Since the end of the financial crisis, the technology sector in Madrid has grown at an astonishing rate. Madrid is very much an up-and-coming technology hub, just waiting for its moment, and with investments less expensive than in Paris and London, investors are starting to see the appeal.
Entrepreneurs name the high quality of life and the low cost of living as key attractions to Spain, although Madrid also offers a jumping off point for the sizeable LatAm market.
Madrid is the third biggest city in the EU, following closely on the heels of London and Berlin. However, Madrid isn’t simply a city, it’s a state – one of 17 autonomous communities that make up Spain.
Madrid, home to 1,235 start-ups, has one of the fastest growing tech start-up scenes in Europe. This isn’t a well-known fact because many of these start-ups are still in their infancy and therefore don’t attract large investments. A stark contrast to Barcelona which saw projects launch at the end of the 1990s and now attracts around €871million in investment.
Madrid is already home to one unicorn, a ride-hailing service Cabify, however regulations imposed by the Catalan regional government may limit the growth of Madrid’s golden child.
If you’re looking to live in Madrid, you may find yourself looking to rent a flat (or a Piso). This is the most common type of accommodation in Madrid and is the most common rental choice for young professionals in the Spanish capital. You can expect to pay between €800 – €1200 per month for a piso, but accommodation in a more affluent area could set you back up to €2000.
If you’re moving the whole family, a three-bed apartment will cost you between €2500 and €4000 per month. Detached single family homes are available but these are found only within the suburbs.
Whatever type of accommodation you’re considering, make sure you find out where you will be working before committing yourself. Madrid is a sprawling city and, despite good public transport options, commutes from one side of the city to the other can still be lengthy.
Expect to pay one month’s rent up front when you sign a contract and check whether utilities are included – often in Spain, your rental doesn’t include water, electricity and gas.
It may be wise to rent or stay in temporary accommodation when you first arrive in Madrid, whilst you get to know the area. Some expat sites suggest it can take 3 weeks to find and organise your new home, particularly if you are preparing to start your new job at the end of the summer, start of the autumn, which is the busiest time of the year for lettings.
In most cases, you’ll need to secure a job in Spain before securing your visa.
However, if you’re in an EU or EEA citizen, you won’t need a visa to live and work in Spain.
There are some exceptions to those not from the EU and EEA who wish to live and work in Spain such as academics, scientists working on specific projects, or close relatives joining family member working in Spain for a year or more.
Once you’ve secured a new position in Spain, your employer will need to apply to the provincial office of the Ministry of Labour for a work permit on your behalf but processing a work permit can take up to 8 months. A work permit is valid for a year and can be renewed providing that you still meet the criteria.
However, permits are typically granted for certain sectors, so once you have a permit, you can usually move jobs without having to renew the permit, providing you remain within the sector.
On top of your accommodation, you’ll probably need to budget for utilities. In Madrid, you should expect these to cost around €128 per month according to Numbeo.
On average, consumer prices in Madrid are 24% lower than in London. A litre of milk will cost you just €0.81 (75p) and a loaf of bread will take, on average, just €1.02 of your hard-earned cash. Rent averages out at 36% lower than in London. A good meal out will cost around €11, around 28% less than a meal in London, whilst a meal at home will only be 15% less expensive.
In London, you’d pay around £5.00 for a domestic beer, whereas in Madrid, you’d be looking at a dramatically different €3.00.
Whilst the average salary in Madrid weighs in at just €1600 per month, salaries can range from €20,000 to €37,000. The average IT consultant salary in Spain is €31,653 but can creep up to €49,000 for those with heavyweight experience. Software developer roles average at €35,636 iOS developer approximately €30,511 and Senior Web Developers at around €36,735.
When choosing a school, your decision will be led by how long you are planning to stay in Spain and whether your children need to immerse themselves fully in the culture and the language or keep up with their peers in the UK, on a British curriculum.
State schools are state-funded and state-run. Some are bilingual, others aren’t. In bilingual schools, around a third of classes are taught in English. This is different to the Spanish curriculum, which is what students in state schools typically follow and is different from the British or US curriculum.
Also known as Concertados, these schools are mainly bilingual. If you’re employed by a Spanish company, your children will be entitled to free education in a state-funded school. Many Concertados are run by religious orders, so are likely to be heavily religious in their influence.
These private schools can cost between €4000 and €10,000 a year.Most classes are taught in English and the curriculum is usually British and co-validated with GCSE and A’ Levels – essential if you have your sights set on a UK university. Usually in private bilingual schools, half of the students are Spanish or bi-national children, but this can vary.
Many of the tech companies in Madrid are new and growing, but there are some market leaders already calling Madrid their home. These include Accenture, E-Dreams, HP, Amazon, IBM and Everis.
Of course, life in Madrid isn’t all about work. In your down time you can explore the local area. Madrid is a city teeming with life and cultural opportunities. One of its greatest secrets are its art museums and galleries, with their renaissance masterpieces and seminal 20thCentury artefacts. The legendary Prado is just one of these.
If you fancy a spot of greenery, head to Retiro park with its bald cypresses that turn golden brown in summer. Of course, there’s the Royal Palace to visit and the sports scene is active too with the 85,000-seater Santigo Bernabeu Stadium, home of Real Madrid.
If you would like to discuss opportunities in Madrid or a potential career move, please contact IC Creative on +44 118 988 1100 or click here to view our other city guides