Buying an Apartment in Madrid in 2025: The Ultimate and Detailed Guide for the French

Madrid is no longer just the capital of Spain. In 2025, it has established itself as the European capital of quality of life and real estate opportunity. While the markets of Paris, London or Berlin are saturating and seeing their returns collapse, Madrid displays insolent health. A vibrant, secure, connected city, where life is good and, above all, where it is still profitable to invest.

Yet, for a French person, buying an apartment in Madrid often feels like a leap into the unknown. The legal system is different, the language barrier can be a major obstacle, and local practices (such as constructed vs. usable surface areas) can mislead uninformed buyers.

Are you considering acquiring a pied-à-terre, making a rental investment, or expatriating? This guide is not a simple overview. It is an exhaustive 3000-word resource designed by Triadica, your trusted partner and buyer's mandate specialist. We will dissect, point by point, the market reality, invisible legal traps, precise taxation, and the secrets of Madrid's neighborhoods.

Fasten your seatbelt, destination Madrid.

I. Why is Madrid the Best Real Estate Market in Europe in 2026?

It's not just about "sun and tapas". Madrid's economic fundamentals are solid. Understanding these mechanisms is essential to validate your investment decision.

1. Higher Rental Yield than France

In 2026, achieving 3% net yield in Paris is quite a feat. In Madrid, gross yields are structurally between 3% and 6% in the city center (within M-30), and can climb up to 7% or 8% in peripheral neighborhoods undergoing urban renovation like Tetuán, Vallecas or Carabanchel.

This profitability is supported by extremely strong rental demand. Madrid attracts:

International students: Presence of numerous prestigious business schools like IE Business School.

Young professionals and Digital Nomads: Relocated executives seeking better quality of life and lower cost of living than other capitals.
The local population: Facing difficulties accessing property ownership, rental demand remains very strong.

2. A Liquid and Dynamic Market

The "liquidity" of a property is its ability to be resold quickly. Madrid is a very liquid market. An apartment at market price, located in a decent area, often sells in less than 30 days. For an investor, this is the guarantee of being able to "exit" their investment quickly if necessary.

3. Madrid's Tax "Oasis"

Spain is a decentralized state. Each Autonomous Community sets certain taxes. Madrid is, by far, the most liberal and most advantageous for investors:

ITP (Patrimonial Transmission Tax): This is the equivalent of registration fees. In Madrid, it is 6%. This is the lowest rate in Spain (10% in Catalonia or Valencia). On a property worth €500,000, this represents savings of €20,000 compared to Barcelona!
Wealth Tax: Madrid regularly applies bonifications of up to 100% on this tax, making it a refuge for large estates.

4. Capital Gains Potential

While prices in Paris have reached a glass ceiling, Madrid remains undervalued compared to other major European capitals. The average price per m² (around €5,800) remains two to three times lower than that of Paris or London, leaving significant room for growth in the coming years, notably with major urban projects like "Madrid Nuevo Norte".

II. The 8 Crucial Steps of the Purchase Process (The Detailed Journey)

Forget what you know about the French process. In Spain, the notary only intervenes at the very end. Here is the rigorous procedure that Triadica applies for its clients.

Step 1: The NIE (Número de Identificación de Extranjero)

This is the keystone. Without NIE, you don't exist fiscally.

What is it? A unique and personal number.
How to obtain it?
- From France: Via Spanish consulates (Paris, Lyon, Marseille...). Beware, appointment delays are long (1 to 3 months).
- From Spain: By appointment (Cita Previa) at a police station. It's often saturated.
- By proxy: If you mandate Triadica, we can facilitate these procedures through our legal partners.
Expert advice: Don't sign any compromise without having at least started the NIE procedure.

Step 2: Opening the Bank Account

Although Europe theoretically allows payment from a French account (SEPA), reality is different. To pay taxes, community charges (Comunidad) and electricity, a Spanish account is essential.

Required documents: Passport, NIE, proof of income, latest French tax notice. Spanish banks are very strict about money laundering (AML).

Step 3: Define the Real Budget (Calculating Fees)

The classic mistake is saying "I have €300,000, so I'm looking for apartments at €300,000". This is wrong. In Spain, purchase fees are borne by the buyer and are not financed by the bank. The golden rule: Listed price + 10% to 12% = Total Budget.

Breakdown of fees for a purchase in the old in Madrid:

ITP (Tax): 6%.
Notary: Fixed scale according to price, count between €600 and €1,000.
Property Register: Between €400 and €700.
Gestoría: €300 to €500 (to manage tax payments post-signature).
Agency fees: In Spain, they are sometimes included in the seller's price, sometimes charged to the buyer (3% + VAT). At Triadica, our buyer's mandate is clear from the start.

Step 4: Financing (The Achilles' Heel of Non-Residents)

How to finance your property?

French Bank: Ideal if you have assets in France. You make a mortgage loan on a French property to generate "cash" that you invest in Spain. Often lower rates.
Spanish Bank: For a non-fiscal resident, Spanish banks generally finance 60% to 70% of the property value.
1. Beware of the "Tasación": The bank sends an independent expert to evaluate the property. It will lend you 70% of the lower value between the purchase price and the expert valuation (Tasación).

