Tips for enjoying a fantastic time in Madrid without breaking the bank

As inflation reaches unprecedented levels, many are looking to cut costs on everything from grocery shopping to gas and travel expenses.

Traveling on a budget often involves choosing the right destination, and with the dollar still slightly stronger than the euro, visiting an economical European location is a smart way to mitigate rising travel costs.

Madrid, one of Europe's most wallet-friendly capital cities, offers a wealth of activities, sights, drinks, and dining options that are easy on the budget.

Discover how to explore Madrid affordably.

How to reach it

Affordable flights between the U.S. and Madrid are often available, and low-cost airlines like Ryanair, Easyjet, and Iberia can help you find budget-friendly options from other major European cities if you score a deal to a different international hub. Just remember to consider additional costs like baggage, seat selection, and other fees.

We frequently spot flight deals from the U.S. to Spain for less than $400 round trip. Keep an eye on TPG for our daily deal alerts.

Places to stay

From luxurious new hotels to budget-friendly hostels, Madrid provides a diverse range of accommodation options suitable for every budget. Here are some top choices for travelers seeking comfort without breaking the bank.

Best value points hotels

Madrid has a variety of choices for redeeming points, including the popular Westin Palace Madrid and the dependable InterContinental Madrid. If you want to save your points or plan a longer stay, here are some excellent selections in the Spanish capital.

• AC Avenida de América: While it’s a bit removed from the historic core, this property is tidy and comfortable, perfect for those wanting to explore a more authentic side of Madrid while still being just a quick taxi or metro ride from major attractions and Barrio Salamanca shopping. Rates begin at 20,000 Bonvoy points or under $100 per night.

• Hyatt Centric Gran Via Madrid: This elegant property features a stunning rooftop garden, restaurant, and bar, situated on the iconic Gran Vía Street in Madrid. Rates begin at 20,000 Hyatt points or approximately $200 per night.

Top cash value hotels

Don’t have any points saved up? No problem. These hotels provide excellent locations, top-notch service, and remarkable value.

• H10 Puerta de Alcalá: Just steps from Madrid's favorite green area, this hotel features stylish rooms and a rooftop view of the park. Rates start around $95 per night.
• Hotel Puerta Ámerica: With its quirky room designs, glass elevators, and a Sky Bar, this hotel offers a trendy experience at an affordable price, with deals available for about $100 per night.

Charming hostels

Hostels aren't solely for backpackers anymore. Many hostels, or pensioners, in Madrid provide private rooms and bathrooms at budget-friendly rates. If you're looking to save money, meet new people, or experience something a bit different, a hostel might be the perfect choice.

The Generator Madrid: This stylish hostel features a lively rooftop terrace and is housed in a former gas station. Private rooms begin at around $60 per night, while shared bunk beds can be found for as little as $25 per night.

The Hat Madrid: Just a short stroll from Madrid's Plaza Mayor, this hostel offers modern, clean rooms along with a welcoming solarium and rooftop terrace. Private double rooms start at $70 per night, while a bunk in a shared dormitory can be booked for under $20.

Short-term rentals

Finding holiday rentals in Madrid's city center is a breeze, with options ranging from cozy studio lofts to spacious four-bedroom apartments. Prices typically fall between $60 and $200 per night for an average private apartment, depending on size and amenities. Airbnb is your go-to platform for discovering vacation rentals in Madrid.

Optimal times to visit Madrid

For the best rates on hotels and activities, winter (excluding Christmas) is your best option. Just keep in mind that it can get quite cold and occasionally rainy during this season in Madrid.

You might also snag accommodation deals, particularly for vacation rentals, in August when many locals head to the beach or mountains to escape the summer heat. Just be prepared to pay a bit more for places with air conditioning.

For the finest weather, plan your visit to Madrid in May or October, when temperatures are comfortable under sunny skies and prices are lower compared to June, July, or September. May also hosts vibrant festivals like the San Isidro celebrations, offering unique cultural and culinary experiences.

