Madrid ($42/sqft, 8.6% vacancy) and São Paulo ($40/sqft, 19.4% vacancy) compete on different axes: Madrid on rent and tax and São Paulo on talent depth.
Madrid ($42/sqft, 8.6% vacancy) and São Paulo ($40/sqft, 19.4% vacancy) compete on different axes: Madrid on rent and tax and São Paulo on talent depth.
| Metric | Madrid | São Paulo |
|---|---|---|
| Region | EMEA | Americas |
| Country | Spain | Brazil |
| Class A rent (USD/sqft/yr) | $42 | $40 |
| Class A rent (local) | 38 EUR | 200 BRL |
| Vacancy | 8.6% | 19.4% |
| Trend | rising | rising |
| Prime yield | 4.6% | 7.6% |
| Premium flex / seat / month (USD) | $780 | $380 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25% | 34% |
| Metric | Madrid | São Paulo |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 14 mos | 6 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. | Net leases. 5-year terms standard with statutory renewal rights under Brazilian commercial lease law (Lei do Inquilinato). Free rent of 4-9 months and TI of BRL 600-1,200/sqm typical. |
| Tax note | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. | 15% federal IRPJ corporate tax plus 9% CSLL plus 10% surcharge on profits above BRL 240k = effective 34%. Plus PIS/COFINS, ISS (municipal), and ICMS (state) for various activities. |
| Metric | Madrid | São Paulo |
|---|---|---|
| Talent index (0–100) | 78 | 80 |
| Talent note | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. | Deep banking, professional services, and tech talent. Strong feed from USP, FGV, Insper, and ITA. Portuguese-English bilingual professional base in international corporate. |
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.
São Paulo: São Paulo Metro (6 lines), CPTM commuter rail, monorail. Guarulhos International Airport (GRU) connected via CPTM Line 13. Congonhas Airport (CGH) closer to the city.
São Paulo is the cheaper Class A market on a USD basis.
São Paulo has the deeper talent index (80/100 vs 78/100).
Madrid has the lower headline corporate tax (25% vs 34%). Local incentives can change the effective rate materially.
Madrid typical term is 7 years with 14 months free; São Paulo runs 5 years with 6 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. São Paulo: São Paulo Metro (6 lines), CPTM commuter rail, monorail. Guarulhos International Airport (GRU) connected via CPTM Line 13. Congonhas Airport (CGH) closer to the city.
Score Madrid, São Paulo 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.