Step 5: The Search and the Reality of Listings

Portals like Idealista or Fotocasa are jungles.

The problem: Many listings are obsolete, "bait products" that no longer exist, or display incorrect surface areas (including common areas).
The Triadica solution: We filter 90% of the market. We physically visit to verify brightness, noise, building condition (ITE - Technical Inspection), and we access the "Off-Market" market (properties sold through network before publication).

Step 6: Negotiation and the "Nota Simple"

Before even talking price, we request the Nota Simple Informativa from the Property Register. This vital document tells us:

Who is the real owner.
If there are debts (mortgages, embargos).
The official description of the property. Once reassured, we negotiate. In Spain, negotiation margin exists but depends on neighborhoods. A property at market price is hardly negotiable. An overvalued property can be negotiated by 5 to 10%.

Step 7: The Reservation Contract and the Arras

This is the moment of commitment.

Señal / Reserva: Sometimes, a small amount (€3,000) is paid to block the property for a few days and remove the listing.
Contrato de Arras Penitenciales (Compromise): This is the major contract. You pay 10% of the price.Legal mechanism: If you withdraw, you lose the 10%. If the seller withdraws (for example, if they find a higher bidder), they must reimburse you double the amount paid. This is very strong security for the buyer.

Step 8: The Signature ("Escritura Pública")

The final signature takes place before a notary. The Spanish notary verifies the identity of the parties and payment methods, but doesn't do the same thorough legal audit work as a French notary (hence the importance of your lawyer or hunter). Payment is generally made by Bank Check (Cheque Bancario) handed directly to the seller during the signature. You are given the keys: Congratulations, you are a property owner in Madrid!

III. Where to Buy? The Detailed Guide to Madrid's Neighborhoods

Madrid is a heterogeneous city. Choosing the right neighborhood depends on your objective: asset security, rental yield, or second home?

1. The "Golden Triangle" (Heritage and Prestige)

For whom? Investors seeking absolute security and long-term capital gains.

Barrio de Salamanca: The chicest neighborhood. Grand avenues, luxury boutiques, Haussmannian buildings.
- Prices: €7,000 to €11,000/m².
- Key areas: Recoletos, Castellana, Goya.
- Advantage: Safe haven value par excellence. Never loses value.
Chamberí: Discreet aristocracy. Less "bling-bling" than Salamanca, very family-oriented, authentic and traditional ("castizo").
- Prices: €7,500 to €10,000/m².
- Key areas: Almagro, Trafalgar.
- Advantage: Very strong rental demand from wealthy families and young executives.

2. The Vibrant Center (Profitability and Tourism)

For whom? Investors seeking dynamic rental (students, young professionals).

Centro (Sol / Gran Vía): The tourist heart. Noisy but unmissable.
Malasaña / Chueca: The "Hipster" and LGBT-friendly neighborhoods. Intense nightlife, vintage shops, trendy cafes.
- Prices: €6,000 to €9,000/m².
- Profitability: Excellent on small surfaces.
La Latina / Lavapiés: Historic and popular Madrid. Lavapiés is in full gentrification (the Madrid "bobo").
- Prices: €2,500 to €5,000/m².
- Advantage: Lower entry ticket, high yield.

3. The Green "Well-being"

For whom? Second home or family expatriation.

Retiro: Living next to the city's most beautiful park. Calm, bourgeois, elegant.
- Prices: €6,000 to €10,000/m².
- Key areas: Ibiza (very trendy for its restaurants), Jerónimos (very expensive).

4. Future Neighborhoods (Smart Investment)

For whom? Investors betting on urban transformation.

Tetuán: North of Chamberí. It's a popular neighborhood transforming at full speed thanks to proximity to the AZCA business center.
- Prices: €4,000 to €7,000/m².
- Potential: Very strong capital gains potential in 5-10 years.
Arganzuela (Madrid Río): Along the redeveloped Manzanares river. Very pleasant, modern, large parks. Popular with young families.
- Prices: €4,000 to €8,000/m².
- Potential: Very strong capital gains potential in 5-10 years.

IV. Taxation: What French Property Owners Must Know

This is often the big concern: will I pay taxes twice? The answer is no, thanks to the Franco-Spanish tax convention.

Tax on Rental Income (IRNR)

1. If the property is RENTED: IRNR on Real Income

As a non-fiscal resident in Spain, you are liable for IRNR (Impuesto sobre la Renta de No Residentes) on rental income received.

The Rate: 19% (for EU fiscal residents).
The Base (The Profit): The tax applies to Net Profit, not gross rental. This is a major advantage, as you can deduct numerous charges:
- Loan interest (Spanish or French loan).
- Building depreciation: 3% of construction value per year (an accounting charge that greatly reduces tax).
- Community charges (Comunidad) and Property Tax (IBI).Insurance (PNO, unpaid) and management fees.Repair and maintenance work.
- Loan interest (Spanish or French loan).
- Community charges (Comunidad) and Property Tax (IBI).
- Insurance (PNO, unpaid) and management fees.
- Repair and maintenance work.
- Building depreciation: 3% of construction value per year (an accounting charge that greatly reduces tax).
The Declaration: It is quarterly (Modelo 210).

