Housing is the biggest difference between Madrid and Valencia, and it drives most of the budget in a relocation package.
Source: idealista rental price report, August 2026. Prime neighbourhoods and houses with gardens are well above these averages.
Schools. In Madrid, international school fees typically range from about €9,000 to more than €25,000 per year, plus enrolment fees, bus and lunch that can add €3,000–6,000 a year. Valencia's international schools are generally somewhat cheaper.
Daily life. Food, transport and leisure are broadly similar, with Valencia slightly cheaper in restaurants and services. Both cities have good public transport; in Valencia many families manage without a second car.
What this means for budgets. For the same family and housing standard, the difference in rent alone can reach several thousand euros a year. When a company can choose the location, Valencia offers more space for the budget; Madrid offers more international schools and corporate headquarters.
Our tip. Budget the first month too: the legal deposit (one month's rent) plus any additional guarantee, capped at two months on standard residential leases and temporary accommodation. Since the 2023 housing law, agency fees on residential leases are paid by the landlord.