Madrid is the capital of Spain and one of the largest cities in Europe, located right in the centre of the Iberian Peninsula. It is the country’s political, business and cultural centre, attracting tourists, entrepreneurs and people moving there to live: the city has more than 3 million inhabitants. Madrid has the highest incomes in the country and at the same time the most expensive rents — how this balance compares with other cities is shown in the ranking of Spanish cities.
History of the city
Madrid’s history spans more than a thousand years. In the 9th century Emir Muhammad I of Córdoba built the fortress of Mayrit here, which gave the city its name. For several centuries Madrid remained a small town, until King Philip II moved the royal court here in 1561. From then on, Madrid became the administrative and political centre of the kingdom.
In the 18th and 19th centuries the city was rebuilt: the Royal Palace, the Paseo del Prado, large squares and parks appeared. Today its streets tell the country’s story from the Habsburgs to the present day. Its status as the capital is also visible in education: higher education in Madrid is represented by the Complutense — the country’s largest university — the Autonomous University and Carlos III.
How to get to Madrid
Madrid lies in the centre of Spain, and the country’s main air, rail and road routes converge on it.
By plane
Adolfo Suárez Madrid-Barajas International Airport (MAD) is the largest in Spain, with flights to most major cities in Europe, the Americas and other regions. It lies to the north-east of the centre; the metro, the Cercanías commuter train, an express bus and taxis run into the city.
By train
AVE high-speed trains and other fast lines link Madrid with Barcelona, Valencia, Seville, Málaga and other large cities. The main stations are Atocha and Chamartín.
By bus
Long-distance buses mostly arrive at the South Bus Station (Estación Sur de Autobuses) next to Méndez Álvaro metro station. From many towns and villages across the country this is the cheapest way to reach the capital.
By car
Madrid is the hub of a radial road network: the A-1 to A-6 motorways run from here to all parts of the country, including the A-2 to Barcelona, the A-3 to Valencia and the A-4 to Andalusia.
Sights
The main things to see in Madrid:
- The Prado Museum — one of the world’s greatest art museums: Velázquez, Goya, El Greco, Bosch.
- The Reina Sofía Museum — 20th-century art, home to Picasso’s “Guernica”.
- Retiro Park — a former royal garden in the city centre: avenues, statues, fountains and a lake where you can go boating. The Paseo del Prado and the Buen Retiro have been a UNESCO World Heritage Site since 2021.
- The Crystal Palace in the Retiro — a 19th-century glass pavilion built as a greenhouse for an exhibition; today it hosts contemporary art exhibitions.
- The Royal Palace — the official residence of the King of Spain, where state ceremonies are held; the King himself lives at the Zarzuela Palace outside the city. Some of the halls are open to visitors.
- Plaza Mayor — the main historic square, surrounded by arcades, with cafés and restaurants.
- Puerta del Sol — the central square with the Kilometre Zero marker of Spanish roads.
- Plaza de España — a large square at the end of Gran Vía with a monument to Cervantes.
- Santiago Bernabéu Stadium — the home ground of Real Madrid, with a stadium tour and club museum for visitors.
Each of these places shows in its own way why Madrid is so loved by tourists and residents alike.
Getting around the city
Madrid is easy to get around without a car:
- The metro — one of the largest networks in Europe, covering all districts of the city and the nearby suburbs.
- EMT buses — a dense city network, including night routes.
- Cercanías commuter trains — linking the centre with the suburbs and the airport.
- Taxis and ride-hailing apps — convenient late in the evening.
- Bicycles — the BiciMAD city bike-sharing scheme and cycle lanes.
- Walking — most of the main sights in the centre are close to one another.
Where to stay in Madrid
Tourists most often stay in the central districts:
- Malasaña — a neighbourhood of narrow streets, bars and shops of young brands.
- The area around Gran Vía — the main street of the centre, with theatres, shops and plenty of hotels for every budget.
- Chueca — a lively neighbourhood with bars and nightlife.
- La Latina — a neighbourhood of tapas bars and the Sunday flea market El Rastro.
- Salamanca — an upmarket district with boutiques, expensive restaurants and offices.
- Lavapiés — a multicultural neighbourhood with galleries, small theatres and bars.
These districts have hotels, hostels and short-term rental flats.
The cost of living in Madrid
Madrid is the most expensive city in Spain for housing. According to idealista, the average rent in June 2026 was €23.7 per square metre per month, i.e. about €1,660 for a 70 m² flat. Buying costs an average of €6,471 per square metre in August 2026 (idealista). On the other hand, incomes here are the highest in the country: the average net household income is €48,806 a year; more details in the ranking of Spanish cities.
There is no official subsistence minimum in Madrid or in Spain. For social benefits and residence permit thresholds the IPREM index is used — €600 a month — and the minimum wage in 2026 is €1,221 a month, paid in 14 instalments. A full budget calculation — groceries, transport, utilities — is in our breakdown of how much money you need to live in Spain.
Local cuisine
What to try in Madrid:
- Cocido madrileño (Madrid chickpea stew) — a thick stew of chickpeas with meat, sausages and vegetables, served in two or three courses: first the broth, then the chickpeas and meat.
- Callos a la madrileña (Madrid-style tripe) — tripe stewed with chorizo sausage and paprika, a classic dish of old taverns.
- Bocadillo de calamares (squid sandwich) — a baguette filled with fried squid rings, sold in the bars around Plaza Mayor.
- Tapas — small snacks served with a drink: jamón (cured ham), croquettes, patatas bravas (fried potatoes with spicy sauce), tortilla (Spanish omelette).
- Churros con chocolate (fried dough sticks with hot chocolate) — a traditional breakfast or late-night snack.
- Rosquillas de San Isidro (San Isidro doughnuts) — festive pastries for the May feast of the city’s patron saint.
Where to go shopping
The main shopping spots in Madrid:
- Gran Vía and Calle Preciados near Puerta del Sol — shops of mass-market Spanish and international brands.
- Calle Serrano in the Salamanca district — luxury brand boutiques and expensive shops.
- Calle Fuencarral and the Malasaña neighbourhood — youth brands and small shops.
- Mercado de San Miguel near Plaza Mayor — a food market where you can taste and buy jamón, cheeses, wines and tapas.
- El Rastro in La Latina — a Sunday flea market with antiques, clothes and souvenirs.
Conclusion
Madrid is the political, business and cultural centre of Spain: the highest incomes and the most jobs in the country, but also the most expensive housing. Before choosing the capital as a place to live, it is worth running the numbers: monthly costs are broken down in our calculation of how much money you need to live in Spain, and regional alternatives in the guide where to live in Spain. The closest large cities in scale are Barcelona and Valencia.