2. If the property is EMPTY (or Second Home): Income Imputation

This is a Spanish tax peculiarity that you absolutely must know. If your property is not rented (whether vacant or used for your holidays), the State considers that it generates a "fictitious income" (benefit in kind).

The Base Calculation: This fictitious income generally corresponds to 1.1% (or sometimes 2%) of the property's cadastral value (Valor Catastral).
The Tax: You pay 19% on this fictitious base.
The Declaration: It is annual (Modelo 210), to be paid the following year.

Concrete Example: For an apartment with a cadastral value of €100,000.

Taxable base (1.1%) = €1,100.
Tax to pay (19%) = €209 per year. This is a reasonable sum, but you must not forget to declare it!

Tax in France

You must declare this Spanish income in France. The French tax authorities will calculate a theoretical tax, but will grant you a tax credit equal to the French tax corresponding to this income (effective rate method). Concretely, you don't pay tax again, but this income is taken into account to determine your overall marginal tax bracket.

Property Tax (IBI)

The Impuesto sobre Bienes Inmuebles is the equivalent of property tax. It is much cheaper than in France. Count between €500 and €1,000 per year for a standard apartment in Madrid.

V. The 5 Technical Traps to Absolutely Avoid

Triadica's field experience has allowed us to identify recurring traps.

1. "Interior" vs "Exterior" property In Madrid, many apartments face interior courtyards (patios de luces). While they are quiet, they can be very dark and difficult to resell. An "Exterior" property (facing the street) is always worth 15% to 20% more. Don't compare the incomparable.

2. No elevator

In the historic center, many buildings don't have an elevator. Beyond the 2nd floor, this becomes a major obstacle to rental and resale. Check if installation is technically possible and voted by the condominium.

3. Condominium debts

In Spain, community charge debts (Comunidad) are attached to the housing. If the seller owes €5,000 to the building, and you buy without checking, you will have to pay. Always demand the "Libre de Deuda" certificate.

4. The tourist license

Do you dream of doing Airbnb? Be careful. Madrid's city hall has drastically tightened the rules. To rent for tourism, the property must often have an independent entrance from the street (which is rare for an apartment). Don't buy betting on Airbnb without prior technical verification by an architect.

5. "Useful" vs "Built" m²

Listings often display "Built with common areas" m² (Construidos con comunes). An apartment advertised at 100m² may only be 75m² livable (Útiles). Triadica always measures properties with laser during visits.

VI. Why call on Triadica?

You've understood, buying in Madrid is a complex operation that requires time, legal expertise and physical presence.

The conflict of interest of classic agencies A classic real estate agency works for the seller. Their goal is to sell the property as expensive as possible and as quickly as possible. They won't tell you that the condominium will vote for an expensive renovation or that the neighborhood is noisy on Thursday evenings.

The Triadica solution: We are on YOUR side. With a buyer's mandate, we exclusively defend your interests.

Access to 100% of the market: Agencies, individuals, off-market, bank seizures.
Time saving: We only send you hyper-qualified properties. You only come to Madrid to visit the "finalists" or sign.
Legal Security: We check everything (urban planning, debts, contracts). Zero bad surprises.
Negotiation: We know the "real" price. Our fees are often reimbursed by the savings we achieve when negotiating the purchase price.

FAQ – French People's Frequent Questions about Madrid

Is it possible to buy together or in SCI?

Yes. You can buy in your own name (joint ownership) or via a Spanish company (SL). French SCI is possible but not recommended as it makes administrative and tax procedures heavier (complex tax transparency).

What is the cost of living in Madrid in 2025?

A restaurant meal costs about €20-25, a beer €3, a metro ticket €1.50. Current charges (internet, energy) are slightly lower than France.

Is there a warranty on hidden defects?

Yes, the Spanish Civil Code provides a 6-month warranty for hidden defects (vicios ocultos) that make the property unfit for use. But the procedure is long. Better to prevent with a technical inspection before purchase.

Does the Golden Visa still exist in 2026?

No. The Golden Visa program (residence by real estate investment) ended in April 2025. This does not impact European Union citizens who do not need a visa to reside in Spain.

How long does the whole process take?

Between the first search and the handover of keys, count on average 2 to 3 months. Obtaining the NIE and financing are the most time-consuming steps.

Conclusion: Your Madrid Project Starts Here

Madrid in 2026 is an exceptional window of opportunity. The combination of European legal security, soft taxation and an incomparable lifestyle makes it the flagship destination for French investors.

But a successful investment is a prepared investment. Don't let administrative details or distance spoil your project.

Triadica was born from the desire to secure and simplify this investment for French speakers.

We are your eyes, your ears and your experts on the ground.

Do you have a project? Don't stay at the dream stage.

👉 [CTA] Book your free project audit (30 min)

During this call, we will define your budget together, validate the feasibility of your project and target the best neighborhoods for YOU.Disclaimer: This article is provided for informational purposes and does not replace personalized legal advice. Tax and real estate laws may evolve.