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As the former capital of the old Spanish Empire Madrid has been bestowed with a degree of cultural predominance. Renowned museums such as Museo del Prado, the Museo Reina Sofia, and the Museo Thyssen-Bornemisza are major tourist attractions in the city. Other cultural highlights include the Royal Palace of Madrid and the nearby royal monastery of San Lorenzo de El Escorial.

The exact population of the city was 3.228 million (July 2005), while the estimated urban area population is 5.078 million. The entire population of the Madrid metropolitan area (urban area and suburbs) is calculated to be 5.843 million. The city spans a total of 607 km² (378 square miles).

Following the restoration of democracy in 1975 and the integation to the European Union, Madrid has experienced an increasing role in European finances making it one of the most important Southern European cities. The residents of Madrid are called madrileños

Contemporary Madrid came into its own after the death of the Fascist dictator Francisco Franco. Years of the Franco regime left Madrid and much the country in economic shambles due to isolation. With his death, Madrid, and Spain as a whole, began to reassert itself on the international stage. Within Spain, reaction against the dictatorial bureaucracy centered in Madrid and a history of centralism that predated Franco by centuries has resulted in the successful modern movement towards increased autonomy for the regions of Spain, considered as autonomous regions, under the umbrella of Spain.

Modern Madrid ranks as one of the important cities in Europe. Madrid is a leading southern European city and the most important link between the European Union and Latin America.

The modern metropolis is home to over three million people. As expected with any major European capital city, each district (or barrio in Spanish) has its own feel.

The Plaza Mayor is one of the most beautiful and emblematic urban areas in what is known as the Madrid of the House of Austria. It is located in the historical and commercial heart of the city. The Plaza is rectangular in shape and is surrounded by three-floored residential buildings. It has a total of nine entranceways. The Plaza Mayor was built during the Austrian period. Previously it was named the Plaza del Arrabal. The origins of the Plaza go back to 1581 when Felipe II told Juan de Herrera to devise a plan to remodel the busy and chaotic area of the old Plaza del Arrabal. Juan de Herrera was the architect who designed the first project in 1581 to remodel the old Plaza del Arrabal but the construction didn't start until 1617, during the Felipe III's reign. This king asked Juan Gomez de Mora to continue with the project, and he finished the porticoes in 1619. Nevertheless, the Plaza Mayor as we know it today is the work of the architect Juan de Villanueva who was entrusted with its reconstruction in 1790 after a spate of big fires. The Plaza Mayor has been the scene of multitudinous events: market, bullring and "actos de fe" against supposed heretics and the executions of those condemned to death. Under its porticoes there are some old and traditional shops. The statue of Felipe III on horseback in the centre of the square dates back to 1616. It is the work of Juan de Bolonia.

As the name implies, Madrid's main Opera Theatre is the Teatro Real (Royal theatre). In front of the theatre is the Royal Palace. The Royal Palace is no longer used as a residence, but it has been kept intact since it last functioned as home to the King, primarily serving as a tourist attraction. The entire palace is not open to the public, but most of the more important rooms can be visited. The palace is interesting in its own right, in particular its architecture and gardens (there are two, the Jardines del Moro and the Sabattini gardens). There are also some excellent frescos inside the palace by Tiépolo, and paintings by Velázquez, Goya, Rubens, El Greco, Juan de Flandes and Caravaggio, among others.

Atocha includes a rather large area which is bordered by the Huertas and Lavapiés districts. The two important sites located in this area are the Reina Sofía Museum and the beautiful Atocha Railway Station, one of the two main train stations in Madrid (the other one is Chamartín). The area also contains a number of art galleries and restaurants serving traditional food. This district also contains the main bus terminal as it is a central point of the city.