Madrid is undergoing an unprecedented transformation, marked by the massive arrival of large international fortunes that are changing the pulse and physiognomy of the city. This is highlighted by the British newspaper The Times, which recently described the Spanish capital as “the new city of the global super-rich”, placing it at the level of metropolises such as London or Paris.
The influx of billionaires – mainly from Latin America, but also from the United States, Russia and Asia – has remodeled traditional neighborhoods such as Salamanca and Chamberí, which have become enclaves of luxury and exclusivity. Michelin-starred restaurants, million-euro apartments and private clubs are part of the new urban landscape, gradually displacing the discreet and traditional essence of old Madrid.
Factors explaining Madrid’s rise.
According to The Times, several factors have driven this phenomenon. Mainly, they are the safety and quality of life that Madrid, the pleasant climate and a vibrant social life, which makes it attractive to those seeking the political and economic stability not found in their home countries.
The British media also stresses the importance of tax benefits, since the Community of Madrid offers a 100% rebate on wealth tax and, since January 2025, applies the so-called “Mbappé law”, which allows non-residents to deduct 20% of personal income tax if they establish their tax domicile in the region.
This new type of tourist has led to the opening of five-star hotels such as the Four Seasons, Mandarin Oriental and Rosewood, which has raised the standard of Madrid’s hospitality, attracting a public accustomed to international luxury. In addition, the refurbishment of classic hotels such as the Palace and the proliferation of rooftops and renowned restaurants have turned the center of Madrid into the new “golden mile” of tourism and hotel investment.
Proof of the latter is the recent visit of Jezz Bezos, founder of Amazon, to different restaurants in Madrid to celebrate his bachelor party.
Urban transformation and local tension
The arrival of the superrich is not without tensions. The urban transformation is palpable: since 2014, at least 26 downtown buildings have been converted into luxury hotels, and the Salamanca neighborhood has seen 17% of its new residents come from wealthy Latin American families. This has made housing prices difficult to afford for locals, especially for the younger population trying to access rentals and first homes, resulting in different demonstrations to complain about the situation.