Budapest VS Madrid

Cost of Living & Salary Comparison 2026

Budapest
Hungary
26.1
COLI Index
#92
Global Rank
HUF
Currency
Madrid
Spain
38.0
COLI Index
#69
Global Rank
EUR
Currency

Key Differences

Cost of Living
26.1
38.0
1BR Rent (USD/mo)
$600
$1,100
Total Deductions
33.5%
28.8%
Exchange Rate
1 HUF = 0.0024 EUR
Is Budapest cheaper than Madrid?

Yes, Budapest is 31% cheaper than Madrid based on our cost of living index. Budapest has a COLI of 26.1, while Madrid has a COLI of 38.0. 31% cheaper

Key Takeaways: Budapest vs Madrid

Overall, Budapest is approximately 31% cheaper than Madrid based on our cost of living index. Budapest has a COLI of 26.1 (ranked #92 of 182 cities), while Madrid has a COLI of 38.0 (ranked #69).

When it comes to housing, one-bedroom apartment rent in Budapest averages $600/month compared to $1,100/month in Madrid. That makes Budapest approximately 45% cheaper for rent alone.

Madrid has lower total deductions (28.8%) compared to Budapest (33.5%), meaning you keep more of your gross salary in Madrid. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.

Tax & Deductions Comparison

Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.

Budapest

Income Tax
15%
Social Contribution (TB)
18.5%
Total: 33.5%Take-Home: Ft 4,675,669/yr

Madrid

Income Tax
22%
Social Security
6.3%
Total: 28.8%Take-Home: €17,215/yr

Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.

Salary Equivalent

If you earn Ft 26,939,006 in Budapest, you would need approximately €92,586 in Madrid to maintain the same purchasing power. That is 31% more due to higher cost of living.

Salary Comparison by Job Title

Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:

Job Title Budapest (HUF) Madrid (EUR)
Doctor (General) Ft 16,874,593 €57,996
Software Engineer Ft 7,968,558 €27,387
Product Manager Ft 9,374,774 €32,220
Lawyer Ft 9,374,774 €32,220
Data Scientist Ft 8,906,035 €30,609
Marketing Manager Ft 6,749,837 €23,198
Teacher Ft 4,499,892 €15,466
Nurse Ft 5,437,369 €18,688

Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.

Neighborhoods

Budapest (Top 5)

NeighborhoodMultiplier
District V (Belváros)1.30x (+30%)
District I (Buda Castle)1.22x (+22%)
District II (Buda Hills)1.18x (+18%)
District VI (Terézváros)1.15x (+15%)
District XII (Hegyvidék)1.15x (+15%)

Madrid (Top 5)

NeighborhoodMultiplier
Salamanca1.30x (+30%)
Chamberí1.18x (+18%)
Retiro1.15x (+15%)
Barrio de las Letras1.15x (+15%)
Chueca1.12x (+12%)

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Frequently Asked Questions

Is Budapest or Madrid more expensive?

Madrid is more expensive overall. Budapest has a COLI of 26.1 while Madrid has a COLI of 38.0, making Budapest approximately 31% cheaper.

What salary in Madrid equals Ft 26,939,006 in Budapest?

To maintain the same standard of living as Ft 26,939,006 in Budapest, you would need approximately €92,586 in Madrid.

Is rent cheaper in Budapest or Madrid?

Average one-bedroom rent in Budapest is $600/month compared to $1,100/month in Madrid. Budapest has lower rent by approximately 45%.

Which city has lower taxes, Budapest or Madrid?

Madrid has lower total deductions (28.8%) compared to Budapest (33.5%), meaning you keep more of your gross salary in Madrid.

Explore Each City

Data Sources & Methodology

Cost of living indices (COLI) are benchmarked to New York City = 100 and derived from Numbeo and Expatistan crowd-sourced price surveys, cross-referenced with national statistics agencies. Rent data from Numbeo Property Prices.

Salary ranges are compiled from the U.S. Bureau of Labor Statistics (OES), Glassdoor, and PayScale. Tax rates are approximate effective rates for mid-range earners based on OECD Taxing Wages and national tax authorities. Exchange rates from the European Central Bank. Neighborhood multipliers are estimated from local rental indices and property data.

Last updated: 2026-02-28. Data is refreshed periodically. All figures are estimates for informational purposes only.