Buying a home in Madrid isn’t just about the price, it’s about navigating a market where supply is tight and the "listed price" is often just a starting suggestion. While you will hear people talk about getting huge discounts, the real goal isn't to get a "good discount"; it's to secure a good price.
I’ve helped secure over €18M in property value for expats here. Madrid has its own "rules of the game" that standard listing portals don't explain. This isn't a generic brochure; it’s the exact strategy I give my friends when they tell me they're ready to invest in the city.
The "Big Discount" Trap
One mistake I see buyers make constantly is falling in love with a discount. It is very easy to feel like you’ve won because you negotiated 15% off the list price.
Here is the truth: I have often discarded properties for my clients where we negotiated a massive discount because, even with the lower price, the property was still a poor investment. We then went on to buy a different home at the full asking price because it was simply a better deal from day one. Don't hunt for a win at the negotiation table; hunt for a property that is priced right for the market.
1. The Strategy: "Exhaust the Market"
A common mistake is "looking everywhere." A bad strategy well-executed will always beat a "perfect" strategy that never gets off the ground.
- Define Your Direction: Pick your district and your "must-haves." Whether it is Chamberí’s residential charm or Centro’s energy, pick a lane and exhaust every listing within it.
- The Idealista Reality: The "gems" aren't hidden; they are properties with problems other people aren't willing to solve, like a major refurbishment or a complex legal situation with a sitting tenant.
- The Numbers: Before you view a single property, be clear on the "all-in" price. This includes the purchase price PLUS roughly 10-12% in taxes and fees.
Quick Tool: Don't guess your liquidity needs. Calculate your exact Madrid closing costs here.
2. Financing: The 30% Cash Rule
While interest rates in early 2026 are stabilizing, the bank's appetite for expat risk in Spain remains steady.
- The Cash Stack: For a successful purchase, budget for 30% to 35% of the purchase price in liquid cash. This covers your 20% down payment (often 30-40% for non-residents) and your closing costs.
- Mortgage Pre-Approval: In a market with limited supply, sellers favor the certain over the uncertain. Have your Spanish NIE and pre-approval ready before you start making offers.
- Spanish Bank Account: Open this immediately to pay your initial deposit (arras) and take a property off the market.
3. Due Diligence: Beyond the Surface
In Madrid’s historic center, buildings often date back to the early 1900s. You need to look past the fresh paint and staging to see the real bones of the asset.
The Legal Bedrock
- The Nota Simple is King: This is your primary source of truth. It officially records who owns the property and if there are hidden debts, mortgages, or judicial embargos that "follow the property" to the new owner. You can access this data at registradores.org.
- The Catastral Check: Compare the Catastro (tax registry) against the Nota Simple (legal registry). Discrepancies here are common and can complicate your mortgage or future sale. The official website is on sedecatastro.gob.es
The "Square Meter" Myth
- Built vs. Usable (Construidos vs. Útiles): Listed square meters in Madrid almost never reflect the actual floor space. "Built" meters include your share of common areas like the hallway and elevator shaft. "Usable" meters are the space you can actually walk on. Usually 20-30% less than the "built" number.
- The Laser Meter Rule: I always carry a laser meter to viewings. Don't trust the listing or even the Catastro "vivienda" number entirely. Measuring yourself is the only way to truly know the square meters you are getting.
Building Health & Energy
- Building Health (ITE): Check the Inspección Técnica de Edificios. For buildings over 30 years old, this mandatory inspection identifies structural risks or required repairs. A "FAVORABLE" result is what you want to see.
- Architect vs. Certificate: Every property needs an Energy Efficiency Certificate (CEE). While 2026 regulations are tightening (minimum rating E by 2030), the "letter" in older buildings is often limited by original materials. Instead of just looking at the document, look at the windows and the general quality of the refurbihment. Double-glazed, high-quality insulation is worth more than a piece of paper. In doubt involve an architect, you can find dedicated services in Madrid such as revicasa.
The "Community" Deep Dive
- Check the Building's "Actas": Ask for the last Community Meeting Minutes (Actas). They reveal if neighbors have already voted on expensive "special levies" (derramas) for a new elevator or roof repairs that you will be stuck paying for after move-in. Are all owner paying the community fees? Is there cash available in the community account?
- Certified Debt-Free: Before the notary signing, the seller must provide a Certificado de corriente de pago, proving they don't owe the building any money.
4. The Negotiation "Chess Game"
Properties in Madrid don't always fly off the shelf unless the price is perfect.
- Look for Value in Problems: Are you willing to manage a renovation or a complex legal situation with a trusted lawyer? This is where the real margin is found.
- The "Arras" Contract: Never pay a deposit until your lawyer has reviewed the arras contract. This document legally binds you and the seller and dictates how you get your money back if the deal fails.
Final Thoughts
Relocating or investing in Madrid is a marathon, not a sprint. If you stay organized and focus on finding a property that is priced right—rather than one that just offers a "discount", you will secure a much better long-term asset.
Ready to start your journey with a team that represents YOUR interests? Book a Strategy Call with us.