Berlin ($48/sqft, 7.4% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Berlin on talent depth and Madrid on rent and tax.
Berlin ($48/sqft, 7.4% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Berlin on talent depth and Madrid on rent and tax.
| Metric | Berlin | Madrid |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Germany | Spain |
| Class A rent (USD/sqft/yr) | $48 | $42 |
| Class A rent (local) | 44 EUR | 38 EUR |
| Vacancy | 7.4% | 8.6% |
| Trend | flat | rising |
| Prime yield | 4.3% | 4.6% |
| Premium flex / seat / month (USD) | $580 | $780 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 30% | 25% |
| Metric | Berlin | Madrid |
|---|---|---|
| Typical term | 5 yrs | 7 yrs |
| Typical rent-free | 4 mos | 14 mos |
| Lease norms | Net leases dominate. 5-10 year terms; tenants frequently negotiate break options at year 3 or 5. Free rent of 3-6 months on a 5-year deal; TI of €60-€100/sqm typical. | Standard 5-year lease with 5-year extension option (5+5). Rent indexed to CPI annually. Service charges billed separately. Tenant typically pays IBI (real estate tax) and basura (waste tax). Bank guarantee of 3-6 months standard. |
| Tax note | 15% federal corporate income tax plus 5.5% solidarity surcharge plus Berlin trade tax (Gewerbesteuer) of about 14.35% for an effective combined rate of about 30%. | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. |
| Metric | Berlin | Madrid |
|---|---|---|
| Talent index (0–100) | 88 | 78 |
| Talent note | Deepest tech and creative talent pool in Germany. Strong feed from TU Berlin, HU, FU, and the rapidly growing Hertie School. Multilingual talent base supports non-German European HQs. | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. |
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9.
Madrid: Madrid Metro covers all Class A clusters. AVE high-speed rail to Barcelona, Valencia, Seville, and Lisbon. Madrid-Barajas Airport is 12-25 minutes from CBD by Metro.
Madrid is the cheaper Class A market on a USD basis.
Berlin has the deeper talent index (88/100 vs 78/100).
Madrid has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
Berlin typical term is 5 years with 4 months free; Madrid runs 7 years with 14 months free.
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9. Madrid: Madrid Metro covers all Class A clusters. AVE high-speed rail to Barcelona, Valencia, Seville, and Lisbon. Madrid-Barajas Airport is 12-25 minutes from CBD by Metro.
Score Berlin, Madrid and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.