10	8/10
Sun hours	1,630	2,770
Supercar street index	#12	#34
Routes in	Founder & talent	Remote work visa, Founder & talent
Net millionaire flow, 2025 forecast (country, Henley)	−16,500	−500
Flight from London	Home	2h 30m nonstop
Flight from New York	7h 05m nonstop	7h 15m nonstop

See these 2 places for your own income.London and Madrid, side by side on your income, passports and family. Free, in the ranking of all 100. Then the Dossier: a written report in 10 chapters on the 3 places that rank first for you. The Dossier is $500. The founding price, $250, holds until 31 October.

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Head to head

Effective income tax rate, % of income, at 3 incomes

$300K$1M$3MLondon39%43%44%Madrid39%43%44%

Note: single filer, not a US citizen

Source: Patrician.ch 2026 tax model, built on official tax authority rates

Simplified marginal model, indicative 2026 brackets, non-US single filer, no social contributions, deductions, wealth taxes, or treaties. Inheritance is shown as it falls on a child, current to October 2026.

By profile

How each profile reads.

For an executive on salary

Tax is level. Both keep $568K of $1M on this model, so the rows above decide it.

For a founder with an exit

Capital gains: London 24%, Madrid 28%. Madrid levies an annual wealth tax, top rate 3.5%. London levies none.

For a family

London leads on schools, Madrid on safety, a lower cost and sun.

LondonThe full page

MadridThe full page Rank both on my numbersThe engine, 90 seconds

Questions

Which keeps more of a $1M income, London or Madrid?

Madrid, by about $222 a year on Patrician.ch's 2026 model.

London takes an effective 43% of $1,000,000 and Madrid takes 43%. At $3,000,000 the rates are 44% and 44%.

Which taxes capital gains less, London or Madrid?

London, at 24% against 28% in Madrid.

On a $5,000,000 liquidity event realized after residence begins, the difference is about $200K.

Which is better for inheritance, London or Madrid?

Madrid. What a child pays: 40% in London, under 0.5% in Madrid.

The UK taxes an estate at 40% above £325,000, with a further band for a home left to children. A spouse inherits free. Since April 2025 exposure follows 10 of the last 20 years of residence. Madrid gives a spouse and children a 99% reduction of the tax bill, with no cap, so 1% of the tax stays due.

Which is cheaper to live in, London or Madrid?

Madrid, at 70 on the Patrician.ch cost index against 96 for London, where Zurich is 100.

Safety scores 6 of 10 in London and 8 of 10 in Madrid, schools 10 and 8. These are Patrician.ch editorial indices, not published statistics.

The Dossier: London, Madrid, and the third you have not considered.A written report on the 3 places that rank first for you, on your income, a sale, your passports and your family. 10 chapters, written the moment you pay. Every tax figure carries its official source and the date it was last checked. The Dossier is $500. The founding price, $250, holds until 31 October. Refunded in full within 7 days of delivery, no reason needed.

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The income tax of London and Madrid, side by side on 2026 rates. Your readers type their own salary and the places reorder. Free on any site, with the credit line under it.

<iframe src="https://patrician.ch/embed/compare/?c=lon,mad&inc=1000000" title="Income tax in London and Madrid, Patrician.ch" width="100%" height="900" style="border:0;max-width:760px;display:block;color-scheme:normal" loading="lazy"></iframe>
<p style="margin:6px 0 0;font-size:.875em;line-height:1.4">Research by <a href="https://patrician.ch/compare/london-vs-madrid/">Patrician.ch</a></p>

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Income tax on the published 2026 rules. Social contributions, most deductions and treaties are not modeled. Figures are for a non-US single filer. Wealth tax, an exit and your passports are added when you run the engine on your own numbers. Not advice. Residence rules change often. Verify before acting.

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