The Palacio Real de Madrid (literally: Royal Palace of Madrid) is the official residence of the Spanish Royal Family at the city of Madrid, but is only used for state ceremonies. King Felipe VI and the Royal Family do not reside in the palace, choosing instead the more modest Palacio de la Zarzuela on the outskirts of Madrid.

The palace is owned by the Spanish State and administered by the Patrimonio Nacional, a public agency of the Ministry of the Presidency.:7 The palace is located on Calle de Bailén (Bailén Street), in the Western part of downtown Madrid, East of the Manzanares River, and is accessible from the Ópera metro station. Several rooms in the palace are regularly open to the public except during state functions. An admission fee of €11 is required.

The palace is on the site of a 9th-century Alcázar, near the town of Magerit, constructed as an outpost by Muhammad I of Córdoba[3]:7 and inherited after 1036 by the independent Moorish Taifa of Toledo. After Madrid fell to Alfonso VI of Castile in 1083, the edifice was only rarely used by the kings of Castile. In 1329, King Alfonso XI of Castile convened the cortes of Madrid for the first time. Philip II moved his court to Madrid in 1561.

The old Alcázar ("Castle") was built on the location in the 16th century. It burned 24 December 1734 and King Philip V ordered a new palace built on the same site. Construction spanned the years 1738 to 1755 and followed a Berniniesque design by Filippo Juvarra and Giovanni Battista Sacchetti in cooperation with Ventura Rodríguez, Francesco Sabatini, and Martín Sarmiento. Charles III first occupied the new palace in 1764.

The last monarch who lived continuously in the palace was Alfonso XIII, although Manuel Azaña, president of the Second Republic, also inhabited it, making him the last head of state to do so. During that period the palace was known as "Palacio Nacional". There is still a room next to the Real Capilla, which is known by the name "Office of Azaña".

The palace has 135,000 square metres (1,450,000 sq ft) of floorspace and contains 3,418 rooms. It is the largest royal palace in Europe by floor area. The interior of the palace is notable for its wealth of art and the use of many types of fine materials in the construction and the decoration of its rooms. These include paintings by artists such as Caravaggio, Velázquez and Francisco de Goya and frescoes by Corrado Giaquinto, Juan de Flandes, Giovanni Battista Tiepolo and Anton Raphael Mengs. Other collections of great historical and artistic importance preserved in the building include the Royal Armoury of Madrid, Porcelain, Watches, Furniture, Silverware and the world's only complete Stradivarius string quintet.