Lisbon ($30/sqft, 7.8% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Lisbon on talent depth and Madrid on talent depth.
Lisbon ($30/sqft, 7.8% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Lisbon on talent depth and Madrid on talent depth.
| Metric | Lisbon | Madrid |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Portugal | Spain |
| Class A rent (USD/sqft/yr) | $30 | $42 |
| Class A rent (local) | 28 EUR | 38 EUR |
| Vacancy | 7.8% | 8.6% |
| Trend | rising | rising |
| Prime yield | 5.4% | 4.6% |
| Premium flex / seat / month (USD) | $480 | $780 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 21% | 25% |
| Metric | Lisbon | Madrid |
|---|---|---|
| Typical term | 5 yrs | 7 yrs |
| Typical rent-free | 4 mos | 14 mos |
| Lease norms | Net leases. 5-year terms with optional renewal standard. Free rent of 3-5 months and TI of €50-€90/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 | 21% Portuguese corporate income tax (IRC) plus municipal surcharge of up to 1.5% plus state surcharge for large profits. IFICI regime for inbound qualifying talent provides reduced personal income tax. | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. |
| Metric | Lisbon | Madrid |
|---|---|---|
| Talent index (0–100) | 78 | 78 |
| Talent note | Deep tech, BPO, and creative talent. Strong feed from Universidade de Lisboa, Universidade Nova, and ISCTE. English-fluent professional base supports international corporate HQs. | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. |
Lisbon: Metropolitano de Lisboa (4 lines), CP suburban rail, and bus. Lisbon Airport (LIS) is on Metro Red Line (~20 minutes to Saldanha). New airport (Alcochete) under planning.
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.
Lisbon is the cheaper Class A market on a USD basis.
Talent indices are tied at 78/100.
Lisbon has the lower headline corporate tax (21% vs 25%). Local incentives can change the effective rate materially.
Lisbon typical term is 5 years with 4 months free; Madrid runs 7 years with 14 months free.
Lisbon: Metropolitano de Lisboa (4 lines), CP suburban rail, and bus. Lisbon Airport (LIS) is on Metro Red Line (~20 minutes to Saldanha). New airport (Alcochete) under planning. 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 Lisbon, 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.