Madrid ($42/sqft, 8.6% vacancy) and Paris ($102/sqft, 7.6% vacancy) compete on different axes: Madrid on rent and tax and Paris on talent depth.
Madrid ($42/sqft, 8.6% vacancy) and Paris ($102/sqft, 7.6% vacancy) compete on different axes: Madrid on rent and tax and Paris on talent depth.
| Metric | Madrid | Paris |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Spain | France |
| Class A rent (USD/sqft/yr) | $42 | $102 |
| Class A rent (local) | 38 EUR | 95 EUR |
| Vacancy | 8.6% | 7.6% |
| Trend | rising | rising |
| Prime yield | 4.6% | 4% |
| Premium flex / seat / month (USD) | $780 | $1,180 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 25% | 25% |
| Metric | Madrid | Paris |
|---|---|---|
| Typical term | 7 yrs | 9 yrs |
| Typical rent-free | 14 mos | 18 mos |
| Lease norms | 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. | The bail commercial is the standard lease — 9 years with tenant break rights at year 3 and year 6. Rent is indexed annually to the ILAT or ICC indices. Rent-free of 12-24 months on a 9-year term is standard. Service charges and tax foncière are typically passed through. Restoration to original is the default obligation. |
| Tax note | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. | Headline corporate tax 25%. Local cotisation foncière des entreprises (CFE) and contribution sur la valeur ajoutée des entreprises (CVAE) add a meaningful local layer. Île-de-France tertiary tax (TSB) applies to office occupiers. |
| Metric | Madrid | Paris |
|---|---|---|
| Talent index (0–100) | 78 | 90 |
| Talent note | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. | Strong financial-services and luxury-brand talent pool. Average all-in compensation indexes 90 vs. New York's 100. |
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.
Paris: RER A and the Métro span the entire QCA. The Grand Paris Express network is materially reshaping Greater Paris commute economics through 2030.
Madrid is the cheaper Class A market on a USD basis.
Paris has the deeper talent index (90/100 vs 78/100).
Tax rates are tied.
Madrid typical term is 7 years with 14 months free; Paris runs 9 years with 18 months free.
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. Paris: RER A and the Métro span the entire QCA. The Grand Paris Express network is materially reshaping Greater Paris commute economics through 2030.
Score Madrid, Paris 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.