--- title: "Lisbon vs Madrid: Class A office comparison" description: "Side-by-side Class A office comparison for Lisbon and Madrid — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/lisbon-vs-madrid pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Lisbon ($34/sqft, 7.8% vacancy) and Madrid ($41/sqft, 8.6% vacancy) compete on different axes: Lisbon on talent depth and Madrid on talent depth. ## TL;DR - Class A rent: Lisbon $34/sqft vs Madrid $41/sqft. - Vacancy: Lisbon 7.8% vs Madrid 8.6%. - Talent index: Lisbon 78 vs Madrid 78. - Corporate tax: Lisbon 21% vs Madrid 25%. - Premium flex/seat/month: Lisbon $480 vs Madrid $780. # Lisbon vs Madrid: Class A office comparison **Lisbon ($34/sqft, 7.8% vacancy) and Madrid ($41/sqft, 8.6% vacancy) compete on different axes: Lisbon on talent depth and Madrid on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: Lisbon $34/sqft vs Madrid $41/sqft. - Vacancy: Lisbon 7.8% vs Madrid 8.6%. - Talent index: Lisbon 78 vs Madrid 78. - Corporate tax: Lisbon 21% vs Madrid 25%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Lisbon $480 vs Madrid $780. ## Market data side-by-side | Metric | Lisbon | Madrid| | Region | EMEA | EMEA| | Country | Portugal | Spain| | Class A rent (USD/sqft/yr) | $34 | $41| | 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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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. ## Top submarkets — Lisbon - [**Avenida da Liberdade**](/cities/lisbon/avenida-da-liberdade) — [trophy tier](/topics/trophy-asset-selection) · €32/sqm/mo · ≈ $38.5 PSF/yr USD - [**Saldanha (CBD)**](/cities/lisbon/saldanha-cbd) — prime tier · €28/sqm/mo · ≈ $33.7 PSF/yr USD - [**Parque das Nações**](/cities/lisbon/parque-das-nacoes) — prime tier · €26/sqm/mo · ≈ $31.3 PSF/yr USD ## Top submarkets — Madrid - [**Cuatro Torres**](/cities/madrid/cuatro-torres) — trophy tier · €50/sqft/yr · ≈ $54 PSF/yr USD - [**Castellana & AZCA**](/cities/madrid/castellana-azca) — trophy tier · €45/sqft/yr · ≈ $48.6 PSF/yr USD - [**Méndez Álvaro / Atocha**](/cities/madrid/mendez-alvaro) — prime tier · €32/sqft/yr · ≈ $34.6 PSF/yr USD ## Decision criteria ### Pick by cost Lisbon is the cheaper Class A market on a USD basis. ### Pick by talent depth Talent data not available for comparison. ### Pick by tax Lisbon has the lower headline corporate tax (21% vs 25%). Local incentives can change the effective rate materially. ### Pick by lease optionality Lisbon typical term is 5 years with 4 months free; Madrid runs 7 years with 14 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Lisbon or Madrid?**** : Lisbon is cheaper on a USD basis: $34/sqft vs $41/sqft. ****Which has better talent depth, Lisbon or Madrid?**** : Roughly comparable. ****Which has more sublease availability, Lisbon or Madrid?**** : Madrid carries higher vacancy (8.6% vs 7.8%) and therefore typically more [sublease](/topics/sublease-strategy)">sublease overhang. ****What lease term should I expect in Lisbon vs Madrid?**** : Lisbon typical term is 5 years with 4 months rent-free; Madrid typical term is 7 years with 14 months rent-free. ****How does transit and commuter access compare?**** : 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. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/lisbon-vs-madrid), updated 2026-04-15T00:00:00.000Z.