Budget-friendly ways to navigate Madrid

Getting around Madrid's city center is simple on foot, and both the metro and bus systems are cost-effective options, especially at the moment. A 10-pass metro and bus ticket costs about 12 euros, or roughly $12. There’s currently a 30% discount available until the end of December, with the possibility of an extension by the government.

Tourist metro passes allow for unlimited travel from one to seven days after purchase (prices vary based on the duration). While this pass is not discounted at present, it includes metro rides to the airport (individual airport metro tickets typically incur an additional fee).

Traveling between Madrid's Barajas Airport (MAD) and the city center is both easy and economical, taking just about 20 minutes by car. You can opt for the metro or Bus 200 to Avenida Ámerica, both covered by metro tourist tickets. Additionally, a dedicated 24-hour airport bus connects the airport to O'Donnell, Cibeles, and Atocha for a fare of 5 euros (approximately $5) each way.

You can catch RENFE trains from Terminal 4 to the city center, or take a taxi for a flat fee of 30 euros (around $30) from the airport to any destination in the city. Rideshare services like Cabify and Uber typically offer even lower rates.

Affordable activities to enjoy in Madrid

Parks

Madrid boasts numerous green areas, including Retiro Park, Casa de Campo, El Capricho, Fuente de Berro, Madrid Río, and Templo De Bod. Access to all these parks is free. However, if you wish to rent a paddle boat in Retiro or ride the funicular over Casa de Campo, additional fees will apply.

Explore the city on foot

A self-guided walking tour of Madrid's city center is a breeze, allowing you to view many attractions for free. This extensive walk can be completed in a single day or stretched over several days, depending on your stamina and holiday length.

Begin your journey at Puerta Del Sol, where you can see the Tio Pepe sign and Kilometer 0, marking the geographical center of Spain. Then stroll over to Plaza Mayor to admire the multitude of balconies surrounding the square.

Continue your journey to San Miguel Market (note that snacks are an additional cost!) and stroll down Calle Mayor until you reach Almudena Cathedral and the Royal Palace, which you can admire for free from the outside. After that, wander through the Sabatini Gardens and along the newly built walkway to enjoy the freshly redesigned Plaza España square.

Head up Gran Vía, a bustling street filled with shops, theaters, and dining options. When you reach the end, take a left onto Calle Álcala (but be sure to glance right to see the impressive Metropolis Building) and proceed through Cibeles Square to marvel at the fountain and palace, then make your way to the Puerta de Álcala (one of the historic gates of Madrid) and into Retiro Park.

Free museum hours

Numerous museums in Madrid offer designated free entry times. These can last a whole day or just a few hours each week (typically in the afternoons) during which admission is complimentary. Arrive early, as these times can draw crowds and you may encounter lines.

El Rastro market

Madrid's renowned flea market takes place every Sunday. Browsing is free, but you’ll need to pay if you decide to make a purchase. Be prepared for large crowds, so it's wise to arrive early. It's advisable to leave valuables and large amounts of cash at home, as pickpockets are known to operate in this busy environment.

Budget-friendly tips for visiting Madrid

Menu del día

Numerous restaurants offer a special lunch menu during weekdays, featuring a selection of a starter, main course, dessert or coffee, and a drink (like beer, wine, water, or soda) for a set price, usually under $20. These meals are both tasty and a fantastic deal.

Discounts for students, seniors, and teachers

Many museums and attractions provide discounts for students, teachers, or seniors. Be sure to verify what form of identification is needed to take advantage of these reduced rates.

Complimentary tapas

The more authentic the bar, the greater your chances of receiving a free tapa with your drink order. As you move away from the main historic city center, the likelihood of enjoying a small complimentary dish alongside your drink increases.

Final Thoughts

While headlines about the cost of living can be alarming, it's still feasible to save money while traveling and make the most of your holidays. Some European destinations continue to offer excellent value, and Madrid stands out as a fantastic place to explore on a budget.