Cushy Index Methodology
Cushy Index is built on transparency. Here is exactly how we calculate every number you see — and where our data comes from.
Important Disclaimer
All Cushy Index calculations are estimates only. They are intended for informational and planning purposes. Nothing on this site constitutes tax advice, financial advice, or legal advice. Actual net salaries depend on personal circumstances, employer contributions, regional surcharges, deductions, bonuses, and current legislation. Always consult a qualified professional for your specific situation.
1Net Salary Calculation
We estimate Spain net salary using a simplified version of the Spanish income tax (IRPF) system and social security contributions.
IRPF (Income Tax)
Spain uses progressive income tax brackets. We apply the national IRPF scale:
| Income bracket | Rate |
|---|---|
| Up to €12,450 | 19% |
| €12,450 – €20,200 | 24% |
| €20,200 – €35,200 | 30% |
| €35,200 – €60,000 | 37% |
| €60,000 – €300,000 | 45% |
| Above €300,000 | 47% |
We apply personal minimums (€5,550 for single/no children) to reduce taxable income. This is a simplification — actual deductions vary by personal circumstances.
Social Security (Employee)
We apply approximate employee SS contribution rates: ~4.7% common contingencies, ~1.55% unemployment, ~0.1% FOGASA, ~0.03% vocational training — approximately 6.35% total on gross salary.
Autonomo (Self-Employed)
For freelancers, we apply Spain's quota system based on declared net income, with minimum €230/month for low earners scaling to €590/month for higher incomes.
2Income Percentile Rankings
We estimate salary percentiles based on publicly available data from:
- INE (Instituto Nacional de Estadística) — Annual Wage Structure Survey
- AEAT (Agencia Tributaria) — Annual income tax statistics
- Eurostat — EU comparative wage data
We interpolate between known percentile thresholds using linear interpolation. City-level percentiles adjust for local salary distributions — in cities like Barcelona and Madrid where salaries are concentrated at higher levels, the bar is raised.
Limitation: We provide percentile ranges, not exact figures. Salary distribution data has a lag (typically 1–2 years) and methodologies vary between sources.
3Cost of Living Data
Monthly cost estimates are derived from crowdsourced and official data, benchmarked against:
- Numbeo cost of living database (city-level consumer prices)
- Idealista and Fotocasa rental listings (rent estimates)
- INE CPI data
- Eurostat household expenditure surveys
Costs vary significantly by neighbourhood, lifestyle choices, and individual circumstances. We present representative estimates for planning purposes.
4The Cushy Index Formula
The Cushy Index is a composite 0–100 score designed to reflect how comfortable a salary truly feels — not just on paper, but after accounting for where you live and how you live.
Each sub-score is normalized to 0–100. The weighted average produces the final Cushy Index. The formula is deliberately transparent so users can understand exactly what drives their score.
5Sub-Score Definitions
Rent Pain Score
Rent as a percentage of net monthly income. Lower is better. We invert this for the gauge — a high displayed score means low rent pain.
Breathing Room
Monthly income minus rent, groceries, transport, utilities, internet, and a base leisure allocation. This is what you have left for savings, childcare, healthcare, and discretionary spending.
City Burn Rate
How expensive the city is relative to the Spanish national average (index of 1.0). Barcelona = 1.35×, Madrid = 1.30×, Valencia = 1.05×, etc.
Lifestyle Level
A composite of Local Pay Rank and Breathing Room, reflecting how comfortable your lifestyle feels relative to local standards.
Savings Power
Estimated percentage of net income available for saving after core expenses. Above 20% is strong; below 5% is low.
Local Pay Rank
Your percentile among workers in your city, adjusted for the local salary distribution.
!Known Limitations
- • Regional IRPF surcharges are not applied. Some autonomías add additional tax rates, which can increase the effective rate by 1–4 percentage points.
- • Investment income, capital gains, and rental income are not modelled — only earned income.
- • Pension contributions affect taxable income but are only partially accounted for.
- • International city comparisons use Spain's IRPF — not the actual tax regime of the other country. These comparisons reflect purchasing power, not true tax calculations.
- • Cost-of-living data is approximate and varies by neighbourhood, habits, and year.
- • Percentile data is estimated from available statistical publications and may be 1–2 years behind the current year.