Madrid vs Palma: Madrid keeps $38K more of $1M

Madrid vs Palma.

Madrid leaves about $38K more of a $1M income in hand each year than Palma, on the Patrician.ch 2026 model. Both in 🇪🇸 Spain, compared on tax, residence, cost and the life.

In short, current to October 2026

On $1,000,000 of income, Madrid takes an effective 43% and Palma takes 47%, so Madrid leaves about $38K more in hand each year on the Patrician.ch 2026 model.
Both tax a capital gain on a resident disposal at 28%, so a liquidity event carries the same local charge either way.
Spain operates a special regime for arriving foreigners: 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. Spain operates: Beckham law: 24% flat on Spanish employment income up to €600K for 6 years, but the Balearics keep a regional wealth tax and a tourist rental clampdown.
Inheritance, what a child pays: under 0.5% in Madrid, nothing in Palma.
Route in: Madrid by Remote work visa, Founder & talent. Palma by Remote work visa, Founder & talent.
Cost of the life is 70 in Madrid against 70 in Palma on the Patrician.ch index where Zurich is 100, and safety 8 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, Madrid vs Palma (Mallorca): tax, residence and cost 2026, patrician.ch/compare/madrid-vs-palma/, October 2026.

	Madrid	Palma
Effective tax at $300K	39%	42%
Effective tax at $1M	43%	47%
Effective tax at $3M	44%	48%
Kept after tax at $1M	$569K	$531K
Capital gains	28%	28%
Inheritance tax, children	under 0.5%	nothing
Cost index (Zurich 100)	70	70
A 200 m² prime home, US$	$2.7M	$1.9M
Prestige of address (editorial)	7/10	7/10
Safety	8/10	8/10
Schools	8/10	7/10
Sun hours	2,770	2,800
Supercar street index	#34	#45
Routes in	Remote work visa, Founder & talent	Remote work visa, Founder & talent
Flight from London	2h 30m nonstop	2h 30m nonstop
Flight from New York	7h 15m nonstop	8h 05m nonstop

See these 2 places for your own income.Madrid and Palma, 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$3MMadrid39%43%44%Palma42%47%48%

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

Madrid keeps more of a $1M salary, $38K a year on this model. Palma (Mallorca) answers with the life itself.

For a founder with an exit

Capital gains land at 28% in both. Both levy an annual wealth tax, top rate 3.5% in Madrid and 3.5% in Palma.

For a family

Madrid leads on schools, Palma (Mallorca) on sun. Safety and cost are level.

MadridThe full page

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

Questions

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

Madrid, by about $38K a year on Patrician.ch's 2026 model.

Madrid takes an effective 43% of $1,000,000 and Palma takes 47%. At $3,000,000 the rates are 44% and 48%.

Which taxes capital gains less, Madrid or Palma?

Neither. Both tax a resident's capital gain at about 28%.

Which is better for inheritance, Madrid or Palma?

Palma. What a child pays: under 0.5% in Madrid, nothing in Palma.

Madrid gives a spouse and children a 99% reduction of the tax bill, with no cap, so 1% of the tax stays due. The Balearic Islands give a spouse, children and parents 100% relief on inheritance since July 2023.

Which is cheaper to live in, Madrid or Palma?

Neither. Both score 70 on the Patrician.ch cost index, where Zurich is 100.

Safety scores 8 of 10 in Madrid and 8 of 10 in Palma, schools 8 and 7. These are Patrician.ch editorial indices, not published statistics.

The Dossier: Madrid, Palma, 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 Madrid and Palma, 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=mad,pmi&inc=1000000" title="Income tax in Madrid and Palma, 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/madrid-vs-palma/">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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