Madrid is Europe's highest capital city (650m/2100ft), and it's also surprisingly compact. The main north-south artery, Paseo de la Castellana (which turns into Paseo de los Recoletos and Paseo del Prado), connects the city's two main train stations, Chamartín and Atocha. The oldest quarters are squeezed in between Paseo del Prado (where you'll find the city's great art galleries) and the Palacio Real to the west. Midway, the barrios southeast of Puerta del Sol leading to the working-class district of Lavapiés are filled with seemingly endless restaurants, bars and cafes. The densest concentration of accommodation can be found around Puerta del Sol, Plaza de Santa Ana and the barrios of Malasaña and Chueca (for pensiones and hostales), and along the Gran Vía (hotels).

Madrid's metro is the quickest and easiest way to get around the city, with cercanías (regional trains) and buses close runners up. With such good public transport and a compact, walkable city centre, you don't need a car, although getting hold of one and negotiating traffic in Madrid is comparatively simple. Then again, taxis are cheap and (usually) stress-free.