Cost of Living & Salary Comparison 2026
Yes, Mexico City is 14% cheaper than Madrid based on our cost of living index. Mexico City has a COLI of 32.5, while Madrid has a COLI of 38.0. 14% cheaper
Overall, Mexico City is approximately 14% cheaper than Madrid based on our cost of living index. Madrid has a COLI of 38.0 (ranked #69 of 182 cities), while Mexico City has a COLI of 32.5 (ranked #76).
When it comes to housing, one-bedroom apartment rent in Madrid averages $1,100/month compared to $700/month in Mexico City. That makes Mexico City approximately 36% cheaper for rent alone.
Mexico City has lower total deductions (19.5%) compared to Madrid (28.8%), meaning you keep more of your gross salary in Mexico City. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.
Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.
Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.
If you earn €63,592 in Madrid, you would need approximately MX$1,086,790 in Mexico City to maintain the same purchasing power. That is 14% less thanks to lower cost of living.
Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:
| Job Title | Madrid (EUR) | Mexico City (MXN) |
|---|---|---|
| Doctor (General) | €57,996 | MX$991,152 |
| Software Engineer | €27,387 | MX$468,044 |
| Product Manager | €32,220 | MX$550,640 |
| Lawyer | €32,220 | MX$550,640 |
| Data Scientist | €30,609 | MX$523,108 |
| Marketing Manager | €23,198 | MX$396,461 |
| Teacher | €15,466 | MX$264,307 |
| Nurse | €18,688 | MX$319,371 |
Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.
| Neighborhood | Multiplier |
|---|---|
| Salamanca | 1.30x (+30%) |
| Chamberí | 1.18x (+18%) |
| Retiro | 1.15x (+15%) |
| Barrio de las Letras | 1.15x (+15%) |
| Chueca | 1.12x (+12%) |
| Neighborhood | Multiplier |
|---|---|
| Polanco | 1.35x (+35%) |
| Lomas de Chapultepec | 1.30x (+30%) |
| Condesa | 1.22x (+22%) |
| Pedregal | 1.22x (+22%) |
| Roma Norte | 1.18x (+18%) |
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Open Salary ConverterMadrid is more expensive overall. Madrid has a COLI of 38.0 while Mexico City has a COLI of 32.5, making Mexico City approximately 14% cheaper.
To maintain the same standard of living as €63,592 in Madrid, you would need approximately MX$1,086,790 in Mexico City.
Average one-bedroom rent in Madrid is $1,100/month compared to $700/month in Mexico City. Mexico City has lower rent by approximately 36%.
Mexico City has lower total deductions (19.5%) compared to Madrid (28.8%), meaning you keep more of your gross salary in Mexico City.
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.