Lima vs Madrid Cost of Living Comparison
Takeaway for Lima vs Madrid: everyday costs favor Lima (~117% CPI gap), housing index favors Lima, wage stretch favors Madrid. Use category winners, not a single headline, when the binding constraint is rent or income.
Overall Cost Winner
Lima
Lower overall CPI; largest measurable gaps: Purchasing Power (150% gap, Madrid ahead); Restaurants (121% gap, Lima ahead).
Monthly Cost Difference
Estimated monthly housing+utilities+internet basket is about $557 lower in Lima than in Madrid (~94% gap; converted via exchange rates).
Estimated monthly difference: $557 (favoring Lima).
Category Winners
| Category | Winner | Note |
|---|---|---|
| Overall CPI | Lima | CPI 26 vs 56.5 (lower is better) |
| Housing | Lima | Rent index 15.3 vs 29.5 (lower is better) |
| Food | Lima | Groceries index 33 vs 54 (lower is better) |
| Transport | Madrid | One-way ticket 1.21 vs 1.67 (lower is better) |
| Utilities | Madrid | Utilities (85m²) 54.28 vs 114.75 (lower is better) |
| Internet | Madrid | Internet 50.1 vs 86.63 (lower is better) |
| Restaurants | Lima | Restaurant index 23.5 vs 52 (lower is better) |
| Salary | Lima | Avg net salary 7812 vs 4791.36 (higher is better) |
| Purchasing Power | Madrid | PP index 84 vs 33.6 (higher is better) |
Biggest Difference
Purchasing Power: Madrid leads with a 150% gap.
PP index 84 vs 33.6 (higher is better)
Quick Decision
- Students: Lima — Lower housing / rent index (93% gap).
- Families: Lima — Housing is typically the largest household line; rent index favors Lima; purchasing power favors Madrid.
- Remote Workers: Lima — Everyday cost index (CPI) favors Lima (~117% gap).
- Budget Living: Lima — Lowest overall consumer-price index in this pair.
Key Takeaways
- Lima is the overall cost winner on CPI (~117% lower everyday-cost index than Madrid).
- Housing: Lima leads on rent index (93% gap).
- Food / groceries: Lima is lower (64% gap).
- Purchasing power: Madrid scores higher (150% gap).
- Largest category gap: Purchasing Power (150%), favoring Madrid.
- Sample monthly basket (1BR + utilities + internet) is ~$557 cheaper in Lima.
Analysis
Lima versus Madrid is not a single number. With a 117% CPI spread, groceries and services tend to move with Lima, while housing follows Lima's rent index. Purchasing power (33.6 vs 84) decides whether local wages offset local prices.
Trust & data transparency
Last updated: 2026-08-24
Data Sources
This page uses CityCost index inputs. Platform sources (see also Data sources):
- Regional
- Regional
On-page labels for this view: Regional · Regional.
Methodology
Each indexed city is associated with a reference basket of common living costs (for example rent, groceries samples, transport tickets, utilities, restaurant meals, and net salary where available). From those items, the platform derives relative indices such as CPI, rent, groceries, restaurants, and local purchasing power, using New York City = 100 as the familiar baseline convention for relative comparison.